There are ways you can get a head start on your obligations, by following these 10 simple tips to prepare early for EOFY.
1. Know your deadlines
There are a number of reporting deadlines for business to adhere to for EOFY and missing any one of them can lead to complications.
Here are the dates of reporting deadlines that you need to know:
- May 21: Fringe Benefits Tax return
- July 16: PAYG payment summaries due to staff
- August 14: PAYG withholding annual report
- August 28: Taxable payments annual report (if required)
- September 30: Financial reports (if required). In some cases, this may be October 31
And don’t forget to lodge your Business Activity Statements at your regular intervals during this busy period.
2. Check and double check your obligations
Your EOFY obligations change depending on how much your business turns over and how many staff you employ. It is likely this has changed over the course of the year and you may be in a different bracket to the year before.
Check with your accountant to ensure you are completing the correct obligations.
3. Get a head start on your profit and loss statement
This is a requirement for all businesses and you can get a head start by recording all of the profit and losses to date, adjusting as you move towards EOFY or estimating and then adjusting at June 30.
4. Have you claimed the instant asset write-off?
The Federal Government’s instant asset write-off has been extended, which means if your business turnover is less than $10 million you deduct the full cost of most depreciating assets that cost $20,000 or less.
If you have not done this yet, get spending. If you are in need of new IT equipment, vehicles, office equipment or commercial machinery you can deduct it under the instant asset write-off scheme as long as you buy it before June 30.
5. Claim your charitable donations
If you have given to charity at any point during the financial year, assemble the receipts and/or paperwork now.
This is all deductible, so save yourself some time by having this figure and the supporting documents ready in advance.
6. Install receipt capturing apps
There are a range of apps that will instantly scan and store your receipts throughout the year. Some of the leading apps include Expensify, Zoho Expense, Evernote and Google Lens.
Use these to simplify the remaining part of the year and set yourself up for a flying start in the next financial year.
7. Work out what you have receipts for—and what you don’t
Assuming you don’t have a digital database of receipts, there may have been some that have been lost or damaged along the way over the financial year.
Make a separate list of expenses where the receipts are not able to be presented so you can speak to your accountant later about how you can claim these expenses.
8. Reconciling your payroll at the end of April
Many businesses will wait until June 30 to do this when they are already under enormous pressure to complete all EOFY compliance.
There can be errors and discrepancies in your payroll and it will be time consuming to rectify all of this at the last minute.
By reconciling in April, you will only have two months to do at the end of June and a lot less work fixing up those discrepancies.
9. Call in your invoices early
Ask your suppliers to invoice you before June 30. As long as the goods and/or services are received before that date, you can deduct them—even if the invoices have not yet been paid.
10. Know what tax changes will apply for the next financial year
While you are in full EOFY mode, research or ask your accountant about the new laws that will kick in for the 2019/20 financial year.
This will get you off to the right start with understanding your obligations and any potential changes that will impact you.
For all of your business finance assistance, contact Morris Finance on (03) 5223 3453 today.