{"id":276277,"date":"2015-06-26T07:07:23","date_gmt":"2015-06-25T21:07:23","guid":{"rendered":"https:\/\/content.easyweddings.com\/au\/pro-education\/five-things-every-business-owner-needs-to-do-before-the-end-of-the-financial-year\/"},"modified":"2015-06-26T07:07:23","modified_gmt":"2015-06-25T21:07:23","slug":"five-things-every-business-owner-needs-to-do-before-the-end-of-the-financial-year","status":"publish","type":"au-pro-education","link":"https:\/\/www.easyweddings.com.au\/pro-education\/five-things-every-business-owner-needs-to-do-before-the-end-of-the-financial-year\/","title":{"rendered":"Five things every business owner needs to do before the end of the financial year"},"content":{"rendered":"<p><a href=\"https:\/\/assets.easyweddings.com\/files\/2022\/02\/23154956\/ThinkstockPhotos-469320412-scaled.jpg\" rel=\"nofollow noopener\" target=\"_blank\"><img decoding=\"async\" class=\"aligncenter size-medium wp-image-3797\" src=\"https:\/\/assets.easyweddings.com\/files\/2022\/02\/23154956\/ThinkstockPhotos-469320412-scaled.jpg\" alt=\"wedding business tax preparation \" width=\"900\" height=\"601\" title=\"\"><\/a><\/p>\n<p class=\"lead\">Owning your own business certainly has its perks, but with them comes great financial responsibility, including\u00a0<a title=\"BAS reporting \" href=\"https:\/\/www.ato.gov.au\/Business\/Business-activity-statements-(BAS)\/\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">BAS\u00a0reporting<\/a>\u00a0and getting the rest of your financial affairs in order before the EOFY (end of financial year). <strong>While you should always seek advice from a qualified professional,<\/strong> here are some basic tips for things you should get done given the June 30 EOFY deadline is only a matter of days away, So,\u00a0grab a calculator and a coffee and let&#8217;s get down to business:<\/p>\n<h2>1. Gather\u00a0compliance records<\/h2>\n<p>The ideal\u00a0tax accountant is not someone\u00a0who mysteriously delivers\u00a0a favourable return each year, putting you at risk in the event of an <a title=\"ATO audits\" href=\"https:\/\/www.ato.gov.au\/General\/How-we-check-compliance\/Reviews-and-audits\/\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">audit<\/a>; it&#8217;s a qualified agent who is able to\u00a0extract the right information from you to legitimately\u00a0make the most of your return\u00a0but it&#8217;s <em>your<\/em> responsibility to provide <em>evidence<\/em>.<\/p>\n<p>When preparing your return &#8211; either independently or with the help of\u00a0a professional number-cruncher &#8211; here&#8217;s a list of the compliance records you&#8217;re likely to need:<\/p>\n<ul>\n<li><a title=\"Stocktakes ATO\" href=\"https:\/\/www.ato.gov.au\/Business\/Manage-your-invoices,-payments-and-records\/Stocktakes-and-assets\/Stocktakes\/\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">Stocktake<\/a>\u00a0stats: if your business turnover exceeds $2million, OR\u00a0the difference between stock at the beginning and end of the year exceeds\u00a0$5,000, you may need to conduct a stocktake, which will assist in preparing\u00a0your profit &amp;\u00a0loss statement.<\/li>\n<li><a title=\"Profit and loss statement\" href=\"http:\/\/www.business.gov.au\/business-topics\/business-planning\/writing-a-business-plan\/how-to-write-a-business-plan\/Pages\/profit-and-loss-statement.aspx\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">Profit &amp; loss statement<\/a>: all sales\u00a0&amp; expenses\u00a0should be recorded in a profit &amp; loss statement, where entries\u00a0can be recorded as monthly, quarterly or annual\u00a0transactions &#8211; be\u00a0consistent.<\/li>\n<li><a title=\"Debtors and creditors\" href=\"https:\/\/www.ato.gov.au\/business\/manage-your-invoices,-payments-and-records\/debtors-and-creditors\/\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">Debtors &amp; creditors<\/a>\u00a0report: details\u00a0of\u00a0exactly which customers still owe you money, and any\u00a0suppliers or services for\u00a0which you&#8217;ve been invoiced but are yet to finalise\u00a0payments.\u00a0Unless your business operates on cash alone, you&#8217;ll need to generate a list of all these unprocessed invoices sent\u00a0and received during the 2014\/2015 tax year, as they\u00a0are still considered income or expense for\u00a0this period.