Whilst we are not yet at June, the financial year end can come in a rush.
Now is the time to ensure that you are well planned for when June 30 arrives. More than just tax time it can be a really good to time to review your personal financial situation.
This will ensure you maximise your current position, and start the next financial year with a bang.
Here are some of the issues you should be thinking about:
Talk to your accountant. There are some tax related matters that are based on a cash basis of accounting that cannot be completed post year end. Be sure to communicate your activities and know exactly what tax deductions you can claim.
You can help your accountant too by being pro-active and gather all of the documents they will need to prepare your tax returns on a cost effective and timely basis.
Ensure you are taking advantage of the opportunities that may be relevant for you across Superannuation or other investments. There may be tax changes each year that you need to be aware of that impact these decisions.
Review your “P&L” for the year. Verify your total income and check expenditure (there are now so many on-line tools to help you do this!). It is also a great time to review the results to create a Budget and/or some financial goals for the following year.
This is an excellent time to review your current mortgage and personal insurances. Make sure that they are still suitable for your needs.
For those operating a business there are additional considerations too, including the tax incentives for asset acquisitions. The time is also now (not July) for looking strategically at your business for the year ahead.
For your P&L Review, make sure you allocate some budget to pay yourself too. Setting up some direct debits from your business to mortgage repayments, investments or superannuation is a great way to do this.