As the end of the financial year approaches, businesses need to review their financial affairs and ensure compliance with regulatory requirements.
Whether you’re a newly established business, an existing one, or simply needing a reminder, this EOFY checklist will help you navigate the necessary tasks to wrap up the financial year effectively.
For Newly Established Businesses:
- Register for GST (Goods and Services Tax): If your business has reached the GST threshold ($75,000 turnover annually), register for GST with the Australian Taxation Office (ATO) to comply with tax obligations.
- Set Up Accounting Systems: Implement accounting software or systems to accurately track income, expenses, and GST obligations. Consider seeking professional advice to ensure compliance and efficiency.
- Organise Financial Records: Maintain organised records of all financial transactions, including invoices, receipts, and bank statements, to facilitate EOFY reporting.
- Understand Tax Deductions: Familiarise yourself with tax deductions applicable to your business, such as expenses related to operating the business, depreciation on assets, and superannuation contributions.
For Existing Businesses:
- Review Financial Performance: Assess your business’s financial performance over the past year, including revenue, expenses, and profitability, to identify areas for improvement and strategic planning.
- Reconcile Accounts: Reconcile bank accounts, credit cards, and other financial accounts to ensure the accuracy and completeness of financial records.
- Complete and Lodge BAS (Business Activity Statement): Lodge your BAS for the quarter ending 30 June, reporting GST collected and paid, as well as other relevant tax information.
- Review and Renew Contracts: Review existing contracts with suppliers, clients, and service providers, and consider renewing or renegotiating terms where necessary.
For Businesses Needing a Reminder:
- Superannuation Payments: Ensure all superannuation contributions for employees are paid and reported to the relevant super funds by the due dates.
- EOFY Reporting Obligations: Complete and lodge annual reports with the ATO, including PAYG withholding summaries for employees and taxable payments reports for contractors. Make sure to check with us if there has been any changes from previous years.
- Stocktake: Conduct a stocktake to determine the value of your inventory at the end of the financial year, ensuring accurate reporting for tax purposes.
- Review Insurance Policies: Review business insurance policies, including public liability, professional indemnity, and property insurance, to ensure adequate coverage for the upcoming financial year.
- Plan for the Next Financial Year: Develop a budget and financial plan for the next year, outlining revenue targets, expense forecasts, and strategic initiatives to drive business growth.
By following this EOFY checklist, businesses can ensure compliance with regulatory requirements, maintain financial accuracy, and position themselves for success in the upcoming financial year.
If you fail to plan, you plan to fail. Ensuring that your business is prepared at the end of the financial year for the following year is critical to ensuring its viability.
Remember to seek professional advice from accountants or financial advisors if you have specific questions or concerns regarding your business’s financial affairs.
Remember, We Are Here To Help
This checklist is meant to provide a starting point for identifying the areas that might significantly impact your business planning. We’re always glad to consult with you on such matters and advise you in any way we can.