As the End of Financial Year (EOFY) in Australia rapidly ascends upon us, there are a series of crucial steps to ensure smooth tax filings and compliance. Don’t simply place your tax return into the “too hard basket”, when you could enjoy an End of Financial Year cash boost if you know what to include and how to maximise any work-related deductions.
It’s imperative to gather all relevant financial documents, including income statements, receipts and expense records. This meticulous organisation of your files lays the groundwork for accurate reporting and maximising your business deductions. Additionally, reviewing investment portfolios and retirement contributions enables individuals to optimise their tax positions. Furthermore, staying updated on changes to tax laws and regulations is essential for staying compliant and taking advantage of any new opportunities for tax savings. By proactively addressing these tasks in the lead-up to EOFY, individuals and businesses can navigate tax season with confidence and efficiency.
Preparing for the end of the financial year is vital for individual taxation and business taxation alike, regardless of specific circumstances. Whether you’re managing a small business, handling investments, or navigating personal finances, there are essential considerations to keep in mind as the tax year draws to a close. Here are a few of our practical tips to kickstart your end-of-year preparations.
Get Organised and Complete Your Tasks
Some of the yearly tasks you need to do as a small business owner may include:
- Summarise your expenses – create a summary of your income and expenses in a profit and loss statement.
- Conduct a stocktake – if your business buys or sells stock and is required to do a stocktake, you need to keep records showing each article of stock on hand and its value.
- Gather your records – collating records of asset purchases or expenditure on improvements (to calculate depreciation expense claims and for capital gains tax).
- Lodge your reports early – lodging yearly reports or returns for different tax types such as: pay as you go (PAYG) withholding, including finalising income statements for Single Touch Payroll.
- Check on your Superannuation obligations – make sure you are meeting your superannuation requirements.
- Back up your records – make digital copies of any paper records and back them up so you can easily access them.
Find out What Tax Deductions and Concessions You Can Claim For
Most business expenses are deductible if they directly contribute to your income generation. For instance, deductions may apply to setting up a new website, motor vehicle usage, diesel fuel consumption, home office operations, any business related travel expenses and equipment usage. Keeping records is crucial to substantiate these claims. Sole traders can utilise the ATO app’s myDeductions tool for income and expense tracking. Writing off debtors or assets before the end of the financial year can also yield any possible tax deductions.
There are also a number of tax concessions available to support small business. See whether you can make use of some of these before the end of the financial year.
Take Advantage of EOFY Sales
Numerous retailers and businesses present enticing deals and markdowns around the end of the financial year, usually from May – June 30. Delving into these options, especially if you have anticipated purchases or investments, can optimise your budget and yield further savings for businesses in the Gold Coast. Look for promotions on vital items, tech advancements or any prepayment options for forthcoming expenses. Yet, ensure informed choices by seeking advice if uncertain. Your future self will appreciate your readiness!
Summary
The good news is, with an End of Financial Year annually, there’s ample opportunity to apply these lessons learned. Consider consulting with Master Accounting, the top choice for taxation services on the Gold Coast. Our expert tax accountants can offer tailored tax and tax planning advice to legally minimise the amount of tax that you are required to pay this year.