End of Financial Year Project Plan

End of Financial Year Project Plan

Eofy 30 June

Are you ready for end of financial year?

Why wait until the end of the financial year to get your accounts in order. You can start preparing at any time throughout the year.

Before End of Financial Year – Review Business Progress

  • Review Profit & Loss to end March/April   – Check with your trusted advisor (accountant & bookkeeper) on how you are doing for the financial year
  • Review Superannuation paid for Directors – Could you make additional contributions to take advantage of the caps
  • Review the list of Assets & remove obsolete or defunct items
  • Review cashflow for additional tax deductable pre-30June purchases
  • Review the Integrated Balance Account (monies owed to the ATO)
  • Review if changes are required to business process/procedures – so timelines can be established  & work completed

Before End of Financial Year – General Tax Checks

Maximise those deductions

If the business’s cash flow is good then it may make sense to spend on extra expenses before end of financial year to maximise deductions.

  • Get the cars serviced
  • Replace the tyres
  • Pay the membership fees, subscriptions
  • Pay the insurance bills etc
  • Get a discount on rent by prepaying for a period
  • Pay yourself additional wags and superannuation

Private usage adjustments

A once a year adjustment for private expenses – yes you can. Your accountant may have included an adjustment in last year’s final tax returns for disallowing private expenses – has the GST adjustment been made?

It is absolutely acceptable to claim all GST on all taxable purchases for a business or enterprise during the year, if turnover is less than $2m, even if a portion of the expenses are for private use.

The ATO allows a once a year adjustment to reduce the amount of GST claimed. When the Tax Agent has completed the end of year tax returns and informed the amount of private expenses, then make a GST claim reduction in the next BAS. Therefore you will have only claimed back the GST on the business portion. So if you are advised there was $1100 of private expenses, then reduce your next GST claim by $1100/11 = $100. You do not have to inform the ATO, just keep the records.

If you post the totally private expenses to the loan account and don’t claim any GST back at the time of purchase that is okay as well.

Stock / Inventory

  • Review stock list in detail including when the item last sold and at what price
  • Consider sale at discount of items that are slow – realise the cash
  • Write off the value of stock that won’t sell
  • Take a full stock count at 30 June and enter through Stock Count and Inventory
  • Adjust as required

Existing Plant and Equipment

  • Obtain the list of assets the accountant uses to calculate depreciation
  • Review the list and remove items that no longer exist or are obsolete
  • Highlight, to the accountant,  any items sold

Before End of Financial Year – Payroll Checks

Ensure you check the maximum amounts of superannuation

If you are processing the payroll for businesses, it is wise to check that no employee receives more than the maximum superannuation contribution, unless instructed by the employee’s financial planner or accountant to do so.

Check what the current superannuation contribution caps are. If employees or owners appear to be near or over the maximum the bookkeeper should notify the person in question.

Maximise those tax deductions – Superannuation

While Superannuation Guarantee is not due till the 28th of July, in order to get the income tax deduction in this financial year, the superannuation must have been paid through your bank account before 30 June.

There are a number of ways Miss Efficiency can help with your bookkeeping and end of financial year processes, check them out here.

If this is just all too much and you’re feeling overwhelmed, we can help you with that too. Wow … I’m in Business! is jam packed with business tips and tools to help you manage your business and your end of financial year processes.

To get expert assistance with your end of financial year planning, chat with our team. Get in touch to book a one-on-one consultation with our advisors and we’ll work out a plan to help you keep more money in your pocket.

 

Book a call with Sarah to chat further

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