As the end of the financial year (EOFY) approaches, it’s time to get your business records in order and ensure everything is ready for tax time.
EOFY can feel overwhelming, but with a bit of preparation and guidance, you can wrap things up smoothly and even find opportunities to strengthen your financial position for the year ahead.
Here’s a step-by-step guide to help you prepare:
1. Reconcile Your Accounts
Start by reviewing your accounting software and ensuring all bank transactions, invoices, and payments are up to date. Double-check that your bank statements reconcile with your accounting records. If anything looks out of place, now’s the time to investigate and fix it.
2. Organise Your Paperwork
Whether you keep records digitally or in hard copy, make sure all receipts, invoices, and financial documents are properly filed and accessible. This includes:
- Expense receipts
- Sales records
- Loan documents
- Asset purchase records
- Contractor invoices
Your accountant will need these to finalise your accounts and claim eligible deductions.
3. Review Your Debtors and Creditors
Take stock of your outstanding invoices. If clients owe you money, follow up and try to collect payment before EOFY. At the same time, review any bills or invoices you haven’t yet paid – these may be deductible this financial year if paid before 30 June.
4. Check for Tax-Deductible Opportunities
There may still be time to bring forward expenses or make additional purchases before 30 June. Some examples include:
- Prepaying rent, insurance or subscriptions
- Purchasing tools, equipment, or office supplies
- Making superannuation contributions for yourself or employees
Your accountant can guide you on what’s eligible and beneficial based on your cash flow.
5. Stocktake and Asset Review
If you sell physical products, a stocktake is essential. Note any slow-moving, obsolete, or damaged stock. Similarly, review your asset register—are there any outdated or scrapped items that can be written off?
6. Superannuation and Payroll Reporting
Ensure all superannuation guarantee contributions are paid on time to claim deductions. Also, make sure your Single Touch Payroll (STP) reporting is up to date. You’ll need to finalise your payroll for the year and provide income statements to your employees through the ATO system.
7. Meet with Your Accountant
EOFY is a perfect time for a financial health check. Book a meeting with your accountant to:
- Review your tax position.
- Discuss any changes in business structure.
- Plan for the next financial year.
- Explore strategies to minimise tax and improve cash flow.
They can also help you avoid common EOFY pitfalls and ensure your reporting is accurate and compliant.
EOFY doesn’t have to be stressful. With some planning and support from your accountant, you can close out the year with confidence and clarity. Even better, EOFY prep often reveals insights to help your business grow stronger in the new financial year.
If you need help getting ready, contact us – we’re here to guide you every step of the way.
