EOFY - 5 Tips and Tricks - Money and Investing with Andrew Baxter
The end of the financial year is fast approaching and everyone will be bracing for their taxes to come out of what they have earned over the last 12 months. Join us in today’s podcast as we run through 5 tips and tricks to help you at tax time.
Contribute to Your Super
The limit on super contributions has
increased recently, so the first tip is to whack in the maximum if you
can afford to. As a deductible expense, you can get a tax deduction on
your super contributions, ultimately retaining more money in the long
run. In times like these where the economy is quite tricky, you need to
ensure that you are planning for retirement and preparing your super for
the future. The alternative for many is to pour the money into their
business to try and grow, which is all well and good so long as this
sets you up for retirement as well. In essence Host Andrew Baxter offers this suggestion – use your super to your advantage and set yourself up for the future.
Pre-Paying Your Obligations
If you have company expenses and company credit cards, they may be due sometime after June 30. Host Andrew Baxter’s suggestion
– consider paying it off in this tax year so you get the tax deduction
faster. Inflation only harms you if you delay paying off these
obligations because the money you can gain in deductions today is worth a
lot more than it will be worth next year. The best way to ensure this
is possible is to be organised and take the necessary action steps in
the days prior to and not leaving it down to the wire. Sometimes if you
try to cram in a transaction on June 30 you will find the transaction
does not clear until the next month, and as a result you will have to
wait a whole year for your next opportunity to capitalise on that tax
deduction.
Instant Asset Write-Offs
Being aware of what you are entitled
to write off come tax time is vitally important, but it’s not always
easy to understand what needs to be done. Though this is a challenge in
and of itself, the real challenge is finding good accountants to provide
accurate advice. Host Andrew Baxter suggests
really focusing on searching for a good accountant who is capable of
helping you. This does not mean finding someone who is going to suggest
cutting corners and acting shady, but someone who can decipher what you
are entitled to ensuring you don’t miss out. For a few examples, many
people often overlook that they can get a deduction on their tax bill
for their income protection. We all would benefit from solid
professional advice and doing so takes many risks and possible mistakes
off the table.
Hold Onto the Paperwork
This is a very simple one that is
often overlooked. Technology now offers simple solutions for doing this.
Companies like Xero provide the platform for you to simply download
digital statements that can be stored forever. No longer do we need an
archive box with thousands of documents so long as we keep everything
tidy and accessible. Once again, Host Andrew Baxter’s main advice – be organised in advance. In Andrew’s case,
as a financial services business owner, audits are always at the
forefront of a new financial year and he likes to be fully prepared
ahead of time so that he can get it out of the way and move on. One
particular piece of advice is to obtain the depreciation report on any
property you might have from a surveyor.
Get Organised
Like with anything, you will always
thank yourself for getting your ducks in a row ahead of time, and the
EOFY is no exception. Some parting advice from your Host Andrew Baxter –
get organised and find a good accountant to help you at tax time.
Although it mightn’t always lead to a huge saving, they all add up.
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