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End of financial year checklist for business owners

From compiling asset lists to checking off superannuation requirements for staff, here’s a checklist to help business owners this EOFY.

By Shell on Jun. 14, 2022

As well prepared as you are, and despite the good intentions you may have, the end of the financial year can still prove to be a stressful time, full of processes you’d rather consign to the too-hard basket, never to be thought of again. Indeed, if you sound it out loud, “EOFY” sounds a bit like a sigh of resignation: “It’s that time again.”

The tasks associated with EOFY don’t need to be intimidating, though. There are some relatively simple steps you can take to change your to-do list to done with minimal fuss.

1. Business Activity Statements (BAS)

Created to help businesses keep track of their taxes (and help the government collect GST), sorting out your BAS should be your first port of call at the end of the financial year – just as it is after every financial quarter.

You’ll want to make sure you’re lodging accurate BAS figures by having your accountant review your automatic bank rules and the GST codes assigned to the balance sheet and profit and loss items you provide them.

2. Take stock of your assets, liabilities and inventory

It pays to keep an asset register, which records of all the fixed assets in your business, ie. the assets your business regularly uses to create revenue. These can include land, buildings, vehicles, equipment, machinery and computers.

Make sure this list of assets is up to date, including information such as description, location, quantity and the state that those assets are in.

In terms of liabilities, remember to include current, long-term and contingent liabilities. Don’t forget things that may impact your ability to borrow or sell your business in the future such as customer deposits, gift vouchers and lay-bys.

If you need to do a stocktake of inventory – a crucial process in terms of working out the value of your trading stock – it needs to be completed by June 30 each year.

3. Record keeping

There’s no way around this one: it’s crucial that all reports and records are compliant with the Australian Tax Office (ATO), and businesses are required to keep records for at least five years. Some tasks you may need to do include:

  • a summary of income and expenses in a profit and loss statement
  • summaries of your record of debtors and creditors
  • collating records of asset purchases or expenditure on improvements (to calculate depreciation expense claims and for capital gains tax)
  • completing and lodging your income tax returns
  • lodging yearly reports or returns for pay as you go (PAYG) withholding, including finalising income statements for single touch payroll, fringe benefits tax (FBT), goods and services tax (GST), and the taxable payments reporting system
  • meeting superannuation requirements
  • making digital copies of any paper records and backing them up
  • preparing a Taxable Payments Annual Report (TPAR), if you use contractors or subcontractors.

Your Shell Card can help to make record keeping easier. Your online portal contains all your fuel transaction records and a single Tax Invoice and Statement that itemises the GST for fuel purchases. 

4. Tax deductions

Look into what tax deductions and concessions you can claim. Most business expenses that relate to you earning your income are deductible (just make sure you keep records for proof).

There are also a number of tax concessions available to small businesses, so it pays to be across those, too. Pro tip: Try to write off any debtors or assets before the year ends to claim a tax deduction.

5. Know what’s going on with your tax

Although this falls mainly to the tax professional helping you to get your EOFY affairs in order, it’s a good idea to keep your eye on any possible tax changes that affect your business.

It’s also worth noting that scammers love to take advantage of people’s confusion around tax time, so beware of people who ask you to pay a fee for administration or transfer costs in exchange for a refund for overpaid taxes, or anyone asking for your credit or debit card details to get you to pay for (phony) underpaid taxes.

6. Engage the services of a professional

As a small business owner, this is the most important piece of advice of all: get help. Remove the tax-time headaches by engaging the services of a licensed accountant or bookkeeper who can go over your finances with a fine-tooth comb, ensuring that you haven’t overlooked something important.

7. Look to the year ahead

Your accountant or bookkeeper can also help you come up with a cash-flow forecast to assist you in managing any potential shortfalls in the year ahead, while ensuring you can still pay your staff and suppliers.

You can also review your business and marketing plans, which will allow you to make necessary adjustments, as well as remind you of your goals and how you can achieve them in the most efficient way possible.

To find out more about how your Shell Card can help to make tax time easier, visit shell.com.au/business-customers/shell-fuel-card

Disclaimer

Viva Energy Australia Pty Ltd (“Viva Energy”) has compiled the above article for your general information and to use as a general reference. Whilst all reasonable care has been taken by Viva Energy in compiling this article, Viva Energy does not warrant or represent that the information in the article is free from errors or omissions or is suitable for your intended use.