The End Of The Financial Year Is Here

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It seems not so long ago that we were biting the heads off of our Easter bunnies, and all of a sudden, BOOM, the end of the financial year has arrived. Don’t you think it snuck up rather quickly? Or a little too quickly for some of you? If you're feeling the same way, don't fret - you've still got time to get organised and maximise your tax return using our handy EOFY checklists that we've put together for employees and business owners/soletraders in this article. So, read on.

For Employees

✔️ If you don’t have a myGov account, you can create one online here and link your account to the ATO.

Basic steps (For first-timer): update your personal information, including:

✔️  Tax file number (TFN)

✔️ Contact info, proof of identification, and residential address

✔️ Your bank account details (BSB, account number, your name and bank name)

✔️ A medical expenses and medicare card details

✔️ A last year’s income statement assessment

Other steps includes:

✔️ A superannuation statement less than 5 years old

✔️ A statement on earnings from other investments (for example, properties, managed funds etc) plus any earnings made from overseas.

✔️If you’ve received an income for being off work, a proof of redundancy, income protection and work cover payments should be submitted to the ATO.

✔️ A recent PAYG payment summary (your employer(s) should send you this)

✔️ A dividends statement less than 2 years old

✔️ A Centrelink payment summary less than 2 years old

✔️ A notice of assessment less than 5 years old

For Business owners

✔️  A full copy of your bookkeeping files from accounting software like MYOB, XERO, QuickBooks. At a minimum, consider:

  • Accounting software
  • Electronic invoicing
  • Client templates

✔️ Bank statements indicating:

  • The nature of each deposit and expense
  • Total interest received/paid
  • Closing balance as at 30 June

✔️ Reconcile cash books, including any drawings taken from your business before banking.

✔️ Reconcile all of your bank and credit card accounts. Review any ‘unreconciled’ transactions and see if any adjustments need to be made.

✔️ Review BAS (Business activity statement) & IAS (Instalment Activity Statement) submitted against what your records show they should have been. Does an adjustment need to be brought into the June BAS?

✔️ Outstanding debtors and creditors as at 30 June, including a list of unrecoverable debts

✔️ Stocktake as of 30 June (if you have a business that sells physical items!)

✔️ List of all business assets showing 1) dates of purchase, price and description, 2) details of any repairs and maintenance, 3) cost of any additions or improvements,  and 4) any finance arrangements including hire purchase. Also, check if temporary full expenses apply here.

✔️ Details of any government-related payments, grants or rebates. For example, COVID-19 payments, such as JobKeeper.

✔️ Copy of statements for all loans owed by the business (and total interest paid for the year), with balances as at 30 June

✔️ Copies of payment summaries and annual salary/ wage reconciliation

✔️ Details of any shares purchased or sold, and dividends received during the year.

✔️ Details of superannuation contributions made for each employee

✔️ Details of expenditure on motor vehicles, including fuel, oil, registration, insurance, repairs and maintenance, plus:

  • Current log books
  • Odometer readings for the first and last date of the financial year
  • Total business kilometres travelled for the financial year

✔️ Travel diary and travel documentation (if you travel for business).

✔️ Details of insurance policies, copies of certificates, and total premiums paid.

✔️ Details of any overseas stock in transit – ordered before 30th June.

✔️ Details of petty cash expenditure.

✔️ Make sure you have updated any employee remuneration in your accounting file.

✔️  Prepare the ATO Taxable Payments Report and submit it to the ATO by 28 August 2021.

✔️ Anything else that may impact your tax liability that you deem relevant, for example, your new lease for premises or details of a new entity you may have created during the year.

Key take-outs for business owners:

  • Prepare the STP finalisation declaration and send to the ATO*
  • Employers with more than 20 employees have until 14 July 2021
  • Employers with 19 or less employees have until 31 July 2021

If you’re not reporting through STP visit ato.gov.au/STP or speak to your accountant.

  • In case you decide to provide electronic data to your accountant, make sure they know which software version you’re using, and any username and password they need to access the file. Also:
  • Make sure your budget is inputted into your accounting file.
  • Make sure you have updated the pricing in your accounting file.
  • Make sure you have updated any employee remuneration in your accounting file.
  • Ensure that you’ve done a backup and locked down to 1st July, so that nothing else can get entered into that financial year.
  • Tell your employees not to expect a payment summary from you for information reported through STP - their new income statement will be used to pre-fill their tax return through myGov or their registered tax agent. If your employees need help, they can visit ato.gov.au/STPforemployees
  • All taxation records must be kept for a minimum of five years; penalties and interest may apply if you fail to do so.

Alright, now do you know what you can rightfully claim?

✔️ Claim all work-related expenses.

✔️ Certain tax offsets and government rebates as shown here.

✔️ Certain interests imposed by the ATO.

✔️ Receipts for tax deductible donations and gifts.

✔️ Self-employed concessional super contributions up to $25,000 in any one financial year .

✔️ Income protection insurance premiums are tax-deductible if bought outside of superannuation, so remember to include your income protection expenses.

✔️ If you use a tax accountant, provide statements, as their fees are tax-deductible.


Note: All the information mentioned above should be reported through STP in your myGov account linked to ATO online services before tax time.

Get some tips on how to get most out of your tax returns by simply reading this article on 9 common tax deductions you might not know about here.

More information

Visit the ATO website for more information about meeting your end of year obligations, including:

Last minute tips to help you prepare for the EOFY

If you’re a small business owner:

  • Make sure your paperwork and records including your income producing assets are up-to-date.
  • Get your tax-deductible expenses in order.
  • Have an accounting spring clean.
  • Complete any outstanding end of month reporting.
  • Consider ways to save time using online banking.
  • Know what items you may be able to claim deductions for (Check for COVID-19 relief and impacts).
  • Write-off bad debts.
  • Meet your superannuation requirements.
  • Reassess your cash position.
  • Diarise important dates when you must act and submit documents.
  • If unsure about something, talk directly to a financial advisor or a specialised taxation accountant.


Reflect and plan ahead for the next year

Plan for the future so that you can build in a larger financial buffer to future-proof your practices For example, ask questions to yourself like:

  • What worked well and what didn’t?
  • What do you enjoy about your business and what don’t you?
  • What are your goals and budgets for 2021/22 and beyond?

Also, don’t forget to take a break, rest and recharge; you’ve earned it. This year has been a tough year for everyone with a global pandemic causing major disruption to small businesses. Plus the emotional burden of striving to stay on top of COVID setbacks is not an easy journey. That is why the end of the financial year is a great time to look at how your business has performed, where it’s improved and where you’ve faced challenges. Learn from your mistakes and start creating goals and metrics for the coming year. Review your goals regularly. Create a new budget based on available data from your previous year.Look into new software and workflow options to make your business more efficient. Do whatever you need to do based on what didn't work well this year. Take it as a lesson and plan for what’s to come so that you can avoid unwanted surprises. Agree?


Thanks for reading this blog. Hope it serves you well and if you have any questions,  please feel free to reach out to us anytime via our social media platforms: facebook, instagram, email, or twitter.

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