Australian EOFY: 5 Tips for Law Firms to Save Money
As the Australian End of Financial Year (EOFY) approaches, it’s time to gear up for a tax-saving adventure that’s as thrilling as it is necessary. With the cost of living on the rise and inflation lurking in the shadows, it’s crucial for law firms to minimise their tax burden while staying ahead of the game. As one of Wise Owl Legal’s trusty accountants, I’ve gathered a few tricks up my sleeve to help you reduce those tax bills without any dodgy moves and get ready to reduce taxes during this EOFY!
Prepayments – Seize the Moment, Beat Inflation:
In the face of rising costs and inflation, strategic prepayments can be your silver bullet. If cash flows allow, consider paying in advance for rent, insurance premiums, and other applicable expenses before the end of the financial year. By doing so, you can lower your taxable income while gaining some control over future expenses. However, it’s crucial to consult with your accountant to ensure you navigate this strategy within the bounds of the law and maximise your savings.
Deduction Domination – Battle the Rising Costs:
As the cost of living continues to climb, it’s time for law firms to gather their deductive powers and claim every possible deduction. Whether it’s expenses related to legal research, professional development, or the ever-increasing office rent, leave no stone unturned when seeking deductible expenses. Make sure to maintain accurate records and consult with your accountant to ensure you take advantage of all eligible deductions. It’s time to fight back against the rising costs with every legitimate deduction at your disposal!
Depreciation Magic – Shielding Your Firm from Inflation’s Blow:
Inflation may affect the cost of goods and services, but it can’t touch the power of depreciation. Law firms have the opportunity to take advantage of temporary fully expensing write offs for assets, such as books, furniture, computers, and even office renovations. Stay abreast of the ATO guidelines and consult with professionals to ensure you optimise your deductions and fortify your firm against the impact of inflation.
Clear Clutter, Lighten the Load, and Reduce Storage Costs:
With the cost of living on the rise, decluttering your law firm’s workspace can have a twofold advantage. Not only will you create a more productive and organised environment, but could save your firm a lot on costs. Transitioning to a paperless structure can save you up to 90 per cent on your stationery bill and for an office of 6 people could reduce your admin wages expense by 80 per cent. That’s on top of the savings in storage fees, a couple of terabytes in the cloud or a hard drive is a bucket load cheaper and way more convenient than a storage unit. Embrace the spirit of spring cleaning while reducing your expenses. It’s a win-win situation in the battle against inflation!
Shop Around – Are You Getting the Best Deal?
Bargain hunters, it’s time to unleash your super-saver powers to find the best deals in town. Think of yourself as a financial detective, investigate your expenses, sniff out discounts, unnecessary purchases and better deals. Remember, saving money is like a thrilling treasure hunt. Explore different suppliers, compare prices, and unleash your negotiating skills. Be as sly as a fox and as sharp as a sword. Don’t settle for ordinary savings; go for the extraordinary. Your business’s bottom line will thank you.
One thing you can definitely save on is your Legal Practice Management Software fees. Wise Owl Legal allows you to prepay 12 months for the price of 10! so you might be able to get the deduction today and save two months of legal practice management fees! We also offer Lifetime Guarantee Pricing so your costs won’t be increasing with inflation. Not to mention incredible features. Contact us to Make the Wise Choice, Today call (07) 3106 6022 or email: [email protected]
As the EOFY looms large and inflation threatens to disrupt your law firm’s financial stability, it’s crucial to embrace strategic tax-saving measures. By prepared prepayments, dominating deductions, utilising depreciation, decluttering, and shopping around, you can navigate the turbulent waters of rising costs and inflation while minimising your tax burden. Remember, partner with a knowledgeable accountant to ensure compliance with tax laws and regulations while optimising your savings.
Disclaimer: The information provided in this article is for general informational purposes only and should not be considered as legal or financial advice. Always consult with a qualified professional accountant or tax advisor to ensure compliance with Australian tax laws and regulations. More information about these deductions and tips is available from Cascade Accounting & Tax and the Australian Taxation Office.
Hi, My name is Karen McDonald, I am a business analyst and accountant with a passion and strong focus on efficient business systems to empower business owners to focus more delivering great value to their clients.
In 2011, I founded Wise Owl Legal Practice Management as a response to seeing so many lawyers caught up with the struggle of old out of date inefficient software. I believe software should lighten your load and empower you to focus on your core mission. As a qualified accountant and tax agent, many of you will know me from my consulting business commenced in 1997, Cascade Consulting Services Pty Ltd (Cascade).
Cascade has helped many businesses, including many law firms, over the last 20+ years, some in the software applications consulting space, others in the accounting and tax practice space as well. Fundamentally in our accounting business, we aim to empower our clients to better run their administration more efficiently; eliminate redundant processes, and understand their finances and lighten the load of compliance.
If you would like to learn more about how I could help your law firm become more efficient, please book a discovery call with me at https://wiseowllegal.com.au/
Mostly I am in GMT +10 time zone.