Latest news with #taxpreparation
SBS Australia
25-05-2025
- Business
- SBS Australia
Tax time countdown: Six things you should start doing now
With the end of the financial year approaching, some experts say you should start preparing your tax return. Source: Getty / Natalia Gdovskaia It's never too early to plan, especially for what can be a long and tricky tax return proces. This financial year will finish in over a month, at the end of June, and Australians will have four months to lodge their tax returns — preparing for this early may save you time and money. Masoud Habibian, an accountant and tax agent in Australia, said this may be a "good time to start" to "prepare and review" your tax lodgement. Here are a few tips that may help you in preparing for your tax return: First of all, make sure your information in your myGov account is updated, the account is linked to the Australian Taxation Office (ATO), and it is working. "Make sure that all the data, like your bank details and personal information, is updated," Habibian said. "Make sure that you have a strong verification [system] in your myGov ... If it is actually working, and it has been linked properly, [and] you've got access to it. "Make sure that you've got a good and secure access to the personal information and documents within myGov." In addition, he advised that if you have forgotten your password, changed your phone number or are facing any other difficulties, it's important to resolve them early, as the process may be significantly more time-consuming during tax time. Preparing all those old receipts as proof for your work-related deductions can also save you time and money on your tax return. According to Habibian, finding and keeping receipts of work-related purchases, like "tools, uniforms, equipment, computer, education expenses, car expenses, donations," etc, are important. "[Gathering] all the receipts and all the documents related to the income and expenses is very important," he said. "A common issue we see is missing receipts or documents, especially for work-related expenses. Make sure that you're storing the receipts digitally." In general, there are two different methods you can use to claim your work from home-related deductions: First, gathering all the information about your expenses for the time you worked from home, and second, providing the total hours you worked remotely to the ATO. Habibian suggests gathering this information as soon as possible. "Sometimes it might be a bit time-consuming to find the detailed record of a daily log of the hours that you worked from home, and also evidence of the expenses like electricity, internet, and phone," he said. "This document actually takes more time to collect and provide to the tax agent." If you own a business and have not yet separated your personal and business expenses, this might be a great time to start, as it may take up a lot of your time. "Separating your personal [expenses] from the business expenses would be highly important," Habibian said. "Most of the people have their personal and business expenses mixed, and it will take a huge amount of time to separate them." Generally, the distinction between personal and business expenses is straightforward. Purchases intended for business use are deductible business expenses, while items bought for personal use are classified as personal expenses. If you have an item that serves both business and personal purposes, like a laptop or a phone, you can only deduct the portion used for business. With only one source of income and a limited number of work-related expenses, the tax return process may not take much time. However, if you have multiple income sources, Habibian said you should start your preparation sooner. "If you have an investment property, you need to gather information," he said. "Make sure that you are focusing on the rental property claims as well ... That would actually be a bit time-consuming. You need to have a chat with your real estate agent. "You need to start from now." The same goes for other investments like cryptocurrencies. "If you have crypto that is in the radar of the ATO, you need to gather information about it ... If you are trading crypto, you must report it even if you have made a loss," he said. Tax time starts on the first of July each year and finishes by the end of October. By mid-July, once employers and banks have submitted more information to the ATO, the prefilled data will be available for your tax lodgement. "Many people rush to lodge on the first of July ... But you should avoid loading these documents too early. "This reduces the errors and avoids later amendments." The information in this article is general in nature and is not intended as financial advice. You should consult with a licenced professional to make the decisions that are right for you.
