In the midst of juggling the day-to-day challenges of keeping your customers happy and navigating the complexities brought on by the pandemic, the 30 June deadline might catch you off guard. But it doesn’t have to be a mad rush trying to get EOFY ready. These last-minute tips will help put you in the best position possible to start the next financial year.
Make an appointment to talk to an expert
Now is the perfect time to make a call and book an appointment with your trusted tax agent to prepare your business income tax return in July. Before the end of the financial year, make sure you work with your registered BAS agent to finalise your accounts and ensure that all of your payroll and GST records are up to date.
Wave goodbye to bad debt
If you’re still chasing overdue invoices, your accounting software can often take the hassle out of chasing payments by sending online invoices or automated reminders, so you get paid on time. If you need more assistance with tricky late payers, now is the time to consider writing them off; enlist some help via your accountant, bookkeeper with this process.
Ensure your expenses are in order
Make sure your expenses are all accounted for with copies of invoices, and it might be worth considering which expenses can be prepaid before 30 June.
Complete your stocktake
If your business sells physical goods, don’t forget to count your stock on hand as close to the end of the financial year as possible. A stocktake will demonstrate the value of your stock for both business and tax purposes.
Keep an eye on compliance
The introduction of the government’s measures such as JobKeeper payments and temporary full expensing of assets has helped provide a lifeline to small businesses over the past year – but this also means there have been changes to how companies need to remain compliant. To make sure you’ve covered all your bases, talk to your tax adviser. They will put you in a prime position to stay compliant and provide a sound foundation for heading into the new financial year.
Invest in software to work in more efficient and automated ways
The start of the financial year is the perfect time to reimagine your business processes and invest in new technology and systems to improve business processes or make your business run more effectively. If you’re still toiling away with spreadsheets and shoeboxes, then it may be time to consider how technology can benefit your business. Implementing solutions – like cloud-based accounting software – can help you to streamline your business to make every EOFY as easy as possible.
Forward and upwards
Last year was anything but planned. And it no doubt prevented us from achieving our goals. The end of the financial year is a great time to look at how your business has performed, where it’s improved and where you’ve faced challenges. Make goals for the coming year and write them down to help keep you motivated as your business grows. Review your goals regularly to stay on track. Your trusted adviser should be able to help with all of this, so make sure you’re getting the support you need from your accountant or bookkeeper.
With EOFY fast approaching, now is the time to talk to your advisors to gain maximum benefits in this financial year and the next. If you don’t already have an advisor, the Xero Advisor Directory can help. With thousands of bookkeepers and accountants listed by location and industry, they can offer plenty of value in all areas of your business for EOFY and beyond.
Read more: EOFY and tax planning for business owners
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