Year end is fast approaching … where has the first half of the year gone?!
In preparation for June 30, consider the following tips:
Do you have an effective filing system in place? Ensure you have copies of all the receipts you intend on claiming on your Tax Return that can be produced easily if needed. Cloud based packages such as Xero have the capability of uploading copies of your receipts and attaching them to the relevant transactions. Business and personal expenses should be kept separate (including separate bank accounts).
Ensure all bank/loan/credit card accounts are reconciled, including a review of any unpresented cheques and outstanding deposits.
Have you invoiced all your customers? Also perform a review of your aged receivables and follow up any outstanding invoices. It is also a good opportunity at this point to write off any bad debts, if necessary.
Conduct a stock-take – what is your closing inventory at year end?
Review your asset register – are there any assets that are obsolete or have been scrapped during the year?
Reconcile your wages – does the actual amount paid via payroll reflect what is showing in your accounts and lodged with the Australian Taxation Office?
Payment of your employee’s superannuation guarantee before 30 June will receive the deduction in the current financial year. Please note that contributions are considered paid when the super fund receives them (make sure the fund has received it by 30 June).
Review your insurances and ensure you have the right insurance in place for your business, particularly if circumstances have changed during the year.
Prepare a budget for next year! Budgets are extremely beneficial for both personal and business.
Backup your files! Even the best anti-virus software cannot guarantee 100% protection – we recommend having an external backup (kept offsite) and a cloud version.
Tax Planning Strategies
Consider speaking to your Tax Agent regarding any tax planning strategies.