Tax is probably one of the most dreaded words in the English language, however, it is indeed a fact of life when running a business.


In considering this, we have noticed many businesses are worried about how much tax they will need to pay.


Have you wondered how Calxa can help you in your tax planning?


Well, great news! We can.  You or your Accountant can use Calxa to get started with your tax planning.


Forecast Profit Position


The first step of Tax Planning involves forecasting the business’s profit position to the end of the financial year, this is the step Calxa can help with.


To do this it is important that your accounting data file is reconciled and up to date.


As we come into the final quarter of the financial year, this is the optimal time to undertake tax planning, preferably after completing the third quarter BAS.


With this information your accountant can easily bring through the actuals into Calxa for the first nine months and then forecast the remaining three months using the prior year’s data and apply a projected increase. This will then fill your budget (or projection) with 9 months of actuals, and 3 months of forecasts.


Your accountant can then enter accounting adjustments manually in the June period. This can include such things as:

  • Opening and closing stock figures
  • Amortisation and depreciation estimates
  • Profit on sale of assets
  • Or reversing out non-business-related values.


They can manually change any of the other budgets, rather than simply using a standard 5% increase of the prior year actuals, once you provide them with guidance on the current trading environment.


Profit and Loss with Projected Total


You can then run a 12-month Profit & Loss with Projected Total Report, using Actuals for the first 9 months, and budget (or forecast) for the last 3 months. You can save this into a Tax Planning Report Bundle and schedule a workflow to send your accountant an update at the beginning of each month – that way you can both have an informed discussion on any last-minute changes.


Tax Flow Forecast Report


If you’re worried about your upcoming tax bill, then prepare one of Calxa’s Tax Flow Forecast. This can form the basis of a real productive conversation with your accountant. You may just come up with a great plan on how to meet these liabilities and how to manage your taxes and obligations in the future.


Add Your Accountant as a Free Advisor


Make use of the Free Advisor option to give your accountant access to review and update your Calxa data.


If you want to keep them away from the budgets you’re using for management reports and cashflow forecasts, simply create a copy of the budget and call it “Accountant Tax Planning” or something similar.


You can have as many budgets as you like in Calxa – though you could also delete it in a few months if you want to tidy things up.


Seek Advice from Your Accountant


We do not pretend to know all about tax – that’s your Accountants job, but we know first-hand the importance of planning for success.


It is important to seek your accountant’s advice about your tax position and your options.


By giving your accountant the opportunity to use Calxa to help you will not only save you money but will make tax planning more efficient and less of a headache.