Quarter 4 Tax Planning Tips
As we head towards the final quarter of the financial year, it’s not too late to reassess your financial position and make the necessary adaptations to ensure you maximise your tax return. Generating accurate and up-to-date insights on either your personal financial position, or that of our business, will allow for greater decisions made on the basis of facts and data, not rough estimations of where your finances will be positioned come June 30. Whilst our accounting and tax team can provide specialised and unbiased advice, take these tips on board and revise your tax strategy as the 2016/17 financial year draws to a close.
Analyse Your Current Position
First you need to accurately understand the performance and financial position of your person, or your business, in order to strategically plan for your final quarter. Prepare financial statements for internal use, including a profit loss statement and cash flow analysis, and identify whether your current financial flows will result in organisational objectives being met. Also consider where greater cost efficiencies can be achieved.
Forecast Your Final Quarter
Using projections determined from the previous three quarters of the year, and from previous financial years, undertake a financial forecast for your final quarter accounting for all income, expenses and changes in the values of assets. This will provide an accurate representation of position you or your company will be in come June 30, and will allow for greater accuracy in strategic decision making.
Make Sure Your Records are in Order
Save yourself the hassle of organising your records in the busiest time of the financial year, and get them in order now. This will also allow you to undertake an audit and ensure bookkeeping practices have been accurate and reliable in the year to date.
Learn About Tax Breaks and Deductions
Every financial year there are changes with regards to the lodgement of personal and business tax returns, and what you can and cannot claim as a deduction. Talk to our professionals to determine what deductions you or your business may qualify for, investigate the qualifying criteria and identify any changes to your activities will open the door for new deductibles.
Following your financial analysis, you may find that you or your business will fall into a higher tax bracket. Bringing expenses forward, and paying your accounts payable early or in advance could provide significant financial and tax benefits that will ultimately be more beneficial to your cash flow overall.
Seek Professional Advice
Learning about tax breaks and deductions, or preparing accurate financial forecasts may be a challenge. Talk to MW Lomax regarding your needs, who can guide you to the right specialised unit needed for expert advice.