All too often, tax planning is left to the last minute, which makes it difficult to effectively reduce your potential tax bill!
Tax planning can have some great benefits for any business, large or small. It involves evaluating the business’s current financial situation, estimating probable profit or loss for the end of the financial year, and drawing up strategies to minimise tax while maximising the value of the business. Following are some objectives of effective tax planning:
- Save tax. The main objective in tax planning is to reduce the amount of tax your business pays by implementing various planning strategies.
- More to invest –By knowing your tax liabilities, you can reinvest funds that would otherwise have been earmarked for tax back into your business.
- Strategise – Tax planning is a great opportunity to look at the options open to your business and fine-tune its strategies moving forward.
- Start early – The earlier in the financial year that you start, the more strategies that you can put in place to maximise the effects of your tax planning.
- Get a head start – For those businesses operating from a trust, tax planning provides a close estimate of the trust distribution minutes well ahead of time, saving you from needing to rush to make a decision.
- Get confident – Working through our process of tax planning allows business owners to increase their knowledge about compliance and how it works, learn strategies for minimising tax, and take a more hands-on role in the overall management of their business.
- See the big picture – Tax planning provides some great insights into a business that allow its owners to assess the larger situation: whether the structure of the business needs to change; understand where operations are occurring; get a sense of the potential profit areas currently untapped or underexplored; find new investment options and decide how best to structure those investments.
- Superannuation optimisation – Tax planning offers a chance to look at your superannuation strategies and make them as effective as possible, with a range of options like maximising deductible contributions and self-managed super funds to consider.
- Peace of mind –Eliminate unnecessary stress and uncertainty by knowing just what your business’s tax liability will be and make business decisions from a firm, stable, factual base.
Don’t leave it until the last minute and miss out on potential tax savings.
Call us now on 5446 2422 to book an appointment with Karina to discuss the potential tax saving opportunities for your business.