RECKON

Prepare your business for end of financial year

All the information you need to manage your tax obligations and breeze through to the 2018/19 financial year!

What is end of financial year?

 

The financial year is a period of 12 months used for tax purposes. The Australian financial year starts on 1 July and ends the next year on 30 June. At the end of fiscal year small business owners wrap up their books and begin finalising their tax paperwork. From 1 July through to 31 October individuals and businesses submit their tax return to the Australian Taxation Office (ATO), who use the information to determine how much tax you owe.

To help you get ready for tax season we’ve created a video with 6 steps to make your end of financial year easy!

Transcript

The end of financial year is here again and Tom is all set. Isn’t that right Tom?

But even if you are as well prepared as him, there is still a lot to organise and it can be overwhelming.

Tom is a sole trader with a few employees and will follow these 6 key steps to make it as smooth as possible.

(Step 1.) Tom will get started by getting everything in order.

Gather all the relevant records, then review and reconcile your accounts.

Documents include ​Invoices, bills & payments, Banking records, BAS, payments to employees and PAYG withholdings

(Step 2.) Next, list any tax deductions that you incur as a result of running your business.

Items such as vehicles, clothes, travel, phone and rent. You can also list depreciation of your capital assets too!

As well as standard deductions, Tom has undertaken strategies to reduce his taxable income. Some common ones are:

Claim a deduction for prepaid expenses such as rent or insurance.

Make superannuation contributions.

Write-off bad debts or obsolete stock.

And more.

(Step 3.) Know your deadlines.

There are key dates Tom has in his calendar that apply to small businesses.

June 30 – End of financial year.

July 28 – Q4 BAS is due.

October 31 – Tax return is due.

(Step 4.) Lodge your Tax return

Since Tom is a sole trader, he will report his business income in his individual tax return. And it must be lodged between July 1 and October 31. If he needs help, he will work with his trusted tax advisor who can also help him keep control of all his tax obligations, identify savings and help Tom succeed.

(Step 5.) Be aware of changes to tax law.

Make sure you keep up to date with things that will affect your business.

There are often changes around tax compliance at the end of financial year such as Single Touch Payroll which is effective July 1.

(Step 6.)  Assess your business performance and prepare for the year ahead.

Tom likes to reflect on the goals he sets himself and look at what strategies are working and what aren’t.

Once he has a plan of how to move forward he will prepare a budget and review wages, prices & fees for the coming financial year.

To help Tom stay on top of his business finances, he decided to use online accounting software, Reckon One, to make next end of financial year a breeze.

What is end of financial year?

What do I need to submit at end of financial year?

 

Most businesses will need to lodge a tax return during tax season. A tax return is basically a summary of your income and expenses for the financial year. See our financial year calendar for key dates.

Self-employed and sole traders need to lodge an individual tax return. Your business income and expenses go in your individual tax return using a separate business schedule. Individual tax returns can be submitted online via through myTax (accessed through myGov), by paper or through a registered tax agent.

Companies lodge a separate company tax return each year. You must also lodge an individual tax return for income you earn via wages, shares and dividends from the company. Company tax returns can be lodged using SBR enabled software, through a registered tax agent or by paper.

How do I complete a tax return?

 

To complete your tax return accurately you first need to gather, organise and reconcile your financial records. Once your records are in order you can generate the financial reports that provide you the figures to fill out your tax return. The main reports are a profit & loss statement (P&L) and a balance sheet.

A P&L shows your total income and expenses for the year and is usful for determining your income tax. Expenses are subtracted from income to show how profitable your business is. The profit you make in a business represents your taxable income. See an example P&L here. A balance sheet lists your businesses assets and liabilities to work out your net assets. See an example balance sheet here.

What do I submit at EOFY

Stay up to date with our Australian tax year calendar

Financial year dates for businesses with employees inlcuding BAS, PAYG and Superannuation obligations.

May 2018

8 May – Australian Federal budget is released at 7.30pm.

See our budget page >

15 May – Company income tax returns due for lodgement and payment

15 May – Partnership & Trust Income tax returns due for lodgement

15 May – Individual income tax returns due for lodgement if using a tax agent

21 May – Lodge and pay April BAS (if you lodge monthly).

21 May – The Fringe Benefit Tax return is due by today if you lodge by paper.

28 May – The Fringe Benefit Tax return is due by today if you lodge electronically.

*Note: The FBT tax year runs from 1 April to 31 March.

August 2018

14 Aug – PAYG withholding payment summary annual report is due.

21 Aug – Lodge and pay July BAS (if you lodge monthly).

November 2018

21 Nov – Lodge and pay October BAS (if you lodge monthly).

Feb 2019

21 Feb – Lodge and pay January BAS (if you lodge monthly). 28 Feb – Lodge and pay Q2 (Oct– Dec) BAS (if you lodge quarterly).

