By Rohan Dunsdon, Partner
Bentleys Queensland – Business Advisors & Accountants
Three tips to get your business ready for the end of this financial year, and off to a great start in the next one.
With the end-of-financial year looming, tax and business planning is quickly moving up the priority list for many.
This time of year can be a source of heightened stress for businesses, but there are some key steps that you can take now to ensure that you maximise your tax position for this year and get the new year off to the best possible start.
- Forecast your net profit to 30 June
Updating your budget and re-forecasting your business’s financial position at regular intervals is good practice year-round. It is particularly critical that you do this in the lead up to 30 June.
By re-assessing income sources for your business and identifying major expenditures – you can get a more accurate picture of your taxable income for the year. If your forecast is indicating a high profit position, you can work with your accountant now to put tax planning strategies in place.
- Look into primary producer tax concessions
In the October 2020 Federal Budget, a key focus was on tax concessions for businesses across the board. This has meant that there haven’t been any significant changes to the primary producer tax concessions for the past 18 months.
End-of-financial year is the key time for you to review the concessions available and identify those that will help you to smooth taxable income and manage your cashflow prior to tax time.
The most common concessions and tax planning tools available to primary producers are:
- Farm Management Deposits (FMDs)
- Income averaging
- Immediate deduction for capital expenditure relating to fences, water improvements and fodder storage assets
- Deductions for the decline in the value of horticultural plants
It is important to remember that these concessions have eligibility requirements, so you need to assess how they fit your business.
You can find out more about the primary producer concessions by speaking with your accountant, and on the ATO website: www.ato.gov.au/Business/Primary-producers
- Plan for where you want to be
The end of the financial year is a great opportunity to reflect and strategise on what you can do to strengthen your business moving forward.
Take the time now to consider key matters, such as:
- Does your broader structuring need to be reviewed?
- Is business succession or transition on the cards?
- Do you have the right financing arrangements in place?
The start of a new financial year is the best time to make any necessary changes at these levels so that reporting is easily managed, and all stakeholders can work towards a clear date.
Not sure where to start? Come along to the May Agribusiness Essentials webinars.
Join Rohan Dunsdon from Bentleys this month as he presents a series of webinars aimed at answering some of your key questions and providing you with handing tips and advice.
To register for these free webinars, visit: www.growcom.com.au/agribusiness-essentials
WEBINAR 1: Are you and your business ready for end-of-financial year?
1pm, Monday 24 May
Join us for tips on how to get tax ready.
WEBINAR 2: Growing or going? What’s next for your business?
1pm, Tuesday 25 May
Are you considering changes to the ownership or leadership of your business? What does your bank need to know about your succession plans? Come along to get the facts you need to start planning for your business succession.
WEBINAR 3: How does your cash flow?
1pm, Wednesday 26 May
Understanding your business’s outflows and inflows is essential. Attend this webinar for tips on how to master cashflow management in your business.
Rohan and the team at Bentleys offer essential advice and practical support that will help you get where you want to be.
Contact Rohan today for a no-obligation discussion.
07 3222 9726