End of financial year – things to do before 30 June

If you have not already done so, it is important to get your business in order and to tidy up your balance sheet by 30 June. This may seem like an obvious statement. A few hours of pain could ensure that you are not missing out on healthy tax deductions and will also provide you with great clarity for the financial year ahead.

Here are some areas to focus on:

• Superannuation contributions - now is the time to ensure you know your contribution limits and take advantage of potential concessions for your company by topping up contributions where appropriate.

• Trust distributions - if you are operating a business from a trust, it's time to think about income distributions which must be determined by 30 June.

• Investment tax break - did your business purchase assets before 31 December 2009? If so, you may be eligible for up to 50% deduction on the cost of eligible tangible assets (ie machinery, equipment, some motor vehicles).

• Don’t take a double hit on bad debts - if you have made your best effort to recover debts but have decided they are a lost cause, ensure those bad debts are written off your debtor’s ledger by 30 June. This will allow you to claim a tax deduction against them.

• Pre-pay expenses - certain expenses can be prepaid and claimed if you have some surplus cash and wish to reduce your tax bill.

Other areas to discuss with your accountant before 30 June are R&D Tax Credits, Export Market Development Grants, Unpaid Present Entitlements, Entrepreneurs' Tax Offsets and more.

Contact your accountant at Baker Affleck on (07) 5538 3088 or click here and we will contact you to arrange an appointment.