With tax time just around the corner, now’s the time to get your paperwork in order. There’s no need to wait until the last minute to sort out your books – in fact, there are benefits to getting things sorted out sooner rather than later. Here are five things that every business owner should do before June 30.
1 Take a look at your upcoming tax deductions
We all know that tax deductions can help save small businesses serious money. From travel expenses to business assets, the Australian Taxation Office (ATO) allows small businesses to claim deductions for most costs relating to the running of the business.
It may be worthwhile taking a look at any upcoming expenses, say in July, that you can pull back into the current financial year. While it doesn’t often pay to spend money just to save in tax, it may help you claim further deductions on expenses that you would be incurring regardless.
2 Start sorting out your paperwork
Paperwork isn’t anyone’s favourite task, but trying to sort out of a whole years worth of paperwork in a rush is a nightmare. When the time comes to submit your tax return, you’ll be required to provide proof of purchase for most claims – so start sorting out that shoebox of receipts now.
If you have the QuickBooks mobile app, you can easily capture each receipt at the time of purchase to avoid the end of year paperwork drama.
3 Pay staff super early
According to the ATO, super payments to eligible employees for quarter four are due by July 28. However, small business owners might want to consider paying this early in order to bring this expense into the current financial year.
4 Write off bad debts
Before the calendar flips over to a new financial year, take a moment to check your bad debts. You need to ensure you’ve tried every avenue possible to get hold of what’s owed.
If you have exhausted your options and your invoice/s are at least 12 months overdue, it may be time to write it off your bad debt.
5 Get your stocktake sorted
If your business sells products, you may be required to value your stock at the end of June 30. In order to give an accurate estimate, it’s worth counting your inventory close to the end of the financial year. It can be quite a time-consuming task, so it’s worth organising the details of your stocktake in advance.
You’ll be required to keep records of each article of stock and it’s value, as well as noting who contributed to the stocktake and the time it was completed. It’s also the perfect opportunity to consider writing off any stock that’s been lost, damaged, or is no longer of value to the business.