Helping Small Businesses – End-of-Financial-Year Checklist – Make Tax Time Simple

It doesn’t matter what business you are in, we all have to get our financial houses in order with June 30 fast looming. In an incentive to get on top of your paperwork, the Federal Government’s new Budget has provided small businesses with an instant tax deduction for assets costing up to $20,000 purchased from budget night until June 30, 2017. They are also reducing the tax rate for incorporated businesses with annual turnovers less than $2 million. So take advantage and follow our three key steps to being tax savvy.

1. Reconcile

• Ensure BAS lodgements, super guarantee contributions and ASIC reports (companies only) are up-to-date and accurate
• Ensure your records are compliant with the ATO including balance sheets and P&L statements
• If your business carries stock, and/or plant and equipment, complete a stocktake of inventory by June 30

2. Review

• Make an appointment with your accountant
• Pre-pay services and supplies, bring forward tax deductible expenses and defer invoicing to reduce your taxable income
• Review your digital and accounting systems and quality control procedures

3. Renovate

• Get prepared for the next financial year by updating your business plan, P&L/cash flow status and insurances and shop around for better deals
• Update your systems and procedures where necessary
• Make sure you are your most important employee – that includes ensuring you have up-to-date leases, wills, and financial future plans

We are a small business too and know the types of financial intricacies that you face. Make sure you have a good accountant on speed dial, and check out our favourite sites for other tax time tips:

• Commbank’s top tips
• ATO Small Business Newsroom
• MoneySmart