The End is Nigh!!!
The End of the Financial Year, that is…
Call me to discuss your particular situation and we'll get some ideas that suit your business needs! 0437 336 574
Since it's almost June 30, here are some timely tips and reminders:
The small business concession instant asset write off has rules.
- It doesn't apply to all purchases, around the $20,000 area, it must be below $20,000. Oh, and it will be gone this time next year. If you were planning on purchasing a significant asset (up to $20,000) and you have the resources, consider doing it this week so that you can claim it in your 2016 tax return.
- If you claim use of your motor vehicle in your tax return, be sure to record the odometer reading at the end of Thursday. You should always be claiming use of your motor vehicle, it can be a significant claim.
Payments received in advance of work done?
- Has someone paid you unexpectedly? If you haven't earned the payment yet, and they've just paid you early to maximise their own tax deduction, don't worry. It's really a prepayment (unearned income) not on the profit and loss so doesn't get taken up into this year's profit figures. Likewise, if you have invoices going out to clients for July subscriptions, classify them as unearned income. You do have to do a journal in July to move them into income, but that's ok. Make sure your bookkeeper knows which transactions fall into this category.
- A contribution into your superannuation fund (if it's not at the limit)
- Get the car serviced
- Purchase some stationery (paper, toner) stocks
- Pay your July rent early
One MP I heard recently suggested that, if you have made a profit, then keep your cash to pay your tax 🙂
Of course you would have your tax savings planted in a high-yielding cash management account. But in all seriousness, we are not being asked to pay our taxes right now, just account for them. It's a little different, and something to be considered in decision-making.
Cheers, Valerie 0437 336 574