Working on tax compliance is not everyone’s cup of tea, but it is business critical to lean in to your obligations as a priority at this time. The closer you are to the details, the less of an issue they present to your business freedom. Here is a top-level list of documentation you will need.

• A Profit and Loss (P&L) summary of all income and expenses associated with your business.

• A stocktake of all consumer goods (if applicable).

• A depreciation expense summary, including a record of all asset purchases or expenditure improvements. Take care to know exactly what you can claim in your line of work. The Australian Tax Office (ATO) has an app with a service called MyDeductions to help you to know what you can claim.

• A yearly report on Pay As You Go (PAYG) withholding, fringe benefits tax (FBT), Goods and Services Tax (GST) and taxable payments.

• A report on superannuation requirements.

• A plan to either write-off debts and claim a tax deduction, or continue to follow-up.

A water-tight approach to EOFY will give you full visibility of your business’ financial position. You can use this data to your advantage and elevate your business to a space beyond compliance and into opportunity planning. Consider business questions:

• Are your goals on track?

• Are your strategies driving growth, or can they be improved or modified in accordance with environmental change and opportunity?  

• Are you properly insured and protected?

• Is the business optimally structured to meet your tax obligations?

• Do you have the right talent in place?

• Are your marketing initiatives hitting the target?

• Do you have the right technology to manage and protect your data and to make your work more efficient?

Beware of scams at this time of year. The ATO is often used as a guise by scammers to extract money from individuals and businesses. Always check the source of a taxation query with your tax agent.

Legislation and regulation is constantly changing and you need to be informed of the policies that impact your business. You can subscribe to the ATO’s Small Business Newsroom to stay informed of taxation legislation changes.