The end of financial year catches more business owners off guard than it should. June approaches quickly, and with it comes a range of tax, compliance and reporting obligations that are easy to overlook when you’re focused on running a business day to day.
This checklist covers the key areas to work through before 30 June so you can close out the financial year with confidence rather than scrambling to catch up.
Start by pulling together a clear picture of your revenue and expenses for the year. Check that all income has been recorded accurately and that expenses are supported by receipts or documentation. This is the time to identify anything that may have been missed or misclassified before your tax return is prepared.
If you use cloud accounting software, run a profit and loss report and review it for any figures that look unusual. Sorting these out now saves time later and helps ensure your tax return reflects your actual position.
Outstanding invoices affect both your cash flow and your tax position. Before 30 June, review what remains unpaid. If you have debtors unlikely to pay, you may be able to write these off as bad debts, but the process needs to happen before the financial year closes.
This is also a good time to follow up on overdue accounts and bring your receivables up to date.
If your business has purchased equipment, tools, vehicles or other assets during the year, these need to be recorded correctly. Depending on the asset and the relevant tax rules, you may be eligible to claim an immediate deduction or depreciate the cost over time.
Speak with your accountant before 30 June if you’re planning to purchase any new assets. Timing can affect when and how the deduction applies.
Every business bank account and credit card should be reconciled before the end of the financial year. This means matching all transactions in your accounting system to your actual bank statements and resolving any discrepancies.
Unreconciled accounts lead to inaccurate financial statements and can create complications when your tax return is prepared. Getting this done early makes the process much smoother.
To claim a tax deduction for superannuation contributions in the current financial year, payments must be received by the superannuation fund before 30 June, not simply lodged or initiated. This is a common point where businesses miss out on deductions because contributions are made too late.
Check your records and confirm that all required superannuation for your employees has been paid and received on time.
EOFY is a reasonable time to step back and consider whether your current business structure is still appropriate. As businesses grow, circumstances change, and the structure that worked in earlier stages may not be the best fit now.
If you operate through a trust, company or sole trader arrangement, a conversation with your accountant can help you understand whether anything warrants review before the new financial year begins.
The more organised your records, the faster and more straightforward your tax return preparation will be. Gather your bank statements, payroll records, BAS lodgements, loan statements and any relevant contracts or agreements. If your accountant has asked you for specific documents in previous years, use those requests as a guide.
Being prepared ahead of your appointment means less back-and-forth and a more efficient process overall.
Many of the actions on this list need to happen before 30 June, not after. Waiting until the new financial year to address EOFY matters means some opportunities are already gone.
If you’re not sure where to start or want to make sure you haven’t missed anything, speaking with your accountant in May or early June gives you time to act where it matters.
At Elev8, we work with Melbourne small businesses throughout the year, not just at tax time. If you’d like to talk through your EOFY position or prepare for the year ahead, reach out to our team today.
Superannuation is something most Australians think about in the background, until the conversation turns to self-managed super funds. At that point, questions tend to come quickly. What does running your own super fund actually involve? Is it worth the complexity? And how do you know if it’s the right choice for your situation?
This article explains the key aspects of an SMSF so you can approach that conversation with a clearer foundation.
A self-managed super fund is a private superannuation fund that you control and manage yourself, rather than having your retirement savings held by an industry or retail fund. You are responsible for the fund’s investments, administration and compliance with Australian tax and superannuation laws.
An SMSF can have up to six members, and each member is also a trustee of the fund. That means the people whose retirement savings sit inside the fund are also the people responsible for managing it.
The appeal of an SMSF for many people is the level of control it provides. Members can choose exactly where their super is invested, within the rules set by the Australian Taxation Office. This can include shares, property, managed funds, term deposits and other asset classes.
For investors who already manage their own property or share portfolios, an SMSF can allow those investments to form part of a broader, coordinated strategy. Some investors also use SMSFs to purchase business real property, which means the fund can hold the premises from which a business operates.
That control, however, comes with direct responsibility. The trustees are accountable for every decision the fund makes, and the legal and compliance obligations rest with them, not an external manager.
Running an SMSF is not a passive arrangement. Trustees must ensure the fund has an investment strategy, that the strategy is followed and reviewed, and that all reporting, tax returns and audit requirements are met each year.
Every SMSF must be audited annually by an approved SMSF auditor. Tax returns are lodged with the ATO, and trustees must keep detailed records of all transactions and decisions. Failing to meet these obligations can result in significant penalties.
The time commitment involved is real. Some trustees manage much of this themselves, while others work with an accountant to handle administration and compliance on their behalf.
An SMSF is not appropriate for everyone, and the decision deserves careful thought. Generally speaking, SMSFs tend to suit people who have a meaningful super balance, usually above $200,000 to $250,000, though this is not a fixed rule. Below a certain balance, the fixed costs of running an SMSF can outweigh the benefits compared to other fund structures.
Beyond the balance, the right candidates are typically those who are genuinely engaged with their investments and willing to take on the administrative responsibilities involved. An SMSF requires ongoing attention, not a set-and-forget approach.
People who are already managing complex financial structures, such as trusts or investment properties, often find that an SMSF integrates well with their broader financial position when set up correctly.
Unlike industry or retail funds that charge a percentage of your balance, SMSFs generally involve fixed costs. These include accounting and tax return preparation, the annual audit, ASIC fees if the fund uses a corporate trustee, and any investment-related costs.
For larger balances, these fixed costs can represent a smaller proportion of the fund’s assets than the percentage-based fees charged by other fund types. For smaller balances, the reverse is often true.
Understanding the cost structure before setting up a fund is an important part of assessing whether it makes financial sense for your situation.
How a fund is established matters. Trustees need to consider whether to use individual trustees or a corporate trustee structure, and both options carry different implications for administration, cost and flexibility over time.
The investment strategy needs to reflect the members’ circumstances and retirement goals. And the fund’s compliance structure should be established correctly from the outset rather than adjusted later when problems arise.
These decisions are worth working through carefully with an accountant who understands both the technical requirements and your broader financial picture.
An SMSF can be a well-suited vehicle for the right investor in the right circumstances. It can also involve more complexity and responsibility than people initially expect.
At Elev8, we work with clients who are already operating SMSFs as well as those considering whether one is appropriate for their situation. We help you understand what’s involved, how it might fit with your existing structure, and whether the benefits align with your goals before any decisions are made.
If you’d like to talk through whether an SMSF makes sense for you, reach out to our team for a straightforward conversation.