Year-To-Date Review
A year-to-date review will provide you with the information you need to take advantage of any opportunities available in the current year, and deal with any potential issues before they get out of hand. Some questions you should be asking yourself are:
- How has your business responded to external pressures such as inflation?
- Have you been able to pass on cost increases and maintain your margins?
- Have you been able to adapt or diversify to find different revenue streams?
- Is your current business performance in line with your expectations? If not, why not?
- Are you seeing large fluctuations from month to month? What is causing these?
- How does this year’s performance compare to last year? Look at revenue, margins, profitability and cash flow.
- What is your current financial position?
- Is your current business structure working for you?
- Are your assets protected?
- Do you hold adequate insurance coverage?
- Do you need to improve efficiency in any internal business processes?
- Are your investments providing the returns you were hoping for?
- Are there any business or investment opportunities you are interested in pursuing?
Managing Your Tax Liability
Hopefully you are seeing some positive results from all your hard work and resilience. However, great results come with a cost: tax. To minimise your tax burden, it is important to implement strategies prior to 30 June, before it’s too late. Some examples of ways to manage your tax liability include:
- Taking advantage of the current temporary full expensing regime in relation to asset purchases
- Taking advantage of the Small Business Technology Investment Boost and Small Business Skills and Training Boost (draft legislation currently before parliament)
- Reviewing your ledger for potential unrecoverable debts or obsolete items of equipment to be written off
- Reviewing your inventory for any obsolete stock and completing a stocktake if necessary
- Maximising dividend payments to utilise available tax-free thresholds and low marginal rates
- Reviewing the remuneration packages of directors to ensure they are tax effective
- Utilising structures to be tax effective and to protect your assets
- Maximising superannuation contributions and deductions
- Ensuring compliance with Division 7A in relation to directors loan accounts and unpaid present entitlements
- Processing any required employee FBT contributions, to minimise or negate any potential Fringe Benefits Tax liability
- If in pension phase, withdrawing your minimum pension from your superfund, to ensure the earnings remain tax-free
Our team at BLG Business Advisers are Wollongong Accountants who are on hand to help you implement relevant strategies and plan for the cash flow impact of any upcoming tax liabilities. We're here with ongoing support to off advice on your EOFY review and tackle whatever the new financial year throws your way. If you already have a trusted business adviser, make sure you meet with them prior to 30 June so that any necessary action can be taken before year end.
To gain clear advice and direction take some time to talk with us, and you can decide if we are what you are looking for.
Wishing you every success!
*Please note that the above information is general advice only. We recommend you seek advice from a specialist relevant to your personal situation. This information is relevant at the time of publishing and is subject to change*