5 Things to Discuss With Your Accountant and Act On Before 30th June

5 Things to Discuss With Your Accountant and Act On Before 30th June

The End of the Financial Year is just around the corner. In order to maximise your benefits, minimise your tax, and position your business for success in the new financial year there are some important things you need to take action on before June 30th.

The first step to accomplishing this is to make an appointment with your accountant to discuss your options. Even if your finances are relatively straightforward, a good accountant will ensure that you not only avoid penalties and fees, but also structure your payments, deductions and other aspects of your business effectively.

If you don’t already have a proactive accountant whom you trust then now is a good time to look for someone who will take a personal interest in your outcomes. In fact, if your current accountant hasn’t already contacted you in the past month and requested a meeting then you should probably be looking for a new accountant.

What Do You Need to Discuss With Your Accountant?

1. Maximising Tax Deductions: You can claim any items which are required for the ongoing operation of your business including plant and operating equipment, office equipment, computers, vehicles, premises and more. These need to be processed before June 30th and you should discuss your plans with your accountant so that he can advise you concerning the most advantageous timing of these purchases to balance your cashflow needs with your tax deductions.
Small business have an instant write-off of any equipment costing less than $20,000 until June 30th, 2017 so this could be an ideal time to upgrade your equipment if you have the available funds.

2. Structure Asset Purchases to Optimise Your Cashflow and Tax Benefits: Your accountant will probably ask you to bring your budget for the coming financial year to your meeting so that he can assess your planned expenses and determine when is the best time for you to put your planned investment or expenses through. For example, he may suggest that you reduce your tax liability for the current year by paying vehicle leases, loans, equipment hire and other known expenses before 30th June.

3. Review Insurances (Public Liability, Equipment, Income, Disability, Life etc.): Frequently purchasing these insurances through your Superannuation Fund brings tax concessions which are not available elsewhere. It makes sense to review these at least once a year to ensure that you are adequately protected should the need arise.

4. Check Your Eligibility for Small Business Tax Regime: If your turnover is under $2 million you should be eligible for a range of tax benefits including simplified depreciations schedule and Capital Gains Tax exemptions. As a small business owner you can often effectively eliminate your Capital Gains Tax obligation by contributing to your personal superannuation account if certain conditions are met. This can save you a substantial amount of tax and paperwork and your accountant can tell you if you are eligible.

5. ATO Regulation Requirements: If your business had more than 20 employees at June 30th 2015 your business will already be SuperStream compliant. Businesses with 19 or fewer employees have until June 30th this year to meet the new ATO superannuation and payroll requirements. Your accountant will check to ensure that everything is in order for your business.

Depending on your particular situation your accountant may have other items to discuss with you including your business structure, business succession plan, etc.

You don’t have much time left before June 30th to have this discussion and take action so schedule your appointment as soon as possible. If you haven’t already done this, this is your first priority. In our next blog we’ll look at how to confirm that your accounts and records are in order and discuss various other tasks you need to take care of to prepare your business for the end of the financial year.

Cloud CFO provides customised CFO and accounting services to small and medium businesses who want to outsource some or all of their financial management. If you are not sure about your bookkeeping and tax obligations there is still time to talk to us before the end of the financial year.

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