Most individuals or business owners only see their accountant at tax time. Or perhaps when they need access to some figures for an application form. While tax returns are a specialty of ours, implementing a legitimate and effective tax planning strategy can see you reaching your financial goals sooner.
Whether for your personal investments or to find those hidden tax efficiencies in your business, the Modoras team are Australian tax planning experts ready to show you that achieving more is possible.
What is tax planning?
Tax planning shouldn’t be something that you start thinking about in the last few weeks of June.
If you do come to us for assistance around this time we will be sure to let you know about all the tax deductions you are entitled to and lodge your tax return in an accurate and timely fashion.
But the truth is we see tax planning as an all year event.
Tax planning is where individuals and businesses structure their affairs to legally reduce their tax liability and make savings. This can be achieved in a number of ways including:
- Implementing the right business structure to operate your business
- Utilising deductions and exemptions
Tax Planning Strategies
Successful tax planning strategies focus on three key areas:
- Reducing taxable income
- Increasing deductions
- Utilisation of the lower tax rates available.
Other common business tax planning strategies include:
- Reviewing and writing off bad debts
- Reviewing the timing of your invoices. Would it be better to invoice a job at the end of June in July?
- Revaluing your inventory
- Taking advantage of small business concessions
- Prepaying expenses for the next 12 months
Talk to the tax planning experts on the Modoras Accounting team about how we can help you capitalise your return.