How you can prepare for the EOFY
With the EOFY just around the corner, it is important that all businesses are prepared and aware of what is needed in order to make the process easy and efficient. Being prepared will allow you to successfully complete and manage all tax obligations and set you up for the new financial year.
Below are three areas to help you prepare for the EOFY.
What Tax deductions and concessions can you claim?
Deductions can be claimed for the majority of your business expenses. However, the deductions must relate directly to earning your income.
You may be able to claim deductions if your business:
- Has set up a website
- Has motor vehicle expenses
- Uses diesel fuel
- Operates at home
- Has travel expenses
- Uses machinery, tools, or computers
In order to claim deductions, you must have records to prove the expenses that you claim as business deductions.
A number of Tax concessions have been set up to help support small businesses. These are available for businesses based on their aggregated turnover. Click here to see if your business can benefit from some of the tax concessions provided before the EOFY.
Staying on top of superannuation changes
Businesses should be aware of changes to superannuation before the EOFY. These changes consist of the following:
- The Superannuation Guarantee rate is expected to rise from 10 percent to 10.5 percent as of the 1st July 2022.
- Another change to be aware of before the EOFY is that the $450 threshold will also be removed from the 1st July 2022.
Review your business plan and structure
It is a good idea to prepare and set your business up for the following financial year. Ways this can be achieved is by regularly reviewing and updating your business plans.
This will help you to:
- Remember your goals and priorities
- Assess whether your strategies are working
- Adapt to any changes in your environment
- Make the most of new opportunities as they come your way
- Prioritise and maximise your effort
Another important part of preparing for the EOFY is to review your business structure. By reviewing your structure, you will be able to see how far your business has grown and expanded. In doing so you will be able to see what changes need to be put in place to help benefit your business or areas you need to revisit to help restructure your business.
Contact us today on 1300 4 MORRIS and speak to one of our finance specialists to see how we can help your business prepare for the EOFY.