Lack of planning and knowledge regarding current legislation mean that many businesses do not claim what they are entitled at the end of the financial year.
Businesses do themselves a disservice by placing themselves in a ‘reactionary’ position regarding tax assessments. Many also operate with out-dated knowledge regarding entitlements rather than seeking new knowledge and effectively forward planning and understanding their tax position as they would any other cost in their business.
Waiting until the end of the financial year to work through their tax means that many businesses find themselves in the unnecessary position of having left it too late to offset or defer their tax. Effective tax planning provides the best possible result for your business by ensuring that you have maximised the possibilities for your individual situation.
Another issue is a lack of understanding on up-to-date tax legislation.
Tax law can be confusing if it is not your core business. Understandably, being up-to-date with current legislation may not be a priority for many business owners, but it’s very important in a practical financial sense, as well as legally.
The issues that should be considered include deferral of income, the acceleration of deductions, and other tax effective planning initiatives.
Businesses begin assessing their annual financial results no later than March to be able to take advantage of new legislation that may benefit the business.
Knowing how much tax you will have to pay and when it will need to be paid will allow a business to plan cash flow through to the end of the financial year.
Businesses affected by 2011’s natural disasters to ensure that they are aware of any allowances and concessions that may exist for their compromised situations.
After what’s been such a devastating time for many people, it’s important that business owners are able to take advantage of measures put in place to offer some relief.
Proper planning can offset a number of standard end of ‘tax time’ issues, including a business struggling to pay creditors, employees of the business, and the business owner.
We will be hosting three seminars next month on tax planning and business strategies to minimise tax, including capital gains and superannuation.
Where: elliotts Boardroom, Level 11, 87 Wickham Terrace, Spring Hill
When: 5:30 – 7:30pm Tuesday 12 April, 2011 for Doctors
5:30 – 7:30pm Wednesday 13 April, 2011 for Lawyers
5:30 – 7:30pm Thursday 14 April, 2011 for all other industries
Read more about our Tax Planning Seminar.