Your Essential EOFY Checklist for Australian Small Businesses

The end of the financial year (EOFY) is more than just a deadline; it's a time to organise your records, look back on what your firm did, and get ready for the next year. For small businesses in Australia, being well-prepared makes sure they follow the rules set by the ATO and helps them avoid making mistakes that cost a lot of money.

Use this list to stay organised, fulfil your obligations, and maximise your deductions.

Here is a list of tasks that small businesses need to complete by the end of the year.

1. Make Sure Your Accounts Are Correct.

Ensure that your accounting software accurately records all your bank transactions. Check for any missing entries, duplicate transactions, and incorrect allocations. Reconciling your finances immediately will help you avoid mistakes in your final financial reports.

2. Look Over Your Debtors and Creditors.

Please review the outstanding bills you have yet to settle. Contact clients who haven't paid and forgive any debts that are no longer recoverable. At the same time, check your accounts payable to see what your organisation still owes its vendors.

3. Finish Off With Payroll and Superannuation.

Please ensure that your payroll records are accurate. Make sure that all superannuation payments for employees are up to date and recorded accurately. All pay and deductions for the financial year should be shown on Single Touch Payroll (STP).

4. Get Your Bas and GST Returns Ready and Send Them in.

If your firm is registered for GST, make sure you send in your Business Activity Statements (BAS) for the last quarter, which ends on June 30. This includes figuring out how much GST you owe on sales and purchases.

5. Update Your Asset Register and Depreciation.

Check with your accountant to make sure your asset register is up to date. New or existing business assets may qualify for depreciation claims. Proper paperwork makes sure that these deductions are used correctly.

6. Gather and Keep the Paperwork That Backs Up Your Claims.

Keep track of any business-related deductions, such as:

• Buying equipment
• Costs of doing business
• Payments for superannuation
• Using a car

Please ensure that both your digital and paper records are securely maintained for a minimum of five years.

7. If You Need to, Rethink How Your Business is Set Up.

Your present structure (sole trader, partnership, corporation, or trust) may not be the best for taxes anymore if your firm has grown or changed a lot. Your accountant can assist you in figuring out if a reorganisation is the right thing to do.

Why It's Important

The hazards grow greater when EOFY is rushed or not well organised. You might:

• Miss out on tax breaks
• File false returns.
• Postpone your tax refund.
• Get ATO fines.

Getting it right now will save you trouble later. It also gives you a comprehensive picture of your business's finances, which is useful when making plans for the next year.

How Ashmans Can Help

Completing EOFY reporting can be challenging, particularly if your financial records are not up to date. We help small businesses throughout Adelaide with:

• Bookkeeping and filing BAS reports
• Reconciliation of payroll and STP
• Records of assets and expenses
• Preparing a tax return for a business

We want to help you stay in compliance and make tax time less stressful. Whether you're behind or simply seeking a second opinion, we are here to assist you.

Do you need assistance organising your end-of-year tasks? Get in touch with us immediately for straightforward, expert help that is specific to your business.

‍