Preparation is the key to efficient and effective financial planning for the 2012-2013 year ahead.

Now is the perfect opportunity to implement effective strategies to ensure you start the tax year off on the right foot. Reassessing your financial goals and record keeping systems is important to consider when preparing for the approaching financial year.

Set effective goals

The beginning of the new financial year is the ideal time to establish your goals and put in place an action plan to achieve them. Considering your objectives for the coming year early on will ensure that you have plenty of time to implement a course of action to help you achieve your goals.

Important things to consider include your retirement planning, present and future investments, maximising your superannuation scheme, and reviewing of assets.

Track your progress

Whether it be that the accounting system your business uses is outdated, not working properly, or simply does not suit your needs any longer, it is a good idea to consider upgrading.

By running your business on an ineffective system, you run the risk of capturing and recording GST information incorrectly resulting in errors on your BAS returns. This can prove to be a costly error for your company, and could have been avoided by investing in an effective system.

Systems fail for a number of reasons, including incorrect set-up, not being regularly checked/updated, and incorrectly classifying GST on transactions.

Save some money

Employers are not allowed to reduce the rate of tax on your pay without permission from the ATO.

If you have an investment property you can reduce your withholding tax by completing a PAYG Withholding Variation. This needs to be completed each financial year. Having the immediate additional cash flow can lessen the burden of your rental expenses such as loan repayments.

Consult the experts

Managing your financial affairs and preparing for the tax year ahead can be a complex and overwhelming task. If you are unsure or not confident about taking care of it yourself, then it is a good idea to contact your tax professional.

Wallace Partners Accountants and Advisors can tailor a structured plan to your individual circumstances that will ensure you are prepared for the coming tax-year.