The end of the financial year is coming up quick! There are a few things you’ll need to get sorted before the 31st of March, so we’ve put together an end of financial year checklist so you can get yourself prepped.
Understand your Government payments
If you received any COVID-19 resurgence payments, remember that they include GST, so make sure that you have returned GST on these. The government may review your eligibility to have claimed any subsidies too, so get support for your claim ready in case they ask.
If you receive shareholder salaries or are a self-employed person, any wage subsidy received needs to be included in your IR3 (personal tax return) in the government subsidy box.
Check your accounts receivable for bad debts
Do you have clients who haven’t paid you in what seems like forever? You can actually write these payments off as bad debt and potentially receive a tax deduction. You’ll need to make sure (and have evidence) that you’ve made every effort to get them to pay up, including any legal action you might have taken.
Review your assets
Review your inventory to see if there are assets you no longer have, including those that have broken, died or been sold, because you can write these off in the 2022 accounts. If a loss on disposal was made, then a deduction can be taken, or any depreciation recovered will be income. If an asset purchased during the year was less than $1,000, this can be expensed immediately
Know what you can and can’t claim as an expense
There are some expenses people tend to forget they can claim, but there are also some items that you can’t claim as well. Check out our handy list of things you can claim, and then check in with some accounting pros to get it all sorted for you.
Get the professionals involved
As a business owner, you’ll know quite a bit about the running of a business, but in order to get the most out of EOFY and make sure you’ve got all your bases covered, get an accountant to sort it all out for you (our mates over at Haven Accounting can give you a hand).