With the End of Financial Year (EOFY) just around the corner, is your small business ready? Read on to find out how you can avoid stress and take advantage of opportunities this financial year.
Get on top of your tax!
We can’t stress enough the importance of keeping on top of your taxes. Before 30 June hits, take time to work out how much tax your small business needs to pay the Australian Tax Office (ATO). You’ll need to submit your ATO payment and taxable summary reports by August, so if you use an accountant (we highly recommend you do!) then make sure you get all required information to them without delay.
Instant tax write-off
Some good news for small business owners – the Government’s instant tax write-off has been extended. The instant tax write-off allows you to reduce your taxable business income by claiming the business portion on any depreciating assets. Your business can write-off as many assets as necessary, provided that:
1) The asset(s) were purchased between 12 May 2015 and 30 June 2018.
2) The asset(s) were installed ready for use this financial year.
3) Each asset is below $20,000.
The instant tax write-off can be incredibly valuable for some businesses – it could even mean a decrease in your company tax rate.
If you need to purchase new assets for your business, it’s worth doing it before EOFY. Consider a small business loan from Boss Finance if you need a cash boost to purchase these assets. Apply online now, it only takes a few minutes and you could receive funding in as fast as one business day.
For more information on the instant tax write-off, you can refer the government’s free online resources or speak with your accountant.
For many businesses, particularly if you’re a retailer or wholesaler, it is a legal requirement that you conduct a stocktake prior to 30 June.
A proper stocktake will record how much stock you have left and the monetary value of each item. This information will also help you to consolidate financial statements, including your Profit and Loss.
As a small business owner, it’s important that you speak with an accountant or financial adviser about your business finances. Not only will this help you nail your EOFY obligations, but it’s a great way for your business to get the most out of the various opportunities available.