As June 30 rapidly approaches, it’s time for businesses in Shepparton and across Victoria and Sydney, to focus on Tax Time 2024/25. At Plus 1 Group, we understand this period is far more than just meeting ATO deadlines. It’s a crucial opportunity to not only ensure compliance but also to strategically optimise your financial position and lay strong foundations for future growth.
Why Proactive Tax Preparation Matters for Your Business
Many business owners view Tax Time as a necessary chore, a simple compliance exercise. However, with the right approach, it becomes a powerful strategic tool. Delaying preparation until the last minute can lead to rushed decisions, overlooked deductions, and even costly errors or penalties from the Australian Taxation Office (ATO). More importantly, it means missing the chance to leverage your financial data for future growth.
Engaging with your Plus 1 Group accountant early allows you to look beyond mere compliance. It offers the opportunity to understand your financial performance, identify areas for improvement, and implement strategies that can genuinely reduce your tax liability for the current year and set you up for success in the next. It’s about converting complex financial information into actionable insights that benefit your bottom line.
Key Areas for Business Preparation for Tax Time 2024/25
To ensure your business is in the best possible shape for the end of the financial year, focus on these critical areas:
- Record-Keeping: The foundation of sound tax preparation is accurate and complete records. Ensure all your income, expenses, invoices, receipts, and bank statements are meticulously organised and up-to-date. Utilising cloud-based accounting software can streamline this process significantly, providing real-time data and making year-end reconciliation much smoother. Remember, if it’s not recorded, it can’t be claimed!
- Asset Management & Depreciation: Review your fixed asset register. Have you purchased any new assets this financial year? For eligible small businesses, the $20,000 instant asset write-off has been extended until 30 June 2025. This means you can immediately deduct the full cost of eligible assets costing less than $20,000 (per asset) that are installed and ready for use by the end of the financial year. Don’t forget to consider disposing of any obsolete or unused assets, as this can also trigger a deduction for their remaining written-down value.
- GST & BAS Reconciliation: Ensure all your Business Activity Statements (BAS) for the 2024/25 financial year are lodged and reconciled accurately. This includes reviewing your Goods and Services Tax (GST) collected and paid, Pay As You Go (PAYG) withholding, and PAYG instalments. Accurate BAS lodgements throughout the year make your annual income tax return significantly simpler and reduce the risk of ATO scrutiny.
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Payroll & Superannuation Compliance: With Single Touch Payroll (STP) now a standard, ensure all your payroll reporting is up-to-date. Crucially, to claim a tax deduction for superannuation contributions in the 2024/25 financial year, contributions for the June quarter must be paid and received by the employee’s super fund on or before 30 June 2025. Don’t leave this until the last minute, as processing delays can mean missing the deduction for this financial year. The Superannuation Guarantee (SG) rate also increased to 11.5% from 1 July 2024, so confirm your payroll system reflects this.
- Proactive Tax Planning Strategies: This is where working with a dedicated accountant like Plus 1 Group truly pays off. Beyond just basic compliance, consider opportunities like prepaying expenses (for services to be provided within 12 months), writing off genuine bad debts, or reviewing your inventory valuation. For trusts, ensuring distribution resolutions are made by 30 June is critical to avoid default tax assessments. A strategic tax planning meeting with Plus 1 Group can help identify these tailored opportunities for your specific business structure and goals.
Partnering with Plus 1 Group for a Smooth Tax Time
At Plus 1 Group, we’re more than just number crunchers, we’re your trusted accountants in Shepparton, Victoria and Sydney. Our expertise in Business Accounting means we understand the unique challenges and opportunities faced by local enterprises. We provide tailored advice, meticulous preparation, and proactive strategies to ensure your business navigates Tax Time 2024/25 with confidence and achieves the best possible outcome. Let us take the complexity out of your financial obligations, so you can focus on what you do best – running and growing your business.
Don’t let Tax Time catch you off guard. Contact Plus 1 Group today for a consultation and discover how expert business accounting can empower your business for this financial year and beyond.
Email or Contact our friendly team at Plus 1 Group on (03) 5833 3000 and we’d be happy to answer your questions and book an appointment to discuss your tax.
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