“The essential small business checklists to prepare for the End of Financial Year”

The last 12 months has been challenging for business owners, and as we get close to another financial year, EOFY checklists become essential to obtain all the benefits and reduced costs.

EOFY Bookkeeping Checklist

Business Activity Statements BAS

It’s crucial that you check to see if your BAS lodgement and payment (if required) is up to date.
Review your current BAS to see what debt is currently due.
BAS and Tax agents can usually defer the lodgement of the BAS, contact a Jim’s Bookkeeper to apply for the deferral.
If you are paying BAS by the Cash method, it’s recommended to pay accounts before the EOFY so you can claim the GST in the current BAS period.
Payment plans are available from the Australian Tax Office (ATO)
Do a mini audit of the year BAS, check all claims are correct for GST.
Check with the ATO portal that your GST account is reconciled with your accounting
Check that your bank account is reconciled to your accounts. It’s recommended that business use cloud-based accounting software like XERO, MYOB or QuickBooks.
Get the business books up to date, to review tax and GST planning.

Payroll

Reconcile the payroll before the EOFY and correct any entries.
Check with the ATO portal and reconcile your payroll account.
Employee payment summaries are due before the 14^th July
Single touch payroll (STP) should be used for payroll and lodgement of the employee payment summaries.
Audit employee’s payroll award to ensure that you are paying them correctly

Superannuation

Review and reconcile the superannuation guarantee payments have been made.
Pay superannuation guarantee payments before the EOFY to claim as a tax deduction in this year
Note: superannuation guarantee increases to 10% in the new year, review your cash flow.
If possible, pay maximum limit into your own superannuation, check tax advice.

Profit & Loss/Balance Sheet

Reconcile and review the accounts before the EOFY
Check Bank accounts, credit cards, loans etc are reconciled
Reconcile the ATO portal compliance balances with your accounts
Prepare depreciation report and double check all the balances, especially in the balance sheet with closing balances.
Review the estimate net profit and seek tax planning advise before the EOFY.
Check the balance sheet does balance.
Review all accounts in the balance sheet to make sure they are allocated correctly.
Review that loan payments have been made in the accounts.
If trading as a company make sure there are no debit loans to associates, if so, seek tax advice before the EOFY.
Check no personal expenses are being claimed
Review if Fringe Benefits are being paid to associates/employees. Seek tax advice for fringe benefit tax

03 EOFY TAX CHECKLIST

Update your business accounts and review the taxable net profit
Obtain tax advice before the EOFY on how to legally reduce your taxable net profit, some of the examples as follows:
Pay superannuation before the EOFY
Prepay such as your rent, insurance or subscriptions to professional associations up to 12 months in advance
Take advantage of the 100% write off of assets purchase rules
Reviewing and postponing some of your invoicing for the current tax year, if appropriate.
Topping up your voluntary superannuation contributions.
Reviewing your debtors and writing off any unrecoverable debts
Temporary full expensing and loss carry back, You may be eligible to claim temporary full expensing or loss carry back in your 2020-21 tax return.

CASHFLOW CHECKLIST4

Review your updated financials and do a stress test with the 6 cash drivers to find out if you can improve your cash flow.
Prepare a 12 monthly cashflow budget from the stress test results
Understand the important Key Performance Indicators (KPI) in your business
Upload the 12 monthly cash flow budget into your cloud accounting software
Measure and management you budget to actuals on a monthly basis and implement changes as directed from the stress test to improve your cash flow.

Disclaimer; this article is for general use only and before you act you must seek professional advice from a BAS/Tax agent.

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