Business owners should be taking the time to review the business management accounts a few months prior to 30 June 2014.
This is best done with a tax advisor as they can help to identify tax areas and opportunities that may require further consideration.
A few key areas that need to be reviewed prior to year end include:
Business owners should consider the salary they are receiving. Owners should review the overall position of their business with the view of increasing or decreasing their personal salary accordingly. Owners may often find that there is an added cost in paying a larger salary to themselves, especially if it is not necessary
Estimated tax position
Owners should calculate the estimated tax position for the year. This will assist with the year end planning and budgeting.
If the estimated tax payable is lower than anticipated, it is a good idea to consider varying the entity’s June business activity statement to lower the final PAYG instalment payment for the year.
Owners should also consider additional superannuation contributions, prepayment of expenses, deferral of income and writing off assets.