EOFY Checklist for Small Business Owners

EOFY Checklist for Small Business Owners

The end of the financial year is quickly approaching, another year of business, another year of taxes! We understand that this time of the year is always incredibly busy and stressful, so here is our end of financial year checklist for this tax season.

Run final reports
The conclusion of the financial year presents an ideal moment to scrutinise your company as a whole. Compile and assess your balance sheets, cash flow reports, and profit & loss statements. This analysis yields invaluable insights into profitable areas and areas ripe for enhancement in the upcoming year.

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Review superannuation
Ensuring timely superannuation payments for your staff is always crucial, however it should become a priority to settle all outstanding payments before the 30th of June. Remember, these payments are tax-deductible only if made within the relevant fiscal year.

Issue PAYG summaries
The ATO mandates the provision of end-of-year pay-as-you-go (PAYG) summaries to employees by the 14th of July annually. Before issuing these summaries, we advise that you review your payroll totals and ensure that transactions align with the figures on your payroll register. This second check ensures smoother tax return filing for your employees and less follow up work for you as the employer.

Submit BAS and ASIC reports
For small businesses filing quarterly business activity statements (BAS), the final submission for the financial year typically falls due by the end of July. This allows approximately four weeks after the end of the financial year to ensure everything is in order. Additionally, registered companies must submit an annual statement to the Australian Securities and Investment Commission (ASIC), which involves paying the annual review fee and passing a solvency resolution. You can find more information about this on the ASIC website.

Reconcile payroll
Confirm that your payroll transactions align with the details recorded in your payroll register. Accuracy in this regard is crucial not only for a precise tax return but also for assessing whether your business exceeds the payroll tax threshold established by the Australian Government.

Take stock
For businesses involved in purchasing or selling physical goods, it's important to conduct a stocktake to capture precise stock quantities as of June 30th. Additionally, document the total value encompassing all your stock holdings.

Write off bad debts
As a business owner, you might qualify for a deduction for any income you cannot recuperate from a customer or debtor, known as “bad debt”. Therefore, it's advisable to evaluate and potentially write off any unrecoverable debtors or assets before the fiscal year concludes, allowing you to claim a tax deduction. For further guidance on writing off bad debts, the Australian Taxation Office offers a more complete overview of how you can do this.

Review insurance policies
The end of the financial year presents an ideal opportunity to reassess your current insurance policies and ensure they remain the most optimal and economical choice for your business. With many insurance providers offering enticing deals as the fiscal year concludes, it's wise to explore your options and consider shopping around for the best deals.

Take advantage of EOFY offers
Various businesses across different industries introduce EOFY deals every June. If you're in need of new office equipment, furniture, or electronics, this period presents an excellent opportunity to snag some fantastic bargains.

Talk to your accountant
Each business has unique tax benefits and opportunities available to them, particularly within niche sectors. To guarantee the best preparation for the EOFY, it is important to consult with your accountant for tailored guidance.

Prepare documents
Once you have completed all of the above steps on our EOFY checklist, you should now be ready to prepare and present the following EOFY documents.

  • Bookkeeping software reports
  • Bank statements 
  • List of debtors and creditors
  • If you are a public company, your company’s stock value as of 30th of June
  • A list of your assets, including purchase data and price
  • A list of any government grants and/or payments
  • A summary of all payments made to your contractors
  • An overview of all the loans owed by your company
  • Details of any vehicles owned by your company
  • A list of insurance policies and cover details
  • A list of superannuation payments made by your staff
  • A list of your petty cash expenditure
  • A copy of any leases of premises 

And any other documents that may affect your tax status. 


Achieve more next financial year
The EOFY provides a chance for most business owners to sit down and evaluate how well their business is going. At this time of the year it is common to be asking yourself as a business owner, how much money did my business earn? How much growth did I achieve this year? And ultimately how successful was my business?

For a lot of businesses, achieving that desired growth and earning more income is only a matter of having access to more cash when you need it. If late payments and tight cash flow is stopping your business from achieving the goals you set out for it each and every year, then you should consider invoice financing. 

With invoice financing you can trade your outstanding and unpaid invoices for immediate cash, so you can continue your business operations smoothly and reinvest when your business needs it most. Want to see how invoice financing helped this Australian company escape bankruptcy and succeed well beyond their expectations? Read our blog: Empowering Small Businesses: Brunswick Invoice Finance.

Want to learn more? Reach out to us at Brunswick Invoice Finance today.

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