How to prepare your small business for EOFY
With the end of the 2024 financial year fast approaching, Australia’s army of small business owners are in for a busy time.
It’s time to finalise affairs and prepare your enterprise to start FY2025 strong. For many individuals, that means a last-minute scramble in the week leading up to June 30.
But getting started early can make the EOFY process less stressful. Here are six tasks that should be on your small business’s To-do list.
Organising your FY24 accounts
If you don’t employ a bookkeeper or use accounting software, pulling together the paperwork your accountant will need to complete your annual tax return can be a big job.
Getting your invoices, receipts and bank statements in order now means you won’t be racing to meet the October lodgement deadline a few months later.
Sorting out superannuation
The superannuation guarantee – currently 11 per cent of employees’ base earnings – is non-negotiable.
Ensuring you’ve met the SuperStream requirements by paying and reporting contributions accurately and on time throughout the current financial year will help your small business stay on the right side of the ATO.
“There can be stiff penalties for businesses that don’t comply with their obligations, and now is the time to make sure everything is in order,” Steadfast Technical Manager – Tax and Accounting, Mark Tadulan, says.
“There can be stiff penalties for businesses that don’t comply with their obligations and now is the time to make sure everything is in order”.
Readying for stocktake
If your business acquires, produces or manufactures any form of stock, you’re required to account for its value via a stocktake as close as possible to the end of the financial year.
Holding a stocktake sale before June 30 can help you reduce your inventory and simplify the counting or checking process. “Clearing old stock from the shelves can be a good way to boost cash flow and make room for new lines too,” Tadulan says. Thinking about how best to maximise your tax deductions is also a prudent move.
If you’re considering investing in new equipment, it will pay to talk to your accountant about whether to purchase it in this financial year, or the next.
You can also take advantage of the concessional contributions cap by topping up your own super account.
“Many small business owners make super contributions on behalf of their employees but neglect to contribute to their own retirement savings,” Tadulan says. “If you can afford to do so, it’s always a good idea.”
Planning for FY2025
Finally, EOFY represents an excellent opportunity to review your business’s performance and set goals for the next 12 months.
Writing a budget and identifying areas where you can improve and grow will help you achieve new heights in FY2025.
Do you have the right insurance cover?
The EOFY is a good time of year to revisit your insurance coverage. Insurance is there to help safeguard your small business against the unexpected and a broker can help you determine whether you have the right type and level of cover in place for the year ahead. If you’d like to review your policies, contact an insurance broker today.
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