Pictured: Bruno Palermo, CA, Senior Adviser at Collins SBA
We understand that tax time can be a stressful period for business owners and individuals. Even more so for Lawyers given the unique and complex circumstances of their businesses. In our experience, taking proactive steps to get your financial house in order will help minimise any stress, save time and ensure compliance with laws and regulations.
Great foundations include:
(1) Maintain well-organised financial records.
(2) Maximise deductions of your profession like expenses relating to legal research, continuing education, legal publications and subscriptions and office expenses.
(3) Plan ahead for tax obligations and the implications like client billing, trust accounts, income classification and employee’s versus independent contractors.
(4) Stay compliant and up-to-date with changes in tax laws.
(5) Given the unique challenges faced by lawyers, engage with professional support.
Taking Care of Business:
(1) Expert assistance for discretionary trusts: annual distribution minutes made easier. Included understanding annual distribution minutes, the consequences of delaying, income streaming and frequency. Read more here >>>
(2) Do you need any upgrades at the office or an investment property? Pay for repairs and maintenance before the 30 June deadline.
(3) Ensure your employee superannuation payments reach the fund or the small business superannuation clearing house by 30 June to claim the deductions.
(4) Stock up on consumables as it’s time to replenish marketing materials, stationery, printing supplies and office and computer essentials for a tax deduction.
(5) Consider prepaying up to 12 months of expenses, including loan interest, rent and subscriptions before 30 June for a full tax deduction in the current financial year
(6) Organise a property depreciation report to claim the maximum amount of depreciation and building write-off deductions.
(7) Review your trade debtors listing and write off all bad debts before 30 June 2023. By listing each bad debt in a management meeting document, you can demonstrate that these amounts were written off prior to year-end. Don’t forget to enter them into your accounting systems to ensure a seamless tax planning process.
(8) Check out this practical guide on maximising tax deductions for energy efficient upgrades. The eligible assets or upgrades must be first used or installed ready for use between 1 July 2023 and 30 June 2024. Read more here >>>
(9) Change is on the horizon for business owners due to the recent federal budget announcement altering the frequency and timing of paying super for all employees. Like tax planning these changes may impact cashflow. Read more here >>>
(10) Have you checked if you are eligible to claim tax deduction on your income protection insurance? Read more here >>>
Let’s chat if you are feeling overwhelmed and would like professional support and advice regarding current or future planning – for you or your business.
Any advice in this content is of a general nature only and has not been tailored to your personal circumstances. Please seek personal advice prior to acting on this information.