With the end of the financial year fast approaching, we’ve made a list of tasks to help keep you and your business prepared for the EOFY deadlines.
1. Perform inventory stocktake & update your asset register
Conduct inventory counts on all the business’ assets near 30 June. Make sure all records are adjusted before calculating the cost of sales and gross profit. In addition, it is important to review your business’ asset register (e.g. all vehicles – plant equipment or office equipment) in preparation for depreciation and capital gains tax calculations.
2. Take advantage of the instant asset write-offs (IAWO)
Make sure to speak to your Broker regarding the extended instant asset write-offs and take advantage of the concessions currently in place. Some of the important changes to notes in regards to the IAWO are:
- The threshold has been increased to $150,000
- Eligible businesses can immediately write-off multiple assets, as the $150,000 tax deductions are available per asset
- New and used assets are eligible (the asset is installed/in use by 31 December 2020)
If you run out of time to finance the asset before the end of June, don’t worry! Your Broker can arrange to put the facility in place afterwards and refund you the cost. It is important to note that the IAWO has been extended until 31 December 2020.
3. Comply with Single Touch Payroll (STP) and Superannuation obligations
Use STP to report annual wage payments, superannuation obligations and PAYG withholdings for the final pay period for June 2020. Remember, SGC payments made after the 14 June are not tax-deductible.
4. Prepare your EOFY financial statements
Above all, the documents that you should aim to finalise as soon as the new financial year begins are:
- June 2020 balance sheet
- The business’ FY 19/20 profit and loss statements.
In addition, it is advisable to finalise any management reports that the business uses regularly.
5. Lodge your final Business Activity Statements (BAS)
Reconcile the following before preparing your annual tax return:
- GST
- PAYG
- FBT
- Any other financial obligations
6. Make sure all other documents are in order
Just a reminder of the tax returns cut-offs:
- Sole traders/Partnerships – 31 October 2020
- Companies – 28 February 2021
Make sure you take advantage of all small business tax concessions. Click here to view the full list.
7. We recommend you always speak with your Accountant
Good Accountants can add a lot of value to your business. If you’re not getting adequate support from your Accountant, talk to your Broker who will be able to offer alternatives.
For more information, please contact your Pacific Finance Broker via info@pacificfinance.com.au or give us a call on (08) 9321 2120.