It’s most business owners’ least favourite time of year—but June 30 doesn’t have to be all pain and no gain. We’ve put together the ultimate checklist to help you prepare for the end of financial year, and get you on the front foot for the next.
Have you reflected on your year?
EOFY is the perfect time to plan ahead: but first, why not reflect on the year that was? What were your biggest successes, what mistakes have you learned from? How can you incorporate this into your business strategy for the year ahead?
You can’t run on good vibes alone, so take time to run through your financials and assess your performance against your targets, and assess your profit and loss outcome.
Has next year’s budget been signed off?
If you’re not happy with your financial results for the year, it is time to review your business plan and see where you can make strategic and financial changes.
Take a holistic view, looking at market conditions, changes to the industry, operational challenges, and your digital balance.
Once you have some vision in place, you’ll need to plan your cash flow forecast and realistically project your bottom line for the next twelve months. After all, great ideas can’t get off the ground if you can’t pay your staff and suppliers!
Have you sorted out your tax?
Make the most of the tax deductions at your disposal by bringing forward expenses such as repairs and maintenance so that they are incurred before 30 June. You can also prepay recurring overheads like rent, utilities, and wages, to maximise your claims in the current year.
The government has extended the small business $20,000 instant asset write off to the 2017-2018 year, so you might want to think about bringing forward the purchase of big-ticket items if it makes financial sense. Claims may help offset any capital gains from the current financial year.
Finally, look at writing off any bad debts that your business has not been able to recoup this financial year. You will need to show what the bad debts are and that were previously included in your assessable income, as well as the efforts that you have made to recover them.
Does your inventory need a spring (winter) clean?
Stock is defined as any assets that your business purchases or processes to produce its goods and/or services. A regular stocktake schedule allows you to accurately project your cash flow for the year ahead, and claim write-offs from the taxman.
Be sure to write off any old, damaged, or obsolete stock by 30 June, as their value can be claimed as immediate tax deduction. If any stock is now worth less than cost, valuing it at a lower market value may help reduce your tax bill.
A productive stocktake will:
- have standardised stock sheets;
- physically count goods rather than estimate;
- have procedures for writing off damaged and out-of-date goods; and
- record the data so that it can be used for business analysis.
By taking these simple steps to get your books in order, you will avoid any nasty surprises from the ATO, and improve your business prospects for the year ahead.
Are your documents in order?
June 30 is the deadline for your legal responsibilities as a business, as well as all of your financial and taxation obligations. Exact requirements will vary from business to business (and it’s always worth having professional advice), but may include:
- BAS
- GST reports
- PAYG withholding payments
- Company tax calculations
- Payroll tax payments to State Revenue Offices
- Realise all Superannuation guarantee liabilities
- Finalise Fringe Benefits Tax claims
Will your documents be delivered on time?
That’s a lot of documents to get in order, and if you’re racing the clock or just want to make sure it all goes smoothly, now is not the time to take risks. Zoom2u provides direct courier options with a service guarantee to provide you excellent service and peace of mind.
Book now with Zoom2u to ensure your EOFY documents arrive safely and on time.
