Is your business ready for 30 June?
Hopefully by now you have 2021 tax planning sorted and are ready to plan out the next year. What do you need to do now to make EOFY seamless?
There is no better time than 1 July to start afresh.
If you got to June and are finding it hard to get your paperwork organised for the end of financial year or don’t know how your business has performed during the year, chances are you are not taking advantage of cloud based accounting and any add-ons it may offer to get you up to speed.
We do Xero conversions as well as training whether in person or on zoom.
Collect your receivables and write off any bad debts
Chase up your clients to get them up to date with their accounts. If it is unlikely that you will collect these, write them off to get benefit of a tax deduction.
Bring your superannuation up to date
Superannuation is payable every quarter within 28 days. If not done on time, you not only have to lodge SGC forms with the AO entailing extra fees, but also forgo a tax deduction and expose yourself to ATO audit.
If your business did well, consider paying superannuation before 30 June rather than waiting till 28th July, to get the deduction this financial year.
For those businesses that keep stock, this is the perfect time to clear out out-dated stocks with an EOFY sale. This is also the right time to review your ordering systems to ease your surplus stock issues.
Whilst the tax office doesn’t require you to conduct stocktake if you estimate the movement during the year is less than $5,000; as a business owner you should know where you stand.
Check your logbooks
To get the full benefit of claiming business related motor vehicle expenses, you need to have a valid logbook.
The logbook needs to be kept for a continuous period of 12 weeks and the resulting percentage can then be used for 5 years, unless your circumstances change.
Take advantage of smartphone apps or GPS logbook.
If you are operating under a discretionary (also known as family) trust structure, make sure that you have signed distribution minutes.
Trustees are required to distribute any profits at year end. If not done, tax is paid at 47%!
Do you have staff? Ensure that your contracts are still current, you comply with any awards (as lot of them have changed throughout the year) that may apply and are ready for the end of year STP reporting.
Check that your software will automatically increase the superannuation from 9.5% to 10% as the rules are changing from 1st July.