Here are some tips to maximise your end of financial year opportunities and minimize your risk:
Write Off Bad Debts
To be a bad debt, you need to have brought the income to account as assessable income, and given up all attempts to recover the debt. It needs to be written off your debtors’ ledger by 30 June 2013.
Complete a stock take and write off any stock that is damaged or obsolete prior to 30 June 2013.
Plant & Equipment
Review your asset register and scrap any obsolete plant and equipment before 30 June 2013.
Pay June Quarter Employee Super Contributions
Payment needs to be made before 30 June 2013 if you want to claim a tax deduction in the current year.
Take out minimum pensions for 2013 income year before 30 June 2013.
Trustee resolutions need to be in place prior to 30 June 2013 to be able to distribute trust income for 2013 financial year to beneficiaries. Failure to do this properly could result in the trustee being taxed at 46.5%.
If you claim work related motor vehicle expenses, make sure that you have a current log book, particularly if the business use has substantially increased.