Business owners, is tax planning top of mind this EOFY?
It should be — Carrick Aland’s tax planning strategies save business owners thousands, derisk their lives and help them manage cash flow.
Tax planning is more than just about knowing what tax you are due to pay for that financial year. It is a proactive opportunity to review your business and refresh your goals and objectives.
Part of the process is to touch base with you to check your plans for the future – are you looking to expand? Retire? Bring in new partners? Do you have new contracts that will generate higher revenue in the next 12 months? This enables us the opportunity to review your structure and determine if it is appropriate or if changes need to be made to provide you with better flexibility moving forward.
We review your income position and will advise you of possible scenarios that can improve your position, taking into account the cash flow impact of this advice and the longer-term consequences of the choices.
As a small business owner, it’s essential to have a solid tax planning strategy to ensure that you’re maximising your tax savings while complying with all relevant tax laws.
Tax planning involves analysing your financial situation to determine the most tax-efficient ways to manage your income, expenses and investments. Tax is a potential minefield so seek the expertise of qualified and proficient tax accountants who can advise you on Income Tax, Goods and Services Tax (GST), Fringe Benefits Tax (FBT), Capital Gains Tax (CGT), Payroll Tax and Stamp Duty.
There are several benefits to engaging in tax planning in the final quarter of the financial year.
First and foremost, tax planning allows you to reduce your tax liability. By taking advantage of deductions, credits and other strategies, you can significantly lower your tax bill. This frees up cash flow, which you can then reinvest in your business or use to pay down debt.
Another advantage is that tax planning helps you avoid costly mistakes. Small business owners who are unfamiliar with tax law may unintentionally make errors, leading to penalties, fines or, worse, audits. By working with a tax professional and developing a tax planning strategy, you can ensure that you’re complying with all relevant regulations, and therefore minimising any risk of costly mistakes.
Having the right business entity type can impact your tax position. For example, incorporating your business can provide you with certain tax advantages that you wouldn’t have as a sole proprietor.
Tax planning is an essential aspect of running a small business. It allows you to manage your tax liability, avoid costly mistakes and optimise cash flow. By working with a tax professional, you can develop a comprehensive tax strategy that helps you achieve your financial goals and grow your business. Whether you’re just starting out or have been in business for years, it’s never too late to plan and take advantage of the many benefits tax planning offers.
Getting the best result on your tax result should not cause be a stressful exercise. See how Carrick Aland helps take the pain out of small business tax compliance with our 7-step approach at carrickaland.com.au/business-tax.
From sole traders and partnership to trusts and companies, Carrick Aland has the experience to assist you to manage your tax affairs no matter what your circumstances. To book a detailed analysis of your tax position well ahead of 30 June, call our tax team in Dalby, Toowoomba or Chinchilla on 07 4669 9800.