END OF FINANCIAL YEAR TAX PLANNING

With 30 June 2018 just one month away, small businesses should be giving some consideration to year-end tax planning:

Write off bad debts: if you have debtors, that have been previously recognised as income, that you now know are not collectible, writing them off will enable a deduction to be recognised.

Consider pre-paying some expenses: If cashflow allows, prepaying some expenses like rent, insurance and office supplies for a period of up to twelve months provides an immediate deduction.

Review inventory: a physical stocktake should be conducted to quantify and value inventory. Slow moving, damaged and obsolete stock must be written off prior to 30 June to claim a tax deduction.

Pay superannuation: SGC for employees must be paid before 30 June 2018 to receive a tax deduction for the business in the 2018 year.

Below is an ATO link regarding general tax planning and strategies to avoid getting in trouble with the ATO:

https://www.ato.gov.au/General/Tax-planning/

Please contact Fiona Cook, Andrew Marshall or Janine Orpwood at Langley McKimmie Chartered Accountants on (03) 5427 8100 to discuss further.

We provide accounting and wealth management services to clients in Woodend, Gisborne and Macedon Ranges areas within Victoria Australia.