<\/li>\n<li><a title=\"Capital Gains ATO\" href=\"https:\/\/www.ato.gov.au\/Forms\/Capital-gains-tax-concessions-for-small-business-2015\/?page=2#About_capital_gains_tax\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">Capital gains<\/a>\u00a0information: if you&#8217;ve purchased assets such as property, land or shares, invested money on adding to\/improving physical\u00a0assets, or lost money from a capital investment, the <a title=\"Australian Taxation Office\" href=\"http:\/\/ato.gov.au\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">Australian Taxation Office<\/a>\u00a0(ATO) would like to know the nitty-gritty.<\/li>\n<li><a title=\"Employer record keeping ATO\" href=\"https:\/\/www.ato.gov.au\/Business\/Employers\/Keeping-records\/\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">Employee records<\/a>: if you employ\u00a0staff, payment summaries and details relating to their superannuation will be needed to lodge your return.<\/li>\n<\/ul>\n<h2>2.\u00a0Prepare particulars<\/h2>\n<p>If you&#8217;ve set aside\u00a0time in your busy schedule\u00a0to visit a tax accountant, be prepared with <em>all<\/em> the information needed for them to lodge your return in a timely manner. In addition to the above compliance records, you&#8217;ll also need the following information, as it\u00a0applies to your business:<\/p>\n<ul>\n<li>Australian Business Number (ABN) and\/or Tax File Number (TFN)<\/li>\n<li>Bank statements including interest earned and the nature of each deposit<\/li>\n<li>Bank details in case of a refund (BSB and account number)<\/li>\n<li>Insurance provider details<\/li>\n<li>Rental statements including income earned and expenses incurred<\/li>\n<li>Details of any subsidies or grants received<\/li>\n<li>Proof of charitable donations $2 or more to registered charities<\/li>\n<li>Motor vehicle log books and travel expenses<\/li>\n<\/ul>\n<p>For a comprehensive\u00a0list, see Mas Accountants&#8217; <a title=\"\ufffc2015 Company, Trust or Partnership Tax Return Checklist\" href=\"http:\/\/www.masaccountants.com.au\/images\/client_resources\/Company%20Trust%20or%20Partnership%20Tax%20Return%20Checklist.pdf\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">2015 Company, Trust or Partnership Tax Return Checklist<\/a>.<\/p>\n<h2>3. Select an accountant<\/h2>\n<p>If you&#8217;ve recently moved or aren&#8217;t 100% happy with your old accountant, it&#8217;s time to find a new one. Google tax\u00a0agents close to your home or business, or ask your friends, family or legal advisor\u00a0for a referral to spare you the annual trial and error of finding a professional tax accountant you can work with every EOFY\u00a0&#8211; and throughout the year &#8211; who understands you, your business needs, and the\u00a0industry inside out. Make sure the accountant you ultimately decide on is registered with the\u00a0<a title=\"Australian Government \" href=\"http:\/\/www.tpb.gov.au\/TPB\/Home\/TPB\/Default.aspx#%26panel1-1\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">Tax Practitioners Board (TPB)<\/a>, as there&#8217;s zero\u00a0protection for\u00a0taxpayers who enlist the services of an\u00a0<a title=\"Australian Government Unregistered Agents\" href=\"http:\/\/www.tpb.gov.au\/TPB\/Finding_and_using_a_practitioner\/Unregistered_agents\/TPB\/Subsidiary_content\/0338_Unregistered_agents.aspx\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">unregistered tax or Business Activity Statement (BAS) agent<\/a>.<\/p>\n<h2>4. Make an appointment<\/h2>\n<p>Pick up the phone and\u00a0make an appointment <em>today\u00a0<\/em>(for next week if you have to)\u00a0to avoid procrastination, along with any fines that may apply to late lodgements. It&#8217;s important to get the ball rolling early,\u00a0especially if you&#8217;re anticipating a return\u00a0&#8211;\u00a0the sooner you receive it, the sooner it can be used to reduce interest on outstanding debts, reinvested into marketing, advertising or business development, or even used to take that much needed break you&#8217;ve been waiting for!