mouse, cup and pen on top of tax papers

Tax Returns and Annual Reports Tips

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Tax time is here once again. Have you found time to evaluate your business to determine how it is performing? Or is your schedule to hectic to slot that task in? Being full of activity doesn’t always translate to profitability. For your business to grow, it’s important to evaluate performance regularly. It is also a smart move to review the accounts prior to the end of the year.

The availability of a great variety of cloud solutions had made it easy for business owners to be updated. Efficiency and productivity are also easier to achieve with cloud enablement. In addition, it is now easier to collaborate with accountants and bookkeepers because they can easily get a hold of data to help you with being prepared and up to date.

You can make your year-end smoother by being organised in advance and establishing good systems. Your tax planning will be easier because of your access to live information. You can ready your year-end tax planning well before the end of the year with the help of your accountant.

You can utilise your online accounting software to complete your payroll year end compliance task promptly and efficiently. You can also do your GST, PAYG, payroll and superannuation tasks more easily. And with access to reporting features found in the cloud solutions, you can get information quickly for your compliance filings.

Linking your live feed banks directly with your file allows you to keep your data updated. Setting up your bank rules will let you automate your data processing so it doesn’t accumulate. This will provide you with data that is up to date.

Do the following when preparing for Financial Year End:

  • Bank/credit card accounts must be reconciled
  • Loan accounts, including intercompany loans, must be reconciled
  • Receivables and Payables must be balanced
  • Bad debts must be written off
  • Stocktake must be completed by 30 June
  • Payroll/PAYG withholding and Superannuation Accounts must be reconciled
  • Payroll payments and the totals reported for Payroll tax and workcover must be reviewed
  • GST control accounts must be reconciled
  • The sums reported to the ATO in the Business Activity Statement and Instalment Activity Statement must be reviewed to make sure the totals reported for the relevant year is right
  • Profit and Loss and Balance Sheet reports must be run and reviewed

Other items that must be considered when preparing tax:

  • Expenses prepayment
  • Interest prepayment
  • Asset and Depreciation Schedule preparation
  • If you have executed the acquisition of minor assets properly – know the allowable cap for immediate write off from your accountant
  • Sale of assets
  • Deductions for motor vehicle expenses
  • Unpaid expenses that can be deducted
  • Donate to charities
  • Defer income
  • Make payments to you superannuation before 30 June if you wish to make a claim for the expense in the present financial year
  • Sales orders must be checked twice in the event they are completed and must be invoiced
  • Purchase orders must be checked twice in the event they are delivered and must be billed
  • Invoices must reviewed to make sure that the products or services have been delivered – in case the products or services haven’t been delivered by 30 June, chances are they can’t be treated as income in the relevant year.

Doing some of these things above before the end of the year enables you to lessen the chance of paying more than what you actually owe. This is the reason why it is not advisable to postpone completing the tasks that is important to your business.

Advance planning paves the way for improved business performance and growth. There’s no need for business owners to be buried in paperwork when they possess all the means to build such efficiencies in the marketplace.

With the availability of online accounting solutions and the help of your trusted accountant, you should avoid encountering cash flow problems. Reporting and live information will be right at your fingertips anywhere anytime.

PJS Accountants offers a full range of services, including tax planning and compliance, accounting and SMSF services, and bookkeeping. For enquiries regarding our services, contact PJS Accountants.