Small business year end tax planning - looking backward
As mentioned last week, today we are going to outline some of the more obvious tax minimisation strategies that small business can successfully deploy in their business before the financial year closes. For a better strategy, read and re-read last week's blog.
So as we approach the end of financial year here is a short list of steps that can be taken to review your business financials with a view to tax minimisation.
· Prepay any insurance policies that are currently due to get a tax deduction up front now. This can also apply to other expenses as well, especially interest on loans.
· Review all debtors and discuss with your small business accountant about writing off uncollectable bad debts, so they are not included as taxable income.
· Superannuation contributions can be made up to 30 June 2011 for eligible businesses and self-employed people. Please seek further advise as to tax deductibility of payments before putting the money into your super fund.
· Where possible, you may be able to defer issuing invoices to customers until post 30 June.
· Review asset registers for obsolete assets that can be written off.
· Check your shelves/warehouse for old stock that can also be written off as wastage prior to 30 June.
These are just a few of the more basic steps that will apply to most small businesses. For more detailed advice about your situation make sure you speak to your small business accountant before 30 June. The best advice in the world is not going to help you if it comes after the event!