With the end of the financial year just around the corner, it is usually a very busy time for business owners, finalising the year and beginning planning for year ahead. Although hard work, ensuring each financial year is finalised accurately can help get your business organised and allow you to work smarter in the new financial year.
We’ve put together 5 tips to help you prepare and make the process that bit easier.
Keeping accurate records and meeting compliance obligations
Collating all your financial records is important at this time of year, as it will help your Accountant when they prepare your tax returns. Some of your yearly responsibilities as a small business owner may include:
- Summarising income and expenses in a profit and loss statement
- Conducting a stocktake.
- Summarising your record of debtors and creditors.
- Collating records of asset purchases or expenditure on improvements to assets to calculate depreciation expense claims and for capital gains tax purposes.
- Completing and lodging your personal and business tax returns.
- Lodging yearly reports or returns for PAYG withholding, fringe benefits tax, Goods and Services Tax, and the taxable payments reporting system
- Meeting Super requirements.
Finding out what tax deductions you can claim
Speak with your Accountant so you know exactly what tax deductions you can claim. This will help to ensure you keep accurate records throughout the year. You may be surprised what deductions are available to you. These can include, but are not limited to, website costs, motor vehicle expenses, working from home and travel expenses.
Use a registered tax agent
Ensuring you have a suitable Accountant, who understands your business, is very beneficial and will help make tax time easier for you. It is an ideal time to discuss with them any changes that may be applicable to you or your business in the upcoming financial year and how best to prepare for them.
A lot of Accountants can now also help you with your business and give you guidance on what’s next.
Review your finances
Reviewing your profit and loss at the end of the financial year will help you see how your business is tracking. You can see whether you have met your targets for the financial year and what areas of your business are working well and what aren’t. These can be great points of discussion when reviewing your business plan and targets for the year ahead.
Creating cash flow forecasts will also help you manage any potential shortfalls throughout the year and put plans in place now to fill the gaps when needed.
Watch out for tax scams!
Tax scams are on the rise, with people reporting suspicious emails and calls from people claiming to be from the tax office. This is set to increase over tax time. Common scams include:
- Tax refund scams where a Scammer will claim you have overpaid your taxes and are entitles to a refund. They claim for you to receive the refund, you will need pay a fee for administration costs.
- Tax owed scams where a Scammer will claim that you’ve not paid enough tax and will need to repay the amount you owe immediately. To make the payment, they will request your credit/debit card details or ask you to transfer the money directly.
A lot of these can sound legitimate, so being on alert and aware of these is vital.
As always, surrounding yourself with expert advisors will help you towards financial success and make the end of financial year easier for you. Ensure you are getting the maximum value from your advisors and working closely with them to achieve goals.
Although a busy time, the end of the financial year is great for reflection and planning where the next yearwill take you and your business!
Credit Representative 490860 is authorised under Australian Credit Licence 389328 www.finarc.com.au This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances.