Does your business have the right approach to tax planning?
If you're running a small business for the first time, figuring out your tax burden can be one of the most challenging aspects of the job. You may have done your own individual taxes many times, but handling tax matters for a budding organisation is an entirely new challenge.
There are ways to manage your tax obligations by creatively reorganising your financial plans.
It's not just about finding out how much you owe and paying it. There are also ways to manage your tax obligations by creatively reorganising your financial plans and adjusting the timing of certain transactions. If you've never done this before, the process can be daunting, but talking to the professionals is a great way of clearing things up.
Learning the fine art of tax planning
As you go about planning to pay your organisation's taxes, there are some elements you can control and others you can't. Payroll tax, for example, is relatively set – your employees are paid what they're paid, and you're going to be assessed a tax bill accordingly. But according to the Australian Taxation Office, there are ways to adjust your tax bill by planning your finances shrewdly.
For instance, if you're in the process of selling off assets, you can wait until the beginning of the next financial year to do so, thus delaying your tax obligations. Little strategic changes like this can go a long way toward improving your company's cash flow.
Taking advantage of existing writeoffs
Whenever you find opportunities to write off income and reduce your tax burden, it's probably wise to pounce on them. Anthill Online points out that one popular option in Australia is the instant asset writeoff, which allows companies to cut $20,000 from their taxable revenue if they spend it to purchase new equipment.
This exemption is only available for purchases made before June 30 of this year, however. Because the tax code is changing all the time and it's often tough to keep up, you may want to talk to chartered accountants about how you can adjust your financial strategies optimally.
Get invaluable advice from the pros
If you ever need assistance where tax services are concerned, you shouldn't hesitate to contact us at Wilson Porter. We have an in-depth knowledge of the tax code in Australia and know how to assess your business' health from a big-picture perspective.
If you have any questions about planning your taxes, or managing financial matters more broadly, we should talk. Our expert team will have plenty of insights to offer.