Bookkeeping and the End of Financial Year – What You Need to Do

As we approach the end of June, and with it the end of the Financial Year, we wanted to share with you 7 things you need to do – 7 things a bookkeeper like us can help you with. If you follow the tips outlined in this checklist you have a better chance of ending the financial year without being filled with stress.

You’ll get the right deductions and meet all your obligations easily.

Here are the 7 tips you should follow, and how we can help you if need be.

Make Sure That Your Bookkeeper is Compliant in STP Phase Two

Single Touch Payroll (STP) is being expanded to reduce the burden on employers who need to report employee information to multiple government agencies.  The first thing that you should do with this is familiarise yourself with all the STP2 requirements and specifically, how they impact your businesses reporting requirements.

Make Sure You Have Your Paperwork Sorted

To meet your EOFY obligations, you need to make sure that all your paperwork is in order. You need to make sure you have all your invoices and receipts, you need to make sure you have made all relevant super contributions and have all completed BAS for reconciliation if need be. Having all your paperwork sorted makes it easier for your accountant to complete your end of year tax return.

Simplify Your Bookkeeping With the Right Software and Tools

You need a separate bank account for your business expenses. That way you won’t be claiming something you shouldn’t. You should also make sure you have bookkeeping and accounting software in place to more easily keep track of everything and make the preparation of your returns easier.

Think About Your Deductions and Any Prepayments

Before we hit June 30, you need to think strategically about your purchases, and to find out what you can claim as a tax deduction. Do you need to make new office and equipment purchases? Should you get existing equipment repaired? You may also be able to prepay some expenses prior to June 30 and enjoy extra deductions now. If you, or your bookkeeper, has ensured that your books are up to date, it is easier to make these decisions and/or seek advice from your accountant.

Identify Bad Debts and Be Prepared to Write Them Off

With books that are up to date, you will be better placed to identify bad debts that have been incurred throughout the year – those debts that remain unlikely to be repaid. Identifying these debts may also mean that you are entitled to a refund on GST payments previously made. With up-to-date books, you may decide that it is in your best interest to offer a small discount to a debtor to have that payment made before June 30.

Make Sure You Pay Your Superannuation Payments

It’s important that all relevant superannuation payments are made for any staff you employ prior to the end of financial year so that you can take advantage of any relevant tax deductions.  It is also important to note that the super guarantee (SG) rate is increasing from 10% to 10.5% on 1 July 2022. As such your business will need to use the new rate to calculate super on payments you make to employees on or after 1 July, even if some or all of the pay period is for work done before 1 July.

Make Sure You Submit Everything on or Before The Due Date

As you are preparing for EOFY it’s important that you understand all lodgement and due dates, so that you avoid any potential penalties.

Preparing for EOFY requires effort on your part, and this checklist goes some way to informing you of the actions required to simplify the process as much as possible. We can help further ease this burden. If you’d like a no obligation discussion about how our bookkeeping services can help you prepare for EOFY, please get in touch today.

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