As the end of the financial year (EOFY) approaches, it’s the perfect time for both businesses and individuals to get organised, review their finances, and put strategies in place to start the new financial year with clarity and confidence.
Here’s a helpful checklist to guide your Tax Time preparations and ensure you’re in a strong position moving into the new financial year.
1. Reconcile Your Accounts
Make sure all bank accounts, credit cards, and loan accounts are fully reconciled. Outstanding transactions or unreconciled items can lead to inaccurate reporting and unnecessary delays in lodging your tax returns.
2. Finalise Payroll and Superannuation
For businesses, ensure all payroll records are up to date, and superannuation contributions have been paid by the required deadlines. This includes preparing for Single Touch Payroll (STP) finalisation, which must be completed by 14 July.
3. Review Income and Expenses
Now is the time to:
- Ensure all income and deductible expenses have been recorded correctly
- Follow up on any outstanding invoices or unpaid bills
- Categorise any unusual transactions or one-off items for your accountant’s review
Accurate data is essential for maximising deductions and minimising tax liabilities.
4. Get Your Documents in Order
Gather and organise key documents such as:
- Receipts and invoices
- Asset purchase records
- Loan agreements
- Stocktake records (if applicable)
- Work-related expenses
Having these ready can help streamline the tax return process and reduce back-and-forth during preparation.
5. Assess Tax Planning Opportunities
If you haven’t already, speak to your accountant about any last-minute strategies that could reduce your tax liability. These may include:
- Prepaying expenses
- Making additional super contributions
- Writing off bad debts
- Reviewing asset depreciation
6. Set Goals for the New Financial Year
Once the dust settles on EOFY, take time to reflect on your business or personal financial performance and set some clear, measurable goals for the year ahead. Whether it’s improving cash flow, investing in growth, or getting on top of personal budgeting, the new financial year is a fresh opportunity to reset and refocus.
7. Review and Update Your Systems
A new financial year is also a great time to review your accounting systems and processes. Consider:
- Upgrading software
- Automating repetitive tasks
- Engaging with a bookkeeper for ongoing support
Staying proactive can save you time, reduce stress, and give you a better handle on your finances all year round.
Need Help with EOFY Preparation?
Whether you’re a sole trader, small business owner, or managing a growing team, we’re here to support you through the EOFY period and beyond. From BAS lodgement and payroll to financial reporting and tax-time support, our experienced team is ready to help.
Our offices are conveniently located in Bunbury, Derby and Joondalup. Contact us today to book a consultation and make this EOFY your smoothest one yet.
