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How your broker and accountant can work together ahead of EOFY

As we approach the end of the financial year (EOFY), business owners know it’s time to start preparing their taxes and other obligations. It’s often a stressful time, which is why it’s so important to get support wherever you can. While your broker and accountant (or bookkeeper) may seem like separate entities, they can actually work together to help you get the best outcomes at tax time. Here's how.

Take advantage of the instant asset write-off

A top business consideration with EOFY just around the corner is the instant asset write-off. The threshold for eligible businesses is a whopping $150,000, which means your operation can instantly write off the cost of certain equipment purchased for the business.

“An experienced broker can help you identify which assets are eligible for the write-off and help you finance the purchase if necessary,” says David Crook, Managing Director at Nero Financial. “Then your accountant or bookkeeper can help ensure you have all the right paperwork and that you're correctly claiming the write-off on your tax return. By working together, your broker and accountant can maximise the benefits of this very handy scheme.”

Organise your financial records

Another way that your broker and accountant can work together in the lead-up to EOFY is by organising your financial records. Your broker can make sure all of your commercial transactions are correctly recorded, while your accountant or bookkeeper can help you reconcile your accounts.

By working together, you can rest easy knowing your financial records are accurate and up to date. They can also help you identify any discrepancies or errors that may need to be fixed, which will ultimately make life easier when it’s time to submit your tax return.

Review your business structure

EOFY is arguably the best time of the year to review your business structure. If your organisation has grown or changed significantly over the previous 12 months, it might be time to tweak your business structure.

Your broker can help you identify areas to improve, while your accountant will clarify the tax implications of any proposed structural changes.

Forecast your tax obligations

Another way that your broker and accountant can work together at tax time is by forecasting your obligations. By reviewing your financial records and making some assumptions about your income and expenses for the year, they can help you estimate how much tax you'll need to pay.

Having this information ahead of time can help you plan for the future and make sure you have the necessary funds put aside to meet your tax obligations. Throughout this process they may also identify other tax-planning opportunities, such as making additional superannuation contributions.

Prepare for potential audits and reviews

Finally, both your broker and accountant can help you prepare for audits or reviews from the ATO, which may take place after you submit your tax return. Knowing that all your financial records are accurate and up to date, and that you're claiming all the deductions and write-offs you're entitled to, you can minimise the risk of an audit or review.

If an audit or review does take place, your broker and accountant can work together again to help you navigate the process and meet your obligations.

By taking a collaborative approach with both your broker and accountant (or bookkeeper), you can ensure that you're well prepared for EOFY and minimise your tax and financial risks. Get started today by contacting Nero Financial or call us on 1300 025 949.