The end of the financial year, or “EOFY”, should not be a time for worry or panic. Whether you have had a profitable year or not, staying organized and up-to-date will make the end of the financial year easy to prepare for. However, to make sure that you’re ready, it’s important to understand how to prepare and what you need to do.
Checking items off of your end of the year to-do list will keep your business running smoothly and efficiently. You will be able to file your taxes without problems or mistakes and you will be ready to enter the next fiscal year with a solid footing.
Let’s take a closer look at what you can do to prepare your business for the end of the financial year.
Get Your Tax Information In Order
The end of the financial year is naturally consumed with preparing your tax information for filing. If you have been diligent and organized throughout the year, there shouldn’t be too much trouble in preparing this documentation quickly and without issue. However, if you have been lax about keeping your books in order, take this time to set things right.
Be sure to have all of your profit and loss statements up-to-date and check that your books are reconciled with the bank, which should be done on a regular basis throughout the year. Make sure to file your taxes within the limits set by the Australian Tax Office, i.e. July 1st to October 31st.
Remember to explore tax deductions and credits that might apply to your small business. More generally, be sure to check that you are working with the most up-to-date regulations with respect to the tax authority. This information often changes in small ways and it is important to stay informed to avoid making filing documentation with mistakes.
Finally, the tax filing season is a time to make some strategic choices with regard to expenses and sales. For example, depending on what your tax information looks like this year, it may make more sense to hold onto some assets and capital gains and liquidate them at a different time. In the same way, prepaying for some expenses now can offer you the chance to deduct them from your taxes this year. Prepare yourself for a profitable new financial year by choosing wisely now.
Do Not Forget About Your Employees
Be sure to reconcile your employee payroll accounts at the end of the financial year. Keeping this data updated will allow you to distribute employee tax forms to your staff on time. Having this information prepared before the end of the year can also give you ample time to correct any errors or discrepancies that might be detected by your employees.
Make Plans For The New Year
Preparing for the end of the financial year means preparing your business for the new financial year as well. Forecasting and making some predictions for the coming months and taking the time to analyze your annual data for trends and patterns will set you on a solid path of growth and profitability. Be sure to consider your marketing strategies at this time as well. Look for what is working and what is not and make adjustments as necessary.
Keep Calm And Carry On
Do not make the end of the financial year a time of panic and stress. After all, it will never arrive as a surprise, so be sure to take the time to plan accordingly. Remember to prepare yourself for the end of the year as early as possible and get everything lined up so you can look forward to the new year with confidence. All it takes is some organisation and planning and you will save yourself from potential issues in the long run.