The end of financial year or EFOY is when our financial year comes to a close in Australia. This is the time to reconcile accounts, record transactions, close the books and calculate financial performance for the year. This information is used for tax purposes and for preparing financial statements that will summarise the financial activity for the year.
Things to think about before the end of the financial year:
1. Taxable income: review your sources of income and ensure that all is accounted for. The goal is to avoid underpayment or overpayment of tax due.
2. Deductions: start considering your eligible deductions such as charitable donations, business expenses, and investment losses to reduce your taxable income.
3. Retirement contributions: consider contributing to your retirement plan to reduce your taxable income and save for the future.
4. Estate planning: review and update your will and related estate planning documents to ensure you assets are distributed as you need.
5. Budget review: evaluate your spending and income to ensure you are on track to meet your financial goals and make necessary adjustments
Let’s chat about your plans for EOFY or to chat about a tax planning strategy for you and your business.
All information provided is for informational and general purposes only, and shall not be relied upon as personal financial advice.