by Debbie Reed, Director
Every year, business owners resolve to be better organised when it comes to the financial management of their business. Yet year after year we are surprised by the sudden arrival of June 30. This year, turn good intentions into action. Planning now can minimise your tax, grow your wealth and allow you to enjoy calm convenience rather than the usual last-minute rush.
There are very good business and personal wealth reasons why you should turn your good intentions to plan into actions this year.
Taxation is complex, and in your particular situation it may be extremely complex. Naturally, completing complex tax assignments takes time physically, but it also requires time for careful consideration and collaboration with other professionals to deliver the best outcomes for you.
The greatest benefit of advance planning is that you are more likely to avoid unpleasant surprises come tax time while making the most of your legal entitlements. While your tax deductions can be flagged, so too can your tax liability, which gives you time to respond effectively. For example, by planning payment options and varying tax instalments, you may be able to meet your obligations without causing a cashflow crisis.
Making the time now to evaluate your year-to-date trading results will also send up flags: green flags that indicate opportunities you can capitalise upon, and red flags for areas that will need your attention. Matters of concern may also take time to rectify. Better to address them early than find them among those unpleasant surprises I mentioned earlier when it’s too late to act.
Here’s a further example of the benefits of planning. FBT returns are due on 31 March 2017. Your FBT position should be reviewed each year and getting it done without delay may allow benefits to be ‘cashed out’ which will minimise your liability and allow you to take advantage of any concessions and exemptions.
For you personally, tax planning in 2017 includes changes to the superannuation rules. I urge you to read David Buchanan’s article to find out how the new rules will affect you and what you need to do now to make the most of your opportunities before changes come into effect on July 1.
At DLA Partners we are committed to helping you achieve your goals. You will hear from us in due course, but you are always welcome to get in touch in the meantime so that we can provide personalised and well-considered planning support and advice. We can also discuss requirements, the information you need and timing of the work. Please call DLA Partners on 07 3863 9444 or email clientservices@dlapartners.com.au