7 Handy End of Financial Year Tips for Small Business
The EOFY sales are popping up everywhere and they’re invoking feelings of excitement and anxiety. Excitement because Officeworks is having a sale and everyone loves going to Officeworks. Anxiety because it can’t seriously be EOFY again already!
EOFY brings out the angst in most Small Business owners because you know it means you’ve got to do stuff by 30 June but what exactly should you be doing?
1. SPEAK WITH YOUR ACCOUNTANT
If you haven’t already discussed your tax position with your accountant pick up the phone and do it now. After 30 June it’s too late to change what’s happened (or hasn’t happened) so call your accountant and work out where you are at and what actions you need to take now to minimise your tax for this year.
2. CONSIDER PREPAYING EXPENSES
Things such as insurances, rent, memberships & subscriptions or even buying new equipment. With the ATO’s instant tax deduction for assets less than $20k if you need new equipment such as a computer, a printer or even a car now is the ideal time to get it – remember you must have it by 30 June in order for it to be a tax deduction in this year.
3. IF YOU EMPLOY STAFF PAY THEIR SUPERANNUATION
Do this before 30 June to get the tax deduction in this financial year and remember you need to give your employees their Annual Payment Summaries before 14th July.
4. MAKE SURE YOUR BOOKKEEPING IS UP TO DATE
This is a biggie because your accountant won’t be able to properly advise you if your accounts are not showing correct figures. Get all your sales invoices up to date and expenses entered so you and your accountant have an accurate picture of how your business is performing.
5. REVIEW YOUR OUTSTANDING CUSTOMER ACCOUNTS
And chasing up unpaid invoices however if the customer isn’t going to pay you pre-30 June is the ideal time to write the invoices off so at the very least you’ll get a tax deduction. Nowhere near as good as getting the cash in the bank however so make sure you have made a concerted effort to get paid before writing it off.
6. DO A STOCKTAKE
Although you should do a stocktake for tax purposes but it’s also a crucial process to ensure your stock figures are accurate. While you’re at it consider holding a stocktake or clearance sale to clear any slow-moving, obsolete or even damaged stock. Everyone loves a stocktake sale.
7. TRANSITION OR UPGRADE TO A COMPUTERISED SYSTEM
Computerised accounting systems will make your bookkeeping so much easier by keeping track of income and expenses, who’s paid and who hasn’t, and if you’ve got payroll the system does it all for you including payslips and annual payment summaries. Best of all it will make preparing your BAS significantly quicker and easier. My tip is making sure you have it set-up and in place well before 30 June so you’re ready to roll on July 1.
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