It's Year End Time Again

Wow, can you believe it’s June already? It seems just like yesterday we were taking down the Christmas lights. The weeks just turn into months. So, it’s year end again and I wonder how many of us are truly prepared? Here are some practical tips for small businesses to be fully prepared and enjoy the New Year in relative ease:

• Accountant. If you’ve not visited your Accountant yet, get onto this as a matter of urgency, tax planning works best before year end; doing it in October is somewhat pointless and quite limited.
• Software. Is your bookkeeping and payroll software up to date? There are changes to labels on Payment Summaries and tax rates … you need the latest accounting software to handle this correctly. MYOB for V19 for example has the upgrade for the Payment Summaries, and then the next version will have the new tax scales.
• Payroll. Are your payroll records up to date? Do you have current addresses for all your staff and all their tax file numbers (TFN’s)? Has this been entered into the payroll software or system? Do you have the FTB figures from your Accountant if you have FBT labels to complete on your Payment Summaries for staff?
• Bookkeeping. How’s the bookkeeping coming? Is the data entry up to date and the bank reconciliations completed to at least end of May? And that’s May 2010, not May 2009 or earlier!
• Super. If you want the deduction in the current financial year, then the payment must be in the hands of your Fund by 30 June. This means the cheque clears by 30 June, not you posting it some time in July. To avoid fines and penalties it must be with the fund by 28^th July, but of course if paid in July, then becomes a deduction for the 2010/2011 year. Remember also that the contribution caps have changed this year (under 50’s it’s now $25K and for over 50’s it’s $50K).
• Claim all Deductions. Be sure you are stocked up on things you need – everything from small hand tools, to stationery, printer cartridges, stock, materials, memberships, periodicals, rent, insurance and your vehicle services. My view is that you get the deduction this year and should be spending very little in July/August as you are fully stocked.
• Deadline Reminders. 14^th July. This is the deadline with payment summaries need to be issued to your staff. 31^st July. This is the date that Portable Long service Leave Certs need to have been issued. 14^th August. Deadline for Payment Summary Reconciliations to be sent to the ATO. 31^st August. Will be the deadline for your WorkCover Annual Declarations. And that’s not counting your BASes and IASes.

This is a busy time for most business owners or managers, so ensure you are on track and organised and your team are ready for action. Work with your bookkeeper, consultant or Accountant to ensure that everything is under control and organised. And of course, once you’ve met all the deadlines, completed your BASes, then don’t forget to send the file and information to your Accountant promptly. There is no need to wait till March or April next year to have that last minute panic rush to prepare your tax.

So to you all, we wish you a Happy New Year.