Are you feeling prepared for the end of financial year or do you have a pile of receipts and invoices taunting you from your desk (or inbox)? If you’ve left things to the last minute, don’t worry – there’s still time to sort the EOFY essentials. And we can help.*
Here are 5 key tasks to tick off before EOFY:
1. Review and reconcile accounts.
The biggest job on the EOFY to-do list is reviewing and reconciling your accounts. That is, going through accounts payable and receivable, checking transaction coding and making sure everything matches up. You’ll also need to reconcile any accounts used for your business, including credit cards. The whole process can also help you spot any outstanding invoices that need to be resolved. The good news? If you use a business management or accounting platform, these jobs can be a matter of a few clicks – not hours of checking and rechecking.
2. Sort outstanding debt.
Still chasing invoices from this financial year? It’s worth making a final push to collect those payments before EOFY. Either send a final notice, get in touch, get help from a debt collector, or consider writing debts off if they seem unlikely to be paid – in some cases, the unpaid amount can be claimed as a tax deduction.
On your side, make sure bills and invoices have been paid and that scheduled payments or subscriptions are up to date. In some cases, this might mean chasing invoices from smaller businesses or contractors so you can tick them off your list.
3. Deduct, donate, write-off.
It’s not too late to reduce your tax bill. If you haven’t already, look into eligible deductions to work out what you can claim to offset your taxes – this includes expenses like office rent, salaries and wages, depreciation on assets, business travel expenses and even work from home expenses and employee entertainment costs.
If you’ve purchased or improved any equipment for your business, you may also be able to claim an instant asset write-off. Under this temporary scheme, eligible businesses can claim a deduction for the full cost of eligible assets bought, installed or upgraded before June 30 2023.
You could also choose to support your favourite registered charity with a donation – not only is it a positive for the charity and their mission, but in some cases you can claim a deduction for the entire amount donated.
4. Prepay expenses.
If you really want to reduce your tax bill for the current financial year, consider paying some of your expenses ahead of time and claiming a deduction. Costs like rent, interest and insurance can be prepaid and claimed back if they are paid before the end of June. A bonus? Having some expenses prepaid could make it easier to get through the first few months of the next financial year.
5. Make super contributions.
Behind on superannuation payments for your employees? Catch up now. Paying contributions owed before the end of the financial year isn’t just the right thing to do, it also helps you avoid non-payment penalties and ensures you comply with Australian superannuation laws.
The end of financial year can be stressful for business owners, and it’s easy to procrastinate on those tedious but important tax tasks. Fortunately, there’s still time to sort out the essentials – from invoices to deductions to super payments. Get started now, and you’ll be well prepped when June 30 rolls around.
Getting ready for EOFY? Check out our list of key dates to make sure you’re on track.
*We endeavour to provide accurate material for Australian businesses consistent with Australian laws; however, this material is for reference only and is not designed to be, nor should it be regarded as professional advice.