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Top Tips I Tell My Clients Before EOFY

Tax season can be a stressful time for any business owner. With deadlines looming and paperwork piling up, it’s easy to feel overwhelmed and miss important tasks. But fear not, I’ve got you covered with some top tips to ensure you don’t miss anything important before the End of Financial Year (EOFY). Preparation is key for EOFY – especially if you want to avoid penalties!


Tax Planning Ahead of 30th June

Your tax return will only be as accurate as your financial records. And believe me, you want them to be spot-on to take advantage of tax deductions. Take time to review your records, ensuring you have all receipts (invoices) before you meet with your tax advisor. By doing this ahead of time, you can avoid the last-minute rush and the anxiety that comes with it.

 

Update Your Paperwork

Ensure all your paperwork is up to date. This includes employee information, contacts, subscriptions, and expenses. Accurate paperwork sets a solid foundation for a smooth EOFY process.

 

Pay Employees in the Correct Financial Year

It’s crucial to pay your employees on time – just as you normally would. Don’t miss any payments or push them into July. The day you physically pay them (the money leaving your bank) determines which financial year the income applies to, not the dates they actually worked. Failing to make these payments on time can lead to taxation issues and other complications down the line.

 

EOFY Stocktake

EOFY stocktakes are essential and can take a lot of time. Run an inventory report and review your stock levels against your digital records. Ensure any damaged or obsolete stock is accounted for and that your records are accurate. Do this on or as close to 30 June as you can. Your trusty bookkeeper and tax agent will need this figure to know your stock on hand (unsold) at EOFY for tax calculations.

 

Create an Asset and Stock Record

Maintain a detailed record of all assets and stock. This includes documenting purchases and expenditures on improvements. Keeping these records updated helps in accurate financial reporting and tax calculations.

 

Create a Record of Debtors and Creditors

Ensure you have a comprehensive record of all debtors and creditors. This helps in understanding your financial obligations and outstanding receivables, which is crucial for your EOFY financial assessment.

 

Pay Super Before EOFY If You Want to Claim

If you’d like to claim FY 23/24’s super as a business expense, you’ll need to pay it well before 30 June (so it reaches the fund in time). Review your quarterly super payments to make sure they have all been paid on time for the correct amount using the right methods. This will save you from racking up penalties for late payments and also make sure it’s tax-deductible – as it’s only a tax deduction in the year that you pay it. If you need help figuring out if you should pay your quarterly super early in June – check in with your Tax Agent or Accountant!

 

Reconcile Bank Statements, Payroll & GST

Accurate records will enable you to identify any discrepancies and resolve them before they turn into bigger problems. Reconciling your bank statements, payroll, and GST is an essential step in ensuring that your finances are in order. And if you do it now, you can fix any issues before 30 June. Your bookkeeper can assist you here if you’re unsure. Alternatively, the ATO has a heap of relevant information on its website.

 

Detect Your Tax Deductions and Concessions

Identify all the possible tax deductions and concessions you can claim. This includes expenses such as:

 

  • Business items paid on a personal card

  • Expenses related to motor vehicles

  • Business operations at home

  • Travel expenses

  • Machinery, tools, and computers expense relating to your business operations

Write Off Bad Debts

Review your receivables and write off any bad debts before the EOFY. This helps in accurately reflecting your financial position and can provide tax benefits.

 

Speak to a Professional

Book a meeting with your financial advisor or accountant before EOFY to review your financial status and tax obligations. I cant stress this one enough you want to be be prepared and set aside any necessary funds.


 

Preparing for EOFY is crucial for business owners. Following a comprehensive checklist can help ensure all essential tasks are completed on time. From tax planning and stocktake to reconciling bank statements and reviewing profit and loss, every task is important. Don’t risk non-compliance or penalties – start the EOFY process now.

 

Need a hand getting your books EOFY-ready? Contact us for a chat!


Call us on 1300 350 049 or reach out at email@bookmetricsfs.com

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