It is essential to do some planning towards the end of each financial year. It is also necessary to look at what can be done towards the end of each tax year to minimise the tax you will pay. It is often too late to gain tax deductions when discussing tax returns with a professional.
Imagine a situation where someone is catching a taxi. They tell the driver to take them anywhere, as long as it is somewhere. Where would they end up? It’s always best to have an idea of where to go because then the destination will always be the result of whatever route is taken, no matter how roundabout that route might be.
A business tends to operate under the same principle. If there is no clear end goal, then it’s difficult to say how things are going or where things stand.
There is a much better chance of success and achieving outcomes if there is a clear plan or map of where the business will go from here.
Right now is the best time to sit down and plan out a strategy for the next twelve months. Paint a picture of where the business should be and arrange a planning session with the team. Bring in an outside consultant to help facilitate this process. These steps should assist in working out strategies to best suit the business and prepare it for the ensuing twelve months. The year’s target should be clearly defined, making it more Year End Strategies • 2020 – 2021 Tax Tips For Property Investors achievable by the business.
In involving the business’s team, business goals can be aligned with the employee’s goals. There’s nothing better than an employee who shares the business’s vision and can act upon it. Better yet, it also allows the employee to share additional insight into the business plan from a different perspective.
With a plan or strategy in place for the business, a financial budget will also need to be prepared for the new year. Breaking this budget down into monthly budgets will enable the business to understand how it is tracking towards the goals that have been set during the planning phase.