<\/p>\n<h2>5. \u00a0Get tax savvy<\/h2>\n<p>Regardless of whether you&#8217;re <a title=\"Business Portal \" href=\"https:\/\/bp.ato.gov.au\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">lodging\u00a0your own tax return online<\/a> or having it\u00a0prepared by a registered tax accountant, it pays to do some basic\u00a0research into current tax laws, exemptions and rebates. On June 15 this year, the Australian\u00a0Government passed legislation changes\u00a0to asset deductions for small\u00a0businesses, officially giving them\u00a0access to a $20,000 tax write-off to purchase items relating to their business. As News.com.au reports, the\u00a0$20,000 tax deduction commenced\u00a0on May 12, 2015 and runs\u00a0until June 30, 2017, after which time it will\u00a0return\u00a0to the original $1000 threshold&#8230; So, if you&#8217;ve been eyeing off a new delivery van, now may be the time but always remember that before you make any such decisions, check the rules with your accountant or a qualified professional because we&#8217;re pretty sure a quick\u00a0Google search around the current rules won&#8217;t cut it as a reference with the ATO!<\/p>\n<h2>Finally, some EOFY key\u00a0dates&#8230;<\/h2>\n<ul>\n<li><strong>June 30:\u00a0<\/strong>deadline for\u00a0issuing employee payment summaries<\/li>\n<li><strong>July 21<\/strong>: if you pay payroll tax or lodge\u00a0monthly BAS, your June BAS is due, and\u00a0if you&#8217;re registered for payroll tax, your annual reconciliation needs to have been lodged.<\/li>\n<li><strong>July 28: u<\/strong>nless you have used a registered tax or BAS accountant, quarterly BAS is due. For those using accountants, you&#8217;ve scored an additional four weeks to lodge and pay.<\/li>\n<li><strong>August 14:<\/strong>\u00a0deadline for lodging\u00a0your payment summaries and overall\u00a0summary to the ATO.<\/li>\n<\/ul>\n<p>As micro business community\u00a0<a title=\"Flying Solo\" href=\"http:\/\/www.flyingsolo.com.au\/finance\/business-tax-tips\/reducing-tax-by-maximising-tax-deductions\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">Flying Solo<\/a> puts it, &#8220;the size of your tax deductions is directly related to your ability to know and track all your expenses.&#8221; If your business has poor recording and compliance procedures,\u00a0your tax return is going to reflect this.\u00a0To make sure you&#8217;re accurately recording and claiming all your expenses in preparation for next year, investigate <a title=\"Free Accounting Software + Tax Returns, BAS, Bookkeeping and Payroll from Free Accounting Pty Ltd\" href=\"http:\/\/www.freeaccountingsoftware.com.au\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">Free Accounting Software<\/a>\u00a0options, or look at more comprehensive small\u00a0business accounting software like <a title=\"Xero\" href=\"https:\/\/www.xero.com\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">Xero<\/a>, <a title=\"MYOB\" href=\"http:\/\/myob.com.au\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">MYOB<\/a> or <a title=\"QuickBooks\" href=\"http:\/\/www.intuit.com.au\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">QuickBooks<\/a>\u00a0to make next year&#8217;s EOFY tax return a much\u00a0less taxing, and more financially rewarding process!<\/p>\n","protected":false},"author":1,"featured_media":268931,"template":"","au_pro_edu_tags":[],"class_list":["post-276277","au-pro-education","type-au-pro-education","status-publish","has-post-thumbnail","hentry","au_pro_edu_categories-share-worthy-articles"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.easyweddings.com.au\/wp-json\/wp\/v2\/au-pro-education\/276277"}],"collection":[{"href":"https:\/\/www.easyweddings.com.au\/wp-json\/wp\/v2\/au-pro-education"}],"about":[{"href":"https:\/\/www.easyweddings.com.au\/wp-json\/wp\/v2\/types\/au-pro-education"}],"author":[{"embeddable":true,"href":"https:\/\/www.easyweddings.com.au\/wp-json\/wp\/v2\/users\/1"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.easyweddings.com.au\/wp-json\/wp\/v2\/media\/268931"}],"wp:attachment":[{"href":"https:\/\/www.easyweddings.com.au\/wp-json\/wp\/v2\/media?parent=276277"}],"wp:term":[{"taxonomy":"au_pro_edu_tags","embeddable":true,"href":"https:\/\/www.easyweddings.com.au\/wp-json\/wp\/v2\/au_pro_edu_tags?post=276277"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}