It’s that time again. The requirements of end of financial year are upon us once more. To take the heat off EOFY, we’ve crafted a short guide with four tips to help you get your tasks done faster.
Time to get your ducks in a row and tick tax time off now, so you can get back to growing your business.
Before anything else, you need to close off your activity for the previous year. This will involve bank reconciliation and several accounting tasks.
This is all about pre-planning and being ready to chat with your tax agent or advisor with all the preliminary tasks completed.
If you want a full checklist to ensure you don’t miss a thing this EOFY, check out Reckon’s step-by-step guide for the 2020/2021 financial year.
Before you speak to an accountant or bookkeeper, work through the following checklist to wrap up the previous year and ensure you’re ready for the financial year ahead.
On top of compliance related accounting tasks, you should also take this time to reflect on the broader picture and performance of your business.
As with many Australian businesses, it’s likely you experienced a tumultuous year full of unexpected challenges and hardships. More than ever, you need to take stock of what occurred and the lessons learned.
This can be aided by running cashflow reports and profit and loss statements related to various product or service lines. Ask yourself the following questions:
EOFY is a time when ATO compliance comes into sharp focus. While you must file a tax return, submit BAS and reconcile your PAYG withholding summary, it’s also the time when you put your mind to reducing taxable income.
The best way to manage these processes efficiently and with very little chance of missing something is to consult your bookkeeper, accountant, or advisor.
Create a strategy to minimise your income and maximise expenses, not only for this year but importantly for the coming year. Remember to take full advantage of ATO incentives such as the instant asset write-off scheme and temporary full expensing.
After wrapping up the prior year and fulfilling your compliance responsibilities, your next step should be to plan for what’s to come.
Look at your list of things that didn’t go right in your review of 2020/21. What measures can you introduce to improve your situation?
What do you plan to achieve this year? Do you have well-defined business goals and a map to get there?
Take time to reset your business trajectory by taking a fresh look at your products and services. What’s working and what needs adjusting?
When planning for the year ahead:
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At Reckon we are more than just accounting software, we aim to help small businesses build the foundation to grow and succeed – easy and affordable compliance is an essential part of this.
