Is Your Business Ready For The End Of The Financial Year?

The end of the fiscal year is a good time for all small business owners to take stock, assess their financial position and look ahead to the new year and beyond. It marks a time when we can all start thinking about getting our accounts in order, preparing our tax returns, completing our April through June business statements, and completing our year-end employee accounting. Some of us are also starting to think about ways to save money on taxes and planning for growth and future success. Leading up to June 30, there are a number of steps small business owners can take to prepare for this fiscal year-end and the future. Keep in mind that some of these steps may need to be taken well before the end of the year, while others may wait until the clock passes midnight on June 30th. We've listed a few below to help you make the right decisions about which tasks to prioritize in the coming weeks and which tasks can wait for the current fiscal year to end.

RECLAIM AND COLLECT YOUR RECEIVABLES You may need to track down outstanding payments from customers. If you can't get back any of your customers' amounts due, you may be able to write them off as bad debts and claim those as a tax deduction. On the other hand, if you manage to collect outstanding amounts, it will be positive for your cash flow. PAY BY JUNE 30 EMPLOYEE OR PERSONAL SUPERANNUATION CONTRIBUTIONS Make sure you are aware of all your retirement obligations. You will receive a deduction for all pension obligations that you pay, as long as it is paid on June 30. Since super is such a tax-effective way of investing, you may also want to consider investing your personal assets in super. Check with your financial advisor or accountant about the salary sacrifice options available to you. PRE-PAY ALL EXPENSES Business owners can choose to prepay services and supplies and claim a deduction in the current fiscal year. Your accountant will tell you that advancing tax-deductible expenses and deferred income can work to lower your taxable income for the fiscal year. SEE YOUR EXISTING COSTS - LIKE INSURANCE As a private individual, it may be more tax beneficial to purchase insurance through your pension fund, so you might want to look into the option of moving coverage to your super fund or getting a new policy inside super. In addition, if you have income insurance, you may want to consider paying premiums for 12 months up front and this could also result in a tax deduction. The result is that you have to pay less tax in total for the current financial year. PERFORM A PHYSICAL ATTENTION (END OF THE YEAR) Make sure you report the correct value of your inventory. Is it possible to write down or write down the value of a stock? Inventory write-offs reduce the value of your reported profit. Your accountant can then advise you on how to do this to reduce any tax liabilities. COSTS OF MOTOR VEHICLES At the end of the year you must make a record of all final readings of your motor vehicles. This will help your accountant calculate your vehicle usage correctly. You also need a valid and up-to-date log. If you want to make your claim based on the actual cost of the motor vehicle, rather than the mileage you have traveled, make sure you keep clear records of all expenses and receipts (e.g. accountant will generally help you calculate your depreciation allowance for the year, but it is important that you keep all paperwork related to the sale or purchase of new assets together during the year to make your GST claims and deductions easier to calculate and calculate. Record all assets in your system to ensure you are claiming the correct GST amount BUDGET AND BUSINESS PLANNING The end of a fiscal year is also the ideal time to plan for the future.

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Develop realistic profit and loss forecasts for the future. next 12 months and set business goals for the future Look at establishing a budget for the company and consider the different options ies that help your business move forward. You may also decide to talk to an advisor about an exit strategy if you are considering retiring or selling your business in the next 5-10 years. ONCE THE FINANCIAL YEAR ENDS, you or your accountant can now get started with the processing know your bookkeeping and prepare it for the bookkeeper. Some of the things to review include (but are not limited to): You may also decide to talk to an advisor about an exit strategy if you are considering retiring or operating your business in the next 5-10 years. to sell. ONCE THE FINANCIAL YEAR ENDS, you or your accountant can now start processing your accounting and preparing it for the accountant. Some of the things to review include (but are not limited to): You may also decide to talk to an advisor about an exit strategy if you are considering retiring or operating your business in the next 5-10 years. to sell. ONCE THE FINANCIAL YEAR ENDS, you or your accountant can now start processing your accounting and preparing it for the accountant.

Some of the things to review include (but are not limited to):

Reconcile all bank accounts

Reconcile Liability and G / L accounts

Reconcile payroll tax obligations and submit your payroll reconciliation to government revenue

Complete and reconcile employee payroll, create and send payment statements, and send the PAYG statement report to the ATO. Your accounting software may require you to close the existing salary year before you start preparing the payment for the new fiscal year (MYOB)

Send a report to the contractor payments to the ATO

PREPARE FOR TAX TIME - YOUR ACCOUNTANT HELP YOU In an effort to minimize the amount of income tax they have to pay, some businesses can fall into a trap and make common mistakes. The trap that business owners most often fall into is simply not keeping up with changes in tax compliance. The ATO regularly introduces changes to laws and regulations, so it is essential that you and your accountant are aware of any changes that affect your business. Failure to prepare properly is another downfall for many. Keeping track of your accounts and data year round is the best plan of attack so that all your accounts are in line and everything is where it should be. This can take a lot of stress out of tax time and ensure that all your reports are completely accurate. Likewise, don't leave your tax papers until the last minute. Get up early to minimize the hassle and ensure you get the most out of your tax return. SOME OTHER CONSIDERATIONS YOU MAY TAKE WHEN REVIEWING YOUR BUSINESS

Filing an income tax return - You will need to provide a range of financial information that your accountant can review, as well as highlight any large or unique transactions. The information your accountant needs includes a profit and loss statement for the fiscal year, bank reconciliation report, balance sheet and trial balance, ledger report, and more.

Business Activity Statement (BAS) - By the end of June, you must complete your quarterly or annual BAS. If you need help with this, an accountant or bookkeeper can help.

Australian Securities and Investment Commission Annual Report - This is only a requirement for companies, as well as completing a solvency statement.

PAYG Withheld Payment Annual Report - You must reconcile your payroll and provide payment statements to your employees by the July due date. Before providing PAYG summaries to help your employees file their tax returns, reconcile the totals with your business accounts.

Payroll Tax - Consider whether you may exceed the payroll tax threshold. Please contact your accountant for more information

Employee Compensation Insurance - Now is the time to get all of your company's insurance requirements in order and review the policies you have. Take the time to calculate your company's expected wages and salaries for the coming fiscal year. If there are problematic exclusions in your employees' compensation coverage, see if you are otherwise protected against these risks.

Superannuation Payments - These must be handled monthly, and this is no different just because it is the end of a fiscal year.

Additional benefits Tax return - Some companies will have to file this return. But even if you don't file a benefits tax return, make sure that no relevant transactions have been overlooked and that all necessary employee contributions are paid.

Employee salaries and compensation conditions - View the salaries of all your employees and make sure they are in line with the relevant bell and any other legal requirements.

Government Grants - If your business receives government grants, you must take the necessary steps to ensure that you still meet the required guidelines to receive those grants.

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