It’s that time again. The end of the business financial year. There always seems so much to finish, record, report and lodge.

We have developed a small business EOFY checklist designed to provide some guidance. This business end of year tax checklist will hopefully ensure that nothing falls through the cracks. Consider it a new business owner checklist because, for this group, this period can be particularly daunting. But it need not be.

Within this article, you will find an EOFY bookkeeping checklist, an end of year business tax checklist and a small business financial health checklist. Using the list, you should be able to lodge your small business tax return in Australia and undertake some informed planning for the next financial period.

It’s important to realise that at this time of year, you don’t just need a business end of year tax checklist; you need to understand what has worked well in your business in the past and how the company is positioned to address any anticipated upcoming challenges. That is why undertaking a business health check at the same time can add so much value to your business.

 

What is a business health check?

The end of the financial year (EOFY) is an ideal time to conduct a quick financial health check for your business. Taking the time to review your business finances can help you build the confidence to push forward into the next financial year.

As you operate, you will need to make decisions about your business. To make the best-informed decisions for your business, you should have a complete sense of the financial well-being of your enterprise.

 

How can I determine the health of my small business?

It is helpful to assess the four pillars of your business to understand your small business’s health.

 

1. Personal needs:     

Now is the time to reconsider why you started the business. Generally, this motivation will include factors such as personal satisfaction and financial reward.

If you feel your commitment is sliding, explore avenues to reinvigorate, renovate or restore that enthusiasm. Now is the time to find new ways to stay connected with your starting passion.

 

2. Products and services:

Maybe this is the year you cannot avoid investing in product development. Your product or service may have been market-leading when you launched, but times change and competitors copy. Spend time considering what your competitors are offering and what the market demands.

 

3. Relationships:

Relationships cover all the people interactions with your business and stakeholders; your suppliers, distributors, customers, lenders, creditors and, of course, your team. Analysing all those critical business relationships will help ensure you have your finger on the pulse of the mood and satisfaction of all interested parties. It will also mean you can plan for expected changes and not be blindsided by sudden changes in relationships.

 

4. Money:

Your health check enables a deeper review of your key financial measures. Completing a thorough review allows you to stay on top of your business’s financial wellness and plan for the future. It will also enable you to respond and repair before an issue gets out of hand.

Your business health check is an integral part of your operations. It highlights the need to adapt to a changing environment and address emerging problems.

 

How should I prepare my business for end of financial year?

You can take several steps to help you deal with the end-of-financial year stress. These steps will prepare you to lodge your tax return and position your business for the upcoming year. Use the below quick business end of year tax checklist to stay on top of your end of financial year planning and task management.

 

Small business EOFY tax checklist

1. Make a list. Keep track of the tasks you must complete with the necessary due dates. Tasks might include:

• • Creating a profit and loss statement
  • Conducting a stocktake
  • Preparing for your PAYG tax, Fringe Benefits Tax and GST

 

2. Complete all your record-keeping tasks (invoicing, bank transactions, credit notes)

 

3. Keep up to date with tax changes. There may be tax changes that you need to be aware of. These might include changes in tax law and deductions or concessions for small businesses. The Australian Tax Office publishes a Small Business Newsroom, which is always an excellent place to discover such changes.

 

4. Identify your tax deductions. Make sure your list of deductible expenses is complete and supported by transaction records.

 

5. Review your records. It is one of the most important things you can do to ensure your EOFY reports are correct. It can create a lot of complications later.

 

6. Ensure your payroll is up to date and compliant. Now is the time to check that all superannuation payments and documentation are up to date. EOFY is also a great time to ensure your employees’ payroll details are correct.

 

7. Keep an eye out for tax refund scams. Around tax time, cybercriminals get busy. But there is much you can do to protect your business from cybercriminals.  Read here to learn how you can protect your business from cyber threats.

 

8. Review your business and marketing plans. Ensure your strategies align with your recent experience and create challenging but achievable business targets for the next financial year. If you need some inspiration, read our insightful new financial year resolutions that might help grow your business.

 

The end of the financial year is always challenging.  There is so much to do. The end of the financial year to-do list and the small business financial health checklist are designed to provide you with some support in that process.

And if you want to supercharge your digital presence next year speak to us now.