Issue link: http://viewer.e-digitaleditions.com/i/131994
forefront Invest in a good accountant There's a difference between someone who churns out tax returns and an accountant, with the latter being responsible for the management of accounts while also looking towards the future of the business and concentrating on the financial wellbeing of the client. Max Newnham, a chartered accountant, financial planning specialist and partner at TaxBiz Australia, says business owners should invest in the services of good accountants. "It's important to get the structure right from day one, and paying a bit extra during the set-up process can save a lot down the track," advises Newnham. "You have to spend money to make money. Businesspeople should concentrate on the cost and the benefits, not just the cost." Around tax time there are a number of things that a good accountant will pick up, he adds. "There's a difference between someone who churns out tax returns and an accountant." Deductions If the business has had a good year, an accountant can look at how tax can be reduced. "If the business needs a new vehicle, it's best to buy one before June 30. Now there's an immediate $5,000 write-off for a motor vehicle," says Newnham. Likewise, he says it's worth paying your employees' superannuation and doing any repairs to business equipment before June 30 so the tax deductions are included in this year's tax return and you're not waiting for 12 months. Revisit your strategic plan CPA Australia business policy adviser Gavan Ord says the end of the financial year is a good time to review your business, rule off the past year and start afresh. "Creating or updating your strategic plan should be done before you set the budget. Check if it is still relevant and update what needs to be changed," he says. From this point, you can set targets for the year in sales, production and so on. Often, in setting budgets, people massage things to achieve a desired outcome. So just make sure it's realistic, Ord advises. 56