If your inbox is the same as ours now, you’ll likely be bombarded with dozens of emails advertising end-of-year discounts, mid-year promotions, and stock clearings. And with the new fiscal year just around the corner, it’s no wonder retailers are cleaning up in preparation. So, if you’re looking to do the same (and grapple with tax season in the meantime), here are some quick tips to consider as we head towards the end of 2023.
Save time and money by hiring a tax accountant
All small business owners, especially retailers notorious for wearing hats, need help when it comes to paying their taxes. This does not mean that you should hire a full-time advisor. In some cases, just a few hours may be sufficient.
Like many entrepreneurs looking to save money, you may not be able to afford to hire an accountant or bookkeeper. However, if you hire an advisor to do time-consuming tasks such as taxes, the hourly cost can be less than paying yourself. More importantly, they will provide a lot of great advice on how to run your business (beyond just meeting your compliance needs).
Be sure to visit to find the best accountant or bookkeeper for your business. Xero Advisor Directoryuse filters to search by industry or location.
complete inventory inventory sooner or later
Year-end inventory can be a long and tedious task, so take the time to plan this year. And as a retailer, it’s imperative that we do it right. There are many tips for completing an inventory, but the main thing to remember is that the process should be organized and methodical, with very clear records (i.e., roughly Please do not make rough estimates).
Watch out for slow-moving, damaged, obsolete or expired inventory. why? This is because if the value of the stock goes up or down during the year, it can affect your taxable income. There are several options for how to assess your inventory, so discuss with your advisor what works best for your business.
Talk to an Advisor About Small Business Depreciation
If you are looking to purchase a large asset such as a company vehicle or business related machinery, ATO will allow you to immediately deduct the cost of the business asset used or installed for use. Before the end of the year.
Deductions are only allowed for business portion usage. While these are generous deductions, keep in mind that you will need to find cash to pay your property and it may take months to see the tax benefits of the deductions.
The federal government has changed tax incentives for business property purchases over the years, so please contact your advisor for more information.
Keep staff and payroll managers under control
Of course, small business owners in the retail industry spend a lot of time organizing their payroll and payroll. Before you start the new fiscal year, be sure to check out some employee management apps. plan day. This powerful and cost-effective tool helps you manage rosters, time and attendance, leave, award interpretation, payroll consolidation and more.
Whether it’s your first EOFY or you’ve been to the area several times, winter doesn’t have to present a difficult tax season for your small business. With the right guidance, planning and foresight, 2024 can be yours.
Want more year-end tips? Visit Xero’s EOFY Resource Hub today.