The financial year of June 30th 2021 will be a lot different when compared with the last years. Year-end tax planning is an important focus, and when there are numerous induced factors, this means the 2021 tax planning will be a lot different than last year. You can take up the small business advisory services if you want your tax planning to be a success. Doing so will help you make the right decisions during your tax planning.
Measures included for the financial year
There have been several measures that have been several measures that been featured for this 2021 financial year. These measures have a massive impact on the amount of money that is in your pocket and the tax impost on your business. To know what these features are, check below.
- There will be a full deduction for the cost of all the depreciating assets.
- Full deduction in cost for all the depreciating assets, which is less than $150,000.
- About 50% deduction on the depreciating assets, which are $150,000 or more.
- Small businesses will receive a deduction for June 30th 2020 from their depreciating assets pool.
- Granted access to numerous small business concessions, where the turnover is below $50-million.
- Companies that have experienced loss to a prior year will receive a cash refund.
How to prepare for the 2021 tax planning?
There are several ways through which you can prepare your tax planning for 2021. They are:
1. Try to negotiate the arrangements: Even though the COVID-19 pandemic has not completely died down, the majority of the businesses will accept or negotiate offers that will defer the business expenses. Just because these expenses are deferred it doesn’t mean they will be incurred in 2021. You must conduct proper analysis and make sure the all the expenses are claimed and deducted in the form of an allowable deduction for 2021 financial year. As a business owner, you must also review your finance and banking arrangements. Doing so will ensure that all payments and interests are included within the allowable deductions.
2. Plan the cash flow correctly: There are many businesses out there that experience lows and highs within their cash flows when they buy equipment and supplies for their business. They will also experience cash flows lows and highs when they collect payments or pay their employees. When the tax bills are pretty massive, it will hijack the cash flow, and put immense pressure on the household finances and business. For such reasons, you need to plan your cash flow properly. To do so, you can hire the professional small business accountants who making proper plans to manage the cash flow of your business. This will lessen your stress so that you can concentrate on other pressing matters.
3. Plan the payment dates: It will be a disaster if you miss out the tax payment dates. You will face a strain within your cash flow and a fine when the payments are not made on the given dates. You can take the help of a small business tax accountant who will plan out the right dates to make all your tax payments. Taking the help of an accountant will keep you on the safe side and prevent you from experiencing unnecessary expenses. The professional accountant for small business will schedule the payments ahead of time. Doing so will lessen your anxiety and will position you towards a steady success with no issues.
4. Make additional superannuation contributions: You can easily create a win-win situation when you lessen your taxes and increase your super balance at the same time. To do this, all you need to do is make some additional contribution to your super funds. Many individuals can adjust all the smaller budgets, which are compulsory for the additional contribution. After that, you will not miss out the extra cash and will enable your superannuation balance to grow with no error or interruption. You can also learn more about the superannuation contribution by taking the small business advice Perth from an experienced accountant.
5. Try to vary down the instalments: When you vary down your instalments, it will prevent you from overpaying your income taxes. You need to wait until your tax return is lodged so that you can obtain your cashback. When you have additional cash in your pocket, you can easily use to pay up other bills. Otherwise, you can also use the money to lessen your debts. You can take up the accounting services Perth and learn more on how to vary down the instalments. Doing so will help you have excellent control on your cash and get to even out your cash flow as well.
Tax planning is pretty important, and you need to make sure you follow all the steps correctly. There might be several changes in 2021 financial year, and the best way to update is by taking the help of a trusted accountant. It will help you prepare your tax accounting planning and avoid unwanted consequences.