Year-Round Tax Planning: A Monthly Guide for Australian Businesses
Tax planning shouldn’t be limited to the end-of-financial-year (EOFY) rush. Proactive, year-round planning eases EOFY stress and could yield better tax results. Here’s a monthly breakdown to keep your business tax-smart all year.
1. January: Set Clear Goals
- Define your financial and tax targets. Make sure they align with your business plan.
- Tip: Use the ATO’s business plan template.
2. February: Check Your Records
- Audit how you store receipts and invoices. Consider digital upgrades if needed.
3. March: Stay Updated on Deductions
- Review what business expenses are deductible.
- Tip: Consult the ATO’s guide on deductions.
4. April: Review Super Contributions
- Check your superannuation contributions. Consider adding more if it’s tax-efficient.
5. May: Do a Pre-EOFY Tax Review
- Assess your tax position and strategize, like deferring income or pre-paying expenses.
6. June: Prepare for EOFY
- Be proactive to ensure nothing’s missed. Confirm all records and consult with your accountant.
7. July: Reflect and Adjust
- Look back at the past tax year’s outcomes. Identify what can be improved for next year.
8. August: Stay Informed on Tax Laws
- Familiarize yourself with any new tax regulations.
- Tip: Follow updates from the Tax Institute of Australia.
9. September: Reassess Your Business Structure
- Evaluate if your business structure still serves your tax needs as your business changes.
10. October: Check Tax Benefits
- Review tax offsets and incentives Australia offers.
- Tip: Browse the Business Australia website for updates.
11. November: Schedule Big Purchases
- Plan major investments; year-end buys might influence tax deductions.
12. December: Celebrate but Be Mindful
- Enjoy the festive season but keep track of business-related holiday expenses.
Always Consult Experts Monthly planning helps, but expert advice is invaluable. A tax advisor can offer personalized strategies.
- Tip: Find professionals on the Chartered Accountants Australia & New Zealand site.
Conclusion: Good tax planning is ongoing. By being consistent, you can lessen EOFY stress and potentially enhance your tax outcomes. And remember, professional guidance is always a good idea for nuanced tax issues.
