{"id":2522,"date":"2018-06-19T16:24:47","date_gmt":"2018-06-19T13:24:47","guid":{"rendered":"https:\/\/www.lending-express.com\/blog\/?p=2522"},"modified":"2019-06-06T16:43:49","modified_gmt":"2019-06-06T13:43:49","slug":"what-small-businesses-need-to-finalise-at-eofy","status":"publish","type":"post","link":"https:\/\/www.become.co\/blog\/what-small-businesses-need-to-finalise-at-eofy\/","title":{"rendered":"What Small Businesses Need to Finalise at EOFY"},"content":{"rendered":"

What Small Businesses Need to Do at the EOFY<\/span><\/h2>\n

Yay, it\u2019s tax time – said no one ever! The end of the financial year (EOFY) can leave you with a big fat tax refund in your pocket or running around like a headless chicken, or perhaps, a combination of the two. What you need is a year-end checklist for small business owners – and that\u2019s where we come in. \u00a0<\/span><\/p>\n<\/p>\n

We know it\u2019s all too easy to put it off, but with 30th June fast approaching, you should be well into the process. If you’re all over the place, it\u2019s time to get things in order – fast.\u00a0<\/span><\/p>\n<\/p>\n

Here\u2019s our end of financial year checklist for small business owners to help you keep more of your hard-earned cash in your pockets before the closing date arrives.<\/span><\/p>\n<\/p>\n

1. Pay Tax Debts on Time or Else<\/span><\/h2>\n<\/p>\n

Yes, that\u2019s a threat coming straight from the Australian Tax Office (ATO). Tax debts of more than $10,000 that are outstanding for more than 90 days without a payment arrangement to credit reporting bureaus will be reported by the ATO to the credit bureaus. This is bad news. It will not only negatively impact your business\u2019s credit report (your gateway to financing) for up to five years, but it will also impact your supplier arrangements and current financing situation. <\/span>
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\n<\/span>Don\u2019t just look the other way, double-check your ATO statement so that you know exactly where you stand, what you owe, and if you need to factor in additional costs to your June cash flow budget.<\/span><\/p>\n<\/p>\n

2. Review Your Superannuation<\/span><\/h2>\n<\/p>\n

This can be a huge worry for business owners right about now and is why it\u2019s number two on our year-end checklist for small business entities. If superannuation is paid late, it\u2019s not<\/em> tax deductible. Businesses can easily miss out on valuable tax deductions if contractors are overlooked or if there are wage corrections not made on time. <\/span>Admin fees and interest charges should, therefore, be applied in order to bring everything up-to-date. <\/span><\/p>\n<\/p>\n

Solution:<\/b> Stop tearing your hair out and review your contractor payments and wages now so you can make sure that everything’s paid up.<\/span><\/p>\n<\/p>\n

3. Review Your Assets & Inventory<\/span><\/h2>\n<\/p>\n

Does your business hold stock and assets? Most likely your answer is “yes”. Typically you’ll need to conduct a stocktake, unless your SME and your trading stock have not changed in value by more than $5,000 in the last financial year (hopefully that’s not the case!). <\/span><\/p>\n<\/p>\n

If you haven\u2019t done so already, now’s the time to undertake a stocktake and review your assets. You don\u2019t want to get into the EOFY with money tied up in useless assets and unused inventory. <\/span><\/p>\n


\n<\/span>Check to see if there\u2019s anything that can be written off (perhaps stock or old IT equipment that\u2019s just sitting around collecting dust or damaged, for example).<\/span><\/p>\n<\/p>\n

Bottom line:<\/strong> If you have an asset that you bought or installed for use within the past year, your business may be entitled to up to $30,000<\/a> in the form of an instant asset write-off! The main qualification for this instant write-off is that the asset is valued at less than $30,000.<\/p>\n<\/p>\n

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4. Sort Out Your Expenses<\/span><\/h2>\n<\/p>\n

Consider carrying out some last minute maintenance to your business expenses. You should consider whether or not, for example, it\u2019s worth buying something or hiring someone new just before June 30th falls. Doing so would allow you to benefit from tax deductions that you’d otherwise have to wait another year to see.<\/span><\/p>\n<\/p>\n

Is it worth buying before June 30th?<\/span><\/h3>\n


\n<\/span>This is something that you should think about carefully. Consider if you were going to buy it anyway – if that\u2019s the case, then go for it! After all, for an SME business, a dollar spent will save you 28.5 cents in tax<\/a>. Just be sure not to rush into spending your dollar just for the sake of the tax deduction – carefully consider whether or not it\u2019s something you really<\/em> need.<\/span><\/p>\n<\/p>\n

If your cash flow currently can\u2019t support the purchasing of an asset or hiring of a new employee, consider using Become to find suitable <\/span>business loans<\/a><\/strong> for you to fund the purchase.<\/span><\/p>\n<\/p>\n

5. Check Services Available to You<\/span><\/h2>\n<\/p>\n

Small businesses may also be eligible for a wide range of tax benefits including:<\/span><\/p>\n<\/p>\n