Breakdown of common EOFY terminology
The end of the financial year or EOFY is a time when your business has to submit a tax return based on your income and expenses.
Starts on 1 July each year and ends on 30 June the following year, also known as the Australian financial year.
A form that tells you how much tax your business needs to pay based on income, expenses and other tax information.
Used by GST registered businesses to report goods and services tax (GST), Pay as you go tax (PAYG), Pay as you go withholding taxes (PAYGW) and other taxes.
Key dates to lodge various tax return types to the Australian Tax Office (ATO).
The type of tax return that your business needs to file to the ATO will depend on your entity structure.
For detailed information on the different types of entities and tax differences click here.
Points to be aware of when talking to your bookkeeper
- Tax deductions or concessions you can claim for your business and what implication these may have on your taxes.
- Tax planning. It’s a way to look at your financial affairs and save you tax.
- Write off assets by deducting an amount from an asset’s value each year.
- Review any insurance cover especially if you’ve had any changes to normal operations during the year.
- Cash flow forecasting. Look at your business’s finances to see if you have enough cash to continue operating or to expand your business.
Tip! EOFY is also a great time to chat to your bookkeeper about your business structure and its suitability.
If you don’t have a bookkeeper, find out if Notch Above might be suitable for your business.
Before even lodging a return, you need to have your accounts ready
For the year you need to have:
- Recorded all sales
- Recorded all expenses, such as bills, wages and other business expenses
- Reconciled all your bank accounts for the EOFY
- Keep documents stored within the file library in Xero
- Make sure payroll and superannuation are up to date
Take a look at Xero’s checklist for a more detailed list of tasks to complete at the end of the financial year.
Setting yourself up for the new financial year
Financial year-end is the perfect time to do a check-up, celebrate your successes, and refocus on business goals.
For more Xero tips, advice and bookkeeping essentials for your business, visit How We Help You and get started today with Notch Above Bookkeeping, Australia-wide.