For many people, the end of the financial year means a frantic scramble to find paperwork and send it to their accountant on time. Missing receipts, figures that don’t add up and debt can leave you feeling overwhelmed.
This situation may be common, but it’s also avoidable. Right now is the perfect time of year to start getting organised, take a look at the year that was, and plan for a more organised and more profitable year ahead.
Here’s our advice for getting ready for the end of financial year, making the most of your deductions, and making the whole process as stress-free as possible.
Tasks you’re required to complete by law can include:
- Income tax return lodgement
- BAS lodgement(s)
- PAYG withholding payment summary annual report
- Payroll Tax – consider whether your business may be over the threshold.
- Fringe benefits tax return lodgement
- Superannuation payments
- Workers compensation insurance
- ASIC annual report (for companies)
- Government grants – if you’re receiving government grants, it’s a good idea to ensure you’re still meeting the required guidelines to receive these.
Not all of them will apply to your business, but it is good to run through the list and ensure all necessary obligations are met.
In the lead up to 30 June, there are some best practice suggestions that you can undertake:
- Reconcile your accounts receivable. Follow up on any amounts that remain outstanding and if there are any unrecovered debts, write these off as a bad debt. This is an allowable income tax deduction.
- An effective strategy for small business owners trying to minimise their tax bill is to prepay services and defer income in order to reduce taxable income for the year.
- For superannuation, it’s a good idea to make sure you are on top of all superannuation obligations. Employee superannuation contributions is an allowable deduction. If there are any amounts payable still outstanding, take care of these before 30 June (even earlier to allow for super fund processing times).
- The end of financial year is also the ideal time to analyse the past 12 months and use this insight to plan for the future. Developing realistic budgets for revenue and expenses, tax planning for the year(s) ahead, reviewing insurances, setting business goals for the next three to five years, assessing risk management and even considering succession planning are all effective ways to help maximise opportunity.
Getting organised for the end of financial year early is the key to making the whole process a stress-free and lucrative one. This is always an accounts-focused time of year for businesses, and if you do it well, you’ll be set up for a profitable year ahead.
At Commission Flow, we’re always looking to impart our hints and tips on running a successful agency. For further reading on finance, marketing and more – stay on our blog or get in touch.