Tax Planning: A Comprehensive Guide for Individuals and Businesses

Tax Planning

Tax Planning: A Comprehensive Guide for Individuals and Businesses

Everything you buy to eat, wear or drink has tax applied on them. When it comes to small businesses, tax planning and management seem easy and hassle-free. Tax planning may be a difficult task for non-accountant. However, a bookkeeper and accountant may have the skills to do so. But have you ever wonder why tax planning is essential or what could be the tax strategies best for your business. In this article, we will talk about what tax planning tips you should consider to make your business go without interruption.

What is tax planning?

Tax planning is one of the most discussed topics for small businesses. The main goal of tax management is to increase the earning of the company. Tax planning is mainly carried out for two reasons:

  • to optimize the taxation and to improve the profit of the company;
  • to understand what tax is and how it affects the business.

Sometimes a sudden surge in costs or a need for capital investment happens. And, during those times, we usually make a cashless transaction or do a no-cash or check-based sale.

Why Is It Important?

You may wonder why tax planning is important? Tax is applied to all business transactions; thus, it is important to plan your tax. However, you can get professional help for the management of taxes to avoid any cash issues. When you have to set up a business or start one on your own, you must consider these aspects to get the best result from your endeavor:


  • Income – How will your company be making money? ·
  • Profit & Loss Statement – Know your business ·
  • Cash Flow – Be able to forecast your cash flow ·
  • Capitalization – Have a clear idea about how much you have and how much you are spending. In addition to those, you should make sure to consider other things like ·
  • Expenses – Create a list of the current costs, the amount of income, total income, and fees.
  • Assets and Liabilities – Determine your assets and liabilities in terms of assets and liabilities, and be sure to avoid misfiling of credit notes and any discrepancy between the two.


What To Consider For Your Business

Every business owner must consider several tax decisions before starting a business. These include where to start, the various industry segments, logistics, legal, taxation, and financial considerations for all the elements of your business. Tax Planning is not rocket science. So, for someone who is a non-accountant or accountant, you might have never thought about it. However, with the passage of time and research, it has become a much easier task.

Tax planning Australia

Before getting into the details of tax planning strategies, we must distinguish between tax planning and tax strategy. When you go into tax planning, it is usually making some logical deductions to offset future tax liabilities. We need to be sure that we get the correct amount of tax liability. Tax planning is the fundamental skill of tax planners. So let’s see some of the tax planning tricks a tax planner uses.

  • Take a Deduction – Deducting expenses can always reduce your tax liability significantly. There are many deductions available to make sure that you have the right amount of tax liability.
  • Change in Tax Code – The recent changes to the tax code are known as the Income Tax Act 2015. You may also get informed about any changes.

Tax Strategies

To be free from hassle and make the best tax planning strategies, you need to keep track of your cash flow. There are, fortunately, several ways of managing your taxes and gaining control over how they affect your financial picture. By being fully aware of and anticipating your taxes, you can regain control of your finances, which will then permit you to repay your debt and fulfill your other obligations effectively. Following are six strategies you should consider while planning tax:


It is easy to manage the cash flow in small businesses, but as the business grows, cash flow management becomes difficult for a single unprofessional individual. However, in most companies, the cash flow varies. The variation of cash flow solely depends upon the buying of supplies and equipment, more primarily their employees’ pay. Meanwhile, large bills constitute a significant concern of any business and can badly affect the cash flow. Thus, to avoid mishaps in cash flow, you need to plan it initially. So, when you systematically consider organizing transactions, you will be able to smoothen your cash flow and allowing yourself to focus on the critical parts of your business.


You should keep track of your tax dates. It is not suitable for your business to miss a tax payment date. You may wonder why? Missing tax payment dates lead to severe consequences, including straining of your cash flow or, most likely heavy fines. Isn’t it good to pay tax on time instead of risking your finance? It is one of those pro-tax planning tips that will keep your business going without any hurdles. Additionally, use careful planning to save on your tax payments. You will reduce your anxiety and achieve steady success if you schedule and budget your tax payments ahead of time.


An intelligent way to reduce your tax bills is by using a superannuation tax strategy. Tax planning in Australia will be easy for you if you consider this tip. How does it help? Let’s talk!

When you use a superannuation strategy, you can pay off your debts early, and thus, you can increase the amount of cash flow available to you daily.


Investing in other expenses is a synonym to a superannuation strategy for tax planning. However, tax planning 2021 will be hassle-free when you do follow this strategy. So what happens with this strategy?

By investing in other expenses and bringing them forward, you will obtain yearly deductions just as in the superannuation liabilities strategy. Thus, you will have reduced tax obligations.



We came up with another tax strategy. You may not have heard or used this strategy before, but it is one of the effective ones. By varying down your installments, you can reduce the chances of overpaying tax and subsequently waiting for the refund to become available after your return has been lodged.

As a result, if you can obtain this additional cash today, you can use it to pay other bills or reduce your debt in different ways. With the help of this strategy, you can manage your cash flow.


The fact that you can restructure inefficient businesses structures without triggering any Capital Gains Tax implications is enabled by various tax transfers and tax concessions.

There are instances when taxpayers set up a business structure when they create their company. Still, those structures are no longer helpful as their business circumstances could have changed by that time or for personal reasons, too.

Tax planning 2021

Every business owner is busy with their business, marketing, clients’ requirements, and many other things. But also, they tend to forget about the tax planning. The authorities are more concerned about auditing the company’s accounts than understanding the business operations and tax. Therefore, you should review your business annually to prepare your business tax reports. Tax planning for a small business is a matter of simply understanding the tax rules. All business types must comply with the Indian taxation system, such as statutory taxation, VAT (value-added tax), excise duty, etc. In addition, the employee income is taxed by the employee assessment, while the amount of profit is taxed by the company.

Benefits of Annual Tax Planning Meeting

Tax planning has numerous benefits. Most importantly, it hands over you the money that was out of your hands, and it manages your cash flow.

The following benefits will be realized when you implement annual planning for your organization:

  • tax management will improve your cash flow.
  • Reporting your transaction in a better way.
  • Advanced way of setting a goal.
  • The easy way to track cash flow.
  • Getting control over the money in a better way.
  • The enhanced practice of deciding payments.


Your annual tax planning process doesn’t need to be complicated, but it should be thoughtful. Working with your Altus adviser, you can evaluate your current tax strategy and find ways to optimize your tax situation further.

When I think about tax planning, I see how most of us are just about happy to pay the taxes that the government has assessed on our businesses. But I also believe that many companies have done an excellent job of prioritizing their tax. Now, having a good tax planning strategy will help you plan for the future, ensuring that your business will not be affected by sudden tax changes. Tax planning will also help you save money on operations and give you an idea of how your business will be affected by changes in the tax law.


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