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Our end of year ‘fun’
Before the end of the Financial Year
1. Paying superannuation (yours and employees).
Payment this financial year will allow you the tax deduction this financial year on superannuation that would otherwise be due by July 28.
2. Rundown as much stock as practicable
Stock takes are never fun, so if you can avoid large orders before stock take, that will save time. Also, may want to sell down existing stock. Just make sure there is enough stock to meet July sales until your next order arrives.
3. Write down or write off obsolete stock
Do you have stock that you can’t sell or will have to substantially discount to sell? Consider writing it down to an appropriate value.
4. Write off bad debts
Go through your debtors list and make a judgment on the likelihood of being paid in part or in full by your outstanding debtors. Also, you could actively follow up debtors to seek payments and investigate alternative actions to recover these debts if appropriate. Speak to us about other options.
After end of Financial Year
5. Timing of the sale of an asset
Selling an asset in the new financial year will defer capital gains until that financial year.
6. Use the opportunity to get your paperwork and financials up to date
End of financial year is not only about getting your business financials in order for tax purposes but also for yourself. Lodge your paperwork with your accountant as soon as possible in the new financial year and push them for your results. Timely information will help you know where you are and make decisions about where you are going for the next year.
Be careful of:
7. Deferring income to next financial year
If you wait to invoice customers until after July 1 you may not get paid until August or September.
8. Large purchases or pre-payments for tax deduction purposes
Problems can arise quickly in the new financial year if you do not properly budget for the cash flow impact of large purchases or prepayments. There are many deals and offers available at this time of year, so don’t be tempted by the quick saving and make sure that you are making your purchases in the best long-term interests of your business.
This list is by no means exhaustive but is intended to be a starting point to help you make purposeful decisions. We highly recommend that you seek professional advice appropriate to your situation and your business needs.
Tax Return Checklists
- Business Financial Statements & Tax Returns Checklist
- Individual Tax Return Checklist Supplementary Checklists, if relevant for your situation
- Investment Income Tax Return Information
- Motor Vehicle Tax Return Information
- Rental Property Income & Expense Schedule
- Rental Property Tax Return Information
- SMSF Annual Compliance Checklist
Below is a list of websites where you can find essential information for growing your business.
Australian Taxation Office (ATO) www.ato.gov.au
Australian Securities and Investments Commission (ASIC) http://www.asic.gov.au/
Australian Business Register (ABR) https://abr.gov.au/
State Revenue Office (SRO) – Victoria www.sro.vic.gov.au/
Xero – Accounting Software www.xero.com.au