Us Aussies have our financial year ending on the 30th of June, just over 1 month away (it’s a weird time to have it don’t you think?). So what’s that mean and why should you care?
The main thing that it means for most people is that they now have to schedule in a visit to their accountant to find out if they are lucky enough to receive a tax return, or as is often the case for me, if they have to pay additional tax.
It’s not all bad though. one good thing about the end of financial year is that many shops put on a lot of big sales to try and clean up stock and balance their books. Plus, if you keep a track of your tax progress throughout the year and you know that you are scheduled to pay some tax, then this is a great opportunity to find some business expenses purchases that you can make this financial year to offset any money you have earned throughout the year.
For me, my business has gone quite well this year, so I know I am going to have to pay some additional tax above and beyond my 9 to 5 job. However, I am also aware of a number of purchases that I need to make for my business, so I am waiting for the sales to take place so that I can buy the items cheaply, whilst offsetting my taxable income – win/win 🙂
I like to keep track of how much I think I am going to owe the tax office so that i can make the most of this time of the year, plus, I also like to ensure I have the money put aside so that when the bill eventually does come, I don’t get stuck trying to find the money to pay.