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End of financial year to-do list for business owners
The end of financial year in Australia is fast approaching, and that means business owners need to have all their appropriate documentation in check and their finances in order ahead of the new financial year.
Follow our EOFY to-do list to ensure you (and your staff) are well prepared in advance.
Sort out payroll reconciliation
Reconciling your payroll means double-checking that your pay transactions match what’s recorded on your payroll register. This is a crucial consideration at the end of the financial year because it ensures your tax return is accurate and helps determine if you’re over the threshold for payroll tax.
Close out superannuation payments
Late superannuation payments aren’t tax deductible, which means if you overlook any employees such as contractors or you need to make corrections after year-end you’ll most likely miss out on tax deductions. Make sure to review all super payments in early June so that everything is paid appropriately and you can take advantage of deductions.
Review staff awards and salaries
Make sure all your employees’ salaries are in line with relevant awards and any other statutory requirements, as underpayments or incorrect payments could see you hit with penalties.
Tally up business expenses
Keep in mind that making extra purchases at the end of the year doesn’t always equate to a bigger tax return – it only reduces your taxable income by the total of your business expenses. However, if you’re planning to invest in equipment or resources anyway, doing so before tax time could be a good idea.
Figure out your insurance policies
Check your current insurance policies (such as workers’ compensation insurance) and get your new policies in order ahead of the new year. If your business operations have changed at all over the past year, don’t forget that you may need to take out extra or different insurance policies to ensure you and your workers are appropriately covered.
Issue Pay As You Go payment summaries
End-of-year PAYG summaries need to be issued to staff members by 14 July. Just make sure your payroll totals are reconciled first before you provide payment summaries to help your employees lodge their tax returns.
Submit your Business Activity Statement and ASIC report (if applicable)
Your quarterly BAS is due by the end of June. You’ll also need to submit your annual report to the Australian Securities and Investment Commission along with your solvency declaration if you’re set up as a company.
Hire end of financial year contractors
EOFY is an incredibly busy time for most businesses. Look at hiring contractors with relevant experience towards the end of the financial year to make sure you have your paperwork organised on time and are meeting all your tax obligations. The investment in extra staff will help ensure your business is as tax-efficient as possible and save you money in the long run.
Heading into a new financial year and needing new talent? Speak to one of our experienced consultants today.