Are You Ready For The New Financial Year?

Tuesday, 26 Mar 2019

The end of the financial year 2018-19 is approaching in a few months and before you know it, you will be feeling exhausted with all the workload. It is going be the busiest time of the year when you will have to pull up your socks and get your paperwork in order. Although you have time till 31 October 2019 to file your taxes in Melbourne, you must prepare in advance to make the process smooth and stress-free.

Professional bookkeeping company in Melbourne can provide the required assistance during the tax time and help you assess the financial health of your business. If you discover discrepancies in the books or find out that the expenditure is way beyond your expectations, then your bookkeeper can help you undertake a financial overhaul.

Equipped with all the information, you are in a better position to take business decisions in consultation with your bookkeepers. You must review the year that passed by and make arrangements for getting ahead in the new one. Here is how you can be prepared for the changes.

Review Your Finances

The beginning of the new fiscal year creates the best environment to evaluate the cash flow and budget. Your bookkeeper will help you to check if all the payments from the previous year have been made or not. They will also help in following up with delayed receivables to be collected from suppliers and customers.

You will have to track the incomings and outgoings and put all the papers in order. The bookkeeper will determine the tax liabilities and provide you with the due date to submit the taxes on time and avoid penalties.

Your bookkeeping company in Melbourne will take note of various aspects such as the growth of the business in the past one year, increase or decrease in sales, expenses incurred, the accomplishment of business goals, profit margin, and revenue generated.

When you have these digits in hand, you can utilise the surplus for further investment in the business. If there is a deficit, then your bookkeeper will suggest ways of reducing the expenditure. You must also reconcile all bank accounts to get a clear estimate of the bottom-line of your business in Melbourne.

Claiming the payroll and superannuation payment for the current fiscal year requires the removal of this cash from your account by the 30th of June 2019. You must also reconcile the total payroll and superannuation contribution so that you do not face any difficulties later.

Preparing The Financial Reports

Every business in Melbourne has to undertake a plethora of activities related to bookkeeping which include organising the records and complying with the obligations by the end of the fiscal year. Your bookkeeper will assist you in putting together the profit and loss statements.

This document will help you analyse the weak links and set new goals with an appropriate price for the products that can improve the profits in the coming year. The bookkeeper will take note of the stock to claim deductions and systematise the accounts to oversee the cash flow and catch hold of all the overdue invoices.

An advantage of hiring bookkeepers is that they allow you to streamline the records of all expenses incurred due to the accumulation of assets which ease the determination of depreciation expense claims and capital gains tax. 

The bookkeeper will file the income tax return after arranging all the balance sheets, general ledger reports, bank reconciliation report, and PAYG withholding payment summary annual report.

Claiming The Tax Deductions

Small business owners in Melbourne can claim tax deductions, and their bookkeepers can assist them in keeping a record of such things. The business insurance premiums are tax-deductible if you can provide evidence that these premiums are associated with your competence in generating a measurable income. 

Additionally, the income protection insurance premiums can also become tax-deductible if it is purchased as a standalone policy in Melbourne. The bookkeeper will inform you about deductions like money spent on the development of a business website which can be claimed back.

The travel and accommodation expenditure when you are travelling for business can also be claimed by the employer if you have legitimate bills as proof of the expenses. Some of the operational expenses in Melbourne like telephone and broadband connection are also tax-deductible. The assets such as machines and equipment or computers which you have purchased to enhance your income can be claimed for deductions by the bookkeeper.

Stay Informed and Updated

The taxes can get changed annually to make sure you are aware of the alterations in the law as well as the deductibles for small businesses in Melbourne. Thus hiring a bookkeeping company proves beneficial in staying up-to-date. Also, your bookkeeper will make sure that you do not fall prey to the tax refund scams.

For instance, the scammer will try to dupe you by suggesting that you have overpaid your taxes and can claim a refund. They will ask for a fee or transfer cost to get the refund. In other cases, the scammer will claim that you have underpaid your taxes and need to make the remaining payment urgently.

They will ask for your credit card details or will tell you to transfer the amount online. Besides steering clear of these scams, you need to ensure that you are making the payments to your staff members in Melbourne on time. Your bookkeeper will help you to gear up for the changes and adhere to the business goals while reworking on the strategies to make improvements.

The end of financial year is also the time to decide if you want to change the structure of your organisation if it is growing at a fast pace. You will have to comply with a different set of regulations if the structure is changed, thus consult your bookkeeper before going for this transformation.

Conclusion

The end of the financial year is not the time to panic. Instead, utilise this time to complete all the bookkeeping tasks as well as filing your tax returns, reviewing your insurance and keeping a backup of all the data. It is also the perfect time to plan ahead and enter the new financial year with a renewed zeal and vigour.

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