Being ready for the end of the financial year is one of the most important moments for every business on every scale. While large companies have accountant departments dedicated solely to this task, small business owners have to deal with this by themselves. And sort of hiring a team to help them out with it, they are could face some serious problems when it’s time to declare taxes.
The main issue to deal here with is the undeniable fact that if you put some hard work into doing this the right way your operation will be much more organized and you’ll have a clear picture of your finances. Here are some of the things you should do to be ready for EOFY.
Maybe you didn’t give this one much of a thought when you started your coffee shop, but there are certain benefits you can get from the government in the form of tax exemptions if you keep clean financial records that are easy to audit. To make it work in your favour you have to keep track of every penny spent and earned on your business.
Try to keep tidy sales records that include every invoice, voucher, receipt, credit card statement and cash register manifesto. Keep a separate folder where is possible to get a grasp of all the purchases and expenses handled using the company accounts. Finally also keep a record of all the expenses related to your employees, from wages to payment summaries.
As we already said, tax deductions are a pretty nifty benefit and you can claim them in your EOFY declaration to favour your business operation if you know how to do it.
If you are a newcomer and you are going through this process for the first time, the best advice you will get from everyone is not to manage the EOFY process on your own. Even seasoned veterans need help to do this the right way and in compliance with government regulations. There are a number of software programs that can help you keep your financial records according to government issued standards.
Even if you use them, you will need the help of an experienced accountant to manage some final adjustments. The best course of action is to go with a registered tax agent since they will most likely work the final declaration in the cleanest possible way to present it in the best possible way.
After you are done with the accounting process you’ll have a very clear picture of the state of your business. This information will be very useful to you since it can paint a picture of the state of your operation and what it has to change to improve your strategy or to keep doing whatever is working to keep the financial health of your business going steady.
Be mindful of the state of taxation laws, while they do not change frequently some regulations are updated every year and it never hurts to keep in compliance with those to be on the good graces of the government and the banks that do business with you. If you are following a business plan see how many of the goals set you were able to achieve, and if your general perception is of an undesired risk you’ll know if you want to continue or not.
Sources
https://www.business.gov.au/info/run/finance-and-accounting/accounting/essential-tasks-at-end-of-financial-year-eofy
https://www.myob.com/au/blog/5-simple-steps-to-prepare-your-business-for-eofy/
https://www.nab.com.au/business/small-business/cashflow-planning-and-tax/10-strategies-business-owners-get-eofy-ready
Tammy Richards is a seasoned finance writer with over 15 years of experience in the industry. With a keen eye for detail and a passion for helping people make smart money decisions, Tammy has become a trusted voice in the world of personal finance. Holding an MBA and drawing from her extensive entrepreneurial background, she offers valuable insights and practical advice to her readers.
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