End of financial year checklist for small businesses

June 10, 2024

The end of the financial year (EOFY) is a critical period for small businesses. It’s time to finalise financial records, ensure compliance with tax regulations, and prepare for the upcoming financial year. 

For many small business owners, this can be a daunting task. However, with careful planning and organisation, you can navigate the EOFY smoothly and set your business up for success.

This comprehensive checklist is designed to help you complete all necessary tasks efficiently. 

Whether you handle your bookkeeping or work with a professional tax compliance agent in Melbourne, following these steps will ensure your business remains compliant and well-prepared for the future.

eofy checklist for small business

1. Review the tasks you need to complete

Some tasks you need to do as a small business owner to get ready for the EOFY include:

  • Prepare a summary of your income and expenses
  • Conduct a stocktake to assess your inventory levels
  • Summarise your records of debtors (customers who owe you money) and creditors (suppliers you owe money to)
  • Collate records of asset purchases or expenditures on improvements for calculating depreciation expense claims and capital gains tax
  • Compile information on asset acquisitions and improvement expenses to determine depreciation deductions and capital gains tax liabilities. 
  • Submit your annual income tax returns
  • Lodge yearly reports or returns for various tax types, such as:
    • Pay As You Go (PAYG) withholding, including finalising income statements for Single Touch Payroll.
    • Fringe Benefits Tax (FBT).
    • Goods and Services Tax (GST).
  • Ensure all superannuation contributions are up to date
  • Back up and make digital copies of your paper records

2. Know which tax deductions and concessions you can claim

Ensure you have records to prove the expenses you claim as business deductions. You can claim deductions for most business expenses directly related to earning your income, such as:

  • Setting up a website
  • Motor vehicle expenses
  • Diesel fuel usage
  • Operating from home
  • Travel expenses
  • Using machinery, tools, or computers

3. Ensure your tax agent is licensed 

Confirm your tax agent’s registration with the Tax Practitioners Board (TPB). Verify their registration by checking the TPB registry or identifying the licensed tax practitioner symbol on their website, printed materials, or business cards.

4. Keep up-to-date with tax changes

Stay informed about any tax changes each year that might affect your business, such as changes in tax law, deductions, or concessions. 

Learn more about small business tax tips from our bookkeepers in Melbourne in this article. We have also discussed the common tax myths here.

5. Review your finances

Review your finances with your accountant or bookkeeper. Evaluate if you achieved your goals and consider how you can make changes when the next financial year starts.

6. Be aware of common tax refund scams

Tax time can be a prime opportunity for scammers to target small businesses with various fraudulent schemes. 

To protect your business, stay informed about these scams and how to avoid them. Read more about tax scams and how to protect your small business in this article.

7. Review your business and marketing plans regularly

Consistently reviewing and updating your business and marketing plans is essential for maintaining focus on your goals and priorities. 

This practice allows you to assess the effectiveness of your strategies, adapt to changes in your environment, and capitalise on new opportunities. Additionally, it helps you prioritise and maximise your efforts efficiently.

8. Review your business structure

Reviewing your business ensures that your current structure aligns with your business goals and operational needs.

Changing or restructuring your business can have significant compliance and taxation implications, so staying informed about these differences is crucial. 

Whether you’re operating as a sole trader or considering incorporating, understanding the nuances of each structure will help you make informed decisions that support your business’s long-term success.

9. Check your insurances

Carefully read the product disclosure statements (PDS) for your policies to understand what is and isn’t covered. Don’t assume you’re covered for everything; verify the specifics. 

Consulting with an insurance broker can help you get the best deal and ensure you have the right insurance to protect your business effectively.

Stay compliant this EOFY with the help of a registered tax agent in Melbourne

As a registered tax agent in Melbourne, Maximum Business Solutions can provide invaluable assistance in navigating the complex landscape of tax obligations. 

We can help you accurately complete and lodge your income tax returns, claim eligible deductions and concessions, and ensure all your financial records are in order.

Contact us today at (03) 9589 0128 or submit an enquiry for expert bookkeeping services in Melbourne.