Last Minute Business Tax Tips

As 1 July rolls around it’s time to wrap up your financial year. The end of the financial year is fast approaching. Check out last minute tax tips for small business this EOFY

So, get organised now, tick tax time off your to do list, and get back to running your business. Paying tax is not necessarily a bad thing when you are running a business — it means you’re making money! However, for most business owners paying tax is still a significant expense, so you should only pay your fair share. This is where tax planning strategies come into play.

When implementing any tax planning strategies, it’s important to keep in mind that any major asset purchases should be focused on generating income — the tax benefit should be secondary.

What to do before June 30

• Ensure your accounting file is locked off and all bank accounts reconciled
• Calculate your profit or loss for the year
• Determine whether you will owe tax to the ATO for the profit you have made
• Implement strategies to reduce this tax
• Begin to collate your tax paperwork
• Ensure that the Trustee Resolutions are prepared and signed BEFORE 30 June for all Discretionary (“Family”) Trusts
• Business owners who have borrowed funds from their company must ensure that the appropriate principal and interest repayments are made by 30 June or declared dividends to repay these loans
• Complete a stocktake

Plan ahead for July 1 and the new financial Year

• List your vision or goals for the new year
• Review your prices or fees for the new year
• Review the wages and superannuation for the new year
• Review contact cards, particularly employee cards, for current details
• Prepare your budget for the new financial year
• Consider mini budgets for sales lines, employee expenses, purchases, and motor vehicles
• Review your business structure with your accountant, is it still appropriate for your needs?
• Review your accounting software needs: is it time to go to the cloud? What add-on options can make your business more efficient

Tax Planning Strategies – What you must do before June 30

• Pay Superannuation Guarantee (SG) to obtain a tax deduction in this financial year (even though it isn’t due until 28 July 2024) Make additional superannuation contributions up to your cap
• Review Accounts Receivable (Debtors) ledger and write off any bad debts
• Review stock on hand and write off slow moving or obsolete stock
• Review Work In Progress (WIP)
• Bring forward tax deductible purchases such as accounting software, repairs, donations and office expenses/consumables Review Asset register and scrap and obsolete equipment
• Pay director’s fees or dividends
• Pay staff bonuses

What to do before July 31, 2024

STP Finalisation* – Prepare the STP finalisation declaration and send to the ATO

• Employers with more than 20 employees have until 14 July
• Employers with 19 or less employees have until 31 July

Pay Superannuation Guarantee (SG) for the quarter ended 30 June by 28 July

*STP Finalisation Declaration has replaced the need to produce Payment Summaries for employees. The information that was provided on the Payment Summaries is available in the employees’ MyGov account and is known as an Income Statement. If an employee doesn’t have a MyGov account, their accountant will be able to access this information via the Tax Agent portal.

What to do before 31 August 2024

Prepare the ATO Taxable Payments Report and submit to the ATO by 28 August**

Finish collating your tax paperwork. Example of documents relating to your business that your accountant might need:

• Reconciliations for Bank Accounts, Debtors, Creditors, Payroll and Superannuation
• Loan statements and relevant documents for new loans
• Documents on new assets bought or sold, including the date you entered the contract and the date the asset was first installed or ready for use
• Stocktake, if applicable
• Documents relating to investments

** The Taxable Payments Reporting System has been expanded and includes the following industries: Building and construction services, Cleaning services, Courier services, Road freight services, Information technology (IT) services, Security, investigation or surveillance services or Mixed services

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How can we help?

If you have any questions or would like further information or you are seeking property tax advice, please feel free to contact our office via email –info@investplusaccounting.com.au or phone 02 9299 7000 to either speak with someone or arrange a time for a meeting so we can discuss your requirements in more detail.

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