Avoid the chaos of End OF financial year by planning your next year’s tax return straight after June 30.
Not only do you feel super smug for being organised, but preparing for next year’s tax season saves you time and money. If you’re a salon owner, manager or self-employed hair professional, check out our tips on end of financial year forward planning.
1. Invest In Your Team
Unlock your and your salon’s potential by enrolling in education and training. It’s a great way to boost your business and skills and could also reduce your tax bill. With so many online courses and training available, you’ll be able to find something for your whole team.
2. Upgrade Your Salon Equipment
Is the salon fridge on the fritz? Splash out on a new one! If you buy items that assist in your business, you could be able to claim the purchase/s as tax expenses for the next financial year. Look around your salon, or dive into your styling kit — can you add or replace something to help you or your team become more productive next year?
3. Salon Self Care
Love a night out with the team? Plan a trip or time away from the business and show your salon team how much you love them — you might be able to claim the expense on next year’s tax return.
4. Get On The (Tax) Apps
Get a little ‘Type A’ with your record keeping by getting some help from tax apps. The ATO has an easy-to-use tax app that helps you keep track of all your work expenses, deductions, write-offs, and loads of other tax ‘stuff.’
5. Break Up with Your Accountant
A certified ‘tax wizard’ is a huge asset to have around you every EOFY (and all year round, tbh), but if you’re not feeling ‘it’ with your current set-up or need a set of fresh eyes on your new year tax plan, don’t be afraid to find someone else.
6. yearly tax refund changes
Every year, the government slightly changes how the tax refund system applies to personal income tax and businesses. The biggest change this year in 2024 is that there will be bigger tax cuts for low and middle income earners to combat the rise in cost of living pressures. From a small business perspective, these changes will affect personal income tax refunds, giving low to middle income earners the potential to get more of a return than previous years. The changes as they are proposed could give small businesses a boost post July 1, as more tax payers may have some money to play with — hopefully injecting it back into the economy. As always, check with your accountant or the ATO on how these cuts can affect your refund.
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7. Get On Top of Your BAS (Business Activity Statement)
It’s not the greatest part of running your own show, but unfortunately lodging your BAS on time and ensuring you’re not overpaying is a big help to your overall business.
8. Plan + Prepare your Salon for Tax Success
Along with giving you peace of mind that your next tax return is sorted, planning your tax in advance is simply good business. It gives you an opportunity to look at what you need as a salon or stylist and plan for growth. Whether you need to upgrade your equipment or upskill your team with education, you won’t regret your forward-thinking next financial year!
For the note-takers, here are a few takeaways to help your salon in the new financial year;
- Have an accountant you can rely on
- Keep track of your deductions and expenses with the ATO app
- Purchase items that will boost your salon’s productivity
- Upskill your workforce with training
- Always get your accountant to check over your BAS
- Invest tax refunds back into the business
- Lodge your tax on-time
- And finally… Feel very smug that you’re extremely organised
Get EOFY ready with Haircare Group and read our guide on Products to Restock or Upgrade Before EOFY. For more news, inspiration, and education for salon professionals, explore The Hub.
Disclaimer: Any tax tips or advice provided in this article are for informational purposes only. Always seek professional advice before making any decisions related t your personal or small business finances and taxes. Haircare Group cannot be held responsible for any losses, damages or expenses that may arise from using or relying on the information provided.
