4 quick tips before the financial year ends
It’s 30 June today, which signals the last day of the financial year. Here are four quick tips for you, if you’ve left everything to the last minute.
1. Get the right tools
MYOB Essentials helps you complete year-end processes easily. It’s easy to meet your tax obligations, you can produce instance reports on PAYG, GST, and BAS and be on top of superannuation rate changes. As a cloud accounting solution, it also means that payment summaries and taxable payments reporting can be completed quickly without having to be in the office.
Another wonderful tool is MYOB Pay Direct, which helps you accept payment quickly as the payment device connects to your smartphone. You can improve cash flow and reduce bad debts by taking payments on the spot via credit card. Having an instant cash flow injection can reduce your stress as it may give you the instant funds you require to pay liabilities like superannuation and BAS payments.
2. Update everything
Another tip for the end of financial year is to make sure all your paperwork is up to date and you have kept all the relevant records, which support your transactions and claims.
3. Prepay expenses
If you can pay for work related expenses this year, then this will help with tax deductions. This could include subscriptions, stocking up on your office supplies or paying for professional memberships.
Depending on your business structure, you might be able to prepay some deductions in advance. For example, a small business could prepay rent in advance or insurance premiums.
Finally, purchase a new asset this financial year to help bring tax deduction claims. If you need that new laptop and the cash flow is healthy, then buy it now. However, be mindful of how much you can claim this financial year.
4. Clean up your stock
Don’t forget about your stock. This needs to be updated to determine your cost of goods sold. This can affect your bottom line and should be done as soon as possible.
Lastly, always consult with your tax accountant or agent to ensure that the potential saving is viable for your business.
The information provided here is of a general nature for Australians and should not be your only source of information. Please consult an experienced and registered tax agent as each small business’s circumstance will vary for end of financial year.