Yahoo
11-05-2025
- Business
- Yahoo
HRB Q1 Earnings Call: Client Mix Shift and Assisted Growth Drive Outperformance
Tax preparation company H&R Block (NYSE:HRB) reported Q1 CY2025 results exceeding the market's revenue expectations , with sales up 4.2% year on year to $2.28 billion. The company expects the full year's revenue to be around $3.72 billion, close to analysts' estimates. Its non-GAAP profit of $5.38 per share was 4.1% above analysts' consensus estimates. Is now the time to buy HRB? Find out in our full research report (it's free). Revenue: $2.28 billion vs analyst estimates of $2.25 billion (4.2% year-on-year growth, 1.3% beat) Adjusted EPS: $5.38 vs analyst estimates of $5.17 (4.1% beat) Adjusted EBITDA: $1.01 billion vs analyst estimates of $984.2 million (44.4% margin, 2.8% beat) The company reconfirmed its revenue guidance for the full year of $3.72 billion at the midpoint Management reiterated its full-year Adjusted EPS guidance of $5.25 at the midpoint EBITDA guidance for the full year is $997.5 million at the midpoint, in line with analyst expectations Operating Margin: 43%, in line with the same quarter last year Free Cash Flow Margin: 57.2%, down from 61.4% in the same quarter last year Market Capitalization: $7.81 billion H&R Block's Q1 results were shaped by a pronounced shift in client behavior during the tax season, with more customers opting for in-person Assisted services over digital do-it-yourself (DIY) options. CEO Jeffrey Jones highlighted the company's focus on redesigning the Assisted client experience, improving retention, and leveraging advanced matching algorithms to boost conversion rates, especially among higher-income and more complex filers. The company also benefited from disciplined labor management and continued enhancements to its Second Look review service, which uncovered additional value for clients. Looking ahead, management reconfirmed guidance for the full year, citing ongoing momentum in Assisted tax preparation and growth in small business and financial products. CFO Tiffany Mason pointed to the company's stable industry positioning and strong cash flow generation, while acknowledging that higher legal expenses may weigh slightly on EBITDA for the year. H&R Block remains focused on investing in its core business, while capital allocation priorities include continued share repurchases and maintaining its dividend policy. The quarter's performance was influenced by evolving client preferences and targeted operational improvements, with management highlighting shifting demand and new service initiatives as key factors. Assisted Channel Momentum: The company reported an uptick in Assisted client volumes, driven by a shift in consumer preference toward expert help amid uncertain tax policy discussions and complex filing situations. Enhanced Client Retention Efforts: H&R Block rolled out new features in its Assisted segment, such as improved tax pro matching and increased focus on setting appointments for the next tax season, resulting in better client conversion and retention metrics. Second Look Service Expansion: The automated Second Look review, which assesses prior-year returns for missed credits or deductions, saw a tenfold increase in new client participation, uncovering additional value for nearly a quarter of those reviewed. DIY Revenue Growth in Complex Filers: DIY revenues rose as the company successfully attracted higher-complexity filers and maintained discipline in customer acquisition, prioritizing clients with higher lifetime value over free filers. Small Business and Financial Product Progress: The small business segment delivered high single-digit revenue growth, while the Spruce mobile banking platform continued to expand, with effective cross-selling strategies bringing in new clients and higher engagement. Management's outlook for the remainder of the year centers on sustained momentum in the Assisted channel, digital engagement, and disciplined capital allocation, with a focus on market share gains among higher-value clients. Assisted Category Leadership: The company aims to capitalize on ongoing consumer preference for expert guidance, especially among clients with greater filing complexity and higher incomes. Digital and Hybrid Service Expansion: Continued investment in digital tools like AI Tax Assist and the MyBlock app supports growth in both fully virtual and hybrid tax preparation, catering to changing customer preferences. Capital Allocation and Franchise Buybacks: Ongoing share repurchases and opportunistic franchise buybacks are expected to support earnings growth, while management notes potential legal expense headwinds for EBITDA. Kartik Mehta (Northcoast Research): Asked about the industry shift toward Assisted tax preparation; management attributed it to increased consumer uncertainty and a preference for expert help during complex or ambiguous tax seasons. Scott Schneeberger (Oppenheimer & Co.): Inquired about the decline in franchise operations versus company-owned growth; CFO Mason clarified that buybacks of franchise locations were the main driver, not underlying franchise weakness. Scott Schneeberger (Oppenheimer & Co.): Probed the flat paid online DIY volume and competitive dynamics; CEO Jones said the focus remained on complex paid filers and disciplined marketing spend rather than competing for free filers. George Tong (Goldman Sachs): Noted that Assisted volumes lagged industry growth; Jones acknowledged improved conversion and retention but admitted that market share gains remain a priority. Alexander Paris (Barrington Research): Asked about the impact of filing deadline extensions in certain states; Mason explained this would shift some volume to next quarter but was not material to the full-year outlook. In the coming quarters, the StockStory team will be monitoring (1) whether H&R Block can further increase market share among higher-income and complex filers, (2) progress in digital engagement through AI-driven tools and virtual services, and (3) the impact of franchise location buybacks on overall profitability and client mix. Execution in the small business and financial products segments will also be signposts for sustained top-line growth. H&R Block currently trades at a forward EV-to-EBITDA ratio of 17.2×. In the wake of earnings, is it a buy or sell? Find out in our free research report. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Sterling Infrastructure (+1,096% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
