If you have answered “NO” to the above, you have a problem that must be addressed and fixed.
Make it your priority for the next financial year 2017/18 to begin a structured record keeping process.
The moment you begin trading as a business, you are legally required to keep accurate records for all your business transactions.
This means using a cloud or software based system to record these transactions, and ensure they reconcile to your bank, petty cash and/or credit card statements.
This needs to be completed as at the 30th June 2017.
Once you count your stock, there are more than one way to account for it’s value. You are legally able to account for the cost of each item on a individual or group basis according to their lowest value. Here are some ideas as to how to do this.
If you are on an accrual basis you can write off bad debts.
Take a good look down your asset list or depreciation schedule.
What items do you no longer use, but still appear in the accounts?
Example : You have old machinery sitting in the shed you no longer use.
A. You can continue to depreciate them until they become zero
B. Write the entire balance off in this financial year.
This can also apply to fixtures / fittings, old machinery, computers and tools that you have either updated or replaced.
If you pay superannuation guarantee for yourself or employees on a quarterly basis, you may want to consider to pay the full amount of the SG before the 30th June 2017 to use it as a tax deduction in this financial year.
The company needs to commit to any director fees or bonus in the current financial year and is not required to physically pay them all by the 30th June 2017 to use them as a deduction..
Items like staff admenities, stationary, printing and other day to day consumables required to run a business can be pre-purchased and used as a tax deduction if paid for by the 30th June 2017.
Question : I’ve had a very profitable year, can I prepay any services to use as a deduction this financial year?
You can pre-pay up to 13 months in advance for services and claim them in this financial year.
Examples : Rent, lease repayments, advertising, monthly equipment hire etc…..
NOTE : Ensure that you have sufficient cash flow to continue paying all your expenses into the new financial year.
Depreciation Rulings you can use…
Have you or are you going to purchase a new car by 30th June 2017?
Items like a computer, machinery or equipment can be written off immediately up to $20,000 each.
(See ATO link below for more information https://www.ato.gov.au/Newsroom/smallbusiness/Lodging-and-paying/Get-your-$20,000-instant-asset-write-off/)
Superannuation remains at 9.5%
Temporary Budget Repair Levy Is no more
Medicare levy low-income threshold increased.
Car Limit 2017-18 is $57,581.
Luxury Car Tax Limit 1 July 2017 the luxury car tax threshold for luxury cars increased to $65,094.
Threshold for fuel efficient luxury cars for the 2017-18 financial year remains at $75,526.
The “cloud” technology of bank feeds are making financial reporting more “real time”, reducing cost and time.
This also makes it affordable for any small businesses to have a bookkeeper and keep accurate records.
This empowers the small business owner to be educated about their financials, plan their tax obligations and have strategies in place to improve their financial future.
With the improvements of technology and social media there has never been a better time to be in business.
Information is as easy as a click away, along with new opportunities and growth on a global scale.2017/18 year will in our opinion be a challenging year for business and consumers alike.
Ensure that you have accurate, real time record keeping processes in place, so that you have an enormous competitive “edge” over your competitors.
This information will also allow you as a business owner to change strategies quickly to realise new opportunities when they appear.
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$20,000 SBE concession 2017/2018 financial year
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PAYG Tax Tables
ATO Webinars for Small Business Owners
Are you Claiming GST credits correctly?
BAS Agent and Bookkeeping