The End of the Financial Year marks the beginning of the financial task storm. It serves as the signal for small business owners to accomplish bookkeeping, complete tax returns, and start planning for the upcoming financial year.
With a few more days left until June 30th, small business owners are also encouraged to prioritise and ensure that everything is under control. Exerting extra effort and hard work during every financial year will help entrepreneurs plan for the new financial year.
From securing files to keeping data updated, this period is more than just filing your tax return, it also includes various assignments that are necessary for the process.
10 Important Tasks for the End of Financial Year
As mentioned above, the End of Financial Year is not just about completing data. It is one of the powerhouses of a small business. Thus, you should thoroughly and efficiently keep an eye on it while ensuring the accuracy of every record and the safety of the files.
We have provided 10 important tasks that could get you organised. The list also sums up the essential steps to make the project easier and simpler. These include:
- Records Management and Compliance
Record management and compliance is about managing, verifying, retrieving, identifying, and storing records. It implicates the breakdown of income and expenditures in a written statement of profit and loss.
Aside from that, it comprises of stocktake administration, summarisation of the debtors and creditors’ account of proceedings, completion and abiding income tax returns. Balancing records of assets and liabilities, imbedding annual reports and profit, and satisfying the requirements of superannuation must be incorporated.
- Know the Claimable Tax Deductions
You should be updated with the tax deductions you can claim. However, know that there are conditions for this. You can claim tax deductions if your business is home-based with an official website, and travel and motor vehicle expenses. Also keep track of business expenses like fuel, or depreciating assets like machinery, equipment, and computers.
- Hire a Registered Tax Agent
Employ a tax agent that is accredited and registered. Keep in mind that unlicensed Business Activity Statement (BAS) or tax brokers are not guaranteed and protected.
- Be Updated With the Tax Alterations in the Future
In the next financial year, you should be aware of the tax changes, tax breaks, and tax-deductibles. This is paramount to small business owners.
- Have a Keen Eye on Tax Refund Scams
During the tax year, tax refund scams become rampant. However, they can be prevented and avoided. These tax refund scams may comprise of instances with allegedly overpaid taxes that require transfer costs or fees before you can rebate.
Another is the scam where you are allegedly accused of underpaid taxes. Hence, you will be demanded to provide credit or debit card details for the payment. If not, the scammer will request for money transfer from you.
- Scrutinise your Finances
You can simply discuss your finances with your accountant. Check what has improved and what still needs to be focused on in the next 12 months. Establish your performance objectives because this can keep you on track. A cash flow forecasts would also be essential in monitoring your productivity and efficiency.
- Upgrade Your Marketing Strategies and Business Plans
To maintain reliable results, you should set up a good plan and update it. Business plans enable you to work on your finances effectively and accurately. This will serve as a reminder of your main target and purpose.
You can be able to evaluate the potency of your priorities, improve your efforts for new chances, and boost the quality of your performance. It also lets you adapt to a new environment.
- Reassess the Structure of your Business
Once you expand your business, you must always consider reorganising the framework of your business. Research and study the diverse taxation principle and agreements according to your business structure.
- Check your Insurance Plans
Ensure that you have the appropriate insurance plans for your business. Upgrade your degree of protection if some circumstances do not meet the requirements. You should always review the product disclosure statements (PDS) and know your rights. Be wary of the insurance policies and always think that your business is not protected.
- Ensure Backing Up Data and File Security
This is one of the topmost priorities on your list. You should always make sure that data is backed up and files are secured. Store important business records, customer files, and financial documents in a private, safe off-site location. It will enable you to still work on it while you’re offline.
For a more accurate and organised End Of Financial Year processing, this to-do list is the perfect starting place. Check out additional resources from reliable sources and know your rights as a taxpayer.