What are the steps you should follow to get set for the end of financial year?
The financial year is coming to an end. Some people look at this only as a time that they must submit their tax return and either receive or pay money to the Australian Tax Office. But the end of the financial year offers an opportunity to review your personal finances and put a plan in place for next year. So what are the steps you should follow to get set for the end of financial year?
Be prepared: make sure you collate all of the documents you will need to plan and submit your tax return. Hopefully, you have been keeping your tax-related documents stored together but if not, get started now in organising the information you need.
Contact a financial planner: When the financial year comes to an end, you should aware of your income and also your partners income (if required). You then need to get in touch with a financial planner. It may be beneficial from a tax perspective to make a contribution to either of your superannuation accounts, but it must be completed before the financial year closes on June 30. A good financial planner will be able to advise you on whether or not this will benefit you.
Create a budget: Once you know what your overall earnings have been over the financial year, it is then a great time to create a new budget for the following year. A financial planner will be able to assist you with this. Another handy tool is moneylab’s free Wealth Management App which allows you to manage your cash flow and wealth position easily by automatically tracking your expenses and wealth.
Determine exactly what you’ve borrowed and what you still owe: People often borrow money against what they think their earnings are, instead of knowing for certain. If you’re paying off a mortgage and want to develop a plan to potentially cut costs by refinancing, book an appointment with a mortgage broker to review your current borrowings against your income.
It is strongly recommended that people use experts to assist them with managing their finances when preparing for the end of the financial year. It is a good idea to seek assistance from:
• A reliable financial planner.
• An excellent mortgage broker.
At moneylab, we host a team of experts within these industries. We have selected our team of financial planners and mortgage brokers on the grounds we believe they are the best in their field and that they will offer a fantastic service to you. If you want to get started on your end of financial year planning, take the first step and contact us today.