1. Be SuperStream compliant
SuperStream is the new electronic data standard for superannuation contributions and payment transfers between funds. It’s meant to make superannuation easier for employees. Larger businesses of 20 or more employees should already be using it, but smaller businesses have until the 30th of June 2016 to comply.
2. Use comparison sites to find the best EOFY sales
Of course, we all love a good deal, but it’s hard to know where to look. Sites like finder.com.au will take the hard work out for you, by putting a large list of all the best deals going around, on everything from wine to computers.
For example, you could save up to 70% off wine through Vinomofo. What a great way to spend your hard earned dough.
3. Find what you can claim without receipts
Sorting through receipts can be a real hassle, especially at this time of year. For example, you can claim up to $300 worth of work related expenses before you need receipts. The ATO lists examples of where you may not need a receipt to claim on its website. This hassle free approach can save you just a bit more time during EOFY.
4. Check your dividends and interest income
For those of us with stock investments, dividends accrued through investments may not be assessable at the end of the year if they are declared but not paid. It’s also important to check franking credits, to ensure your tax credits can be claimed this year.
Speak to your accountant if you're unsure.
5. Exercise caution if distributing a Division 7A dividend
If you’re looking at distributing a dividend to your shareholders, review Division 7A beforehand. This will ensure that you do not trigger a deemed, unfranked dividend to a shareholder or associate for any loans, payments or debt forgiveness transactions undertaken by the company. This can be an important detail to remember in your small business loans.
6. Remember those employee bonuses
It’s always good to show thanks for the hard work of your employees. End of financial year can be a great time to do this. Remember to inform your employee in writing.
7. Claim your expenses on self-education
Business owners can claim back money they spend on self-education. So long as the study is directly related to either the maintaining or improving your current occupational skills, or is likely to increase your income from current employment, you can claim the expense. This includes textbooks you buy, course fees and even stationery.
8. Be aware of the ATO watch list
Every year the ATO lists exactly what it will be looking out for, and paying close attention to. In previous years, this has included employees using business assets for personal loans, motor vehicle claims. Make sure you’re not over-extending your claims in their areas of focus.
9. Get organised before you get help from a professional
While it may seem easier to simply hand over your business receipts to an accountant and walk away, it can be a significant cost saving if you come in prepared.
Organise your receipts based on things what expenses you think you can claim by month to save time.
10. Put your receipts online
Using websites like shoeboxed.com.au, you can now easily put your a record of all your physical receipts online (which can save you a lot of hassle!). It might be a bit late to make the most of it this time around, but you can definitely use it next year!
Optional tip for small businesses:
For small businesses, pay any eligible Research & Development costs you intend to claim by 30 June (including SGC for employees). By claiming research and development costs, you can build IP assets within your business, which can earn you more in the future.
By David Jackson, CEO of FundX