Tax planning is the process of developing and implementing a tax plan to minimise the amount of tax payable for businesses and individuals.
It typically takes place towards the end of a financial year and involves a strategy determined by an accountant.
Tax strategies vary from business owners to individuals and;
Different methods may be applied including, eligible deductions, offsets and other incentives. Superannuation contributions can also be used as part of a tax plan for individuals, allowing them to reduce their taxable income and increase their overall savings.
Partnering with an informed public accountant, like a CPA, means they are generally invested in their professional development and keeping up to date about current tax regulation. Businesses and individuals can take full advantage of available strategies to minimise tax payable each financial year.
Tax planning is an important tool that businesses and individuals can use to ensure they are not paying more tax than necessary while achieving their financial goals.
Business advisory plays a vital role in the effective management of a business.
One of its key advantages is the potential for reducing the amount of tax liabilities at the end of the financial year.
When planning for taxes, it is important to consider your business structure and how this may affect your tax obligations. For example, setting up a family trust or a company can offer certain deductions or allow you to access a lower corporate tax rate.
A business advisory service will provide you with advice on these matters and help you to create an effective tax plan. Professional advisors are able to provide expert advice on structuring your business for more flexibility and better asset protection.
Business advisors are key when it comes to making sure your business is structured in a way that minimises your tax liability.
Annual tax planning is an important activity to take part in to ensure the most effective tax strategies are being used.
Through a tax plan, strategies to consider include reducing the current tax liability and optimise their cash flow.
A well thought out plan can help identify areas of opportunity that can generate a higher return on investment, while still minimising their tax liability. During a planning session, the business or individual will review their current financial situation and craft a strategy that balances their financial goals with available legal deductions and tax concessions.
Depending on the business structure, there may be available capital gains tax discounts or accelerated methods of depreciation.
The main benefit of annual tax planning is the ability to proactively prepare for taxes instead of waiting until it is 30 June - which is end of the financial year and can sometimes be too late.
With a qualified CPA tax accountant and business advisor, a proactive process involving tax planning strategies allows for both personal and business to take advantage and better manage their cash flow, minimise your tax, all sorted prior to 30 June.
Are you ready to speak to a business adviser?
If you're looking to start or grow your business, working with a business advisory firm can be beneficial.
A business adviser can provide valuable insights and help develop a strategy and plan to ensure that your business is successful. They are knowledgeable in all aspects of running a successful business from creating effective marketing plans, developing financial strategies, legal tax deductions and understanding customer needs.
Effective tax planning is finding the right balance investing in your business to fuel growth; and managing cash flow to meet current and future operational expenses, and tax obligations. Identify opportunities to maximise profit and possible deductible business investments in to an action plan.
Assuris FIG business advisors have knowledge of the current market trends and are able to identify opportunities and areas for improvement within your business. Creating an action plan to help achieving your goals and objectives.
Unlock your potential for success and ensure that you are compliant with the Australian Taxation Office's (ATO) requirements.
Tax planning strategies are an important part of running a successful business.
Tax planning involves anticipating and planning for the tax implications of business decisions, taking advantage of available deductions, and ensuring that the business pays its tax obligations.
It is vital to have an up-to-date tax plan that is tailored to a business’s current circumstances. Business advisors can help develop a tax plan for businesses by considering issues such as superannuation contributions, capital gains tax, and other deductions.
Additionally, it is beneficial to review the company’s current tax bill at least once a financial year to anticipate against your spending budget and decide if it is appropriate to invest more into your business.
Overall, effective tax planning strategies can help a business minimise its overall liabilities while still fulfilling its tax obligations as required by law.