It can all get a little overwhelming when it rolls around to tax time. Paying tax happens every year, without fail, so perhaps it is time to adopt a few small strategies to make the process a whole lot less stressful and more seamless. You may find yourself reaping some huge benefits as a result.
By thinking about your tax liabilities as early as possible, you are more able to align reality with your financial goals and make sure that you have enough cash flow to pay your taxes when they are due.
Just make sure that you don’t end up spending money on things you don’t need in order to get a tax deduction. Also, never let tax get in the way of a good deal. Keep these two tips in mind as we go through a few tax planning strategies for small businesses.
YBM recommends you speak to your accountant about how these strategies should be applied, given your particular situation.
Prepay some expenses.
You are able to deduct up to 12 months of the following year’s expenses in the current year
Accelerated depreciation measures.
Enjoy an immediate deduction for eligible assets, but just make sure you don’t buy things you don’t need in order to obtain these depreciation measures.
Superannuation contributions
Don’t forget to top up your super! You can contribute up to $27,500 per year and this can be increased if you didn’t meet this cap in prior years.
Review debtors
It is also a time to write off any unrecoverable amounts to save on tax
Hold off on some invoicing
If you’re able, postpone invoicing some clients until the beginning of the new financial year to save on tax
Home offices are common now
So don’t forget about the deductions you can enjoy by using your spare bedroom as an office. You can also include a portion of your rent, the power bill or the internet charges as well.
Rethink and adopt new changes
Take the time to look at old and inefficient strategies in order to improve processes for a better year ahead.
Getting help with a tax planner could allow you to feel more confident with your businesses finances. By having a chat with one of our specialised staff members here at YBM, we can support you with tax planning strategies that can make a huge difference to the efficiency of your business. Take charge of the growth of your business in 2022 and beyond with YBM. Contact us today!