Your Complete EOFY Business Checklist
With the end of the financial year fast approaching, it’s time to make like a boy scout and get prepared! As a business owner, you want to be sure you’re giving yourself plenty of time to get organised so you can make sure you’re doing everything by the book - the last thing you want is to get audited because you were in a rush and made a mistake! Trust us, leaving everything until June 30th is always a recipe for disaster. Not only that, but you also want to make sure you are getting the most out of your various tax advantages (such as deductions). Leaving things to the last minute may result in missed opportunities.
To help you get your ducks in a row and make sure you’re ticking all the boxes, we’ve put together a complete EOFY business checklist for you to complete!
1. Clear Out Bad Debts
They key thing to remember here is that bad debts must be physically written off before the end of June - not a few months down the track when you finally get around to doing your tax return! Make sure you’re chasing down any outstanding payments from customers, and, if you aren’t able to recover them, write them off as bad debts (and therefore claim a tax deduction). Writing these debts off includes documenting what they are and all the efforts you have made to recover them.
2. Conduct A Stocktake
If you are a product based business, now is a good time to assess your inventory and see whether you can write off or write down the value of any of it.
3. Pay Super Before EOFY
Before the end of the financial year, you should review your super obligations and make sure you are up to date. You will receive a deduction for all super that you pay to employees. Remember, superannuation payments for staff are only tax deductible if they are paid during the current financial year! The cut off date to ensure that your super payments are deductible is June 15, 2018.
4. Issue Payment Summaries Via Email
If you have employees, you must issue payment summaries to them before July 14th. In order to do this, you first need to make sure you have all of their details up to date! You also need to seek permission from each employee to send their payment summaries via email. As this is considered sensitive data, you are not allowed to do so without their authority. It is preferable that this is a non-business email account that cannot be accessed by other staff members.
5. TPAR lodgement
If your business is part of the building and construction industry, you are required to report and lodge payments made to subcontractors during the year. Before June 30, ensure you have all necessary information for these subcontractors - just as you would an employee. Lodgement of the TPAR must be made by 28 August.
6. Review And Update Your Business And Marketing Plans
The end of the financial year is a great time to sit down and evaluate your business activities across the last 12 months whilst also planning ahead for the next 12. Regularly updating and reviewing your business and marketing plans will ensure your business continues to grow and aligns with your customer expectations. Some things to consider are setting new goals for the next 1, 3, 5 and 10 years, asses what strategies are/aren’t working for you currently, set new priorities for workflow, adapt to any new changes in your business, as well as develop a realistic profit and loss forecast for the next 12 months to help maximise your earnings.
7. Review Your Business Structure
As your business continues to grow and expand, you may need to consider changing your current business structure. There are different compliance and tax obligations depending on which structure you choose, so it’s always best evaluate your options with an accountant so you fully understand your responsibilities and can make an informed decision based on your circumstances.
8. Review Your Insurances
Whilst you’re on a roll, it would also be beneficial to double check your business insurance. Make sure that you have the right coverage, and if your business has changed a lot since you last assessed, it may be worth looking into new policies that better suit your current circumstances.
There you have it! A complete list of everything you need to do to prepare yourself for the ever exciting “EOFY” time - it’s not all about buying that new car! Need help getting everything organised? Be sure to get in touch with the team at Arrant Accounting for a personalised, tailored experience for 2018 EOFY.