Post | Fairlane Partners

EOFY checklist

Fp Editors Posted on 01 Jun 2023

Here are six ways in our EOFY checklist to potentially reduce your small business’s tax liabilities at the end of the financial year.

At a glance: Here’s a snapshot of the advice from our interviewees:

Getting tax-smart begins with keeping on top of your expenses and writing off any bad debt that won’t go away.
Consider using investment accounts to reduce taxable income.
Asset management software can help increase productivity and cut costs.
An accountant can help make sure you’re taking advantage of all the tax laws that apply to your small business.

EOFY is fast approaching, which means it’s critical to get across your business’s finances and start the new financial year with the right foot forward. That could mean using cash flow management tools to streamline your business, calculating your working capital or learning how to open a business account to simplify financial management. It’s also the time to make sure you’re not paying more tax than you should. In this EOFY checklist, two tax advisors have shared their tips for minimising tax liabilities at EOFY.

1. Track your expenses

Like so many things in small business, being tax-smart means keeping an eye on all the small things that add up.“One of the best ways to minimise your tax liability is to keep track of all of your business expenses throughout the year,” says Davie Mach, Director and Client Manager at Box Advisory Services. “This includes things like office supplies, travel costs and any other expenses that are necessary for running your business.“

By keeping more meticulous records, you will be able to deduct a significant amount from your taxes come tax season.”It’s never too late to start tracking your expenses. You’ll get the benefit of the rest of the financial year’s expenses and develop a good habit for the next financial year.

2. Write off bad debts

Occasionally, customers may accrue debt to your business they are unlikely to pay. Greg Mawer, Director at Accumulate, recommends writing off these ‘bad debts’ prior to 30 June to avoid increased tax liability.“ To do this effectively, you need to include the original income in your tax return, determine the debt is made...

The information on this website is provided for general information only and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from financial, legal and taxation advisers. Although every effort has been made to verify the accuracy of the information, we disclaim all liability (except for any liability which by law cannot be excluded), for any error, inaccuracy, or omission from the information or any loss or damage suffered by any person directly or indirectly through relying on this information.