The End Of Financial Year is close by. For a lot of business owners, this can mean a lot of work to get to the finish line. It is a very important time if you’re a small business owner. You’re going to need to complete your bookkeeping, file tax returns, and plan for the upcoming new financial year.
The amount of work to do and deadline pressure can really be overwhelming. This is why we’re here to help you get on top of everything. Whether you’re an experienced business owner, or its your first-year as one, running around trying to find receipts and getting your account straight will not only make your life a lot more difficult, it can also cause avoidable stress on your staff too.
We’ve made this short article to focus on the key areas small business owners should take a look at during EOFY period. By focusing on these key areas, you can make tax time less taxing for you and your business.
Key Areas to Focus On for the 2022 End Of Financial Year:
- Tidy Up Your Accounts
- Check Payrolls
- Gather all Relevant Records
- Identify Important Dates
- Prepare for Stock Take
1. Tidying Up Accounts
Profit and cash flow are one of the most important factors of business health. This is why getting on top of the money coming in and out of your business on tax time is critical. Running creditors and debtors reports well ahead of tax time will help you stay on top of any errors on payments and follow up on outstanding accounts.
2. Check Payrolls
- Check ALL employees details for current addresses and tax file numbers
- Remove any full stops and commas from addresses
- Check terminated employees have a termination date
- Check annual leave and personal/carers leave entitlements flag has ‘Carry Remaining Entitlement’
3. Gather all Relevant Records
Small business owners are required to provide relevant records as a form of evidence for various claims and deductions during tax time.
4. Identify Important Dates
Taking the time to consult with your bookkeeper as well as meeting with your accountant is critical during tax time. Doing so will ensure that your business stays on top of important deadlines for paperwork for a smooth EOFY.
5. Prepare for Stock Take
Keeping on top of your inventory is critical all the time, not just at the End of Financial Year period. This is why you run stock consistently throughout the year. However, you still need to report the opening and closing stock value during tax time. This is why a EOFY stocktake close to the end of March helps.
Reconciliations are going to be a huge feature when it comes to year-end processing and for first-time business owners, it can be a very daunting task. The main things you need to reconcile are all the bank accounts associated with your business, balance sheet, and GST. If you’re not familiar with reconciliations, take the time to learn these processes and seek advice from accredited professionals.
To find out more about how Swoop can help you get ready for EOFY, click here.