Getting Organised For The New Financial Year
With the new financial year upon us, is timely to think about what we want to achieve during the year.
Doing so will help improve personal financial positions, as well as approaches to lifestyle and business management.
An essential part of such planning is to have goals. These actual goals always depend on each individual, but five general aims that make a good starting point are:
Get Paperwork Organised
Organising your paperwork is an easy way to become more productive and save time. For every piece of correspondence you receive, whether physical or by e-mail, you have four options:
- Bin it/delete it.
- File it/archive it.
- Give/forward to someone else.
- Action it
Make a decision and do it rather than have unactioned and often unnecessary pieces of paper swamp the work area. While it is important to retain a lot of financial information for tax and many other purposes, having an adequate and systematic filing system will help get rid of unwanted clutter.
Review current debt and the different types of finance available and interest rates being charged. This is a smart idea for both business and personal finance.
High interest-bearing liabilities should always be paid off first, as should non-tax deductible debt. Slightly increasing repayments as well as the payment frequency can reduce the life of the loan and total interest paid.
Insurance for both business and personal needs to be reviewed every year at least.
A good place to start with other expenditure is to check where money went this financial year. By cutting out waste and looking at whether or all regular expenditure is necessary, good savings can be made.
Maximise Super Benefits
Superannuation is the ideal way for most to save for retirement in a tax effective manner. While there are limits on the amount that can be contributed to superannuation, most people don’t take full advantage of them.
Because of the complexities of superannuation, an adviser can help with strategies for:
- Salary sacrificing.
- Personal contributions to self-employed persons.
- Superannuation guarantee compliance.
- Government co-contributions.
- Transition to retirement.
- Setting up a self managed superannuation fund (SMSF)
Have Plans For Succession
Business succession and estate planning are often perceived as ‘too difficult’ but it is better to have plans in place that identify needs and action required. Whilst we don’t like to think about it, illness or death can occur at any time.
Plans and wills need to be regularly reviewed and updated as needed.
Source: HLB Mann Judd Newsletter Winter 2012