May 2019

7 May – Australian Federal budget is released.

15 May – Company income tax returns due for lodgement and payment

15 May – Partnership & Trust Income tax returns due for lodgement

15 May – Individual income tax returns due for lodgement if using a tax agent

21 May – Lodge and pay April BAS (if you lodge monthly).

21 May – The Fringe Benefit Tax return is due by today if you lodge by paper.

28 May – The Fringe Benefit Tax return is due by today if you lodge electronically.

*Note: The FBT tax year runs from 1 April to 31 March.

June 2018

21 Jun – Lodge and pay May BAS (if you lodge monthly).

30 Jun – Prepare for end of financial year and wrap up your books for the 2017/18 year.

September 2018

21 Sept – Lodge and pay August BAS (if you lodge monthly).

December 2018

21 Dec – Lodge and pay November BAS (if you lodge monthly).

March 2019

21 Mar – Lodge and pay February BAS (if you lodge monthly).

June 2019

21 Jun – Lodge and pay May BAS (if you lodge monthly).

30 Jun – Prepare for end of financial year and wrap up your books for the 2018/19 year.

July 2018

1 July – Individual income tax returns due from now until 31 October if preparing and lodging yourself.

1 JulySingle Touch Payroll is now available for all businesses and mandatory for business with 20+ employees.

14 July – Employers must issue PAYG withholding payment summaries to employees by today.

21 July – Lodge and pay June BAS (if you lodge monthly).

28 July – Lodge and pay Q4 (April – June) BAS (if you lodge quarterly).

28 July  – Super guarantee contributions for Q4 (April – June)  is due by today.

October 2018

21 Oct – Lodge and pay September BAS (if you lodge monthly).

28 Oct – Lodge and pay your Q1 (July – Sept) BAS (if you lodge quarterly).

28 Oct –  Super guarantee contributions for Q1 (July – Sept) is due by today.

31 Oct – Last day to submit individual income tax returns.

January 2019

21 Jan – Lodge and pay December BAS (if you lodge monthly).

28 Jan –  Super guarantee contributions for Q2 (Oct – Dec) is due by today.

April 2019

21 Apr – Lodge and pay March BAS (if you lodge monthly).

28 Apr – Lodge and pay Q3 (Jan– March) BAS (if you lodge quarterly).

28 Apr – Super guarantee contributions for Q3 (Jan- Mar) is due by today.

July 2019

1 July – Individual income tax returns due from now until 31 October if preparing and lodging yourself.

1 JulySingle Touch Payroll is now mandatory for all businesses with 19 or less employees. All businesses with employees should now be reporting through Single Touch Payroll.

14 July – Employers must issue PAYG withholding payment summaries to employees by today.

21 July – Lodge and pay June BAS (if you lodge monthly).

28 July – Lodge and pay Q4 (April – June) BAS (if you lodge quarterly).

28 July  – Super guarantee contributions for Q4 (April – June)  is due by today.

Want to know more about your tax obligations? Check out these handy links.

PAYG, Superannuation & Tax Compliance | Single Touch Payroll | Business Activity Statements

EOFY Guide

Tax time guide!

Download our step-by-step EOFY guide for small businesses,
with important eofy dates & tips to help you stay compliant
and in control of your tax obligations.

How can accounting software make tax time easier?

A stress free tax season is all about good record-keeping because you need to account for every dollar that comes in and out of your business. Accounting software like Reckon One can save you time and money and help you stay on top of your finances throughout the year.

Track payments and expenses

Gain immediate clarity over your business. Stay on top of your finances throughout the year by keeping track of receipts, payments and GST.

Automate bank reconciliation

Connect your accounting software directly to your bank and watch your latest banking and credit card transactions flow in automatically.

 

Easy tax reporting

Create a P&L, balance sheet and generate payment summaries for tax purposes in just minutes! Easily ‘drill down’ to the details per line item. There’s over 20 reports to choose from!

 

New to Reckon?

Explore Reckon One, our online accounting software that helps you easily tackle the end of year period.

Learn more about Reckon One >

Already a customer?

Update your software and stay ATO compliant. Reckon Accounts 2018 is now available.

Compare 2018 Reckon Accounts > 

The latest resources to help you manage end of financial year

EOFY for small business

9 tips to help you prepare for EOFY. Read more >

tax compliance EOFY

How to use the $20,000 instant asset write-off. Read more > 

Single Touch Payroll. You’re ready right? Read more >

You'll always be ready for tax time with Reckon One!

Take control of your finances in the new financial year from just $5/month.