It’s May 2015 and with only 6 weeks to the end of financial year, what can you do to best prepare for the 30 June 2015 cut off date?
FIXED ASSETS - New 2015 budget announcements
There have been some positive changes for small business announced in the 2015 budget. It appears they will be become law so let’s discuss this. Before 7:30pm May 12, 2015 the asset threshold was $1,000. After this date it is $20,000. Any small business with turnover of less than $2,000,000 can purchase assets up to the value of $20,000 and get an immediate tax deduction for them rather than having to write them down over the following years.
Here are a few ideas:
- IT hardware such as desktop computers, printers, scanners and photocopiers, but not software.
- Office or shop furniture and fittings, such as new tables for a cafe.
- Display screens, kitchen equipment, signage and air conditioners.
- Work vehicles, such as a $19,999 Ute.
- Tradesmen’s tools and machinery.
- Plant and equipment.
- Sheds or storage containers for storing equipment.
Maximise your deductions
- Get the cars serviced.
- Replace the tyres.
- Pay the memberships fees and subscriptions (with all the cloud subscriptions considering prepaying them now for next year).
- Pay the insurance bills.
- Prepay your rent (consider negotiating a discount).
- Pay yourself additional wages and superannuation.
- Buy up your postage stamps.
- Print letterhead, with compliment slips and other printed stationery.
- Review your stock list and hold a ‘sale’ to move your obsolete and slow moving stock - get the cash back in the bank!
- Get a list of your assets from your accountant and highlight items that no longer exist, are obsolete or have been sold during the year.
- Write off value of stock that won’t sell.
To get a tax deduction the super must reach the bank account of the superannuation fund prior 30 June 2015. They need to finalise their reporting so you need to plan your super in order to get the deduction. Plan your final pay runs and calculate your super ahead and pay it at least 5 days prior to 30 June to reach the funds bank account. Plan for 24th or 25th June to release the payments.
- Plan to pay as many of these prior 30 June, also benefit with claiming the GST in your final Business Activity Statement.
- Get your receipts in for all the personal expenditure you have incurred for business expenses - receiptbank is brilliant for this! Call me to discuss this now!
Do you have any bad debts? Now is the time where you need to either chase your debtors for payment or decide to write them off by 30 June.
Home Office Expenses
A proportion of your rent, telephone, insurance and utilities can be deducted. You can only claim the expenses that relate to the area set aside for business. Work out the percentage of the work area, compared to the total floor area of the house. Then apply this percentage to the total house expenses.
If you are thinking of changing accounting packages, now is the time to make the move. With the New Year upon us, we can help you get setup for the 2015/16 financial year.
Let’s be clear about this, these are ideas and suggestions based on what I have seen business clients do over the many years I have been working in accounting and bookkeeping. Evaluate whether purchasing that new asset is affordable and monitor your cash flow to see if you can afford implementing these tax planning tips. Be sure to discuss these with your tax advisor to make sure that they will work for your business and your needs. Make wise decisions for your business and you will benefit!
Are you ready to hand over your bookkeeping tasks to a professional?
If you would like some help getting your financial paperwork up to date for the New Financial Year – get in touch with the team from Apple Business Consultancy. To find out more send us an email to: email@example.com and one of our consultants will be in touch or if you wish to speak to Katrina directly call mobile 0430 392 977.