Game Of Thrones And Finance Together At Last! 8 EOFY Tips 'GOT Style'.

Winter and EOFY are coming. We're your very unordinary Finance people with 8 Tips you need to know before the end of financial year. Random GOT facts & spoilers ahead. Don't say we didn't warn you.

Hold the door Hodor! Winter is coming and so is the End of Financial Year (EOFY)!

HBO / Game of Thrones / Via loopfinancial.com.au

On top of some great EOFY tips this article is dark and full of Game of Thrones (GOT’s) crazy references, cheesy one liners and some pretty cool insights on how to get ready for what’s coming in true GOT’s style!

If you haven’t already caught up on the latest GOT episode (Series 6, Episode 5), first WTF! ……and second, before reading on be prepared for some spoilers even the Three-eyed Raven would be proud of!

HBO / Game of Thrones / Via loopfinancial.com.au

Whilst the EOFY sounds like a name a Stark would call their direwolf, it's actually the acronym for something that (to some) is far scarier than the Red Wedding massacre! (We still get shivers when Roose Boltons sleeve is rolled back to reveal fighting chains!) Just like winter – it’s coming June 30th 2016 and there’s no more Hodor to hold the ‘EOFY door’ for you and delay the inevitable!

We know it's very easy to find ways to keep putting it off (like watching GOT’s episodes back-to-back til the wee hours of the morning) but in the end there's no avoiding EOFY… you just have to address it (it’s kinda like being in Kings Landing and realising that your Uncle looks cannily similar to you and seems just a bit too friendly with your Mum…..).

With the possible exception of ‘bean-counters’ (AKA accountants or bookkeepers), nobody relishes the idea of having to spend hours searching through their inbox, files, drawers and wherever else they keep their invoices, receipts and other bits of paper needed to complete and lodge a tax return.

Fortunately, we've got some great ways that can make your tax return easier for yourself as well as some good habits to learn and prepare for next year. Plus, you may even save yourself some money along the way – and who doesn’t like saving some coin?!

There’s no need for Dragonglass or any funky Red Woman magic. Here are our top 8 tips all served up on a fine gold Dornish platter……

Tip #1: Get the timing right

HBO / Game of Thrones

Did you know that if you have a geared investment loan, you can pre-pay next year's bank interest and get a tax deduction in the current financial year. It’s kind of like Lord Varys handing out sweets to his ‘little birds’ now and getting all the juicy inside information in advance.

If your capital losses outweigh your gains in a particular year, you can carry the losses forward for an indefinite period and keep offsetting them against your gains – that is until you start making a profit. (Clever stuff and even the Master of Coin would be proud of that!).

There's just over a month left to sort this out, so take a good look at your property portfolio and chat to your accountant and your finance specialist to work out if this is a step that's worth taking.

Tip #2: Make sure you're claiming everything you can

HBO / Game of Thrones

It wasn’t always the Seven Kingdoms. Aegon the Conqueror had to get out there and claim it like it was going out of fashion. So if you've invested in a property for the first time, or if you've purchased a new car, horse or battleship for work purposes, make sure you're clued up on what is and what isn't tax deductible.

Even newly conquered Kingdoms or other great land acquisitions can have tax benefits. Borrowing expenses, among others, can be deducted outright, whereas some deductions are applied over a period of time. (Who can forget when Theon Greyjoy ((Reek)) got a fair ‘deduction’ courtesy of his ‘accountant’ Ramsay!)

Imagine you have a rental property and you take out a loan to cover the cost of giving it a makeover with the end result increasing your rental income (Bonus!). Well, do you know if you are allowed to deduct the interest you pay on the money you actually borrowed for the makeover?

Claiming right can get pretty complicated. Not dissimilar to the backstory for GOT and for that matter the whole R+L=J theory. It’s best to chat with your accountant on the do’s and don’ts of interest deductibility. You can also jump on and check the ATO website to assess your individual situation and make sure you're not over – or under – claiming.

Tip #3: Get a tax depreciation schedule for your investment property

Many property investors miss out on the chance to claim for depreciation and this can make a big difference to your tax refund year after year. With just a bit of time and money invested upfront (as the saying goes, sometimes you need to spend money to make money!), you can maximise your depreciation claims for a potentially bigger tax refund.

But - what exactly is depreciation? Basically stuff is worth less as it gets older and when you own an investment property you can legitimately claim a deduction for this (if only we could claim a deduction on our beauty wrinkle creams as we get older!). A depreciation deduction covers the gradual loss in value of items in a building due to wear and tear, as well as a decline in value as the building itself and any plant and equipment assets age.

