We recently asked whether our readers were resolution ready from a strategic standpoint for 2017-18. But how about the nuts and bolts of preparing for the end of the financial year (EOFY)?
Whether it's payrolls, balance sheets, profit and loss statements, super obligations or a multitude of different taxes, your EOFY to-do list can often seem insurmountable.
The 2016-17 financial year is the last time that small businesses can claim an immediate deduction for assets worth up to $20,000.
Getting in touch with an experienced accountant in Geelong will help you ensure your accounts are in order, but you can speed the process along with a few simple checks ahead of time.
Here are the key dates to put in your diary over the coming weeks:
30 June: The last day of the 2016-17 financial year. You have various obligations to fulfil by this date, which we'll cover in a second.
14 July: You need to have provided payment summaries to your employees by this date. The new financial year is technically underway at this point, but you may wish to tackle the task at the same time as your other EOFY duties rather than wait for the deadline.
Preparing for 30 June
Your accountant can tell you the exact details of what you need to do before the EOFY. Nevertheless, this handy checklist should help you get started:
- Make superannuation guarantee payments to receive deductions for 2016-17;
- Prepare for a stocktake or estimate stock value if your inventory's value hasn't changed by more than $5,000 over the last year;
- Write off bad debts;
- Buy and implement any new assets for deductions;
- Reconcile your payroll, balance sheet and profit and loss statements; and
- Confirm your BAS and SG contributions are up to date.
What to remember for 2017-18
In addition to your regular EOFY duties, there are a couple of policy changes that may affect how you approach your planning.
Accelerated depreciation ending: A popular scheme allowing small businesses to instantly write off assets worth up to $20,000 was recently extended for 12 months in the federal budget. Originally, 30 June 2017 would have been the last time organisations could make the claim, but they now have until 30 June 2018. However, the write-off amount is expected to return to $1,000 following this date.
Single Touch Payroll begins: The Australian government's attempt to streamline payroll reporting officially starts from 1 July 2017, and all businesses with more than 20 employees must comply from 1 July 2018.
Would you like more help with your EOFY obligations? Please get in touch with WMC Accounting.