Now that we’re counting down the weeks to 30 June it’s time to turn your attention to year end planning.
There are many benefits associated with lifting your head a little higher to forecast out how your year is likely to wrap up. The benefits are twofold:
1. There’s power in knowing
When you know your likely income and tax position you have time to:
- Consider a variety of strategies to compliment your forecasted profit and loss situation
- Implement these well considered strategies
- Provision for your estimated tax obligation
2. There’s confidence in planning
When you know your likely income and tax position you can confidently plan to:
- Make longer term changes like add additional staff or invest in marketing that will pay off in the next financial year
- Make asset investments that will generate revenue in next financial year
- Maximise your contributions to superannuation for long term tax effective wealth creation
Year end planning in May is a great first step for all business owners, however great business operators take it further than this. They follow up with budgets and forecasts for the year ahead in July. These can be used to perform what-if scenarios to help with quantifying the benefits of future opportunities and importantly to keep the business on track to achieve profit growth.
While the detail is yet to be released, the Government has indicated that companies which operate ‘small businesses’ will receive a 1.5% tax cut (down to 28.5%) from 1 July 2015. This provides even more incentive for effective tax planning this year. The definition of ‘small’ for this purpose is yet to be announced and we expect this detail will come through in the May Federal Budget.
Hanrick Curran’s Federal Budget Update and 2015 tax planning guide will be issued following the Federal Budget, look out for our special Federal Budget Bulletin for these details. Our specialists will cut through the complexity at our Pre and Post Update event on the 20th May, secure your seat here.
Hanrick Curran can assist you to realise the benefits of year end planning in 2015 and support you to keep your business on track to achieve profit growth in 2016. Contact your usual Hanrick Curran adviser to book your year end planning meeting or contact one of our business advisory specialists, Matthew Beasley, Jamie Towers, Tim Taylor or Tony Hunt on 07 3218 3900 for a consultation.