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Healthy habits for SME’s this new Financial Year to save time and tax Posted on July 15, 2022
One of our favourite sayings is: when the going gets tough, the tough get going. Never has it been more relevant for business owners everywhere. To get you going this new financial year, there are some simple things you can do to boost your business health, and save time and tax.
Many business owners avoid regular contact with their accountants because of the perceived expense, but it actually has the opposite effect. An accountant can take a holistic and diagnostic approach to your numbers so you can stop fretting about cashflow, peer above the parapet, and focus on growth drivers. More often than not, business owners started out with a vision of meeting a consumer’s needs and wants, not with a vision of scrutinising budget sheets and finance statements. Your accountant is like your personal trainer to your business health, keeping you on track with the fundamentals and motivating you to tackle improvement areas. Thankfully, contact with your accountant doesn’t have to be as frequent as with a personal trainer before you see results. The best advice schedule is unique to everyone as it can be based around business milestones or tax milestones. A good guide is to consider quarterly reviews, and additional reviews on an as-needs basis.
Cloud accounting software, state-of-the art security systems, and a transition to Single Touch Payroll (STP) Phase 2 is like the fruit and veg of business health. All of the efficiencies in optimal use of digital systems gives you intelligence and efficiency that nourishes your business.
The Labor government is considering whether and how to implement policy to support business digitisation announced in the May Federal Budget by the former Treasurer, with an increased deduction by 20% via the Small Business Technology Investment Boost and Small Business Skills and Training Boost. Stay tuned for more information about this.
Review your personal income structure
Phase 3 of the Liberal Government tax changes are set to be honoured by the new Labor government. These tax changes relate to income tax and significantly favour higher income earners. This means that the way companies and discretionary trusts distribute money could be structured in a way for maximum tax efficiency. From Financial Year 2024-2025, the tax rate will change from 32.5% to 30%, raising the upper threshold for the 30% tax bracket from $120,000 to $200,000, removing the 37% tax bracket and raising the 45% lower threshold from $180,000 to $200,000. You need to talk to us now about what options might be available specifically to you in order to save tax.
We recognise that the fast pace of change in business finance can be overwhelming and frustrating so we are absolutely willing to help. Please just contact us.
Additionally, we are hosting a complimentary business planning workshop on Wednesday 3 August. If you’re curious about some of the strategies we use to boost business growth, please join us. Register here: https://adviceco.com.au/the-u-factor-workshop/