A couple of tips to think about before the financial year ends
As May is quickly drawing to a close and with June just around the corner, now is the time to start thinking about (and doing) some actions prior to the 30 June the last day of this financial year.
Here are four quick tips to get you started.
1. Make sure you have the right tools.
Your Accounting software package should help you complete year-end processes easily, quickly and smoothly. Supporting you to meet your tax obligations, by producing reports on PAYG, GST, and BAS and any superannuation rate changes. If it doesn’t it maybe time to look at other software packages!
2. Make sure everything is up to date.
Make sure you have all your paperwork up to date and that you have kept all the required and relevant records, to support your transactions and claims. I there are some you are missing start the search sooner rather than later.
3. Investigate if there are any expenses you can prepay.
If you can pay for work related expenses this year, then this will help with tax deductions. This could include subscriptions, stocking up on your office supplies or paying for professional memberships.
Depending on your business structure, you might be able to prepay some deductions in advance. For example, a small business could prepay rent in advance or insurance premiums.
Purchase identified new assets this financial year to help with your tax deduction claims. If you need that new laptop or software and the cash flow is healthy, then buy it now. However, check or be mindful of how much you can claim this financial year.
4. Don’t forget your stock!
In some cases, you may be able to complete some of this early and simply update at the EOFY to determine your cost of goods sold. Or at minimum be prepared, as we all well know this can affect your bottom line and can become extremely cumbersome and time consuming if it’s not already organised.
And remember to always consult with your tax accountant or agent to ensure that the potential saving is viable for your business.
This is general information and suggestions to prompt you to prepare only.