30th June is the day every small business owner and bookkeeper dreads! But why wait till the end of June to get your affairs in order. If you plan ahead and get most of the work done throughout the month of June, you’ll find all those dates and deadlines can be handled with ease and you’ll keep your stress to a minimum.
REMEMBER : Although many of the tasks are not due until July, plan ahead to ease the stress of EOFY.
Here are my top 7 strategies you can do NOW to support you through this very stressful time:
1. Contact your accountant. It’s always good to get your accountant to have a look at your reports in case there is any action needed to be taken before the end of the financial year.
2. Reconcile. June is the month for reconciling and ensures a smooth transition into next financial year. Here are all the areas that need checking and reconciling:
Payroll
GST
Stock
All bank accounts
Credit Cards
Loan statements
Superannuation
BAS Lodged against current data to capture any amendments
Payroll Tax
Ecommerce platforms
….and the list goes on.
If you ensure all your reconciliations for the year are correct to the end of May, when the EOFY rush happens, you’ll only have to deal with the month of June to have reports up to date.
3. Do a Stock Take. If you have products and inventory, plan to do a stock take on 30th June, or as close to this date as possible. This is extremely important for your bookkeeper and/or accountant to assess the value of your inventory and calculate the cost of goods sold and your Gross Profit.
4. Payroll Compliance with STP2. Check again that your accounting program reporting matches what’s been lodged. You should send out notification to your employees that their Payment Summary will be in their MyGov account by 14th July 2024.
5. Superannuation. Be aware that from 1st July 2024, SGC increases to 11.5%. It is likely your bookkeeping software will update this automatically, but always double check. In the first payrun after 1st July, superannuation must be calculated at the increased amount.
Remember, superannuation is claimed as a tax deduction only in the year that it is paid, and only if paid on time. Any superannuation you want to claim for the current financial year needs to be in the employees’ super funds by 30th June. If you want to ensure it arrives by then, we recommend you submit super for processing and payment before 15th June 2024. Any super received in the employees’ accounts after 30th June will be a tax deduction in the following financial year, as long as it is paid into the employees’ super funds by 28th July 2024.
6. Increase in pay rates and minimum wage. From 1st July, the minimum wage is increasing. Many award rates will also be increasing and may be staggered at different times across awards. Always check with FAIRWORK to confirm changes in awards and perhaps even set up notification with them so you are kept up to date when the increases take place. Note: FAIRWORK may only release notification a few days before EOFY. This link will also help with the information you need: https://www.fairwork.gov.au/employment-conditions/awards
Be aware : If the first payrun in the new financial year includes days worked in June, increases do not take effect until the following payrun.
7. Debtors. June is the best time to assess your debtors. Are there any outstanding bills that need to be written off? Can you send reminders to old debtors who still haven’t paid? June is the best time to write off any bad debts.
We hope these 7-strategies will give you some direction and help you to be prepared for all the compliance required by the ATO throughout July. Here are the dates you need to be aware of:
14 July – Finalisation of STP Payroll to ATO. If you’re already well prepared then this shouldn’t be a problem, but, of course, it’s important that your accounting software reports match what has been lodged. Your employees will receive their payment summary in their MyGov account and can complete their tax return. If there are errors, your employees may be required to submit revised returns, so make sure everything reconciles.
21 July - Monthly lodgement and payment of Activity Statements – if you lodge monthly, your June 2024 BAS and your final BAS for the 2024 financial year, is due for lodgement and payment by this date. We recommend you complete a full year GST reconciliation to ensure any differences in BAS and PAYG can be accounted for.
21 July – Payroll Tax due for lodgement and payment. Throughout the year, monthly Payroll Tax is due on the 7th of each month, however, at the end of the financial year, businesses are granted an extension to allow for the yearly reconciliation.
28 July - Superannuation funds for the June 2024 quarter must be received in employee funds by this date. It’s best to lodge and pay before 15th July 2024, as if superannuation payments do not reach the member accounts before 28th July, you will be required to lodge a Superannuation Guarantee Charge Statement, and pay admin fees and interest. It ’s also important to note that any late superannuation, fees and penalties are not claimed as a business tax deduction.
28 July - Quarterly lodgement and payment of Activity PAYG instalments.
28 July – Quarterly lodgement and payment of GST instalments.
28 July – Quarterly lodgement and payment of June 2024 quarter BAS if you lodge electronically yourself. If you want an extra month to lodge, give us a call and we can offer our Agent extended deadline.
25 August – BAS for June 2024 quarter if you lodge via a BAS Agent.
28 August - Taxable Payments Annual Report (TPAR) – If your business uses contractors, lodgement of a TPAR is required by the ATO, advising of their income.
There’s definitely a lot to take in and consider at the end of the financial year but being prepared will make a big difference. If you need any support over this busy time, don’t hesitate to reach out to us at WestBAS. We’ve included a link to this great check sheet which will be helpful for small businesses.
https://www.smallbusiness.wa.gov.au/sites/default/files/2023-24-end-of-financial-year-checklist.pdf