It's that time of year again when businesses should be preparing for the end of the financial year (EOFY) and planning for the year ahead.
The EOFY can be a critical time for businesses to assess their financial position, review their business plans and take advantage of tax deductions and concessions. Here is a checklist to help you ensure your business is ready for the EOFY.
Tax, PAYG, FBT and GST
Complete your obligations as a business owner and collate all the necessary records such as income and expenses, stocktake, a record of debtors and creditors, asset purchases, and expenditure on improvements.
Ensure you complete and lodge your income tax returns, and yearly reports or returns for different tax types such as PAYG, FBT, and GST.
Make sure you meet your superannuation requirements and keep digital copies of paper records for up to 5 years.
Claim tax deductions and concessions Ensure you have records to prove your business expenses and consult with your accountant to identify any deductions or concessions you may be eligible for.
Consider writing off bad debtors or assets before the end of the financial year to claim a tax deduction.
Review your finances take the time to review your business's current financial position, assess whether the targets set out in the previous year were achieved, and identify what could be done differently in the year ahead.
Consult with your accountant or bookkeeper about your finances.
Business plan review
Review your business and marketing plans Regularly review and update your business and marketing plans to assess whether your strategies are working, adapt to any changes in your environment, and make the most of new opportunities as they come your way.
Remember your goals and priorities, and work smarter, not harder.
Business structure, are you in the best structure for tax purposes?
Review your business structure As your business grows and expands, you may need to change or restructure your business.
Consult with your business adviser to ensure you comply with the relevant tax regulations and choose the business structure that best suits your circumstances.
A final tax checklist of year-end financial goals.
Some other areas you may want to look at within your business.
• Reconciling bank accounts
• Evaluating employee performance and setting goals for the next financial year
• Reviewing insurance policies and coverage
• Identifying and addressing any outstanding debts or liabilities
• Planning for the cash flow requirements of the next financial year.
In summary, preparing for the EOFY is essential for your business's viability. By following this checklist, you can ensure your business is ready for the year ahead. If you need any assistance or advice, remember that your accountant or business adviser is always available to help.