Following on from last month’s ‘End of Financial Year Project Plan’, take this opportunity to review your business generally.
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 - Discuss with Accountant/Bookkeeper effects of budget on superannuation
- Review the list of Assets & remove obsolete or defunct items
- Review cashflow for additional tax deductable pre-30June purchases
- Review all your Insurances – are they still suiting your needs
- 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
- Review how Budget effects your business – advantages/disadvantages
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?
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 – turn goods into cash
- Write-off the value of stock that won’t sell
- Take a full stock count at 30 June and adjust accounting file
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 years 2015-16 and 2016-17
- GST reporting of Capital Acquisitions (G10) threshold is $1,000
- Review Budget effects on Asset Purchases
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.
Before End of Year – Review Your Business
Review your Business Growth and Cashflow
The impact of Growth on your Business can seriously effect your Cashflow e.g., If you have increased your workforce there may be implications in funding superannuation in a timely manner and payroll tax could be an added expense. The sooner you can predict a cash shortfall or surplus, the better you can prepare.
Review and update your Business Plan
Business changes also require you to update your Business Plan. Reflect on the direction you set for the year, and review if your business grew, expanded as you expected?
- Are your goals the same or have they matured?
- Do you need to rethink your strategies?
- Is technology changing your business environment?
Review your Business Structure
As your Business grows, expands and changes it may be time to review your Business Structure. Different Structures have different compliance and taxation regulations that need to be considered – talk to your Accountant
Review your Business Process
Can the changes in technology help your business process and ‘ free-up’ time so you/staff can take on that new project?
Or make your business life easier and more efficient e.g., Bank Feeds can automate the entering of your banking transactions into your accounting software
Review and discuss information with Accountant and Bookkeeper
