Don’t wait until the end of June to hit the panic button on meeting your end of financial year obligations. Follow our easy checklist and avoid the EOFY rush.

By Jennifer Foreshew

We’ve put together the following checklist to ensure you’re ahead of the game come tax time.

1. Keep up-to-date records

Complete a profit and loss statement. As well as telling you how much real profit you’re making, it can also help develop sales targets for the next financial year.  

Think about asset purchases or expenditure on improvements. This will allow depreciation to be calculated for capital gains tax.

And keep a record of debtors and creditors to ensure overdue accounts aren’t overlooked and you’re aware of what and when payments are due.

The one task you should delay when approaching the EOFY is a stock take. This should be done as close 30 June as possible in order to claim deductions.

2. Prepare for an income tax return

Don’t forget to gather information for your income tax return, including:
 
  • bank reconciliation report
  • balance sheet and trial balance
  • general ledger report and payment summary.
You will also need to lodge returns for fringe benefits tax (FBT), goods and services tax (GST) and taxable payments reporting system.

Remember, if you employ 20 or more staff you are no longer required to manually generate their annual payment summaries.

3. Do your deductions homework

Do you research and know exactly what tax deductions you can claim. You may be able to claim:
 
  • business insurance
  • income protection insurance
  • expenses for a website
  • vehicle and travel expenses
  • home office expenses
  • machinery, tools or computers.
4. Keep on top of changes in the law

Be aware of what might affect your business. Stay on top of accounts and records. Know concessions a small business can claim such as an immediate deduction for start-up costs.

Using a registered tax agent is a good start as they will be aware of all your obligations. You can check your tax agent is register with the Tax Practitioners Board

5. The Jobs Action Plan rebate

The Jobs Action Plan rebate is an incentive for businesses to employ new workers and grow their business in NSW. It has an end date of 1 July 2019. You must register any new jobs before this date to be eligible for the scheme. Take advantage of the scheme before it ends ahead of the EOFY.

Next steps

If you have any questions about your end of financial year responsibilities, call our Workplace Advice Line on 13 29 59. You can also find out more about your end of financial year responsibilities by visiting business.gov.au