The end of the financial year almost overlaps with Christmas in July, except there are fewer gifts and much more paperwork. As a business owner, it’s essential to understand your tax requirements, as well as any deductions that could benefit you as the year comes to a close.
Read on for our short checklist to get you started and ready for the new financial year.
1. Research any changes that might affect your business for tax purposes. The Australian Taxation Office small business newsroom is a great place to start.
2. Check in with your accountant to discuss the upcoming lodgment, what they need from you and what you should expect.
3. Make sure your files are in order and your details are up to date. Throughout the year you may have made adjustments and changes to your business, so check that all of these are reflected in your data. This may include month-end records and reconciliations.
4. Assess the status of all accounts receivable and payable, and reconcile any unpaid or outstanding amounts. Additionally, put together a summary of all creditors and debtors.
5. Conduct a stocktake of all inventory and its current trading value, and account for changes in value.
6. Provide details of all assets and determine current market value and depreciation.
8. Run financial reports such as cash flow summaries and profit and loss.
9. Report payroll figures through the Single Touch Payroll system, including employee superannuation contributions, salaries and any other relevant data.
10. Complete your business activity statements (BAS), which should include your PAYG instalments and withholding tax, fringe benefits tax and goods and services tax. This may be done monthly, quarterly or yearly depending on your annual turnover.
Tips for the new financial year:
Organise your receipts in a digital storage system and update it regularly.
- Set targets and start planning for the next financial year early.
Always contribute to employee superannuation funds on time: late payments may not be tax deductible.
Review your insurance and other policies to ensure they suit your needs, and consider making changes at the beginning of the new financial year.
- Assess your work space and consider making changes to get people back to work. This might include safety measures like screen guards and room dividers, signs and partitions or even a new fitout to suit your changing workforce. Visit our website, give us a call or request a quote to see how we can transform your space, and check out our guide to creating a COVID-safe office.
ATO has a business self service page and a small business assist program, with answers to common questions, key contact numbers and a live chat function. There is also a COVID-19 page with information on the support for businesses during the COVID-19 pandemic.
The above is just a guide and is by no means exhaustive. Speak to a tax professional or visit the Australian Taxation Office website for more details.
Australian Taxation Office