EOFY Checklist/Your master-plan for starting 2019-20 ahead of the game!
End of Financial Year is a crazy time for a lot of reasons, and sometimes important things slip through the cracks. This is where a good old-fashioned checklist can come in handy, to make sure you're not missing anything important.
EOFY is also the perfect opportunity to review your financial position, your business structure (for business owners), and identify goals and areas you want to grow in the next financial year.
It's also that time of year when your accountant becomes a bit of a bugbear - but we promise it's only because we have your best interests at heart.
So grab a coffee (or something stronger), and your calendar, and start creating an End of Financial Year master-plan that will set you up
for 2019-20 in all the right ways!
Things to tick off...
✔️ Record keeping and compliance
As a small business owner, and depending on what kind of professional help you use for your EOFY accounts, you may need to:
- Summarise income and expenses in a profit and loss statement.
- Conduct a stocktake.
- Summarise your record of debtors and creditors.
- Collate records of asset purchases or expenditure on improvements to assets to calculate depreciation expense claims and for capital gains tax purposes.
- Complete and lodge your income tax returns.
- Lodge yearly reports or returns for PAYG withholding, fringe benefits tax (FBT), Goods and Services Tax (GST), and the taxable payments reporting system.
✔️ Find out what tax deductions you can claim
Do your research and find out what tax deductions you can claim. You may be able to claim deductions on many things, including:
- Business vehicle and travel expenses
- Gifts and donations
- Home office donations
- Self-education expenses
- Tools, equipment and other equipment
- Make sure if you’re looking to claim tax deductions, you meet the following criteria:
- You must have spent the money yourself and not be reimbursed
- The expense must be directly related to earning your income
- You must have a record to prove the purchase and use (e.g. receipts, logbooks etc).
✔️ Use a registered tax agent (like us!)
Getting help with your accounts can take the pressure off you, and leave you to concentrate on other things. We're on top of all the changes in legislation, and can make sure you're compliant.
We also know what particular areas the ATO are cracking down on, and can make sure you're not at risk in the event of an audit.
Just make sure you check your tax agent is legitimate and registered! Cutting corners and costs may land you in trouble.
While we definitely recommend getting tailored expert advice from a registered tax agent, you can take a look at the articles below for some general advice. We also hold regular seminars and events where our Chartered Accountants talk on topical issues and give general advice to attendees - take a look at upcoming seminars here.
The instant asset write-off threshold for businesses has changed several times in recent months. This means that different rules apply depending on when you purchased an asset.Read More…
In the 2017-18 financial year, Australians claimed over $47 billion in rental deductions, and the ATO will be auditing 4,500 of those returns to crack down on errors and undeclared income.Read More…
There is a potential issue with the 2019 Land Tax Notices. We recommend you follow these steps to determine if you are affected.Read More…
Do you earn income overseas? A recent case highlights where problems can occur and how you might end up paying a lot more tax than you thought.Read More…
The ATO is keen to point out that income from sharing services is not a hobby and needs to be declared.Read More…
The Government restricted travel deductions to stop residential property investors from using the tax system to pay for their holidays by claiming costs as a rental expense.Read More…
✔️ Research tax and legislative changes starting in the next financial year.
There may be tax changes that you need to be aware of. These might include changes in tax breaks and deductions for small business. Keep an eye on our blog and in our newsletter for updates to legislation that could impact your tax. You can also talk to your tax agent about any laws that apply to your tax.
A big legislative chance taking effect as of 1 July 2019 is mandatory Single Touch Payroll from all employers. Another key item to get
proper advice on this financial year especially is instant asset write-offs, as legislation has changed several times since January.
✔️ Review your finances
Sit down with your accountant or bookkeeper and review your finances.
Look at the financial targets set last year – did you meet them? If not, why not? What can you change in the new financial year? What are your goals for the new financial year? What KPIs are you going to use to monitor your success?
Use a cash flow forecast to manage any potential deficits and ensure you can still meet your outgoing cash obligations e.g. staff wages and cost of suppliers, rent etc.
✔️ Review and update your business and marketing plans
A new financial year is a “fresh start”, and you can take the opportunity to set yourself up for the year ahead.
Go through the following plans and strategies, and ensure they are still relevant to your current business situation:
- Set business, personal and financial goals for the next financial year.
- Update your marketing strategy and budget.
- Identify new people in your network and new opportunities on the horizon.
- Update your business succession plan.
✔️ Review your business structure
As your business grows and as your goals change year-to-year, you may decide that restructuring your business is the best way forward. You might add a new partner, change the ownership of the business completely, or restructure your internal operations.
Changing your business structure can help make the business more profitable, improve processes and efficiency. Making these changes in time for a new financial year will make it easier to measure the benefits of those changes, and doesn’t involve uprooting your entire business in the middle of the financial year..
Happy End Of Financial Year! (And good luck!)
Remember, there are always professionals who can help take the edge off at this time of year. Get in touch with us if you'd like to talk about coming on board.