The ATO requires all tax records to be kept for at least 5 years so it’s essential you have a great bookkeeping system in place to help make your EOFY easier. Here is a simple checklist to help you this EOFY:

• Finalise your profit and loss statement and balance sheet to get an accurate picture of your business’s standing at the end of the year.

• Update and lodge business activity statements (BAS) for all businesses registered for GST.

• Lodge relevant tax returns and reports. On top of income tax returns, you might also need to lodge reports for GST and fringe benefits tax (FBT) if applicable.

• Complete a stocktake before the end of the year.

• Update asset records on your balance sheet. Document any new asset purchases, updates to existing assets and records of depreciating assets.

• Update liabilities on your balance sheet. As well as loans and overdrafts, don’t forget to include liabilities like customer deposits, gift vouchers and lay-buys if applicable.

• Prepare to claim deductions. You may be able to claim for vehicle and travel expenses, machinery and tools including computers and software. Understand the ATO’s recent changes to deductions for home office expenses.

• Finalise your employees’ payroll information for the year. Lodge your employees’ pay as you go (PAYG) withholding and understand your obligations around Single Touch Payroll (STP) which was expanded in 2022.

• Prepare a Taxable Payments Annual Report (TPAR). If you work with contractors and sub-contractors, this might be a requirement for your business.

• Pay superannuation on time. Make sure your superannuation obligations are paid by the end of the year and consider making voluntary contributions.

Get the most out of your business and stay on top of your systems:

• Backup all business documents.

• Set up new software or tools.

• Review and upgrade your cyber security.

• Finalise applications for new accounts, loans or credit.

• Review your insurance policies.

• Review your business structure.

• Have a goal setting and planning meeting to reflect on your success and plan for the future.

End of financial year is the time to prepare your business to meet various financial obligations. It’s also a great opportunity to organise, reflect, reset and make plans for your business to execute over the next 12 months. If you need any help keeping track of your numbers, get in touch with us.