The end of the financial year is coming and it’s time to start thinking about your 2016 Income Tax Return. Now is a good time to start reviewing certain assets and liabilities owned by your business and consider if there is anything you should do prior to 30 June 2016 rolling around.
- Is there any income you are due to derive that you may not have to recognise until next financial year?
- Are there any repairs and maintenance you should carry out prior to 30 June 2016 so you can claim the deduction in your 2016 return?
- Are there any bad debts to write off out of your receivables?
- Are there any recently announced measures in the May 2016-17 Federal Budget you should talk to your tax adviser about?
- If you have an outstanding investment loan, see if you can prepay some of the interest prior to 30 June 2016 (you will need to speak to your lender).
- Are there purchases or disposals of assets you should make prior to the next financial year starting?
- Review your depreciable assets (capital allowances) register and write off or dispose of any assets no longer used e.g. assets used in your business such as computer equipment, office furniture (e.g. desks and chairs) and kitchen appliances.
It is also a good time to review things that you think about at the time you put them in place but don’t otherwise turn your mind to – e.g. do you have the right mix of debt and equity funding for your business to carry you through to the next financial year.
To do! We are the best people to help you with these decisions. As your tax advisers we know your business and have experience with other businesses similar to yours, we are able to offer you sound advice about how to best prepare your business for the start of the 2016-17 financial year.