Essential end of calendar year items for FY2025

It's December! All the malls have their Christmas decorations up and the Christmas parties invitations are slowly flooding your inbox. You feel you are done for the rest of 2024. With 2025 just around the corner it is the perfect time for mortgage brokers to take a step back, review their finances and get set for a successful year ahead. I won't bore you and let you get back to Mariah Carey and Michael Buble post this quick reminder to make time to go over:

Business Loans

• Check if you can get a better deal on high-interest loans.
• Make sure loan repayments align with when money comes in so you’re never caught short.
• Use your expertise to negotiate better terms for your own loans.

Company Setup

• Corporate tax rates are often lower than personal ones
• Your personal assets stay safe from any business risks
• Chat with your tax accountant to get your setup right

Finances

• Use the holiday season to catch up with key business contacts and potential referral partners to lock in splits for future referrals.

• Ensure your bookkeeper lodges GST quarterly and keeps your accounts updated by the first week of each month.
• Set reminders to go over your finances fortnightly to stay in control.

Accounting

• Book a February 2025 meeting with your accountant.
• Stay updated on tax breaks and deductions for 2025.
• Speak to your accountant before making big moves like buying trail books/making significant investments in another broking business

Banking

• Funnel 40% of your income into a separate account to cover tax obligations.
• Leftover funds can go into an offset account to reduce personal debts and save on interest.

• Use an accounting software like Xero, MYOB, QuickBooks or Sage to track your finances more easily.

Insurance and Estate Planning

• Review all your business insurance to ensure it still meets your needs.
• Refresh your Will, beneficiaries and Powers of Attorney (POAs) to match your current situation.
• Major changes in your life or business can impact claims or payouts so stay on top of it.

Conclusion

This break is your chance to hit the ground running come 2025. If you are highly motivated and driven you will soon be bored during the downtime and will want to occupy your hours wisely. Use this time to reflect, tidy up your finances and set yourself up for success.