Are you prepared for the EOFY deadlines?
With the end of financial year fast approaching, we’ve made a list of tasks to help keep you and your business prepared.
1.Take advantage of the instant asset write-offs (IAWO)
Make sure to speak to your Broker regarding the extended instant asset write-offs and take advantage of the concessions currently in place.
Some of the important changes to note in regards to the IAWO are:
- The $150,000 cap per asset when purchasing new assets has been removed
- Businesses with an aggregated turnover of up to $5 billion are now eligible
- Businesses purchasing second-hand assets must have an aggregated turnover between $50-$500 million in order to claim a full deduction. However, the value of each asset cannot exceed $150,000
2. Perform inventory stocktake & update your asset register
Conduct inventory counts on all the business’ assets near 30 June. Make sure all records are adjusted before calculating the cost of sales and gross profit. It is important to review your business’ asset register (e.g. all vehicles – plant equipment or office equipment) in preparation for depreciation and capital gains tax calculations.
3. Comply with Single Touch Payroll (STP) and Superannuation obligations
Use STP to report annual wage payments, superannuation obligations and PAYG withholdings for the final pay period for June 2021. Remember, SGC payments made after the 14 June are not tax-deductible.
4. Prepare your EOFY financial statements
The documents that you should aim to finalise as soon as the new financial year begins are:
- June 2021 balance sheet
- The business’ FY 21/22 profit and loss statements.
In addition, it is advisable to finalise any management reports that the business uses regularly.
5. Lodge your final Business Activity Statements (BAS)
Before preparing your annual tax return you should reconcile the following:
- Any other financial obligations
6. Make sure all other documents are in order for the EOFY
Just a reminder of the tax returns cut-offs:
- Sole traders/Partnerships – 31 October 2021
- Companies – 28 February 2022
Make sure you take advantage of all small business tax concessions. Click here to view the full list.
7. We recommend you always speak with your Accountant
Good Accountants can add a lot of value to your business. If you’re not getting adequate support from your Accountant, talk to your Broker who will be able to offer alternatives.
For more information, please contact your Pacific Finance Broker via firstname.lastname@example.org or give us a call on (08) 9321 2120.