It’s the time of the year that can cause businesses to have headaches without proper preparation – it’s end of financial year time (EOFY). Ideally, you’ve kept everything well documented as this will make the EOFY much easier to manage.
As June 30th fast approaches, you’ll have to make the time to thoroughly review your company’s finances among other things. This is a great opportunity to evaluate the best strategy for your company moving forward and allows you to see what’s really been going on over the last year.
So, that you can get ahead of this busy period, we’ve complied an end of financial year checklist to help you stay on top of things. Take a look and see if you’ve overlooked anything or if you can make improvements to your current process.
No matter who you are, you can be sure that your business has some obligations to fulfill at the EOFY. Everything set out in our end of financial year essentials list is required to be completed by law and failure to do so could result in serious consequences. It’s important that you keep you books up-to-date throughout the year as leaving this to the last minute can be disastrous.
Income tax return – Your accountant will need to review your financial information and highlight any large or special money transactions each year. Information needed includes: a 12-month profit/loss statement, balance sheet, and much more. Contact your accountant for more detailed information on preparing for your income tax return.
PAYG withholding payment summary annual report – This report will prove you’ve reconciled your payroll and provided employees with a payment summary. This is important as it helps your employees lodge their tax returns, but you should always reconcile your business accounts first.
Fridge benefits tax return – Review your finances to ensure that you haven’t missed any relevant transactions and all required employee contributions have been made. However, it’s possible you won’t need to file a fringe benefits tax return so discuss your situation with your accountant.
Business Activity Statement (BAS) – This form essentially informs the Australian government about your taxation obligations. It’s worth talking to your accountant in advance as you may be required to complete either a quarterly or annual BAS statement.
Payroll tax – Payroll tax obligations vary from state to state so it’s worth checking with your accountant to confirm your situation on this.
Staff salaries and relevant awards – Go over your employees’ salaries and check that you’ve fulfilled your obligations and provided any relevant awards.
Workers’ compensation insurance – Make sure that your workers’ compensation insurance is paid for and that your policy does not need to change.
Superannuation payments – Deal with superannuation payments the same as you would every month.
Staying up-to-date with government grants – When receiving government grants, it’s vital that you keep up-to-date with the current and future guidelines. Failure to do so may result in you losing your government grant(s).
Reviewing your options and investing in the future
It’s a total myth that the EOFY is only about compiling reports and sending off statements. You should use this opportunity to examine key areas of your business and see where you could make improvements. Every business’ strategy should aim to evolve and this is especially true when considering positioning at the end of financial year.
You should always make use of any deductions, write-offs, and rebates that your business qualifies for. In addition to this, your business could sell off unwanted equipment and assets to bolster your spending power. But, why is this so important?
It was recently declared that small and medium businesses across Australia have an additional 12 months to use $20,000 under the federal government’s instant asset tax write-off scheme.
So, now would a great time to invest in your company’s future if you haven’t already. This is especially true when it comes to technology and making use of this tax write-off can put you in better position for years to come.
To find out how you can equip your business with the latest technology without worrying about taxation, head to our IT Solutions page now.
Looking forward to the next EOFY
While it’s important that you get everything properly organised for the coming end of year dates, you need to stay on top of your accounts throughout the next year. Don’t be tempted to leave this work for later in the year as it is time consuming and there are potential consequences for making mistakes
Take the time to set out a schedule that will allow you to keep ahead of the following end of financial year. Even just setting out a few hours a week or a day or two a month can really make a difference when it comes to crunch time.
If you’d like to read some more leadership inspired blogs, head over to our Leadership Blog page now. Or, if you’ve been think of upgrading your IT systems, find out what Saxons can do for you by taking a look at the IT Solutions page.