The EOFY checklist you need in your life right now!
As always, the months have flown by, and we’re already nearing the end of financial year!
EOFY is always a hectic time and sometimes important things slip through the cracks.
It’s also the perfect opportunity to review your business structure and strategies, and identify areas for growth going forward.
Here’s a checklist to run through to make sure you’re all up to speed as June 30 closes in.
You can always download a copy of this checklist to save and refer to before the next financial year as well!
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 running your business.
Just make sure you check your tax agent is legitimate and registered! Cutting corners and costs may land you in trouble.
And on that note…
Beware of scams!
There are a number of scams that target small business, particularly around tax time and the EOFY.
Make sure to never provide sensitive information such as Tax File Numbers or bank details via email. Contact your tax agent, or the ATO directly, if you are ever unsure. It’s always important to be extra cautious.
Common scams include:
- Emails or phone calls that claim you are entitled to a tax refund and you need to click a link and enter personal details or pay a fee to access the refund.
- Email or phone calls claiming that you have tax to pay immediately, requesting credit card details or bank transfers.
You can read our article on scam emails and how to spot them.
You can also check known scams here.
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.
Things like Single Touch Payroll are also taking effect in the 2018-19 Financial Year, so make sure you find out if you will be required to sign up!
Review your finances
Sit down with your accountant or bookkeeper (if you have one) 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.
Triple check your security.
Make sure all your data from the previous financial year is securely backed up.
Don’t forget Mandatory Data Breach reporting laws began in March. If you are string any personal client information, either as hardcopies or digitally, it must be securely stored and protected.
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.