Tax Planning Time is Upon Us – Let Us Help You Save Some Tax!

As the end of the Financial Year approaches, you may begin thinking about the tax bill that could be coming your way. At Lawrence, we make it our mission to help you keep this to the legal minimum in whatever way we can.

What is Tax Planning?

 In the last few months of the financial year, we have a general idea of how your business has performed so far by simply reviewing your Xero/MYOB or other bookkeeping software. By liaising with the business owner/management, we can also make a reasonably accurate estimate of the final few months of the year, and as a result can estimate the amount of tax you are going to pay.

After we know that, it’s all about looking for opportunities and strategies we can implement before 30^th June to reduce your tax bill – and the suggestions can include:

• Superannuation Contributions
• Optimising Profit Distributions
• Directors Bonuses’
• Entity Re-Structure’s
• Ensuring all compliance issues are dealt with to minimise risks (Division 7A Loans etc)

Why is it Important?

1. First and Foremost – it will save you tax!!! Without a doubt, Tax Planning is the most valuable opportunity you have to add value you to your business, and we strongly recommend businesses of all sizes engage us to assist with this.
2. Compliance – because some boxes just need to be ticked! For those businesses operating via a trust, Tax Planning gives us an opportunity to prepare the trust minutes in accordance with the best tax outcome for your business. The ATO has recently confirmed that these resolutions must be done and signed prior to 30^th June each year in order for them to be valid. They have also been ringing some clients to check this has been the case. Companies often need to have loan minutes and agreements done before the end of the financial year too – so they aren’t exempt either. Tax planning ensures we accurately prepare these minutes in accordance with the best outcome for your tax position.
3. Gear your Business for Growth. As part of the tax planning process, we meet with all of our clients face to face to discuss the outcome and how to implement our suggestions. Even though we are always available to discuss your business, the meeting also gives our clients the chance to discuss with their accountant face to face the future of the business and any opportunities that are on the horizon. Our experienced team can then factor in the plans for the business to ensure that the business is geared to take on the new opportunities. Gone are the days of having only one meeting with your accountant each year, and Tax Planning helps gear the business for growth.

What You Need to do to Take Advantage of Tax Planning

If you are a Lawrence client, your Accountant will be in touch with you soon to chat about getting your tax planning started.

If you are not a Lawrence Client – please feel free to contact me or one of my colleagues for a complimentary consultation to see how we can assist with your tax planning or any tax and accounting related enquiry.

– Niall Murray, Accountant

This article is general information only. It does not give business, accounting, taxation, financial planning or other professional advice or service. It does not consider your specific situation, objectives or needs and if personal advice is required, a detailed analysis of your particular circumstances would need to be sought. Please see our Privacy and Disclaimers page for further information.