At this time of year, many property investors feel overwhelmed by the extra tax admin suddenly looming over them. However, if you switch your wintery end of financial year (EOFY) mindset to a sunnier new year one, you might find plenty of ways to plan for a more profitable future at the same time as you close off the year. Here are some ideas to get you excited about doing that admin.

First up, you can’t do anything if your paperwork is a mess. If you routinely find yourself drowning in a shoe box of paper receipts and spending hours searching for emailed supplier receipts, it might be time to invest in a better filing system for next financial year. Many bookkeeping programs have them built in. Check out what systems like Zero and MYOB offer and ask other people about their filing habits.

Improving your profit margins and cash flow

The most important numbers for most investors are cost versus profit. If they’re not what you hoped, EOFY is a good time to take stock and plan how to improve them over the coming 12 months. Start by checking you’re still on the best interest rate and if you need to adjust rents to cover repayments. You may even need to explore selling underperforming properties and reinvesting elsewhere or trimming your renovation budget.

Making the most of your costs and deductions

If you’re panic spending on last minute deductions that may not be the best fit for you, it could be a sign you need a longer-term plan for effectively investing in your property business. Creating an action calendar could help improve your profit margin and cash flow by planning what property issues to address and when. You’ll feel more in control and have more time to research your options and buy what really suits your plans – whether its decoration for short stay properties, scheduling maintenance and upgrades on rental properties or expanding your portfolio.

Charity giving is another area that can benefit from some forward thinking. Instead of this year’s hurried one-off donation in late June, why not talk to your favourite not-for-profits about ways you could help throughout the year? They may be looking for an event, activity or kit sponsor. If it’s something related to your work area, it could be an apprenticeship, study or internship you offer. You’ll be helping where it’s needed and boosting your profile and contacts at the same time.

Cancel what you’re not using

As you’re going through your expenses, it’s a good time to cancel any subscriptions or services you don’t use anymore. These could be streaming services, online magazine subscriptions or computer programmes that you don’t really use. If you only use part of a program, say Adobe Creative Suite, you may be able to reduce the fee by only paying for that part. You could also explore switching to newer offerings like the free Google Docs instead of paying for Microsoft Office.

Check your super contribution limits

Make sure you’re up to date on current super contribution limits before making any one-off payments to your fund. Penalties for over contributing can be significant. Don’t forget that if you’re over 55 and have, or are planning to sell your home, you may be eligible to add up to $300,000 into your superannuation. You can check the current contribution limits on the Government’s MoneySmart site or talk to your super fund, accountant or financial adviser.i

If you‘d like an update on your lending in relation to your investments, please get in touch. We’re happy to help any way we can to make your property journey as rewarding and as easy as possible.

i https://moneysmart.gov.au/grow-your-super/super-contributions

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