How to prepare your business for EOFY

June 30 might just be another date on the financial calendar for the average Australian, but as a business owner it involves a lot more than just contacting your tax agent. To help reduce headaches this end of financial year, here’s what you need to focus on.

  1. Organise all your key paperwork

In a perfect world you would be separating all your tax-relevant paperwork into specific folders throughout the year – receipts, supplier invoices, purchase orders, bank statements, donations, etc. But with most business owners being time-strapped 24/7, spending any additional hours on tax prep tends to fall by the wayside.

Don’t leave it to the last minute! Engage a professional bookkeeper to manage your books throughout the year. Alternatively, in the weeks leading up to EOFY, make sure to collate:  

  • Sales and purchases receipts
  • Tax returns
  • Business activity statements (BAS)
  • Employee super contributions
  • GST returns
  1. Calculate your deductions

To get the most out of your tax return, you’ll need to accurately calculate your deductions. Both cash and non-cash expenses are permitted, and may include things like depreciation of your business assets. Your certified bookkeeper can help identify these, and will work directly with your accountant to minimise the input required from you.

Speaking of assets, the instant asset write-off scheme has been extended, so you may be eligible to make a claim on certain business assets. Just make sure you follow the ATO’s instructions and are able to claim.

  1. Meet your super obligations

Businesses are obliged to meet all super guarantee obligations for their employees. The 2022–23 financial year has seen the rate jump up (again) to 10.5%. A good incentive to take care of these payments now is that you can reap a tax deduction for all super contributions made by 30 June.

Again, your Bookkeeper can work out your exact obligations per employee, and provide guidance on how to pay those super guarantees (which isn’t always so straightforward).  

  1. Plan for the financial year ahead

When you are caught up in the madness of tax season, it’s easy to forget about anything other than what’s happening right now. After all, if you are a business owner managing razor-thin margins, then you are probably trying to save as much as possible on your tax return.

But now is not the time to neglect your future. Look ahead to the next 12 months and think about ways you could make this process easier on yourself at the end of the next financial year. Could you put in place smart strategies today that will pay off tomorrow? That could be anything from setting up accounting software to improve the accuracy of tax and data collection, to speaking to a finance broker to solidify your cash flow. 

  1. Reach out to the experts

At Elev8 Business Services, we understand that tax is usually a business owner’s least-favourite task. It’s not the reason why you got into business, and it’s certainly not what’s keeping you motivated for the future. The good news is, we love it! 

“Believe me, your bookkeeper is a numbers-nerd who can’t get enough of EOFY,” says Sarah Cook, Managing Director at Elev8 Business Services. “If paperwork, invoices, bills and payroll obligations seem insurmountable, you can come to us and we will provide the ongoing support you need. From taking care of GST, to super, to PAYG, your bookkeeper is here to not only manage your books across the year, but to prepare your business for its best EOFY yet.”

If you are struggling with your business finance and tax obligations, or simply want to get it off your plate, our bookkeeping team can provide the solution. Contact Elev8 Business Services or call 1300 588 527 today.