EOFY is coming! Is your business ready?
The end of financial year is quickly approaching. While you want to make sure you have covered all your bases correctly, it does not have to be a stressful time – as long as you plan ahead and get your business ready.
Get the right advice
Just like you wouldn’t rely on a quick google search to give you a health diagnosis, the same applies for the health of your business. Talk to your Accountant or Bookkeeper and work through what needs to be done before year-end. They can assist with questions like, what documents do I need to gather up? How much tax should I have paid? Are all my reporting obligations met?
Plan your year ahead
Now is a good time to work on a plan for the new financial year. Speak with your Accountant or Bookkeeper as they can help you with your budget and can talk with you about taxes. They can assist you in putting a 12-month strategy together to ensure there are no surprises along the way.
We all want to ensure we are claiming as many expenses as we can, but do not want to claim the wrong things. One good tip is to keep business expenses separate from personal expenses by using different cards and bank accounts. It is also imperative to keep accurate and sufficient records of what you have spent money on. Using an application like Dext makes this easy and means you can take photos of receipts while you are on the go.
Start the year with a clean slate
Ensure you tie up loose ends! Make sure you have invoiced all customers correctly and paid any bills due. Ensure outstanding bills have been entered and all the work you have completed, or stock sold has been invoiced. This will make going through your records a much smoother process.
Have you thought about the following?
- Run a payroll reconciliation and make sure you have paid your staff correctly, particularly where JobKeeper is involved. If not, rectify this in the final payment of the year.
- Schedule the final pay and make sure it leaves your bank account on or before June 30. This includes any bonuses.
- Pay any Super Guarantee owing.
- If you have a product-based business, get ready to do your annual stocktake.
- Have you got any outstanding obligations to the ATO?
Do you have everything ready for your Bookkeeper, BAS or Tax Agent?
- Keep in mind that if you employ staff, wages must be reconciled, and data sent to the ATO no later than mid-July.
- Paperwork, such as new leasing or hire purchase documents, loans, or anything related to new capital expenditure that will help year-end run smoothly.
- Bank statements for ALL of your business accounts as at 30 June.
End of financial year does not have to be a stressful time for business owners. Get a head start now to make this period smoother for you and your business. If you are requiring assistance, please contact our office.
The Money Edge | Bundaberg