The key areas that the Australian Taxation Office (ATO) will be focusing on when you…
The end of the financial year for a small business is an important time. There are many things to complete such as bookkeeping, tax returns and planning for the new financial year.
Learn how to prepare for the EOFY to get your business organised and work smarter in the year ahead.
Check what record keeping and other tasks to complete
Examples of some of the yearly tasks you will need to do may include:
- a summary of income and expenses in a profit and loss statement
- conduct a stock take
- summary of debtors and creditors
- collating records of asset purchases or expenditure on improvements to calculate depreciation expense claims and for capital gains tax
- completing and lodging your income tax returns
- lodging yearly reports or returns for:
- pay as you go withholding (PAYG) including finalising income statements for Single Touch Payroll
- fringe benefits tax (FBT)
- goods and services tax (GST)
- the taxable payments reporting system
- meeting superannuation requirements
- making digital copies of any paper records and backing them up.
What tax deductions and concessions you can claim
Most business expenses can be claimed as a deduction if they directly relate to earning your income.
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
Records must be kept proving the expense that you claim as business deductions.
Try to write off any debtors or assets before the end of the financial year to claim a tax deduction. There are also several tax concessions available to support small business, you may be able to make use of some of these before the end of the financial year.
Keep up to date with tax changes
There may be tax changes each year that you need to be aware of. This includes changes in tax law and deductions or concessions for small business. Contact our office on (03)9848 5933 or contact us to help you to understand any changes. You can also subscribe to the ATO’s small business newsroom.
Tax refund scams
There are a number of scams that target small business around tax time. Some common scams include:
- Tax refund scams – scammers claim that you have overpaid your taxes and are eligible for a refund, to obtain the refund they will ask you to pay a fee for administration or transfer costs.
- Tax owed scams – scammers claim that you have underpaid your tax and need to repay it immediately. To make the payment a credit card or debit card will be requested or ask you to send money through a money transfer.
Review your finances
You can ask your accountant or bookkeeper to assist you in reviewing your finances. Investigate whether you have met your targets and if not, what you can do differently. Create a cash flow forecast to manage any potential shortfalls and to ensure you can still pay your staff and suppliers.
Review your business and marketing plans
Set yourself up for the year ahead by regularly reviewing and updating your plans, this will help you to:
- remember your goals and priorities
- assess whether your strategies are working
- adapt to any 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 business structure
You may decide to change your business structure or to restructure your business as it grows and expands. The compliance and taxation regulations differ depending on your business structure. Contact our office for assistance in business structure changes and the effect on compliance and taxation regulations.
Check your insurances
You may need to update your level of cover if your circumstances change. Make sure you carefully read the Product disclosure statements (PDS) for your insurance policies. A broker can work with your business to ensure that you get the best deal from an insurance company.
Backup and secure your files
Make sure that all your business information is backed up and stored in a secure off-site location. Business information includes all registrations, financial information, and customer data.