Top 7 tips to prepare for your tax appointment this EOFY

Lan Nguyen, Chartered Accountant

While everyone is getting ready for the end of financial marketing – individuals and small business owners need to take the time to do some tax planning to get ready for EOFY. It might seem like you have enough on your plate without the hassle of preparing documentation for your business or individual tax return for your accountant. The bottom line is there is only 4 weeks to close out your personal and business account for the financial year.

So while it’s tempting to put off your preparation efforts until after 30 June, there is no better time than now to secure a tax planning session with your accountant to put in last minute strategies to further reduce your taxable income.

Here are the top 7 tips to help you get your personal and business in order for this EOFY.

1. Review all necessary receipts and documentation now.

30 June deadline draws near, and the last thing you want is to stress out that you are missing receipts or documentation. So review your receipts and obtain a copy of the missing ones now to support your record keeping.

2. Review your financial positioning

Review your profit and loss, balance sheet for accuracy to ensure that your business and credit card bank accounts are fully reconciled and all transactions recorded accurately and completely. Make sure you review your loan interest for car hire purchase and business loans have been separated from your principal amount. Do a stock take of your floor stock and write off any obsolete stock. Check the integrity of accounts receivable and accounts payable and write off any uncollectable debts before 30 June 2014

3. Passing the Small Business Benchmark test for your industry

Review your financial numbers to ensure it meets the small business benchmark for your industry. If you need help with this, please watch our training video Small Business benchmark at www.successaccountingroup.com.au/resources/training videos available in June 2014

4. Maximise your deductions

A tax expert can help you with any opportunities of claiming a deduction eligible to your business and personal situation. Using an small business specialist accountant has its benefits as they would have the expertise and knowledge in helping small business claim all available deductions and concession which could only lead to a reduction to your taxable income and more cashflow to invest in property investment and your business.

5.Book your appointment for tax planning session.

With many simple to use accounting packages for recording keeping such as Xero, MYOB and QuickBooks, many business owners are preparing and lodging their own GST and business activity statements and even attempting to prepare the business tax return. That may make sense if your finances are relatively straightforward. However, if your business profit increased substantially during 2013, then your accountant can help you reduce your taxable income by implementing last minute strategies before 30 June 2014. A great accountant can steer you clear of penalties and other fees by making sure that you pay the correct amount of quarterly estimated taxes.

6. Implement Year End Tax Tips now

You have less than a few weeks to implement those last minute strategies before 30 June. To assist you we have prepared a training video of 16 DIY tax tips for you to implement in your business and personal situation before 30 June 2014. You can access of training videos by visiting our website at www.successaccountingroup.com.au.

7. Evaluate if you got the right team to help you

As part of your decision making, consider whether it would it be more profitable to spend the equivalent number of hours working on your own business seeing clients than preparing your tax return yourself.

Your accountant should also act as your trusted adviser – passionate about your success and actually help you get there! The rule of thumb is after speaking to your trusted advisor, you should feel inspired and are offered tips on building and growing your business.

If your accountant is not this person, perhaps it’s time to review your arrangement and speak to a Success Accountant that can help you.

Written by Lan Nguyen, Chartered Accountant and Wealth Adviser from Success Accounting Group.

Lan Nguyen is a Chartered Accountant with over 15 years experience in helping small businesses grow and build wealth. She is the founder of Success Accounting group located in Mentone and Springvale South, Victoria, a forward thinking chartered accountants practice providing accounting & tax solutions for small businesses under two million, Xero Training, income tax preparation and business start up advice and setup. Lan and her team of Success Accountants are passionate about inspiring and educating their clients on their journey of building their business and growing their wealth. They do so through online training videos, blogs, business and wealth growth tips.

 

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