Make The Best of the End of Financial Year (EOFY) – By Rohan and Gita Hettiaratchi

Source: Brisbane Sri Lankan Newsletter – Dæhæna – June 2022

For Businesses

EOFY prompts us to tidy our financial affairs of the old year and plan for a prosperous new financial year. EOFY can be a demanding time. But it doesn’t have to be stressful. Prioritising time to plan is the key to seamlessly moving from one year to the next. Here are five things to consider.

Up to date and accurate accounting records are a must for business success

Good financial records encourage potential partnerships and good business decisions. For example, an investment loan application accompanied by up to date and complete financials will increase a business’s chances of getting the funds.

Reviewing your numbers can help identify opportunities to improve profits

Focus on spending to grow. Invest in equipment and other items that help create future income and improve efficiency. Reduce expenses that don’t create value.

It is a good time to collect receivables

Encourage slow-paying customers to pay before 30 June by reminding that they may benefit from a tax deduction.

Good cashflow is key to business success

Healthy cash flow allows a business to spend at the right time. Paying before 30 June any amounts due in early July or paying April to June superannuation in mid-June will get you an extra tax deduction in this year’s return.

Take the time now to plan for a better new year

Now is the time to consider changes to business structure, software, processes and practices, costing and pricing, budgets and cash flow. It is time to reset, reboot and restart.

For Individuals

Check what is allowed as a deduction in your industry and the work you do.

Start collecting receipts that qualify as a deduction. The free ATO app or a simple spreadsheet can help keep records.

Think of all the tax related activities you may have done during the year, like purchasing shares, receiving dividends, and payments relating to investment properties.

Wait for “tax ready” on your myGov before completing your return.

Get professional help from a registered practitioner if necessary. Your tax position is unique to you. What applies to your friends and family may not apply to you.

Rohan and Gita Hettiaratchi
Rohan and Gita are management accountants based in Middle Park. They
help Small and Medium Enterprises (SMEs) plan and monitor performance
to improve business outcomes. They can be contacted at middlepark@firstclassaccounts.com