End of Financial Year Planning Tips for Tax Ready Start-Ups
Business finances are always high on to-do lists for most business owners and entrepreneurs, especially when one financial year is coming to an end and the other is about to begin. During this important period it becomes imperative to keep an eye on the financial statements, cashflow, tax saving tips, and various other items related to accounting.
At this point of the year, even a small mistake can cause a loss of time and money. It is very important to plan carefully so that the next year is better financially than the last one.
Give tax some serious consideration
People who are just getting their start-ups off the ground tend to spend a lot of time planning how to bring more money into the business, but may not necessarily put enough thought into their legal and civic obligations at the other end. Anyone starting a new business ought to plan their tax strategies accordingly.
This is one area where you should definitely seek advice from an experienced professional.
Keeping track of your finances isn’t just for EOFY
Don’t leave it until tax season to start going over your business’s financial paperwork and trying to work out your cashflow. Make sure you put a reliable cashflow management and bookkeeping system in place early and keep on top of your books regularly.
If you spend a little time each day or even week keeping your books in shape, you won’t need to spend a huge amount of time (and stress!) getting them into shape at the end of the year. It’s always much easier to get the right information at the time than it is to go back and try to figure it out months after the fact.
This is one of the most important ways you can prepare for the end of financial year, and your accountant will definitely appreciate it.
Take the opportunity to take stock
Even with healthy-looking, well-kept books, the period leading up to the end of financial year offers an opportunity to carefully go over your financial records one more time to spot any patterns that might indicate issues you can fix or opportunities for the new year.
Preparing for the Tax Season
This is one of the most important things for any business and it is equally necessary for anyone running a start-up or new business to learn about taxes.
Regardless of whether you’re launching a larger, multi-staff operation or forging a path as a sole trader, it is important for every business to learn about the requirements of filing a tax return for a business.
The end of the year is a very hectic period for businesses. It is paramount to plan your taxes and file them on time. In addition to these tips, ensure that you’ve sought advice from a professional and you have a reliable bookkeeping solution in place for your business’s financial information.
In accordance with the Tax Agent Services Act 2009 (TASA) Cashflow Manager is not a registered entity and cannot provide taxation advice. You should consult with your accountant or other registered tax adviser for any queries relating to taxation matters.