6 Things to Do Before End of Financial Year
End of Financial Year. It’s not just a time for furniture companies to get rid of floor stock or accountants to celebrate, it’s a time for you to take a look at your finances. You don’t want to be one of those poor suckers who owe money come tax time, do you? Think of all the things you could do with a juicy tax refund. You could pay off some more of your home loan, top up your super, upgrade your car or buy yourself a new handbag (a classic Caity move).
Let’s get financial!
First thing’s first – get your paperwork sorted. It’s important to know where you’re currently at before starting to tidy up loose ends. Sort out your invoices and receipts to get a rough idea of where you’re at. Remember, in order to claim anything back on your tax, you’ll need relevant records to support your transactions and claims.
If you’re a small business owner or freelancer, this is an important one. Take stock of all of the work you have coming up in the next few months and see when it can be billed now. If you have any outstanding invoices from contractors try and get them paid off before 30 June to boost your business expenses.
Speaking of boosting your expenses, here’s the fun part – go shopping! To minimise your tax debt, is there anything that can be bought or pre-paid before End of Financial Year? First up, find out what you can legally claim as a tax deduction (depending on the type of business you have). This might be the time to upgrade some office equipment or get that new laptop.
Buy a new car
In need of a new car? End of Financial Year is the perfect time to shop around. Manufacturers slash the prices of new cars and can provide you with some amazing deals. New car purchases can also benefit business owners looking to improve their tax return, so it’s worth shopping around to see what deals are on offer.
Donate to charity
Charity donations are tax deductible. You can use the donations to offset your tax debt or improve your refund. The best thing is that you’re also helping a worthy cause.
Add additional contributions to your super fund
Additional super repayments are a great way to reduce the amount of tax you pay. If you salary sacrifice a portion of your pre-tax income, you not only get more moula in your super, but you can also lower your tax bill. Be aware though, as there are annual contribution limits for this.
Whether you’re an entrepreneur or an intrapreneur, there are always going ways to help you come tax time. If you’re looking for help with your taxes this year, have a chat to some of the financially-savvy ladies in the Ask My Friend Jane Facebook group, we’ve got some super talented accountants in The Jane Community.
Do you have any other tips for End of Financial Year? Let us know in the comments below or over on the Ask My Friend Jane Facebook Group.