June 30 is fast approaching but before you freak out, read on for our tips on how to get EOFY ready. And don’t forget to download our handy end of financial year small business checklist at the end of this post!
Superannuation
Make sure you pay your Superannuation Guarantee (SG) contributions by June 30 if you want them to qualify as a tax deduction in the 2018/19 financial year. Learn more about SG contributions here.
Deductions
Research which deductions you can claim and remember the ATO’s 3 Golden Rules for Deductions:
The money must have been spent on your business.
If it is for a mix of business and private use, only claim the portion that is related to your business.
You must have records to prove it.
Accounts Receivable
Take the time to review any outstanding invoices and write off any bad debts. Find out more about bad debts here.
Single Touch Payroll
If your business reports through STP, there are some changes to how you deal with your employees end of financial year information.
You are not required to provide payment summaries to your employees or lodge a payment summary annual report. This is because you already report and finalise these through STP.
Income statements will replace payment summaries, which your employees can access through the ATO myGov portal.
It might be a good idea to let your employees know about these changes to avoid any confusion.
If you are a small business employing 19 or less, you will need to report through STP from 1 July 2019. Find out more about transitioning to STP for small employers here. If you need some help with this change, connect with us today and we can sort it out for you.
Record Keeping
It’s a good time to sort out all of your business records. This includes cash, online, EFTPOS, bank statements and credit/debit card transactions covering sales and other business income, and expenses you can claim as business deductions. Read our article on record keeping to make sure you’re organised.
Are your receipts all over the place? Receipt Bank can help - we reviewed this handy small business tool last month, check it out!
Reports You Will Need
The main reports you will need to fill out your tax return are your Profit & Loss Statement and your Balance Sheet. If you use QuickBooks Online, you can easily find these from the Reports tab. If you don’t currently use QBO but can feel your EOFY headache forming already, we can get you set up - connect with us today!
Consider Signing Up to QBO, Xero or MYOB
If your business isn’t using an accounting software package like QuickBooks Online, Xero or MYOB, you might want to think about signing up. Your life will be a whole lot easier when June 30 rolls around and your business will benefit all year - contact us to see what we can do for your small business.
EOFY Small Business Checklist
Our 2018/2019 EOFY Small Business Checklist can help you get through June and beyond - you can download a pdf copy here [46.9 KB].