To make sure you're claiming maximum depreciation deductions, you'll need to get a comprehensive depreciation report from a specialist Quantity Surveyor. This will highlight all the areas where you could be applying depreciation deductions on your investment or income-producing property.

Tip #4: Prepay your investment expenses

HBO / Game of Thrones

Be like a Lannister and always pay your debts. If you own an investment property and have some cash lying around at the end of the financial year, you can prepay your normal expenses for the year ahead. This could be insurance, council rates, body corporate fees and property management costs before June 30th. Some providers also offer incentives (e.g. insurers) by applying discounts when you pay in advance/upfront versus paying by instalments or the actual due date (another added bonus to save some cash).

You may then be able to boost your tax refund by claiming the expenses as deductibles in this financial year and it'll help your cash flow in the coming year – without the need for ‘Warging’. Nothing like giving your future self a helping hand Bran Stark would be proud of!

Tip #5: Have a smart mortgage structure

HBO / Game of Thrones

You need to build the best possible wall (structure) you can to keep those White Walkers out! It’s important to have your loans structured properly for accounting purposes otherwise you might raise an ATO red flag and have to undergo an audit – this is an experience you really want to avoid!

Having both your personal mortgage and investment mortgage with the same financial institution can make it harder to track how much interest you pay on each, so keeping them completely separate may make life easier when it comes to the EOFY.

This is where it’s really important to work with the right finance specialists and accounting professionals who understand your specific situation to best structure your loans the correct way. Think of them as your Lord Commanders or Watchers on the Wall. A Nights Watch if you will.

See more on this in Tip #8 below.

Tip #6: Consolidate your Superannuation funds

HBO / Game of Thrones

Could you honestly tell us how many Superannuation funds are out there with your name on them? Imagine Hodor's. Hodor.

If you've worked for different employers during your career, you may have multiple superannuation accounts which are being eaten away at by annual management fees with nothing topping them up. Think of them as multiple Houses throughout your Kingdom and you need to bring them all together to build a powerful army.

It may sound like hard work (similar to trying to track down the members of the Stark family sprawled out over the 7 Kingdoms), but there are actually websites out there that can help you (like Brienne of Tarth) to seek out, consolidate and protect your superannuation to maximise your returns for the financial years ahead. By bringing those Starks (superannuation accounts) back together, you could have a much more powerful army (asset base) in the fight for the Iron Throne (your financial future!).

Tip #7: App up

HBO / Game of Thrones

If you have an old-school filing system of shoeboxes under your bed bursting with receipts and letters, it might be time to drag yourself into the 21st century and find some programs or apps that can make E.O.F.Y time a whole lot more bearable.

On the simple end of the scale you can get a basic program for your computer (like excel) to help with accounting and record keeping. From there you can delve into the world of mobile apps that let you manage your finances on the go. Instead of keeping stacks of receipts under the bed and having a mini-meltdown come the end of the tax year, you can take a photo of each one and file/store them as you go along.

You’ll even find apps that link with accounting software such as Xero, MYOB and QuickBooks, making it easier than ever for you to stay in control of everything.

Tip #8: Get the right team behind you

You don’t have to struggle through this alone like Arya in the House of Black and White.

Having the right team backing you up can not only have a big impact on your finances, but can also take the stress out of this time of year. EOFY is a good time to evaluate your choice of accountant, mortgage broker, finance strategist or financial planner and make sure you’re working with the right people. Take Jon Snow as an example where at the end of Series 5 he ended up on the pointy end by trusting some pretty shady Rangers of the Nights Watch.

You can approach it like dating. When you first meet, make sure you ask plenty of questions to get to know what they are all about and assess whether they will be a good match. If you’re unsure, you don’t have to commit to anything. You might want a second date – err, meeting – to check your first impressions and ask more questions.

Make sure your team is suitably qualified and experienced to deal with your needs, particularly if you’re a property investor or have specialist financial requirements. The Faceless Men of the Free City Of Braavos as an example, are an organization who have a reputation for success that is unparalleled by any comparable organization. We are not saying you should start your own collection of faces of the many faced God, but the point we are trying to get to is you should focus on having suitably qualified and experienced ‘faces’ on your team. If you’ve been with someone a while but don’t think it’s working out (we’re looking at you Margaery), you’ll have to have the awkward ‘I think we should see other people’ chat. Another one of those less-than-enjoyable experiences, but at the end of the day this is all about what’s best for you and of course your financial future! You wouldn’t put Ramsay Bolton in charge of your… well anything really. And nor should you trust people that don’t have the right experience. Talk to us – we’re your very unordinary finance people.

We'd love to help you with your finance.

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