Benjamin Franklin once said “By failing to prepare, you are preparing to fail.”
Take this opportunity to make your End of Year stress free by using the timeline and your trusted advisor to calmly prepare for the end of year. We, at Proaccounting Business Solutions have worked out a timeline for you to be prepared for the time tax.
- 21 April: Lodge and Pay Monthly IAS/BAS March
- 28 April: Lodge and Pay Quarterly BAS January to March
- Check employees have signed authority to email payment summaries.
- Prepare your End of Year Plan
- 21 May: Lodge and Pay Monthly IAS/BAS April
- 21 June: Lodge and Pay Monthly IAS/BAS May
- 25 June: 2017 Fringe Benefits Tax annual return – lodgement due date for tax agents (if
- lodging electronically). Payment (if required) is due 28 May.
- Prior 30 June: Super Guarantee Contributions must be paid (to fund) by this date to qualify
- for a tax deduction in the 2016–17 financial year.
- 30 June: Stocktake completed
- 14 July: Prepare and distribute Employee Payment Summaries
- 21 July: Lodge and Pay Monthly IAS/BAS June
- 21 July: Payroll Tax annual reconciliation
- 28 July: Lodge and pay Quarter Business Activity Statement, unless extension is available
- 28 July: Pay June Quarter Superannuation Guarantee, (unless already paid before June 30)
- 14 August: Lodge Employee Payment Summaries
- 21 August: Lodge and Pay Monthly IAS/BAS July
- 25 August: Lodge Taxable Payments Annual Reports September
- Meet with trusted advisor to finalize the ‘End Of Year’ file
- Send final ‘End Of Year’ File to Accountant
- 21 July: Lodge and Pay Monthly IAS/BAS August
End of Financial Year Project Plan
Is it that time of year already? The end of financial year is fast approaching and that means getting all your paperwork ready.
Before End of Year Review Business Progress
- Review Profit & Loss to end March/April Check
- with your trusted advisor (accountant & bookkeeper) on how you are doing
- for the financial year. Mark it in your diary to do this every April/May!
- Review Superannuation paid for Directors Under
- 49 years maximum contribution is $30,000 and over 49 it is $35,000.
- Discuss with Accountant
- Review the list of Assets & remove obsolete or defunct items
- Review cashflow for additional tax deductable pre 30 June purchases
- Review the Integrated Balance Account (monies owed to the ATO)– can this be paid off by 30th June
- Review if changes are required to business process/procedures so
- timelines can be established & work completed– eg software upgrade/change
Before End of Year General Tax Checks
Maximise those deductions
If the business’s cash flow is good then it may make sense to spend on extra expenses before June 30 to maximise deductions.
- Get the cars serviced and replace the tyres
- Service Equipment
- Pay the membership fees, subscriptions
- Pay the insurance bills etc
- Get a discount on rent by prepaying for a period
- Pay yourself additional wags and superannuation
Ensure last year is finalised
- Last year tax return is lodged and you have a copy
- Are all adjustments from last year processed?
- Have you adjusted the data file for any impact of the end of the FBT year?
- Have you adjusted the data file for any adjustments by the accountant?
Private usage adjustments
A once a year adjustment for private expenses – yes you can. The tax agent may have included an adjustment in last year’s final tax
returns for disallowing private expenses – has the GST adjustment been made?
It is absolutely acceptable to claim all GST on all taxable purchases for a business or enterprise during the year, if turnover is less
than $2m, even if a portion of the expenses are for private use.
The ATO allows a once a year adjustment to reduce the amount of GST claimed. When the Tax Agent has completed the end of year
tax returns and informed the amount of private expenses, then make a GST claim reduction in the next BAS. Therefore you will have if you post the totally private expenses to the loan account and don’t claim any GST back at the time of purchase that is okay as well.
Stock / Inventory
- Review stock list in detail including when the item last sold and at what price
- Consider sale at discount of items that are slow realise
- the cash
- Write off the value of stock that won’t sell
- Take a full stock count at 30 June and enter through Stock Count and Inventory
- Adjust as required
Existing Plant and Equipment
- Obtain the list of assets the accountant uses to calculate depreciation
- Review the list and remove items that no longer exist or are obsolete
- Highlight, to the accountant, any items sold
New Plant and Equipment
- Businesses are permitted to write off Plant and Equipment that cost less than $100 (incl. GST)
- Business with turnover less than $2m using Small Business Entity Concessions; highlight assets bought under $20,000 to
- accountant for the financial year 201617
- GST reporting of Capital Acquisitions (G10) threshold is $1,000
Before End of Year Payroll Checks
Ensure you check the maximum amounts of superannuation
If you are processing the payroll for businesses, it is wise to check that no employee receives more than the maximum
superannuation contribution, unless instructed by the employee’s financial planner or accountant to do so.
Under 49 years maximum contribution is $30,000 and over 49 it is $35,000.
If employees or owners appear to be near or over the maximum the bookkeeper should notify the person in question.
Maximise those tax deductions Superannuation
While Superannuation Guarantee is not due till the 28th of July, in order to get the income tax deduction in this financial year, the
superannuation must have been paid through your bank account before 30 June.
Effective technique: use the Superannuation Clearing House
Review and discuss information with Accountant and Bookkeeper