It’s not long now until the end of another financial year rolls around and we all know what that means… time to review your records and get organised before it’s too late!
Here are a few handy hints and tips for legal practitioners to help you to get prepared prior to the end of the 2022 tax year:
1. Year end payroll and superannuation
- Ensure salaries are paid for your professional and administration staff, including any bonuses payable
- Ensure any super payable for all staff members has been paid by 21 June 2022, including yourself if you are in receipt of a salary
- Single touch payroll finalisation to be completed by 14 July 2022
2. For sole traders - ensure any personal superannuation contributions for yourself are made by 21 June 2022
- Ensure that a notice of intent to claim super form has been completed and sent to the super fund in July 2022 (if applicable)
3. Deduction opportunities
- Review receivables for any bad debts to write off
- Review depreciation schedule for obsolete plant and equipment to write off
- Prepay for any conference expenses, subscriptions or memberships before 30 June
- Ensure donations are made prior to 30 June
4. Record keeping
- Review and check all balance sheet items as at 30 June, attach supporting documentation, if applicable
- Review income & expense accounts to ensure explanations on each transaction are clear, attach supporting documentation, if applicable
- Ensure your trust accounting records have been reviewed and any action required is enacted before 30 June
- Print a snapshot of all practice loan and bank account balances at 30 June
5. Compliance and best practice
- Review rental agreements and ensure that annual rent reviews have occurred
- Review your WIP to identify any billable matters have been actioned via bill or write off
- Ensure any required principal reductions have been made on loans outstanding at 30 June
6. Personal tax documentation and reminders
- Settlement statements for any property purchases or sales
- Contract notes for any share sales or purchases (or trading summaries provided by a third party)
- Documentation provided by companies in relation to share buy backs, rights issues and so on.
Tax is one of the largest expenses you have, so it makes sense to ensure you are maximising any deductions that may be available to you.
If you think you may need some help with tax and strategic planning, please do not hesitate to get into contact with our team.