These tips are simply a starting point for you to consider your options. You should speak to your financial advisor/accountant to find out if they are the right fit for your business.
You have the option to prepay expenses to cover yourself for the next 12 months, but claim the full payment this financial year (for example; property rent to May next year). This allowance is provisional on the prepayment covering only 12 months or less. If you were to prepay a service that will cover a period longer than 12 months, the total payment you are able to claim is less than $1000.
In order to write off a bad debt, you must be certain that all measures have been taken to recover the outstanding amount. If you pay GST on an accruals basis you may be eligible to claim a refund of the GST component of the debt (bonus!).
Any stock (parts, equipment, etc) that are lost (refer to your inventory listings), damaged or no longer relevant can be written off to reduce taxable income. You can choose how to value each piece of stock: original cost, current selling price or replacement cost.
Should you be looking for larger assets for your business (costing less than $20,000), purchasing them now will allow you to claim the deduction from your 2016 tax return. This asset write off increase will return to its original $1,000 limit from 1st July 2017, so you will only have this and next year’s returns to claim the $20,000 amount on your larger purchases.
The value of your business is not limited to objects- your team is the greatest asset you can have. Working with you to reach your goals, your team are at the core of every aspect of your business, so it is essential to promote personal growth and and interpersonal skills. Investing in team development training not only gives you another tax deduction, it can also ensure a stronger 12 months ahead.
For assistance on setting financial goals or team training, contact PROTRADE United today.
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