We are nearing the end of the financial year and it’s time to make sure your tax affairs are in order. The end of financial year (EOFY) can be a headache for many business owners. We have put together a checklist of things to tick off when it comes to tax and EOFY.
1. Organise your records
Make sure all of your records are in order such as; all supplier and customer invoices, GST and all your paperwork relating to your income and expenses.
2. Deductable expenses
Consider bringing forward any deductable expenditures such as repairs and maintenance as far as possible in order to secure deductions this financial year. Or consider pre-paying monthly costs such as rent, electricity, wages and utilities.
3. Complete your BAS
Make sure your BAS payments are up to date and that you have paid all of your instalments when they are due. It is important to always lodge your Business Activity Statement (BAS) on time.
4. Payroll commitments
Make sure all of your payroll commitments have been met. This includes ensuring your payroll and workers compensation have been paid and also that your superannuation has been paid. For businesses, it’s important that your superannuation has been paid well in advance of June 30 for if the payments do not hit the fund before June 30, your super will not be deductable until the next financial year.
Businesses carrying stock should be completing a full stocktake to highlight any stock that you might consider writing off, or that has become obsolete, damaged or devalued.
6. Understand current regulations
Make sure you are across all current regulations and are up to date with what your business can claim. The ATO will be upfront each year about what it will be paying close attention to at tax time, so also make sure you are aware of what the focus is for the current financial year.
7. Bad debts
Businesses should view EOFY as an opportunity to review and write off any bad debts they have not been able to recoup in the current financial year, making sure that you have documented what the debts are and the efforts you have made to recover them.
8. Sufficient storage
Lastly, to help keep a well organised office ensure you have sufficient filing, organisation and storage in place, and remember that almost everything you need to spend to keep your business organised is tax deductable!
Click here to view our range of shelving and cabinets to handle all of your filing and storage needs.
*This tax information is general in nature and based on present taxation laws and may be subject to change. You should seek independent professional tax advice before making any decision based on this information.