It’s nearly that time of year again.
Despite the fact that it’s been one of the most turbulent years in living memory with drought, bushfires, storms and now COVID-19 dominating the headlines, the calendar will still roll around relentlessly to 30 June.
We have prepared a short checklist of tasks to help you prepare for the EOFY:
1. Perform inventory stocktake
Your accountant will need you to conduct an inventory count on all assets on or near 30 June, to make any necessary adjustments to your records. This will facilitate the accurate calculation of cost of sales and gross profit.
2. Update your asset register
Review your records of fixed assets (such as vehicles, plant or office equipment etc.) in preparation for depreciation and capital gains tax calculations.
3. Take advantage of instant asset write-off
Make sure you don’t miss out on the expanded instant asset write-off concessions.
4. Comply with Single Touch Payroll (STP) and superannuation obligations
Use STP to report annual wage payments, superannuation obligations and Pay as You Go (PAYG) withholding for the final pay period for end of June.
5. Prepare EOFY financial statements
Aim to finalise your 30 June 2020 balance sheet, 2019/20 profit and loss statement, plus any management reports you regularly use, as soon as possible after the year end.
6. Lodge your final Business Activity Statement (BAS)
If you lodge your BAS quarterly, your due date for lodging and paying your final BAS for the year is 28 July 2020. Businesses who report annually have until 31 October 2020.
7. Make sure all other documents are in order
It’s a good idea to get your Goods and Services Tax (GST), PAYG, Fringe Benefits Tax (FBT) and other obligations reconciled for the year before you start to prepare your annual tax return.
8. Lodge tax returns on time
Sole traders and partnerships need to lodge their 2019/20 income tax returns by 31 October 2020, while companies generally have until 28 February 2021 (unless your registered tax agent has applied for an extension on your behalf). Make sure that you’re taking advantage of all small business tax concessions.
Help is available If your business has been affected by COVID-19 we recommend you contact your tax agent, or the Australian Taxation Office, to find out what support is available including payment and lodgement deferrals, or visit www.ato.gov.au/General/COVID-19/ Contact your broker to find out how they can help you prepare for the EOFY.