What Do I Need to Do Before the Financial Year Ends?

If you’re a business owner, you must ensure that you complete and lodge your income tax returns whilst meeting the superannuation requirements. With small businesses, it is essential that you check what record keeping and other tasks need to be completed. For instance, profit and loss statements to show a summary of income and expenses, conducting a stocktake, summary of your record of debtors and creditors, etc.

Before the financial year ends, it is essential you take into consideration following checklists:

• Lodging yearly reports or returns for PAYG withholding, fringe benefit tax, GST and the tax payments reporting system.
• Find out what tax deductions and concessions you can claim as long as they directly relate to earning your income. E.g. website, motor vehicle and travel expenses, uses machinery tools or computers – you MUST HAVE RECORDS TO PROVE claims as business reductions.
• Check your tax agent is registered with the Tax Practitioners Board through their register.
• Be wary of tax refund scams that can cause negative ramifications to you or your respective business.
• Review finances with an accountant or bookkeeper to see whether targets have been met and to create a cashflow forecast to manage any potential shortfalls and ensure you can still pay your staff and suppliers.

Also ensure your income tax returns are completed and lodged. Before getting stuck into your tax return, you may want to consider the following:

• Credit cards and making use of your tax return by paying off any credit card debts.
• Consider making a tax-deductible super contribution. If you’re an employee it would be beneficial to sacrifice pre-tax salary straight into your super account, which reduces the amount of tax to pay.
• Deferring income to the following financial year to help take advantage of tax cuts.
• Reduce tax further by cashing in investments and making after-tax super contributions which will lessen the tax you need to pay.

It is important to determine whether discipline is needed in how your bank accounts are used or the best way to capture savings. It is also beneficial to set goals regarding what you want to achieve financially and be aware of what you spend in order to reach the goals you set out.

If you have any questions about the above, please feel free to get in contact with one of our experienced Lawyers at Frank Law on (02) 9688 602 or via frank@franklaw.com.au.

This is not legal advice.