The end of the financial year is an important and busy time for small business owners. There are so many tasks that have to be taken care of, like:
- completing bookkeeping
- dealing with tax returns
- planning for the new financial year
The good news is that getting your business more organised during each financial year can help you work smarter the following year.
Below is a comprehensive EOFY checklist that includes essential tasks for your EOFY to-do list…
Record keeping and compliance
Some of your yearly responsibilities as a small business owner may include:
- summarising income and expenses in a profit and loss statement
- conducting a stocktake
- summarising your record of debtors and creditors
- collating records of asset purchases or expenditure on improvements to calculate depreciation expense claims and for capital gains tax purposes
- completing and lodge your income tax returns
- lodging yearly reports or returns for PAYG withholding, fringe benefits tax (FBT), Goods and Services Tax (GST), and the taxable payments reporting system
- meeting SuperStream requirements
If you’re not sure of all your obligations, we can help you figure it out. Get in touch with us here.
Find out what tax deductions you can claim
Do your homework ahead of time to know exactly what tax deductions you can claim when EOFY comes.
You may be able to claim deductions if your business:
- has a website
- has motor vehicle expenses
- uses diesel fuel
- is home-based
- has travel expenses
- uses machinery, tools or computers
You might also be interested in: How Much Do You Know About Tax Deduction?
Use a registered tax agent
Make sure your tax agent is registered with the Tax Practitioners Board (TPB). There’s no protection for taxpayers who use unregistered tax or Business Activity Statement (BAS) agents.
Our taxation specialists offer advice based on their vast knowledge and hands-on experience from past clients. Find your registered tax agent here.
Keep up to date with tax changes starting next financial year
Every year there are new tax changes you need to be aware of. These might include changes in tax breaks and deductions for small business.
Be wary of tax refund scams
There are a number of scams that target small business around tax time. Here are some of the most common ones:
- Tax refund scams where the scammer will claim you have overpaid your taxes and are entitled to a refund. However, in order for you to receive this refund, they will claim that you need to pay a fee for administration or transfer costs.
- Tax owed scams where the scammer will claim that you’ve underpaid your tax and will need to repay the amount you owe immediately. In order to make this payment, they may request your credit card or debit card details, or ask you to send money through a money transfer.
You might also be interested in: ATO Scam Alert. Don’t Get Caught!
Review your finances
Sit down with your accountant or bookkeeper and review all your finances.
Look at whether you met your targets last financial year and what you can do differently next financial year.
Set performance targets for the year to help you stay on track. Create a cash flow forecast to manage any potential shortfalls and ensure you can still pay your staff and suppliers.
Review and update your business and marketing plans
Take time to set yourself up for the year ahead. Regularly reviewing and updating your plans will help you to:
- remind yourself of your goals and priorities
- assess whether your strategies are working
- adapt to any new changes in your environment
- make the most of new opportunities as they come your way
- prioritise and maximise your effort (work smarter, not harder!).
Review your business structure
As your business grows, you may decide to change your business structure. There are different compliance and taxation regulations to doing this, depending on your current business structure.
Find more about why it’s important to choose the right business structure in this article.
Review your insurances
Check that you have the right insurances in place for your business. If your circumstances have changed, you may need to update your coverage level.
Read the product disclosure statements (PDS) for your insurance policies carefully – don’t assume you’re covered! Look up the definition of certain terms (such as floods) as they may vary among insurers.
You might also be interested in: When’s The Last Time You Reviewed Your Business Insurance
Backup and secure your files
Backup and store your registration, financial and customer data and other important business documents in a secure off-site location. This can help ensure your business stays up and running during unexpected events.
Read more about 5 Accounting Software That Are Probably Perfect For Your Business
Get ready for EOFY now!
We have a handful of specialists here at Shuriken Consulting who’d be happy to give you a hand getting your business ready for EOFY. Let’s get in touch!