End Of Financial Year Check-List For Small Businesses
- July 28, 2023
- 8 min read
The end of the financial year for small businesses in Australia falls on June 30th. This date marks the completion of the financial reporting period for businesses operating on a standard fiscal year, which runs from July 1st of the previous year to June 30th of the current year.
The end of the financial year serves as a vital milestone for your business to evaluate progress, make informed decisions, and plan for future growth. It encourages you to analyse key financial indicators, such as profitability, liquidity, and solvency, and gauge your company’s financial stability. This analysis helps identify areas of strength and weakness, enabling you to devise strategies for growth and improvement.
As the end of the financial year approaches, your small business in Australia probably finds itself immersed in a flurry of these activities. It’s also time for you to reconcile accounts and set the stage for the upcoming fiscal year.
Tax planning and preparation form a crucial aspect of this end-of-year checklist. Small businesses like yours need to stay informed about the latest tax regulations and deadlines to ensure compliance. By engaging with a qualified tax professional, you can easily navigate the complexities of tax law, maximise deductions, and optimise tax liabilities.
In this blog post, we will guide you as a small business owner through an essential end-of-year checklist to ensure a smooth transition into the new financial period. Through this checklist, we aim to provide clarity and direction and enable you to streamline these financial processes, minimise stress, and make well-informed decisions.
End-of-financial-year checklist for small businesses in Australia
Review and reconcile financial records
Gather all your financial documents, including bank statements, receipts, and invoices. Crosscheck your accounts, ensuring all transactions are accurately recorded. Check for any discrepancies or errors and make necessary adjustments.
Review tax obligations
Check for all tax obligations, including goods and services tax (GST), income tax, and fringe benefits tax (FBT). Ensure that all required tax payments have been made throughout the financial year. Verify that your business is registered for the correct taxes and update any necessary registrations.
Complete and lodge Business Activity Statements (BAS)
Prepare and lodge your BAS, reporting GST-related transactions for the financial year. Ensure that all figures are accurate and supported by relevant documentation.
Organise employee-related matters
Review employee records, including payroll, superannuation contributions, and PAYG withholding. Issue PAYG payment summaries (group certificates) to your employees. Lodge a PAYG withholding payment summary annual report with the Australian Taxation Office (ATO).
Assess stock and inventory
Conduct a physical stocktake to determine the value of your inventory. Reconcile your stock records with the actual count and make adjustments if necessary.
Review business expenses
Go over all your business expenses and ensure they are legitimate and supported by relevant documentation. Identify any potential tax deductions or write-offs that can be claimed for the financial year.
Superannuation obligations
Ensure that all employee superannuation contributions have been made within the required timeframes. Lodge a Superannuation Guarantee Charge (SGC) statement if any superannuation obligations were not met.
Depreciation and asset register
Review your asset register and update it with any additions or disposals of assets during the financial year. Assess the depreciation expenses for each asset and record them accurately.
Review and finalise financial statements
Prepare financial statements, including the profit and loss statement, balance sheet, and cash flow statement. Ensure that all financial statements are accurate and compliant with accounting standards.
Seek professional advice
Consider engaging a professional accountant or tax advisor to review your financial records. Visit Sleek to get detailed guidance on any potential tax savings or compliance issues. Consult with your advisor to clarify any uncertainties or questions you may have.
Lodge tax returns
Prepare and lodge your company or individual tax returns (for sole traders or partnerships) by the due date. Ensure that all relevant schedules and attachments are included with your tax returns.
Plan for the upcoming financial year
Set financial goals and objectives for the next financial year. Review your budget and make any necessary adjustments. Develop a strategic plan outlining key initiatives and targets for the coming year.
Remember, this checklist is meant to provide a general overview. Consult Sleek to get personalised advice and an end-of-year financial checklist. They will tailor the checklist to your specific business needs and circumstances.
Need support with your tax, accounting or bookkeeping? Get in touch with our friendly experts today
Case Study Example: Barrier Reef Catering Services makes a smooth transition to Sleek
Barrier Reef Catering Services specialises in providing meat and poultry to multiple restaurants. It also provides a bespoke catering service for events across Australia. It has multiple full-time and part-time staff and also operates a cloud kitchen in Perth. It has to account for raw material wastage and also has to ensure its inventory of raw materials is properly accounted for.
It therefore needs to have a detailed end-of-year financial checklist, to ensure it has complied with regulatory requirements, covered all expenses, and plan strategically for the future in a dynamic and competitive industry.
Wrapping Up!
In conclusion, the end of the financial year presents small businesses in Australia with a unique opportunity to evaluate their financial standing, address compliance requirements, and set goals for the future. By following this checklist, you can streamline finances, make informed decisions, and position yourself for success in the coming year.
Embracing this end-of-year checklist as a roadmap will empower your small businesses to navigate the financial landscape with confidence and drive sustainable growth.
Need support with your tax, accounting or bookkeeping? Get in touch with our friendly experts today
FAQs
The end of the financial year marks the completion of their financial reporting obligations. This checklist helps businesses stay organised, comply with regulations, maximise deductions, and make informed decisions for the future.
Review and reconcile financial statements Complete tax returns and lodge activity statements
Review payroll records
Evaluate business performance and set goals
Small businesses in Australia should ideally start preparing for the end of the financial year well in advance. It is recommended to begin the process at least a few weeks before the end of the financial year (which falls on June 30th in Australia).
Yes, there are several tax deductions and incentives that small businesses in Australia can take advantage of during the end-of-financial-year period. Speak to your consultant or tax advisor for details. You can also visit Sleek for a detailed list of these deductions.
