5 Tips to Prepare for the End of Financial Year

The End of the Financial Year for 2022-23 is fast approaching, and we know how overwhelming it can get. That’s why we’ve compiled 5 quick ways for you to feel prepared and relaxed when approaching this important time of year. To set yourself up for success for the upcoming EOFY, take these proactive steps.

Get your financial documents in order

It’s important to organize and gather your important financial to optimize your time come the end of the financial year. From receipts and invoices to bank statements and payroll records, ensure that your records are up to date and well-organised to help you stay compliant and simplify the process of submitting your tax return.

Be wary of tax schemes and scams

Around the end of the financial year, there are numerous scams that target individuals and small businesses. Previous years saw an increase in scams of text messages pretending to be from the ATO, as well as phone calls and emails. One of the most common scams are tax refund schemes. The scammer can claim you’ve overpaid your taxes and are eligible for a refund and you need to pay a fee for administration or transfer costs. Another common one is the tax owed scam, where they’ll claim you’ve underpaid your tax and need to repay it immediately. The scammers will ask you to buy iTunes or Visa giftcards to repay this tax. If you’re unsure if correspondence is legitimate, ask a friend or family member for help.

Manage and maximise your deductions

A significant benefit of preparing for the end of the financial year is the opportunity to maximise your tax deductions. Small businesses can deduct the cost of their business activities from their assessable income. Take the time to review your expenses and identify what you can claim, as long as it relates directly to your business. Common expenses are motor vehicles, working from home items, travel expenses and charitable contributions. You must present records to prove you can claim these items as business deductions so make sure to keep all your receipts in order.

Review your business plan and plan for the year ahead

With the financial year coming to a close, it will also be important to start planning for your business.
Look at whether you met your targets and what you can do differently next financial year. By evaluating your financial goals, you’ll be able to reflect on your achievements and challenges, and set clear, measurable goals to achieve. This could involve revising your budget and exploring new investment opportunities to optimise your financial strategies.

Seek professional advice

To aid you in preparing for the upcoming EOFY period, don’t hesitate to seek help from a professional. A qualified accountant or financial advisor can provide valuable insights, guide you through complex financial matters and ensure compliance with relevant laws and regulations. They can help you navigate complex matters and ensure everything is in order.

If you’d like to leave it to the professionals, contact the team at MKS Group. With 35+ years of experience and a team of qualified professionals, we’re happy to help you understand and navigate the end of financial year for your business.

If you have any questions, please contact our team. We are here to help:

hello@mksgroup.com.au