For a small to medium sized enterprise, the end of financial year usually means one thing: stress. Tax time, EOFY, whatever you call it - this looming period of financial accountability means that you will have to start getting your affairs in order, quick smart. To avoid any unnecessary stress this EOFY, we’ve put together three key steps that you should take.
Consulting your accountant
Before taking any accounting action, ensure that you consult your accountant, as they will be able to tell you exactly what you need to do. Whether you need to review your business structure, claim expenses or write off bad debts, your accountant will be able to advise you just what you need to do in preparation for tax time. Contact your tax accountant nice and early so you know exactly what you need to get in order. Don’t leave things to the last minute, as this will only cause more stress at an already stressful time of year!
It’s also to important to remember that accurate bookkeeping is a year-round task. However, with a little organisation and open communication with your accountant, it’s not a task that needs to be added to your everyday to-do list.
Lodging your BAS
Another key element in staying on track during tax time is keeping up to date with lodging your Business Activity Statements. You will receive your BAS from the Australian Tax Office on a monthly or quarterly basis, so it’s important to remember that it’s not just around tax times that these lodgements are important. As your BAS is a declaration to the ATO, it’s vital that everything you put in the statement is accurate. A good way to prepare for this is to choose a bookkeeper or accountant with extensive BAS experience and knowledge.
Lodging your tax return
If you use an automated bookkeeping service, you will make your tax preparation a lot easier. An automated bookkeeping system will manage, balance and keep a record of your business’ finances throughout the entire year. This sort of preparation is invaluable to your accountant.
Another crucial element of tax time is to ensure that your business is ATO-compliant. Your accountant should ensure that you’re up-to-date with the state of your business’ finances throughout the year, which enables you and your business to be ATO-compliant. This also makes spending and budgeting more transparent, too.
Now that you have everything in order, it’s time to lodge your tax return! If you do have a tax bill, ensure that you pay it on time. The ATO has made it clear time and time again that the way to for SMEs to avoid penalties is to make prompt payments where they are due.
EOFY is always closer than you think, so it’s imperative that you start to get your business affairs in order. Ensure that you communicate with your accountant, have lodged your BAS and are up to date with any new law changes that may apply to you. Once you’ve lodged your tax return, take a load off! It’s all over - for another year, at least. If you need help with tax accounting or any other aspect of EOFY, don’t hesitate to give the friendly professionals at Next Level Accountants a call. We’re here to help.