EOFY Checklist For Small Businesses and Sole Traders.
As the end of the financial year approaches, it’s essential to ensure you’re prepared and ready for the Tax man. Here’s a quick snapshot to guide you through your year-end financial obligations as a small business or sole trader:
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Income Review:
Gather all of your sales and income information, including invoices, payments, and other income sources. -
Business Revenue:
Gather all records of your business's income, including invoices, payments received, and any additional sources of revenue. -
Expense Report:
Compile all your business-related expenses. Remember, you can claim deductions for costs like office supplies, business travel, and equipment purchases. -
Bank Reconciliation:
Make sure your bank statements align with your recorded income and expenses. -
Payroll and Employee Benefits:
If you have employees, ensure all pay records, superannuation contributions, and PAYG withholding records are in order and up-to-date. -
Debtor and Creditor Management:
Keep track of outstanding invoices and debts. It may be beneficial to write off uncollectable debts before EOFY. -
Inventory Assessment:
Conduct a stocktake if your business holds inventory. -
Asset Management:
Update your business's asset register, reflecting any assets you've sold, disposed of, or acquired during the year. -
GST Compliance:
Reconcile all your GST claims and payments for the year with your financial records. -
Superannuation Payments:
Ensure all superannuation payments have been made and recorded. Payments must be received by funds by 30 June to claim a tax deduction. -
Tax-efficient Spending:
Think about whether there are any tax-deductible expenses you could bring forward to the current financial year that could benefit your business in the next year. -
Prepayment of Expenses:
If your cash flow allows, consider prepaying up to 12 months of next year's expenses, such as insurances, to claim a tax deduction this year. -
Consult with your Accountant or Tax Advisor:
Arrange a meeting with your accountant or tax advisor to discuss your preliminary tax estimates and any potential EOFY tax strategies. -
Strategise for the Coming Year:
Based on this year's financial performance, formulate plans for the coming financial year, such as revenue goals, budgeting, and cash flow management.
Keep in mind that the specific needs of your business may vary, and it’s important to adapt this checklist as necessary. Make sure you’re giving your business the best possible start for the new financial year.
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As the end of the financial year approaches, it’s essential to ensure you’re prepared and ready for the Tax man. Here’s a quick snapshot to guide you through your year-end financial obligations as a small business or sole trader: