Talking Cents

Business accounting tax tips

As your small business accountants we are continuing our June series focusing on year end tax tips lets take a look at a few more strategies to make the most of current opportunities before its too late.

A simple strategy that always works is to prepay any expenses prior to 30 June to get an extra tax deduction. Any expenses that cover a twelve month period, such as most insurance policies or other subscriptions, fall perfectly into this area. By prepaying your insurance you get two years worth of tax deductions in the current financial year and may just beat any anticipated price rises.

For small business owners making a tax deductible superannuation contribution will almost always save you tax dollars. Provided you have the cash flow, most small business owners or self employed individuals will be able to contribute up to $25,000.00 this financial year. This limit does vary depending on your circumstances so seek professional advice before acting. With super funds only paying 15% income tax, great tax savings are available as long as you remember that the money you allocate to super cannot be accessed until retirement.

This weeks third and final year end tax tip is to carefully review any investment portfolios and look to poorly performing assets that may yield a capital loss and look at offloading them to offset against any other taxable capital gains you may have generated during the financial year.

There are many other steps small businesses and individuals can take at this time of year and it is always best to seek advice from your trusted advisor before acting as some circumstances may not apply to your situation. Conversely their may well be opportunities that you are not aware of that can benefit you greatly if you act now.

For any questions on anything mentioned above please contact us, your business accountants in Surry Hills.