Top tips for businesses this tax season – 2017
Have you completed the following ahead of the tax time 2017?
- For businesses its important you pay your super well in advance of June 30. If you pay it after then, or pay it close to the date and it doesn’t hit the fund before 30 June, your super will not be deductible until next year.
- All businesses carrying stock should be completing a proper stock take. This is an opportunity because it brings it front-of-mind that you should be considering write-off of obsolete, damaged or devalued stock.
- Bad debts should be reviewed and written off where appropriate. Why pay tax on accrued debts that will not ever be recovered?
- Bring forward any deductible expenditures as far as possible to secure deductions this year instead of in 17/18
For small business
Entities and sole trader type businesses – can you utilise the prepayment rules in your favour?
For business owners
Are you able to max out super contribution caps, or are you close to your contribution caps and in need of a check before 30 June to make sure you don’t get into difficulties?
Very important for all family trust entities, you must do trust distribution minutes before June 30. Oak Accountants clients will be corresponded with on this in early June.
Asset write off
If you are a small business and intend to use the $20,000 immediate asset write off, the measure was introduced in the 2015 budget to allow eligible entities to write off asset purchases instead of depreciating them conventionally.
This is scheduled to expire June 30, 2017 so if you intend to make asset purchases that would be subject to the rules you would do well to spend the money before June 30.
As many of our clients would be aware Oak Accountants is a big proponent of cloud based accounting solutions and in particular we frequently recommend Xero as one such solution to our small business clients. Oak has recently become a Silver level Xero partner and will be migrating more of our internal accounting software across over the next few months. Talk to us about Xero options today.
Written by Steve Harris, Managing Director, Oak Accountants.
DISCLAIMER: Oak Accountants is a professional practice with limited liability covered by a scheme approved under Professional Standards Legislation.
The contents of this newsletter constitute general advice only and may not apply to your situation and circumstances. You should consult with your accountant to discuss the particulars of your situation. This newsletter is confidential and is for the intended recipient only. It may be legally privileged. If you are not the intended recipient do not use or rely on this information. Access to this email by anyone other than the intended recipient is unauthorised. Please contact us on 03 9859 8791 and delete all copies of this email. If you do not want to receive any more emails from us please let us know by return email. Internet communications cannot be relied upon to be secure and as such we do not warrant that this email or any attachments are free from viruses or any corruptions. We do not accept liability for any loss or damage that may result from your receipt of this message or its attachments.