TOP TIPS TO TRANISITION SMOOTHLY INTO NEW FINANCIAL YEAR
We always think of tax and finances at the end of the financial year and rightly so, this is the time of year to focus on this. However, it is a good time of year to compliment the tidy up of finances for your business with a few other key components of your business too. Here is a checklist to get you on the right track for a smooth transition into the new financial year.
PREPARE YOUR FINANCIALS FOR YOUR ACCOUNTANT
- Summarising income and expenses (excel is fine if you don’t have software such as MYOB)
- Conducting a stocktake.
- Summarising a record of debtors and creditors.
- Collating records of asset purchases or expenditure on improvements to assets to calculate depreciation expense claims and for capital gains tax purposes.
- Lodging yearly reports or returns for PAYG withholding, fringe benefits tax (FBT), Goods and Services Tax (GST), and the taxable payments reporting system.
- Work out what expenses you can claim:
- Has a website been set up
- Motor vehicle expenses including fuel and travel
- Machinery, tools and computers
ENSURE YOUR ACCOUNTANT/TAX AGENT is registered with the Tax Practitioners Board. You can check via this link. There is no protection for taxpayers who use unregistered tax or BAS agents.
REVIEW YOUR FINANCES
- Sit down with your accountant and review your finances.
- Look at whether you met your last financial year targets and what you can do differently next financial year.
- Set performance targets for the year to help you stay on track. Create a cash flow forecast to manage any potential shortfalls and ensure you can still pay your staff and suppliers.
REVIEW AND UPDATE YOUR BUSINESS AND MARKETING PLANS
- Review your marketing plan and strategy, including promotion and pricing of your products and services.
- assess whether your strategies are working.
- Adapt to any new changes in your environment.
- Find opportunities for business growth.
- Consider mentoring services for your business.
- Prioritise and maximise your effort (work smarter, not harder!).
REVIEW YOUR INSURANCES
- Check that you have the right insurances in place for your business. If your circumstances have changed, you may need to update your level of cover.
- Read the product disclosure statements (PDS) for your insurance policies carefully - don't assume you're covered. Look up the definition of certain terms such as floods as they may vary among insurers.
BACK UP AND SECURE YOUR FILES
- Backup and store your registration, financial and customer data, and other important business documents in a secure off-site location. This can help ensure your business can stay up and running during unexpected events, such as natural disasters.