Preparing your business for the end of financial year

With the end of financial year drawing closer, you may want to consider preparing your business’ financials sooner rather than later, so as to avoid a mad rush come June 30. The following three tips are aimed at helping you to make tax time a relatively smooth and stress-free experience:  

1) Pay superannuation on time: contributions that you make to your employees’ superannuation can be written off as a tax deduction. However, if you intend to claim such, your payments must be processed before June 30. If your payments are not processed by this date, your business will not be able to claim the deduction until the following financial year; 

2) File consistently: by not implementing a sound and consistent method of filing, your business can run the risk of facing liability should an audit occur. As such, it is important to properly organise and file your financial statements and supporting documentation including, but not limited to: bank statements; receipts; loans statements; and business activity statements;

3) Be prepared for an audit: each state has its own auditing body and, as such, businesses and individuals can be called upon to submit to an audit. An audit is a process whereby a business or individual is randomly selected to undergo financial scrutiny, wherein their records, accounts and all relevant documents are examined for anomalies or errors. 

If inconsistencies arise, there is a chance that businesses could incur additional costs – or an unexpected refund, in terms of overpayment. It is a requirement that cash expenses are accounted for by way of receipt. An audit can stretch back as far as seven years, so it is important to keep comprehensive records. Being prepared for an audit does not just mean filing consistently for the past financial year – it could mean filing for the past seven. 

Posted by George Tarbey on 09/05/2013 at 12:00 AM | Categories:


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