Advivo Partner, Chris Morris, outlines factors that SMEs should consider when preparing for EOFY.
The end of the financial year is a crucial time for small and medium-sized enterprises (SMEs) to assess their financial position, meet tax obligations, and plan for the future. To ensure a smooth transition into the new financial year, it’s important to follow a structured approach. Advivo’s Pre 30 June Checklist provides a list of key ‘Must Do’ and ‘Should Do’ tasks that can effectively be used to ensure you and your business are best positioned to minimise your taxes and maximise your wealth this end of financial year.
Our Pre-30 June Checklist includes:
- Consideration of invoicing and timing of income for the year.
- Consideration of likely bad debts and whether they should be written off.
- Confirming stock on hand to ensure it’s not misstated.
- Consideration of whether superannuation can be paid (and received by the super fund) before 30 June to allow the payment to be claimed in this financial year.
- Consideration of Trustee Resolutions and how to distribute income from discretionary trusts in a tax-effective way.
- Consideration of expenses that may be able to be brought forward and recognised before 30 June resulting in greater income tax deductions.
- Consideration of the Temporary full expensing regime coming to an end on 30 June 2023 and whether your business is positioned to benefit from using this befit before it ceases.
– Note – From 1 July 2023, once the temporary full expensing regime ceases, the instant asset write-off amount is reported to be $20,000 for the year ending 30 June 2024. - Consideration of personal superannuation concessional contribution caps ($27,500 for FY 2023) and any unused ‘carry-forward amounts’ from previous years which may be used to again increase income tax deductions this year.
- Consideration of unrealised capital losses and whether they should be recognised before 30 June.
- While performing your detailed review of the current year, why not use the opportunity to save time later and prepare your forecast for the next 12 months at the same time
– Remember to budget for 11% superannuation from 1 July 2023.
Once 30 June ticks over, our Post-30 June Checklist provides valuable tips on how to close off your business records to set you up for the new year, finalise your annual STP payroll lodgement, and prepare your records for your accountant. It also prompts…
- Confirmation of full payroll reconciliation post-30 June.
- Finalise annual STP lodgement with the ATO.
- Input your updated forecast for the next 12 months into your accounting software.
- Review your asset register for accuracy.
- Plus many more! Preparing your SME for the end of financial year should include a comprehensive approach encompassing Pre and Post 30 June checklists. By following these checklists, you can ensure compliance, maximise income tax deductions, meet reporting obligations, and set your business up for success in the new financial year. Don’t wait until the last minute—start early, stay organised, and seek professional advice when needed to navigate the end of financial year process effectively.
