Start Planning for the End of Financial Year (EOFY)

May 31, 2019

End of the financial year is an important time for small businesses, completing bookkeeping, tax returns and planning for the new financial year. Putting the hard work in each financial year can help you get your business organised and work smarter in the year ahead.

Also consider planning for the end of year as well. You should try to write off any debtors or assets before the year ends to claim a tax deduction.

Here are some essential tasks for your end of financial (EOFY) year to-do list:

Record Keeping & Compliance

Some of your yearly tasks as a small business owner may include:

• a summary of income and expenses in a profit and loss statement
• conducting a stocktake. See the Stocktakes page on the Australian Taxation Office (ATO) website to learn more about stocktakes and tax
• summaries of your record of debtors and creditors
• collating records of asset purchases or expenditure on improvements to calculate depreciation expense claims and for capital gains tax purposes
• completing and lodging your income tax returns
• lodging yearly reports or returns for PAYG withholding, fringe benefits tax (FBT), Goods and Services Tax (GST), and the taxable payments reporting system
• meeting superannuation requirements.

Find out what deductions you can claim

Be sure to do your homework and know exactly what tax deductions you can claim. You may be able to claim deductions if your business:

• has set up a website
• has motor vehicle expenses
• uses diesel fuel
• operates at home
• has travel expenses
• uses machinery, tools or computers.

If you are a sole trader, look at using the ATO app’s mydeductions tool to record your business income and expenses during the year.

Review your business and marketing plans

Take time to set yourself up for the year ahead. Regularly reviewing and updating your plans will help you to:

• remind yourself of your goals and priorities
• assess whether your strategies are working
• adapt to any new changes in your environment
• make the most of new opportunities as they come your way
• prioritise and maximise your effort (work smarter, not harder!).

Review your insurances

Check that your business has the right insurances in place. If your circumstances change, you may need to update your level of cover.

Read the product disclosure statements (PDS) for your insurance policies carefully – don’t assume you’re covered. Look up certain terms such as floods as the definition may vary among insurers.

Consider getting an insurance broker. A broker will work with your business to ensure it gets the best deal from an insurance company.

Back up and secure your files

Backup and store your registration, financial and customer data, and other important business documents in a secure off-site location. This can help ensure your business can stay up and running during events such as natural disasters.

 

Tags: EOFY, planning, tax returns

Categorised in: Articles