EOFY Preparation
The next of our Blogs to provide your tips and support for your end of financial year preparation.
End of financial year is a big time for all businesses, so it pays for you to be organised and have a very clear idea of what you need to be doing now and in the last days leading up to June 30th, so you can close your accounts for the 2022/2023 year without the pressure.
The official date of the End of Financial Year is the 30th of June 2023. From midnight on the 30th of June your business accounts will be closed off for 2022/2023 year and all transactions after that date will then make their way into the 2023/2024 financial year.
This blog is a to be used as a prompt to tick off your list of to-do’s so you can finish the financial year strong and be ready to go for next year.
Let’s start with Payroll. Payroll needs to be reconciled by the 14th of July 2023. You can submit your EOFY finalisation declaration via Single Touch Payroll (STP) which then allows your employees to complete their own income tax returns. It is important to review all related payroll transaction and ensure your profit and loss payroll and super amounts match your payroll reports. Once you are happy that the ledgers equal,ensure that your STP Year End report matches your ledger reports, and if it does, then finalise and process your Single Touch Payroll report to the ATO.
Next let’s look at Superannuation. For your Super expense to be claimed in the current financial year, it needs to be paid and cleared by the 30th of June. It is important to make sure all employees Super Fund’s are active and that you pay their contributions as early as possible to ensure they hit their super accounts in time. Aim to have your final super paid by 21st June, to ensure it is in our employee accounts by June 30th.
Let’s now talk record keeping. Making sure you have supporting records of all expenses to you are claiming as deductions in your accounts and that you are fully and accurately recording all income earned is really important. These ‘supporting records’ can be kept digitally or as paper records and need to be supplied to your accountant. Ensure you keep receipts, invoices, any dividend statements and records of sale of assets.
Tax planning. Tax planning is a smart move for your business to consider before EOFY, and before heading into the next EOFY. For most businesses and individuals income tax is one of our largest expenses, so it does require careful planning and budgeting. With a good tax plan, and an accountant on your side, working smarter with your tax strategies can save you some cash.
BAS and FBT Lodgements. Make sure these are done and all up to date.
We hope this helps you get over the finish line for the 2022-2023 financial year. It’s been a big year with issues in the economy affecting all businesses, employee shortages for some business and the many other changes to business and everyday life. If you are looking for an accountant to help you meet all you taxation compliance needs this tax time, or you are looking for some business advice to help you with your tax plans, reach out to us at the office, we are here to help you.