As the end of another financial year rapidly approaches and another one begins cash flow management of tax liabilities is becoming ever more important in business. With the ATO taking an aggressive stance on debt collection, avoiding tax bill surprises well in advance assist with various business decisions that impact on cash flow.
Knowing where you stand in relation to your PAYG instalments as (The ATO bases these on the last return lodged) business circumstances can change is vital. Instalments that are too small or large can result in a tax liability accruing unknown to the ATO and yourself or having paid excess instalments decreasing cash available to fund your business operations. The ability to plan the payment of tax and avoid surprises at the time of lodgement of your return, which may be up to 11 months after the 30th June provides peace of mind.
We do provide a quarterly tax projection service that compares the ATO instalments against your actual trading results giving you the ability to vary your instalments or plan your cash flow around next year's final tax payments. Please contact me if you would like further information regarding this service.
A reminder that the ATO requires all employers to make superannuation contributions via SuperStream from 1/7/2016.