Action Prior to 30 June 2010
Tax Planning
- Have you reviewed proposed superannuation contributions taking into account the government's 2009/10 superannuation contribution rules? For persons under 50 maximum contribution of $25,000 per annum from employer contributions and salary sacrifice. Over 50 years of age, $50,000 per annum contribution. A penalty tax rate of 46.5% will be applied to any excess superannuation contributions.
- Have you reviewed research and development activities to maximise the company's (claimant must be a company) claim for accelerated income tax deductions for research and development including the preparation of individual research and development plans?
- Have systems been implemented for scrapping obsolete stock and old unused plant and equipment?
Now is the time, prior to 30 June, to implement effective tax planning strategies for your business.
Cashflow Management
- Have you factored in the strong likelihood of increasing bank interest rates over the remainder of 2010 into your cashflow projections? Have you reviewed your business' debtor's payment terms? Could improvements be expected if changes in the processing of tax invoices, prompt preparation and despatch of debtors' statements etc. were implemented?
- Have you reviewed stock turn on an individual product basis, to highlight stocks achieving a lower stock turn rate than what has been budgeted e.g. stock turn rate of 6 indicates that that stock item is turning over approximately once every 2 months?
Planning for 2010/11
In the months of April, May and June it is a great time to undertake planning for what you hope to achieve in your business during the following financial year. Items that could be considered include:
- Input from team members on operational issues
- Are regular team meetings held?
- Identification of teams or sections within the business, preferably in groups of approximately 7 persons, so as to enhance business performance.
- What new products are you considering?
- Have individual market development strategies been determined for each new product or service?
- What innovations are being undertaken during the next 12 months? (remembering successful businesses continually re-invent themselves).
- What innovation strategies are you contemplating in 2010/11?
All this information could then be incorporated in budgets and cashflow forecasts for the 2010/11 year
We are happy to assist in planning a successful business operations in 2010/11.