The End of Financial Year (EOFY) is a critical period for every business, but it doesn't have to be overwhelming. Proper planning and organisation can make all the difference. Here’s a detailed checklist to help you navigate through EOFY tasks smoothly:
1. Financial Reporting and Tax Obligations
At EOFY, prioritise completing essential financial tasks:
- Bookkeeping and Reconciliation: Ensure all financial records are up-to-date and reconciled.
- Lodging Tax Returns and BAS: File accurate tax returns and Business Activity Statements (BAS) on time.
- Superannuation: Meet superannuation obligations for employees by June 30th.
2. Government Support Payments
Include any government grants or support payments in your tax return:
- Partnerships and Trusts: Report as income in partnership or trust returns.
- Companies: Include as income in your company tax return.
- Sole Traders: Report as business income in your individual tax return.
3. Asset Write-Offs
Take advantage of asset write-offs for eligible purchases:
- Small Business Deductions: Deduct up to $20,000 per asset if purchased and installed by June 30th. Verify eligibility on the ATO website.
4. Detailed EOFY Tasks Checklist
Ensure you complete the following tasks:
- Final Pay Run: Process the last pay run for the financial year and report to the ATO.
- Invoices and Bills: Record all debtor invoices and creditor/subcontractor bills up to June 30th.
- Accounts Receivable/Payable: Review and reconcile accounts to ensure accuracy.
- Bad Debt Provision: Evaluate overdue amounts and consider provisions for bad debts.
- Superannuation Guarantee: Make contributions by June 30th to claim deductions.
- Stocktake: Conduct a stock take and reconcile with your balance sheet.
- Debtor Statements: Send out statements to customers for outstanding invoices.
- Taxable Payments Reporting: Report payments made to subcontractors.
- Bank Reconciliations: Complete reconciliations for all bank accounts.
- Asset Records: Gather documentation for asset purchases and improvements to calculate depreciation and capital gains tax.
- Financial Reports: Review reports for any anomalies or discrepancies.
- ATO Lodgments: File PAYG, FBT, GST, and income tax returns by the deadlines.
5. Working with a Tax Agent
If using a tax agent:
- Communication: Inform your tax agent when tasks are completed.
- Data Access: Grant access to your company data file for efficient completion of EOFY statements and tax returns.