Published on Jun 17, 2021
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The end of financial year is fast approaching.
End of financial year doesn’t just mean ensuring the books are in order, tax returns and planning for the new financial year ahead. Here is our small business checklist to get you through end of financial year.
Keep it Together!
Make sure your documents are organised, and keep a paper trail. Don’t save paperwork to the last minute, keeping your books in order routinely is the easiest way to stay on top of it. Ensuring your accountant receives detailed and accurate information will make certain they can provide the most optimal outcomes for your business.
Make sure you understand what types of purchases you are able to claim as a deduction for your business and retain all receipts. Read more about what tax deductions you can claim.
Doing your tax with an agent makes the task much simpler, however you need to make sure your agent is registered with the Tax Practitioners Board (TPB) as you will have no protection should you utilise an unregistered tax or BAS agent. Keeping in regular contact with your agent is also a good idea, as they will help you avoid dilemmas caused by changes in legislation or new tax obligations.
Ensure your business is meeting your SuperStream requirements or you might get a shock at tax time. Businesses with employees must make super contributions by the cut off dates or if you’re a sole trader, or in a partnership and have no employees, you’re not obliged to pay super. However you can decide to make self-contributions to your super fund to help you plan for the future.
Gains and losses
Your business might have property, equipment, furniture or items used within your business that can attract capital gains or losses at tax time. Capital gains and losses can commonly occur when you sell or give away an asset. If your home is a place of business, your business might have capital gains tax implications when you sell it. There are some exemptions from Capital Gains Taxes.
Time to review your finances, check your financial position and assess your business performance. Set your business new financial targets and create a cash flow forecast to predict any shortfalls ensuring the longevity of your business through the next financial year. It might also mean that your business and marketing plans also require review to ensure you can meet the new targets or that your circumstances or net position has changed and you need to update your insurances.
For more information on essential tasks for the end of financial year, please visit the Australian Government’s online business resource.