Small Business Owners: Are You Ready For EOFY 2024 Yet?

The end of the financial year is almost here. If you own a small business, this will be one of the most important – and hectic – periods in the business calendar. It’s when you’ll be filing your taxes, filling in financial documents and preparing your business for a new fiscal year. 

As a small business owner, prepare by familiarising yourself with answers to questions like ‘When is the end of financial year?’, understanding your legal requirements, and adapting some additional best practices. It’s also vital to work with a reliable tax specialist, as it’s unlikely you can do everything you need to on your own, even if you are a number’s whizz.

In this article, we’ll take a look at some helpful tips every small business owner should keep in mind as the end of financial year approaches. 

Get Your Documents In Order

During the end of financial year, your company is required by the government to submit certain financial documents and lodge various taxes. 

One of the main financial documents you’ll need to prepare before the end of financial year is a profit and loss statement. A P&L statement is essentially a record of how much money you’ve made over the financial year minus your operating expenses. Your profits will be made up of the sales you’ve made, while your losses will include the cost of goods sold, utilities, rent, wages paid to employees and other related costs. The final amount is your net profit. 

The end of the financial year is also when you need to file your taxes. This includes capital gains taxes on non-asset sales, a goods and services tax (GST), a fringe benefits tax and other taxes that may apply to your business. 

Make sure to get these in on time to avoid having to pay a failure to lodge (FTL) penalty, which scales every month you fail to file your taxes after the deadline. That’s not to mention the potential legal consequences your business may have to face, which is why it’s such a good idea to get ahead of the curve so you’re ready to go once June 30th arrives.

Avail All Possible Tax Deductions

In a small business, every penny counts. To promote the growth of new businesses, the Australian government has made several tax provisions specific to smaller businesses, so be sure to read up on what these are. 

For example, small businesses turning over less than $50 million annually are eligible for a 20% tax deduction on certain training costs delivered by registered providers. These costs need to be spent on company employees, and training providers need to fulfil certain registration requirements. Small businesses can also apply for tax deductions on specific technological expenses. 

There are other tax deductions applicable to businesses of all sizes. For instance, your company can get tax deductions on a wide range of  expenses, provided you’ve kept detailed records of them.

These can include receipts, invoices, vehicle registration records, accommodation and transport reservations for work-related trips.

Hire A Tax Specialist

As a small business, the end of financial year can feel overwhelming. This is why it’s highly recommended to work with local tax specialists, who will handle tasks like computing your tax returns and figuring out what tax deductions your business qualifies for.

Remember to hire a tax agent who is registered with the Tax Practitioners Board. There are plenty of tax-related scams out there, especially during this time of year. Read up on potential tax agents’ past work, visit their physical offices and meet them face-to-face before deciding who to work with.

Businesses are dealing with a lot more money when it comes to tax return time than personal accounts, so scammers will be quick to target small enterprises.

Get Your Business Ready For The Next Financial Year

The end of the financial year is a great time to take a step back and re-evaluate where you are as a business. This is especially important for small businesses, as there are likely more large-scale changes of direction during this rapid development stage. 

First, evaluate your leadership processes. What’s worked, what hasn’t? Is there any way to streamline decision-making without sacrificing accuracy? Are there positions that need to be filled? 

It’s also important to take a closer look at individual departments within your organisation. For instance, do you need to hire a larger accounting team to make the end of the financial year less stressful? Are you allocating marketing spend between online ads, SEO, physical advertising and others in the most efficient way possible? Does your brand still speak to your customers, or do you need an overhaul? 

Answer these questions and more to ensure business success moving into the new financial year.

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The end of financial year is certainly hectic, but it doesn’t need to be overly stressful. Familiarising yourself with all the documents you need to submit, and working with a reliable tax specialist goes a long way in ensuring your small business makes the most of this key financial period. 

By following the tips laid out in this article, you’ll be setting your business up for a successful and stress-free end of financial year 2024, and onto a great 2025.