The rush before June meets July has customers pull in last minute expenditures and sellers pull in last minute sales whilst keeping on top of financial statements for tax return. With accounts not up to date, unmet sales targets and demanding customer expectations, business owners are frantically trying to keep with the rush.
Sounds like a giant mess right?
LawPath has some housekeeping rules to keep you in check before your financial books close for the period. Staying organised is the only solution for this messy time of the year and hopefully, this can guide you through this year’s painful season of taxation.
5 Housekeeping Tips for your Business this End of Financial Year
1. Ensure your financial records are correct and up to date.
Make sure that your profit and loss statements are drawn up for the period, recording all business transactions for the year. Furthermore, ensure that your balance sheets cover all business assets and liabilities for the period.
2. Perform a stocktake.
Businesses that purchase or sell stock should look into ATO criteria if they are required to administer a stocktake, as this would allow your business to keep records of all stock sold, on hand or broken. For more information regarding stocktake, visit the ATO website.
3. Claim tax deductions
Research what tax deductions can be made from the business’s taxable income before lodging tax returns so your depreciating assets will not be overtaxed.This includes, but is not limited to, business travel expenses, wages expense, marketing expenses.
4. Backup your data
All completed data and records either to a secure location off-site or ATO’s cloud software to protect the business data from any incidents. If the files are online, it is recommended to have auto-sync to update the file frequently.
5. Use a REGISTERED tax agent and/or accountant.
When seeking advice or aid in financial statement preparations, hire someone with the correct qualifications. This is crucial, because they may not have the ability to give the right advice. With that, some tasks to be completed with your financial professionals include reviewing business plans, finances, insurances and business structure and checking for tax and regulation changes for the business next year.
Finally, it would be wise to keep a lookout for scammers during this time. Taxation scams often target businesses and lure you through either tax refund scams or underpaid tax scams. The Australian Taxation Office would not email, SMS or call you for your personal information like tax file numbers or bank details so it is recommended to confirm with the ATO if such messages were sent by them before taking any action.
Hopefully, these simple reminders can help you stay on track this tax season. Remember, there is always a rainbow after the rain. Happy End of Financial Year!