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How to build wealth, value and business mindfulness through tax planning

Do you assess your tax position well before the end of financial year? If you don’t you are missing out on a great opportunity to reduce your tax liability, add value to your business and generally have a better understanding of your business’s situation.

Better business owners that want to grow their business take the opportunity to add value to their business through tax planning sessions. Many of our clients receive a tax planning session each year after they have completed their third quarter bookkeeping entries.

What is a tax planning session?

We start to review our clients’ current financial positions around this time each year. We will assess their current financial figures and give consideration to their expected profitability and expenses for the final quarter.

Based on what we find, we can make an estimate on the general expected profit or loss for the group, make adjustments for year-end items and arrive at the taxable position of the business. From this we can draw up various scenarios of what tax will look like if different strategies are applied to reduce tax. Of course strategies need to be implemented and in place by 30 June to affect the taxable position of the business.

Tax planning provides options. Not everyone has the cash flow to implement options, but we provide as many options as possible.

Part of the tax planning strategy is also wealth and value creation because many strategies will not only reduce taxable income but also increase assets, interest and/or superannuation etc. It is a great way to growing your value while reducing your tax liability.

How much does tax planning cost?

Our tax planning fees are anywhere from $300-800, however the average savings is around $7,000. So they are extremely worthwhile, especially if your business is in a positive position.

Why is tax planning important?

Most small business owners find tax planning to be a very important process to go through because:

  1. They benefit from tax savings
  2. They are able to build wealth and create value
  3. Many get a big surprise that this can actually be done
  4. It makes business owners more thought orientated to what is going to happen in their business in the coming months
  5. It makes business owners more conscious about the accuracy of their bookkeeping and administration and the need to stay up-to-date.
  6. It allows you to make the best use of your resources to take advantage of opportunities that currently exist and need actioning.

How to book a tax planning session

April to May is our tax planning season. If you would like to book a tax planning session you will need to:

  1. Make sure your bookkeeping data is up-to-date and accurate, and
  2. Know what is expected to happen with your business over the next three months.

If you are in any way concerned about the accuracy of your data, we also offer a service to review your bookkeeping data.

Book your session today to start building this value into your business. Contact Trak Accountants on 07 5512 6106 or email info@trakaccountants.com.au.

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