Crunching numbers, Advantage One Accountants

The end of financial year is fast approaching. Many people and businesses can find it one of the most stressful times of the year. Furthermore, the risk of penalties from the ATO for non-compliance means that getting your tax reporting right and in on time is crucial. Here’s a brief EOFY checklist that will help you get control of some of the tasks needing to be completed before 30 June 2018:

• Pay Superannuation Guarantee (SG) to obtain a tax deduction in this financial year (even though it isn’t due until 28 July 2018)
• Make additional superannuation contributions up to your cap
• Review Accounts Receivable (Debtors) ledger and write off any bad debts
• Review stock on hand and write off slow moving or obsolete stock
• Review Work In Progress (WIP)
• Make tax-deductible purchases such as accounting software and office expenses for items you will need before 30 June 2018
• Pay director’s fees or dividends
• Pay staff bonuses
• Adjust owner’s wages

SBE taxpayers
• Defer receiving income
• Prepay expenses for up to 12 months e.g. rent, insurance, interest, subscriptions, business travel
• Purchase business assets and have them installed ready for use before 30 June 2018, if under $20,000 there’s an immediate
tax deduction (this ends on 30 June 2019)

Non SBE taxpayers
• Defer invoicing
• Prepay expenses up to $1,000

Download a more detailed EOFY checklist from Xero here. With different deductions available for work and private purposes, and many work-related deductions requiring stringent record keeping, it can be hard to keep on top of it all. To help you get your financial records in order, feel free to contact one of our experienced accountants to discuss how we can make this process easier and more effective and financially more rewarding for you.

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