The Cairns Post
Set your business up to thrive for FY21
Cathy Devietti, Principal from Grant Thornton Cairns, with her take on what needs to be in order in the last quarter of FY21 for your business to thrive.
As we move closer to 30 June, there are a number of areas that every business should review. Twenty-twenty was certainly a challenging year for most businesses. The start of 2021 has also been trying for some.
However, this period has provided business owners the opportunity to re-evaluate and to take advantage of a number of Government tax concessions.
Over my more than 33 years’ experience I have noticed three areas that have remained consistent as vital for growth. The following business fundamentals should all be considered prior to yearend to set your business up to thrive:
Many businesses consider cutting expenses as a means to improving the quality of their bottom line. Whilst this is true, in order to truly succeed and achieve growth it is the top line that should keep moving upwards. There are many ways to achieve this growth but the number one priority for all businesses are their customers. Nurturing relationships with your customers and providing outstanding customer service is something we at Grant Thornton understand and value. Our six box tool is a fantastic way for you to come together with your family and or team to discuss your business goals from where you are at, to where you want to be.
2. RE-EVALUATION OF YOUR TAX POSITION
Reassessing your tax position in May or June each year not only provides you with an estimate of the tax you will have to pay for the year but assists with monitoring your cash flow needs as it allows you to understand the timing of your tax payments.
Taking advantage of superannuation, the new temporary full expensing of assets, prepayment of expenditure, write off of bad debts and the deferral of income are some of the ways that you can minimise any tax you may have payable. Paying tax is not the burden that many businesses consider it to be however.
In simple terms if you are paying tax your business is flourishing and doing well. Did you know that any tax paid by a company is passed onto its shareholders in the form of franked dividends?
Reassessing your tax position also enables you to ensure that your business is structured in such a way that it is able to take advantage of the lower company tax rates. This rate reduces to 25% from 1 July 2021.
3. SUCCESSION PLANNING
Is your business structured to allow easy passage to your successors? Have you considered the tax implications of a restructure or to your successors? There are a number of small business CGT concessions available on the restructure or sale of your business which should be considered before any changes are made.
To take advantage of a number of Government tax concessions, legislation changes and market trends, these are some points to consider:
• Are you a professional services firm that may be impacted by the new professional services legislation?
Did you know that the Cash Flow Boost is Non-Assessable Non-Exempt income? Do you understand the implications?
Are you required to make a minimum repayment under the terms of your Div 7A loan owed to your company prior to 30 June?
Are you dabbling in crypto-currency? Do you know the tax implications for you as a trader as compared to an investor?
For assistance with the above and any other questions you may have please contact me.
Principal - Private Advisory Grant Thornton Cairns
T +61 7 4046 8810 E firstname.lastname@example.org