end of financial year

Tips to Help You Prepare for End of the Financial Year (EOFY)

Are you interested to know the tips that help you for preparing end of the financial year? As we all know the end of the financial year (EOFY) is approaching. As the weeks are running up a stressful period created for Australian small businesses, to satisfy their legal responsibilities. No doubt, it is reasonable to feel under pressure, as the deadline comes near 30th June every year.

We are going to offer tips that help you for analyzing the end of the financial year. These tips will assist you in planning the priorities of your business goals for the coming fiscal year. Let’s dive into the details.

9 Tips to Help You Prepare for End of the Financial Year

1. Make sure your Income-Generating Assets are Up to Date

Structure the finance and repayments to meet your tax and cash flow demands. This truly helps you to lower operational expenses, boost productivity, and free up cash. Keep your income-generating assets up to date, to run more smoothly and provide more cash flow for your firm.

2. Eliminate Bad Debt

If you are the one who has unpaid invoices from the previous fiscal year, now is the moment to pay them off. These bad debts are deducted from your taxable income and can be used to offset them.

3. Appreciate your Employees

The end of the fiscal year is generally an excellent opportunity to appreciate your hardworking employees. With their contributions to your company, your growth also increased. Reward them by giving a modest incentive. It is a good moment to analyze their KPIs, update business and marketing strategy. If you’re properly organized and have an efficient team behind you, everything becomes easier for you.

4. Pay any Outstanding Super before June 30th

It is important to tip businesses must ensure that employees will get additional superannuation benefits. It is also critical to make sure that all outstanding superannuation payments are made before July 1. This is a wonderful trip to diminish your income tax burden.

5. Take a Thorough Look at your Financial Situation

Always check your financial management procedures and select the best funding options. A wide range option of cash flow choices is available to support you in managing cash flow and funding. This is scalable to match the company’s sales growth.

6. Know how much your Depreciating Assets are Worth

As you know office equipment, printers, computers, and other official assets fall into the value group. Make sure you will note all the assets that fall into this valuation group. This will help you by offering the possible tax deductions.

7. Perform a Spring Cleaning of your Accounting Records

As you know that there is a number of tax and superannuation changes taking effect on July 1. So you should review and update your accounting systems to check these changes.

8. Be informed of any Tax Changes that may affect you

In this digital world, you have to update about all new changes of applicable tax changes. These changes after all effect at the beginning of a new fiscal year. Take assistance from your financial adviser or search comprehensively about the ATO’s website for updates and notifications. By doing this you can take advantage of a favorable change or prepare for a negative one.

9. Make a List of your Tax-Deductible Spending

You have to pre-pay appropriate services such as office supplies and accountant fees, for a period of 12 months. It is a simple way for SMEs to claim tax deductions. You can decrease your taxable income by bringing tax-deductible costs and postponing income. By contacting your suppliers for all bills issued between now and June 30th make the payment arrangements.

Read Also: How Much Minimum Balance Do You Need For An SMSF?

Final Thoughts

In conclusion, if you want to have a successful year-end you should have a strong handle on your finances. By using the above tips, and software you can easily handle everything within a specific time. Moreover, you should make significant changes to your routine that make it easier for you in the future.

Thanks for reading!

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