Talking Cents

Small business year end tax planning - looking forward

So often at this time of year we are approached by our clients and asked, "What can I do to minimise my tax this year?" Of course we would not be doing our job if we didn't do our utmost to advise our clients on the best strategies for that client.

Today I would implore you to not just seek out tax minimisation steps at the last minute and instead re-focus to having a tax minimisation strategy integrated into your overall business plan, so that there will really be no need to panic at the end of each financial year. This may mean meeting with your small business accountant at the start of the year for a forward focussed plan, rather than a reactionary, after the fact, worried about paying too much tax, plan. If you take this step, then not only will you be able to minimise your tax liabilities for the year ahead, but you should have an approximate idea of your obligations for the year and be able to plan your cash flow accordingly. Clearly, doing so will prevent so much of the stress that clients encounter when they are presented with unexpected/unplanned for tax bills.

For those of you who did not plan ahead for the current financial year we will analyse some last minute steps that can be taken to minimise your current income tax obligations. It's best to speak with your small business accountant earlier than later.