End of Financial Year Tax Time – What you need to do.

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Posted June 5, 2017

Tax time—those two words can strike a mixture of fear, dread and anticipated boredom into the heart of any business owner. But it doesn’t have to be so bad – a bit of preparation in advance of the general End of Financial Year Panic Period (after June 30) and some time spent with a great financial advisor could help make this tax time the easiest one yet in your business.

HABA have prepared our checklist of top things to consider at during EOFY to ensure that all our members are as organised as they can be during this time – so are you ready?

• Filing an Income Tax Return – You’ll need to provide important financial information to your accountant. Speak to your accountant specifically about what they recommend you bring in to prepare yourself ahead of time. Be sure to highlight any high or unusual transactions.
• Payment Summaries (i.e. group certificates) – You will need to reconcile your payroll before providing payment summaries to your employees by the due date in July. Those members who are enrolled with HABA Payroll have it a bit easier, as we will provide all our HABA Payroll customers with their payment summaries.
• Business Activity Statement – The end of the financial year will require you to complete your quarterly or annual BAS. Don’t forget to do this just because you’re caught up in EOFY mode! Speak to your accountant or bookkeeper to make sure that you have everything prepared for BOTH BAS and Taxation lodgements.
• Superannuation Payments – These need to be taken care of monthly/quarterly and this is no different just because it’s the end of the financial year. For customers with HABA Payroll, this is one less thing to worry about, as HABA Payroll can manage all superannuation contributions for our salon owners. Payment must be receipted into the Employee’s superannuation fund by the due date, most Superannuation Clearing Houses require 5+ days to process. Don’t leave lodgement and payment to a Clearing House until the last day.
• Staff Salaries and Award Conditions – Just because you’re busy and you might feel like you’re shelling out cash left right and center; doesn’t mean that you can neglect your staff. All salaries must be paid on time and in full to ensure that you aren’t facing any legal action. From 1^st July 2017, there are some changes to staff salaries and award conditions that will affect how much your staff are paid. HABA will keep all members informed with this important information. All members can expect to receive an email as soon as all award changes are endorsed by Fair Work to be released.
• Workers Compensation Insurance – Now is the time to review your business and workers’ compensation insurances. HABA can assist our members with this process through our help line, available to members no matter what advice you might need.
• Payroll Tax – Consider whether you may be over the threshold for payroll tax – speak to your accountant about this.
• Fringe Benefit Tax (FBI) – Have a conversation with your accountant about Fringe Benefit Tax to ensure that you are on top of everything.
• Government Grants – If your business receives any government grants, take the necessary steps to ensure they are in line with all associated statutory requirements.

At HABA, we appreciate that this is a long list of things to remember to do at the end of the year. However, it really is just part and parcel of owning and running your own business, no matter how tough it may seem. Make this time of the year easier on yourself, and get a great accountant in place to help guide you through the process. You can also have the peace of mind at this time of the year by joining HABA Payroll. HABA Payroll will handle some of the more mundane tasks, like organising payment summaries, and ensure that this is done in compliance with all changes to legislation accounted for – just one less thing for business owners to worry about. You can sign up to HABA Payroll here, and get yourself ready in time for EOFY.