Bibby Financial offers EOFY tips

Bibby Financial highlighted the importance of being aware of relevant tax changes, noting that the tax rate will be cut to 28.5 per cent from 1 July for up to 780,000 small businesses.

“There have also been changes to depreciation rules for businesses with a turnover of less than $2 million. To help all Australian small businesses grow, the government will also provide a five per cent tax discount to unincorporated businesses with annual turnover less than $2 million from 1 July,” the firm said.

Bibby Financial Services said SMEs should be getting tax-deductible expenses in order and be aware of all applicable tax benefits.

Knowing the value of depreciating assets is also important for small businesses, according to the firm.

“The government has allowed small businesses with an aggregated annual turnover of less than $2 million to immediately deduct the value of each asset that costs less than $20,000,” the firm said.

Bibby Financial Services said it’s also vital for SMEs to keep income producing assets up-to-date.

“You can reduce operating costs, increase productivity and free up cash by structuring your financing and repayments to suit your tax and cash flow needs,” the firm noted.

The best thing for concerned SMEs to do is to consult with their accountant and financial adviser, according to Bibby Financial Services managing director, Mark Cleaver.

“Knowing the exact financial position of your business and staying on top of your cash flow will help you set business goals that are measurable and achievable.

“By working with an accountant and a financial adviser, SMEs can review their financial position and accounting system ahead of the end of the financial year, enabling them to take advantage of opportunities to minimise tax and prime their business for future growth,” Mr Cleaver concluded.

[Related: SMEs offered tips as end of financial year looms]