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Top tips to help your business ride out EOFY

For the average Aussie, June 30 is just another date on the financial calendar. For business owners, it (unfortunately) involves a lot more than just contacting your tax agent. In fact, it can be overwhelming, stressful and headache-inducing! Let us reduce the pressure this end of financial year, with our list of tax-time priorities.

1. Organise all your key paperwork

In a perfect world you would be separating all your tax-relevant paperwork into specific folders throughout the year – receipts, supplier invoices, purchase orders, bank statements, donations, etc. But with most business owners being time-strapped 24/7, spending any additional hours on tax prep tends to fall by the wayside.

Don’t leave it to the last minute, though. Make sure in the months and weeks leading up to EOFY that you are at least gathering:

  • Sales and purchases receipts
  • Tax returns
  • Business activity statements (BAS)
  • Employee super contributions
  • GST returns
2. Calculate your deductions

To get the most out of your tax return, you’ll need to accurately calculate your deductions. Both cash and non-cash expenses are permitted, and may include things like depreciation of your business assets.

Speaking of assets, the instant asset write-off scheme has been extended for another year, so you may be eligible to make a claim on certain business assets. Just make sure you follow the ATO’s instructions and are able to claim.

3. Meet your super obligations

Businesses are obliged to meet all super guarantee obligations for their employees. For the 2021–22 financial year, the rate jumped up to 10% (from 9.5%) previously. A good incentive to take care of these payments now is that you can reap a tax deduction for all super contributions made by 30 June.

Also remember that the super contribution rate jumps up again next financial year, to 10.5% for 2022–23.

4. Plan for the financial year ahead

When you are caught up in the madness of tax season, it’s easy to forget about anything other than what’s happening right now. After all, if you are a business owner managing razor-thin margins, then you are probably trying to save as much as possible on your tax return.

But now is not the time to neglect your future. Look ahead to the next 12 months and think about ways you could make this process easier on yourself at the end of the next financial year. Could you put in place smart strategies today that will pay off tomorrow? That could be anything from setting up accounting software to automate tax and data collection, to speaking to a financial expert to help make your life easier.

Get expert advice

At Nero Financial, we understand that tax is usually a business owner’s least-favourite task. It’s not the reason why you got into business, and it’s certainly not what’s keeping you motivated for the future. If you are experiencing tax stress or need some cash flow support to help you out during a difficult period, our broker team can help.

“I haven’t met too many business owners who don’t audibly groan when they think about tax time,” says David Crook, Managing Director at Nero Financial. “It’s a significant chore on the to-do list and no one likes the prospect of a large tax bill. So reach out to your broker for support in not only preparing for June 30, but securing a tax relief loan. The right finance can take care of a number of things from your GST to PAYG commitments, just to give you the breathing room you need.”

If you are struggling with tax or simply need some financial support to get through the tax season, we can provide the solution. Contact Nero Financial today or call 1300 654 241 to find out how our team can help.