The End of Financial Year (EOFY) is fast approaching and now is the time to ensure you have everything in order to avoid any issues come tax time.
We at Plus Business Services have put together the following points to assist you to get your business EOFY ready!
Before EOFY it is important to review business progress. Begin by:
- Reviewing Profit & Loss to the end of March/April
- Reviewing superannuation paid for directors
- Reviewing the list of assets & remove obsolete or defunct items
- Reviewing cash flow for additional tax deductable pre 30 June purchases
- Reviewing all your insurances – are they still suiting your needs
- Reviewing the Integrated Balance Account (monies owed to the ATO) – can this be paid off by 30th June
- Reviewing if changes are required to business process/procedures – so timelines can be established & work completed– e.g. software upgrade/change
- Reviewing how budget effects your business – advantages/disadvantages
Ensure last year is finalised
- Ensure last year’s tax return is lodged and you have a copy
- Are all adjustments from last year processed?
- Have you adjusted the data file for any impact of the end of the FBT year?
- Have you adjusted the data file for any adjustments by your accountant?
Stock / Inventory
- Review stock list in detail including when the item last sold and at what price
- Consider a sale, discounting items that are slow – turn goods into cash
- Write-off the value of stock that won’t sell
- Take a full stock count at 30 June and adjust accounting file
New Plant and Equipment
- Businesses are permitted to write off Plant and Equipment that cost less than $100 (incl. GST)
- Business with turnover less than $2m using Small Business Entity Concessions; highlight assets bought under $20,000 to your accountant for the financial years 2015-16 and 2016-17
- GST reporting of Capital Acquisitions (G10) threshold is $1,000
- Review Budget effects on Asset Purchases
Maximise those tax deductions – Superannuation
While Superannuation Guarantee is not due till the 28th of July, in order to get the income tax deduction in this financial year, the superannuation must have been paid through your bank account before 30 June.
Review Your Business Growth & Cash Flow
The impact of growth on your business can seriously affect your cash flow e.g. If you have increased your workforce there may be implications in funding superannuation in a timely manner and payroll tax could be an added expense. The sooner you can predict a cash shortfall or surplus, the better you can prepare.
Review & Update Your Business Plan
Business changes also require you to update your Business Plan. Reflect on the direction you set for the year and review if your business grew.
- Did it expanded as you expected?
- Are your goals the same or have they matured?
- Do you need to rethink your strategies?
- Is technology changing your business environment?
Review Your Business Structure
As your business grows, expands and changes it may be time to review your Business Structure. Different structures have different compliance and taxation regulations that need to be considered. Speak to our friendly team to discuss the best option for you.
Review Your Business Process
Can the changes in technology help your business process and make your business life easier and more efficient. E.g. Bank feeds can automate the entering of your banking transactions into your accounting software.