As End of Financial Year fast approaches, now is the time for F&B businesses to prepare. Completing end of financial year tasks isn’t easy, But, with a few simple processes, your business can streamline the entire EOFY process.
EasyVend has put together a quick checklist to help your business speed up the EOFY process.
1. Prepare Financial Documents
A mistake that many businesses make at EOFY time is not having all their Financial Documents together. When this happens staff, tax agents and bookkeepers have to waste time locating important information – increasing both costs and stress-levels. To streamline the EOFY process, the first thing that your business needs to do s prepare key financial documents.
A few of the key financial documents that your businesses needs to prepare includes:
- Receipts for sales and purchases
- Records concerning tax returns, activity statements and employee super contributions
- Business Activity Statements (BAS)
- Single Touch Payroll (STP)
Having important financial documents ready to go will ultimately streamline the EOFY process. The more organised your business is the less stressed you will be, it’s that simple.
2. Collect your Tax Documents
One of the reasons why many businesses struggle with EOFY is because they have an inadequate Tax reporting process. To reduce time-spent on the EOFY process it is important that your business collects, and files all Tax documents.
The benefit of collecting and filing tax documents is it will help you make claims and deductions at tax time. Your business can easily note what you are looking to claim and most importantly have the correct supporting paperwork needed.
Some of the key Tax Documents your business should collect include:
- Taxable Payments Annual Report
- Deductions e.g. instant asset write-off scheme
Having a strong Tax recording system can save your business thousands at Tax time.
3. Do a Stock Take
It is important that your business completes an inventory stocktake prior to the June 30. The reason why your business needs to do an inventory take is it gives you the ability to identify any stock issues and adjust your records prior to the new financial year starting.
Along with this, completing an inventory stock take gives your business the ability to understand it’s current position. Your business can make strategic purchasing decisions that escalate growth for the coming year.
4. Complete Reconciliations
Reconciliations is a vital part of the EOFY process. A Reconciliation is when a business owner or bookkeeper compares a business’s actual yearly financial transactions against supporting documentation like bank statements.
Doing Reconciliations gives your business the opportunity to identify any discrepancies or errors before you submit your return to the taxation office.
5. Check Covid-19 Relief Packages
Covid-19 support packages such as JobKeeper and JobSaver may have a massive effect on your businesses tax return. Before your business submits your tax return It is important that you check the different Covid-19 Relief Packages and how they may relate to you. Some packages may not apply to your business, but you should check just to be sure. You may want to seek expert advice prior to submitting your return.
6. Know the Due Date
This is one is so important! Many businesses make the simple but costly mistake of submitting their tax return late. Submitting your return late results in heavy financial penalties. To reduce unnecessary fines, it’s recommended that you create a reminder on your primary devices like your phone and computer.
7. Prepare for Next Financial Year
Many businesses think the End of Financial Year is finished when you submit your return, but there’s more to it. After your business submits your return, it is important that you start planning for next financial year. Create different goals that you want your business to achieve in the coming year and most importantly implement processes that pushes your business forward.
The End of Financial Year can be an intimidating time for F&B businesses. However, there are ways to streamline the process and ultimately reduce stress. To simplify the EOFY process, businesses need to plan and have the right systems in place. The tips mentioned above will greatly assist your business for EOFY.
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