RECKON have a range of resources, guides and videos to assist you with Year End Business Tax Planning to prepare better books for your accountant, but more importantly for you to have an accurate set of books to UNDERSTAND and gain INSIGHT to MANAGE your business BETTER! Your books and accounts are a treasure-trove of information that tell you about the health of your business and what areas you can work on to improve your business financial results!
When is the Australian financial year?
The Australian financial year (also the Australian tax year) runs from 1 July to 30 June. At midnight on 30 June, the financial year ends, your business books are closed and you report your financial situation to the Australian Tax Office (ATO). They use this information to figure out how much tax you owe.
The main Reckon page is the EOFY (end of financial year) Resource page for –
- What is End of Financial Year, what you need & lodgement dates – see the on-page video (and a transcript is below)
- Reckon EOFY Guide for small business – download the free guide
- A great tool is the Calendar see further down at their Resource page
Transcript of Video at Reckon EOFY–
The end of financial year is here again and Tom is all set. Isn’t that right Tom?
But even if you are as well prepared as him, there is still a lot to organise and it can be overwhelming.
Tom is a sole trader with a few employees and will follow these 6 key steps to make it as smooth as possible.
(Step 1.) Tom will get started by getting everything in order.
- Gather all the relevant records, then review and reconcile your accounts.
- Documents include Invoices, bills & payments, Banking records, BAS, payments to employees and PAYG withholdings
(Step 2.) Next, list any tax deductions that you incur as a result of running your business.
- Items such as vehicles, clothes, travel, phone and rent. You can also list depreciation of your capital assets too!
- As well as standard deductions, Tom has undertaken strategies to reduce his taxable income. Some common ones are:
- Claim a deduction for prepaid expenses such as rent or insurance.
- Make superannuation contributions.
- Write-off bad debts or obsolete stock.
- And more.
(Step 3.) Know your deadlines.
There are key dates Tom has in his calendar that apply to small businesses.
- June 30 – End of financial year.
- July 28 – Q4 BAS is due.
- October 31 – Tax return is due.
(Step 4.) Lodge your Tax return
- Since Tom is a sole trader, he will report his business income in his individual tax return. And it must be lodged between July 1 and October 31. If he needs help, he will work with his trusted tax advisor who can also help him keep control of all his tax obligations, identify savings and help Tom succeed.
(Step 5.) Be aware of changes to tax law.
- Make sure you keep up to date with things that will affect your business.
- There are often changes around tax compliance at the end of financial year such as Single Touch Payroll which is effective July 1.
(Step 6.) Assess your business performance and prepare for the year ahead.
- Tom likes to reflect on the goals he sets himself and look at what strategies are working and what aren’t.
- Once he has a plan of how to move forward he will prepare a budget and review wages, prices & fees for the coming financial year.
- To help Tom stay on top of his business finances, he decided to use online accounting software, Reckon One, to make next end of financial year a breeze.
Need help? Not sure? Call for FREE 30min advice / strategy session today!
Email firstname.lastname@example.org or call 0407 361 596 Australia