End of Financial Year – things to note and things to do

Yes! It’s June and End of Financial Year is drawing near… the time of the year to gather all the needed information, take note of compliance changes and start your EOFY preparation. 

Now would be the perfect time to check in with your bookkeeper who will most likely need some things from you. This will help them get the required paperwork ready for your accountant.

THINGS TO NOTE – CHANGES COMING UP 

Single Touch Payroll:

Single Touch Payroll (STP) Phase 2 is now applicable. If you currently employ staff, be sure to get your accounting system updated accordingly.

Follow here to find out more about STP Phase 2.

Superannuation:

• As at 1st July 2022, superannuation will increase from 10% to 10.5% 
• Staff will be earning superannuation as soon as they start earning a wage, as the current Superannuation threshold of $450 per month (or $350 for hospitality) is being scrapped
• From 1st July 2022, employers will be required to pay super for workers under 18 when they work more than 30 hours in a week
• Contractors primarily paid for their labour are classed as employees for Superannuation Guarantee (SG) purposes, and you may be required to pay Super for them, even if they have an Australian Business Number (ABN). Use the Employee vs Contractor Tool if you’re unsure.

Follow here to find out more about Superannuation changes.

Directors ID Registration:

• If you were a Director on or before 31st October 2021 you will need to register for a Directors ID by 30th November 2022 
• All new directors from 1st November 2021 should already have Directors IDs 

Follow here to find out more about Directors ID Registration

THINGS TO DO – END OF FINANCIAL YEAR TASKS:

1. Check in with your bookkeeper and find out what they need from you
2. Talk to your Accountant this month BEFORE 30th June 2022
3. Prepare a profit and loss statement – summarise your income and expenses
4. If you have stock, be sure to conduct an accurate stocktake on 30th June 2022
5. Check your Fair Work Award to ensure staff members are being paid the correct rates. Use the Fair Work Calculator 
6. Summarise your debtor and creditor records, review any bad debts that could be written off – discuss this with your bookkeeper or accountant
7. Collate records of asset purchases or improvements expenditure
8. Finalise and lodge your income tax returns
9. Make payments for all Superannuation contributions before 21st June to be able to claim the full deduction
10. Lodge yearly reports or returns for pay as you go (PAYG) withholding including finalising income statements for single touch payroll (STP), goods and services tax (GST) – keep an eye on lodgement due dates!
11. If your business makes payments to contractors (including subcontractors, consultants and independent contractors) you may need to report these payments and lodge a Taxable payments annual report (TPAR) by 28th August 2022. Start gathering the required information now as it can be a time consuming task. Read more here if you are unsure if you need to lodge a TPAR
12. Make digital copies of any paper records and make sure you back them up

We can never stress this enough – start your EOFY prep early. Your bookkeeper and accountant will love you for it and it will help take the stress and sting out of Tax Season!

As always, feel free to reach out to our Dream Team. We can tell you more about how we collaborate with business owners and their accountants by taking away the day-to-day headaches of small business compliance. Contact us today!