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Businesses – 30 June is Fast Approaching

The end of the financial year is fast approaching ad it’s time to start planning to prepare for your 2013 Income Tax Return. Now is a good time to start reviewing certain assets and liabilities owned by your business and consider what should be done prior to 30 June 2013. Some suggested areas for review are:

• Review your depreciable assets (capital allowances) register and write off or dispose of any assets no longer used. Examples of depreciable assets are computer equipment, office furniture (eg desks and chairs) and kitchen appliances.
• Carry out any repairs and maintenance required so you can recognise the deduction by 30 June
• Review receivables and see if any bad debts can be written off
• Negotiate with lenders to see if you can prepay some investment loan interest expenses prior to year-end
• Re-consider funding strategies for your business – end-of-year is a good time to consider whether you have the right debt funding in place
• Consider newly announced concessions from the recent May Budget. There maybe things you can do now to take advantage of these concessions in the next financial year. For example, do you need to dispose of assets prior to year end? Do you need to defer acquiring certain assets until after the new financial year begins?
• Talk to your tax adviser if you think you might incur tax losses this year and how you might be able to preserve those losses to apply against taxable income in future years.

Tip

See your accountant in relation to any of the above and for any end of year planning tips. Your accountant knows your business and is the best person to help you plan for the end of the 2012-13 tax year and for the start of the 2013-14 tax year.

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written by:

McKinley Plowman