Take A Deep Breath and Stay Calm – It’s Tax Time

1. Take A Deep Breath and Stay Calm – It’s Tax Time Happy new (financial) year! This time is a particularly busy one for anyone running a business, but do take a moment to step back and reflect on the year that was. Hopefully you have a big year ahead, too! For now, though, it’s time to focus on tax time. Preparing your business for the end of the financial year requires careful planning, organisation, and careful checking to ensure that you’re submitting the right reports to the ATO, and therefore avoiding potential tax debt, audits and penalties. Here are our nine tips for making tax time as smooth and painless for your business as possible: 1) Review your financial records: Start by reviewing your records for the financial year, including income statements, profit and loss statements, balance sheets, and bank statements. Ensure that all records are accurate, complete, and properly categorised. Identify any

2. inconsistencies or discrepancies that need to be resolved before tax preparation. 2) Organise your business documents: Organise all relevant business documents, such as invoices, receipts, expense records, and payroll records. Maintain a systematic filing system to ensure easy access and retrieval of necessary documents during the tax preparation process. This organisation will save time and prevent potential errors or omissions. 3) Understand tax obligations and deadlines: Familiarise yourself with the tax obligations and deadlines specific to your business structure. If you are unsure of anything, then don’t just guess! Check the ATO website for clarification or (better yet!) contact the team at EPAS so we can help guide you through the entire process. 4) Review and reconcile your financial statements: Conduct a thorough review and reconciliation of your financial statements, including income, expenses, assets, and liabilities. Ensure that all transactions are accurately recorded and classified. Address any discrepancies or errors to maintain the integrity of your financial statements and tax return. This is core to the EPAS service, and if you’d like to have us help with your tax lodgements, make sure you get in touch with us early so we can be part of this thorough review. 5) Understand deductions and eligible expenses: Familiarise yourself with the deductions and eligible expenses applicable to your business. These may include business-related expenses such as rent, utilities, employee wages, superannuation contributions, professional fees, and marketing expenses. Keep accurate records and ensure that all deductions are supported by appropriate documentation. 6) Review and reconcile employee records: Review and reconcile your employee records, including payroll records, superannuation contributions, and payment summaries. Ensure that you have accurately calculated and reported the right data for each employee.

3. 7) Consider asset depreciation and capital gains: Evaluate your business assets and determine their depreciation rates based on the applicable tax laws. Understand the rules around capital gains and losses and ensure accurate reporting of any asset disposals during the financial year. Maintain proper records and documentation to substantiate these transactions. 8) Conduct a stocktake: If your business involves the sale of goods, conduct a stocktake to determine the value of your inventory at the end of the financial year. Ensure that your stock records are accurate and up-to-date. Consider any obsolete or damaged stock that may need to be written off. 9) Lodge your business activity statement (BAS) on time: Ensure timely lodgement of your business activity statement (BAS), which reports your business's goods and services tax (GST) obligations. Be aware of the lodgement and payment deadlines to avoid penalties and interest charges. Utilise the ATO's online services, such as the Business Portal, to facilitate the lodgement process. And if all of that sounds like a lot… That’s because it is! There is a lot to go through during tax time, and for small businesses owners trying to do it all themselves, it can be a big headache. That’s where we come in. At EPAS we are specialists in emergency accounting, but we can also help you to avoid the emergency in the first place. Our preventative accounting services will help you to fill out and submit accurate documents to the ATO, while also minimising the tax that your business will need to pay. Don’t waste time! Contact the team at EPAS today on our 24/7 hotline, get on top of this now and enjoy a smooth run into the new financial year.

4. Powered By Powered By