5 tips to help you prepare for end of financial year
4-minute read
The end of the financial year (EOFY) is looming but with some planning and preparation, it doesn’t have to be taxing. This EOFY checklist may help you meet your legal obligations and help your small business get ready for the upcoming tax season.
Key take-outs
- Make sure your records are up to date
- Consider ways to save time using Online Banking
- Find out what you can claim
- Ensure you have met your superannuation requirements
- Add important dates to your diary
1. Get your paperwork up to date
Having important paperwork in place helps to streamline the EOFY process. Some examples of records you need to keep are:
- Receipts for sales and business purchases
- Records of tax returns, Business Activity Statements, GST returns and employee super contributions
2. Simplify accounting with online tools
Tax time will be simpler if you separate your personal banking from your business banking. This helps you capture all your business expenses in one place, while avoiding the risk of accidentally claiming for a purchase that’s not connected with your business. A separate business bank account also helps you manage your business cash flow.
If you’re registered for online banking, you may have access to tools that will assist you with everyday bookkeeping and gathering information for your tax return. For example, Westpac Online Banking offers:
- Third-party access to bank accounts – including a ‘view only’ option – to let you share cash flow information with your bookkeeper or accountant
- Bank feeds1 can connect your business banking facilities* with your accounting software or third-party service providers (such as MYOB and Xero).
3. Manage your deductions
Ensuring you get the right deductions for your expenses makes good business sense, so it’s important to find out what you can claim.
As a business owner, you may claim tax deductions for most business expenses. For example, interest and fees on your business loans, and other related business expenses. Remember that you must have records to prove the expenses.
You may wish to take advantage of the federal government’s temporary full expensing incentive to claim immediate deduction for the cost of eligible assets used in carrying your business.
4. Meet your superannuation requirements
Businesses with superannuation guarantee (SG) obligations are required to pay employee contributions. Meeting your obligations by 30 June 2022, may allow you to claim a tax deduction in your 2022 income tax return, where the contributions are made to a complying superannuation fund or a retirement savings account for the purpose of providing superannuation benefits for your employees.
5. Be aware of due dates
Put all the required dates in your calendar to give yourself a reminder that will help you avoid ATO penalties.
A little preparation and planning before tax season could save you time. It’s also important to remember that some actions must be considered and taken before 30 June.
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Things you should know
This information is general in nature and has been prepared without taking your objectives, needs and overall financial situation into account. For this reason, you should consider the appropriateness for the information to your own circumstances and, if necessary, seek appropriate professional advice.
The taxation position and information in this article is general in nature and does not take into account your objectives, financial situation or specific circumstances. It is based on current tax laws and interpretation and should only be used as a guide. It does not constitute tax advice and you must seek your own independent tax advice that relevant to your circumstances.
Westpac’s products are subject to terms, conditions, and fees; and eligibility criteria may apply. Before making a decision read the disclosure documents for your selected product or service, including their T&Cs, and consider if the product is right for you.
- Read the Westpac Online Banking Terms and Conditions (PDF 409KB) before making a decision. Not all accounts† are eligible to be included in a bank feed. Not all third-party service providers support bank feeds for all accounts.
Bank feeds must be set up with third-party service provider before it can be connected in Westpac Online Banking. If your third-party service provider doesn’t appear in the drop-down menu in Westpac Online Banking, you may need to check that your third-party service provider is registered with Westpac. Should there be any changes to your user access or network access levels, you may need to disconnect your bank feed(s) as any access changes won’t impact bank feeds. The products and services offered by third-party service providers are subject to their own terms and conditions and fees and charges. Westpac doesn’t guarantee or endorse the services or products offered by third-party service providers
† Currently Business Credit Cards and Business Term Deposits accounts aren’t available for third-party service provider’s except MYOB. This may be extended to other third-party service providers in the future.