Author: Harry Hoang CPA | CEO of Tailored Accounts
End of financial year can be a stressful time for executives and business owners. But think of it this way—you’re running a marathon, it’s not far from the finish line, you just need to push through to achieve your personal and business goals. Here’s a quick checklist to help you get your financial affairs in order before the 30 June deadline.
- Undertake analysis - To see if you will achieve your budget in the last quarter. If you haven’t made budget, consider what you can do? Cut costs? Improve sales? Or lower your expectations?
- Review your financial performance from July to end of financial year - The best report in any accounting software is multiple period profit and loss. This report compares monthly performance so you can see which month is the best and which one is the worst. It also helps you to monitor recurring costs and highlights if costs have spiraled in any particular month.
- Cash is king - Review your cash flow to include big ticket items so you don’t get any surprises towards the end of the financial year. Make sure your cash flow includes last quarterly BAS; last quarterly super; FBT; company tax return; personal tax return; accounting and/or auditing costs.
- Revisit your business plan - Review or prepare your business plan for the next year and 5 years.
Last but not least, pay attention to these critical due dates:
- 21 June - Lodge and pay May 2021 Business Activity Statement (BAS) if you pay monthly.
- 23 June - Payments for super guarantee contributions should be made on this day.
- 30 June - Super guarantee contributions must be received by your employees' fund by this date to qualify for a tax deduction in the 2020–21 financial year.
- 1 July - Sole traders can lodge your individual tax return from this day until 31 October if you're preparing it yourself.
- 1 July - The minimum super contribution rate on ordinary times earnings paid to your employees is to increase from $9.5% to 10%. If your payroll system is not a computer-based software package, you will need to make the calculations yourself. Do you want your business to fund the increase in contributions? Or do you want your employees to fund the increase, thus lowering the take-home pay of your employees? You may need to obtain legal advice on your employee's employment contracts.
- 14 July - STP finalisation is due to be lodged.
It is important that you should arrange an appointment with your accounting advisors. EOFY period is a great time to review your business performance and financial goals. Make an appointment with your accountants to discuss what could be done better in a new FY. At Tailored Accounts, our team of accounting and tax agent professionals are ready to help you achieve your goals. Contact us today for accounting and compliance assistance.