When there is an end of the financial year in Australia, the business individuals already face busy times. So, it’s better to be ready with the checklist that helps to determine the business tax returns policy and give you instant relief from the debt management burden.
However, it is essential to know what things you need to focus upon and what not may create trouble for the business entrepreneurs. Here we will provide you with the checklist that you need to focus upon and follow for the EOFY in 2020.
Organise Your Payables and Receivables
Before you come to the end of the financial year, make sure to organise all the payments that you receive and the payment receipt that you receive from the goods and services that you sell. It will help you evaluate the business tax return payments and how much you need to deduct the payments.
Make Investment in Assets
The checklist to be done in the EOFY includes investing in some valuable assets that you need in the next year before the EOFY. It will help to save the tax. So, it’s better to accelerate your investment before the EOFY ends.
Go for an Audit
The audit would be great if you haven’t opted for a cloud inventory software management program. The audit will help to ensure that what assets you have in practice are in the files. The reason for opting for an audit is that a manual spreadsheet is prone to errors and doesn’t give you an overall idea about the products and their tax and another cost.
It’s better to have an automated cloud-based management system that saves your time and effort on the audit.
Understand Tax Deduction
By organising the expenses, receipts, and expenditures list, it will help you in claiming the tax deduction. You probably have already claimed for the business tax return deduction for the expenses you made at the end of the financial year or the business’s daily deals.
Still, it’s better to create a checklist for a tax deduction. Another option that you can follow is to go straight to the Australian Taxation Office tax deduction page and make sure to go through the details given in the category.
Here, you can maximise the tax deduction permissible that helps to reduce the tax.
Create a backup of Business Data
This backup plan of the business data will only apply if you have opted for the cloud-based software program. The end of the financial year would be a great opportunity to deal with the expenses and save the data from reducing the tax payments.
Thus, saving them in your backup accounting system will save a lot of time and effort that you waste in the manual collection of data and compiling it up in the file for a business tax return.
Create a Financial Report
At the end of the financial year, creating the financial report will help make the profit and loss statement, the cash flow statement, and the balance sheet formation. This will help to run the data and EOFY smoothly. Moreover, the report will help to summarise the financial condition of the business and also keep a record of the budget.
Be Sure About Bookkeeping Errors
The more you will be concerned about the bookkeeping errors, the less you will have to work at the end of the financial year. So, it is essential to maintain the bookkeeping record and re-council errors. Along with this, make sure to pay attention to your credit card bills and bank account record at the end of EOFY. This will help to ensure you about the transaction errors.
Final Thoughts
During the end of the financial year, you need to manage a lot of things to pay the business tax return on all the valuable assets. But by having a checklist, the tax payments and billing would be easier to maintain. Make sure to keep a check on the tax changes to have a clear idea about the EOFY and tax payments.