The end of the financial year can be a stressful time for business as you race to complete various tasks before the EOFY deadline. However, one of the most important tasks that should not be overlooked is conducting a comprehensive year end tax review. Why do you need to conduct an end of year tax planning review? Well, whether you are looking to understand where your tax liabilities might land for the year, review your profit or look to allocate some additional super contributions, we believe it’s worth pausing and planning before the clock strikes midnight. Getting clear on what your financial obligations around tax will land is an important financial year end task.
What is a Tax Review?
A tax review is a process where a business looks at its financial records to ensure that they are accurate and up-to-date. It involves reviewing income, expenses, and deductions to ensure that everything has been recorded correctly. A comprehensive tax review should be conducted by a professional accountant or bookkeeper who can identify any errors or discrepancies in the financial records.
Our Tax Planning Approach
At DFK Everalls, we conduct a thorough year end tax review for our clients to ensure that they are compliant with tax laws and regulations. Our review involves going deep into their accounting data file to identify any errors or discrepancies in their financial records. We want to make sure that everything has been allocated to the correct accounts. We also review our clients payroll and PAYG to ensure that all taxes have been paid and are correct. Super payments are also reviewed to ensure that they have been paid in full and on time.
One key area of the tax review is a GST review. We ensure that all transactions have been coded correctly and that any mistakes are corrected before the end of the financial year. This can help to minimise potential tax liabilities and ensure compliance with GST regulations.
Another important aspect of the tax review is identifying where profits will land and what the potential tax bill will be. By doing this, businesses can take steps to minimise their tax liabilities and ensure that they are making the most of any available deductions. This can include reviewing expenses and identifying any deductions that may have been overlooked.
What are the benefits of a Tax Review?
The benefits of conducting a tax review prior to the end of the financial year are numerous, but we have summarised 3 key items below.
- It allows businesses to identify potential tax liabilities and take steps to minimise them. This can help to reduce the amount of tax that needs to be paid, which can have a positive impact on the bottom line.
- It ensures that your business is compliant with tax laws and regulations. This can help to avoid any potential penalties or fines that may arise from non-compliance.
- It aligns perfectly with year end tax planning and enables you to take actions in time for 30th June. After the 15th of June, it is too late to make any significant changes to reduce your tax bill for the current financial year. Therefore, conducting a tax review prior to this date allows businesses to make any necessary changes and take advantage of any available deductions.
Does your business need to conduct a tax review?
So as the countdown to end of the financial year commences, is your business one that needs to conduct a year end tax planning review?
At DFK Everalls, we believe that conducting a comprehensive tax review prior to the end of the financial year is an essential task for any business. It helps to ensure that financial records are accurate, compliant with tax laws and regulations, and can identify any potential tax liabilities. By conducting a tax review, your business can also take advantage of any available deductions and reduce your tax bill. This can have a significant impact on the bottom line and provide a positive outcome for the business.
Why not reach out to the team at DFK Everalls today to start the process? Contact our team today to learn more about our tax review services and how we can help your business.