Happy June! The end of financial year ‘EOFY’ is almost upon us!
I know that, for some of you, today signals added stress and more pressure. But that doesn’t need to be the case.
So I thought I’d use today’s post to highlight a few things that I encourage you to talk with your accountant or bookkeeper about in the next week. It’s good to get on top of key areas now, so you’re in a better position to complete what you need to when 30 June arrives.
If you’re having financial difficulties due to recent natural disasters, contact the ATO for assistance. I know Aussie SMEs are a proud bunch, but it’s okay to put your hand up and ask for help. The ATO has been taking the initiative to work with and help affected businesses.
Get your superannuation right. Pay your employee super contributions before 30 June so they’ll be deductible for that financial year, and don’t forget about your own super, which seems simple but is sometimes missed.
Are your books up to date? If not, use the time now to get them into shape so your reconciliation is ready for your end of financial year requirements.
So what should you be doing now to prepare for the EOFY?
- Pay as many bills as you can before the end of June. I know it’s hard. Ask your accountant what expenses its worthwhile prepaying before 30 June, for example insurance and memberships, as for some businesses these expenses can also be tax deductible in the year in which they are incurred.
- Check if you need to write off any bad debts before 30 June and therefore if you should claim a tax deduction for any outstanding bad debts.
- Know what your stocktake obligations are so you have time to prepare for and carry one out.
- Establish if you’re eligible for the small business tax break. Some businesses are able to claim a 50% tax deduction on the cost of eligible assets over $1,000. Your accountant can confirm what assets you can claim the deduction on.
- Find out if the entrepreneur’s tax offset applies to you. Businesses with a turnover under $75,000 may be able to claim the entrepreneurs tax offset.
- Understand the new requirements that come into effect from 1 July 2011 and how they will they affect your business. New obligations, such as the Temporary Flood and Cyclone Reconstruction Levy and Paid Parent Leave Scheme, will impact businesses, so it’s best to know exactly how now, so you can prepare.
- Think about how and when you’ll review the last financial year and plan ahead for 2011/12.
Knowing that EOFY is just around the corner, what other suggestions do you have for your fellow SMEs? What can they be following up with their accountant or bookkeeper now?