As the year flies by at breakneck speed we once again find ourselves hurtling straight towards the end of the financial year, which of course means tax time, so here is our Tax Tips for Real Estate Agencies for 2018 – 2019.
Tax time can often be a stressful time, despite the fact that it’s the same time every year and we have plenty of warning! If your records don’t add up and you’re struggling to get things in order, it can leave you feeling stressed and overwhelmed.
Now is the perfect time of year to start planning and getting organised, review the year that was, and plan for a more organised and lucrative year ahead.
Here are our top tips for getting ready for the end of financial year, making the most of your deductions, and making the whole process as simple and stress-free as possible.
Don’t leave things to the last minute. Start thinking about things now and I promise you will be thanking yourself come June 30. Start by allocating some time to try and get your books in order as much as you can yourself. This will help you to feel more in control and even help save you some money on any advisor fees.
Business Planning and Forecasting
The last quarter of the financial year is an ideal time to analyse the past 12 months and to plan for the future. Developing budgets for revenue and expenses, tax planning for the years ahead, setting business goals and even considering succession planning are all effective ways to help maximise opportunity.
Make Yourself Aware Of Any Pertinent Tax Changes
Ensure you are on the front foot with anything that may affect your business. This will also help come the new financial year if there are any changes you may be able to capitalise on. Starting to plan for the year ahead is always a smart move at this time of year.
Don’t Be Afraid To Ask The Experts
We all like to try and minimalise costs as much as possible but keep in mind how great a good night’s sleep is. Consulting the people who know the ins and outs best can be a weight off your shoulders and help save money in the long run.
Reconcile Your Accounts Receivable
Any amounts that are still outstanding should be chased up. Keep in mind that unrecovered debts can be also written off. If you’re still chasing bad debts from the last financial year, now is the time to write them off. Bad debts are tax deductible and can be used to offset your taxable income.
Superannuation Check In
All employee super contributions are an allowable deduction providing they are paid on time. Being up to date with all your payments is a good way of reducing your overall tax bill.
Pre-Pay Ahead Of Time
An easy way to claim a few extra tax-deductions is to pre-pay or stock up on supplies that you buy regularly. This might include office stationery or equipment. By bringing forward this expense you can reduce your tax income for the current financial year.
Getting organised for the end of financial year early is the key to making the whole process a simple and stress-free. This is always an accounts-focused time of year for businesses, and if you do it well, you’ll be set up for a profitable year ahead. Here are some tips we had for optimising your end of year financials last year, be sure to have a look there for some extra tips.
For advice on the dos and don’ts of accounting for real estate – or for assistance with your agency’s cash flow matters, don’t hesitate to contact us on 1800 003 569.
Justin Steer is a real estate finance expert with nearly 25 years’ experience running businesses involved in the sale and management of both residential and commercial property. All content written in these blogs is by Justin, who is passionate about sharing his knowledge and insights in helping real estate agents create the financial freedom to grow.