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Common EOFY Mistakes Made That Can Be Fixed Before 30 June

Posted on June 20, 2024 by admin


Finding yourself increasingly more busy as the EOFY approaches, particularly with meeting your tax obligations? It’s coming on tax time, so it’s time to ensure you’re prepared for your tax returns. This period can be stressful and complicated, leading to common mistakes that can result in financial penalties or missed opportunities for tax savings. Here’s a guide on avoiding common EOFY tax mistakes to ensure a smooth and efficient tax lodgement. 1. Errors in Claiming Deductions Mistake: Many taxpayers either overclaim or underclaim deductions, which can lead to audits or missing out on tax savings. Solution: Understand What You Can Claim: Familiarize yourself with deductible expenses related to work, such as home office expenses, work-related travel, and self-education costs. Use the Australian Taxation Office (ATO) website as a resource. Keep Accurate Records: Maintain detailed and accurate records of all deductible expenses throughout the year. Use apps or digital tools to track receipts and expenses. Avoid Personal Expenses: Ensure that personal expenses are not claimed as work-related deductions. Mixing these can lead to disallowed claims and potential penalties. 2. Incorrect Reporting of Income Mistake: Failing to report all sources of income, including side gigs, investments, or rental income, can lead to […]


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Meeting Your Business’s Tax Obligations At The EOFY

Posted on June 10, 2024 by admin


As the End of the Financial Year (EOFY) approaches in Australia, businesses must gear up to meet their tax obligations efficiently and accurately. This period can be hectic, but with careful preparation, you can ensure compliance with Australian Taxation Office (ATO) requirements and optimise your financial outcomes. Here’s a comprehensive checklist to help your business prepare for EOFY tax obligations, including lodging Business Activity Statements (BAS), reconciling accounts, and more. 1. Review and Reconcile Accounts Task: Reconcile Bank Statements Ensure all transactions are recorded: Match your bank statements with your accounting records to ensure every transaction is accounted for. Identify discrepancies: Investigate and resolve any discrepancies between your bank records and accounting software. Task: Review Accounts Receivable and Payable Follow up on outstanding invoices: Contact clients to settle any overdue invoices. Settle outstanding bills: Pay any outstanding supplier invoices to maintain good relationships and accurate records. 2. Update Financial Records Task: Inventory Stocktake Conduct a physical inventory count: Verify your stock levels and identify any discrepancies between physical stock and inventory records. Adjust inventory records: Update your accounting software to reflect accurate stock levels. Task: Fixed Assets Review Update asset register: Ensure all fixed assets are recorded accurately, including any […]


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Understanding The Superannuation Clearing House

Posted on June 4, 2024 by admin


As the End of the Financial Year (EOFY) approaches, employers and self-employed individuals must ensure their superannuation contributions are processed efficiently and on time. Utilising a superannuation clearing house can streamline this process, ensuring compliance and maximising the benefits of super contributions. Here’s a comprehensive guide on why and how to get your super into a superannuation clearing house before 30 June 2024. Understanding Superannuation Clearing Houses A superannuation clearing house is a service that allows employers to make super contributions to multiple super funds in one transaction. This service is particularly beneficial for businesses managing contributions for multiple employees with different super funds. The clearinghouse distributes the contributions to the respective super funds on behalf of the employer, simplifying the administration process. Benefits of Using a Superannuation Clearing House Efficiency: Streamlines the process of making super contributions by consolidating multiple payments into a single transaction. Compliance: Ensures contributions are made on time and in accordance with the Superannuation Guarantee (SG) obligations. Record-Keeping: Provides a single source of records for all superannuation transactions, making tracking and reporting contributions easier. Error Reduction: Automating the distribution process minimizes the risk of errors in payments and contributions. The Importance of Meeting the 30 […]


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The Instant Asset Write-Off Continues To The 2024-25 Financial Year

Posted on May 28, 2024 by admin


In a move aimed at bolstering small business cash flow and reducing compliance costs, the Government has announced an extension of the $20,000 instant asset write-off for another 12 months. This extension, part of the 2024–25 Budget released on 14 May 2024, will see the measure continue until 30 June 2025. This initiative allows small businesses with an aggregated turnover of less than $10 million to immediately deduct the full cost of eligible assets costing less than $20,000. To qualify, these assets must be first used or installed and ready for use between 1 July 2023 and 30 June 2025. Eligibility Eligibility to use instant asset write-off on an asset depends on: your aggregated turnover (the total ordinary income of your business and that of any associated businesses) the date you purchased the asset when it was first used or installed ready for use the cost of the asset being less than the threshold. You are not eligible to use the instant asset write-off on an asset if your aggregated turnover is $500 million or more. If temporary full expensing applies to the asset, you do not apply the instant asset write-off. How Does It Work? The $20,000 threshold applies […]


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How to Manage Cash Flow and Plan for Growth: A Guide for Small Businesses In The Lead Up To EOFY

Posted on May 20, 2024 by admin


Effective cash flow management is essential for the success and growth of any small business. Proper budgeting, forecasting, and managing finances ensure that your business remains solvent and can seize growth opportunities when they arise. Here are key tips and strategies to help small businesses manage cash flow and plan for sustainable growth. 1. Understanding Cash Flow Cash Flow Basics: Cash flow refers to the movement of money in and out of your business. Positive cash flow means more money is coming in than going out, which is essential for covering expenses and investing in growth. Negative cash flow, on the other hand, indicates that expenses are exceeding income, which can lead to financial trouble if not addressed. Cash Flow Statement: A cash flow statement is a financial document that provides a detailed analysis of cash inflows and outflows over a specific period. It is divided into three sections: Operating Activities: Cash generated from day-to-day business operations. Investing Activities: Cash used for investment in assets or received from the sale of assets. Financing Activities: Cash received from or paid to financiers, such as loans and equity investments. 2. Budgeting Creating a Budget: A well-planned budget is the cornerstone of effective […]


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Millenial & Gen Z – Preparing For The Future With Superannuation

Posted on May 13, 2024 by admin


Millennials and Gen Z are facing some of the most difficult challenges when it comes to financial priorities. Between paying off HECS debts/HELP loans and saving for a first home, these immediate concerns can often overshadow long-term goals like retirement planning. Amid these immediate concerns, it’s easy to overlook long-term goals like retirement planning. However, when it comes to securing our financial future, superannuation planning should be a top priority. Superannuation planning is crucial for millennials, and starting early can significantly impact your retirement security. Starting Early: The Power of Compound Interest One of the most compelling reasons millennials and Gen Z should prioritise superannuation planning is the power of compound interest. You can use compound growth over time by starting early and consistently contributing to our superannuation funds. Compound interest allows savings to grow exponentially, as interest is earned not only on the initial contributions but also on the accumulated interest over time. This means that the earlier you start contributing to our superannuation funds, the more time our investments have to grow, ultimately leading to a larger retirement nest egg. Maximising Savings: Strategies for Building Wealth While starting early is key, maximising our superannuation savings requires strategic planning […]


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Trust Tax Return Compliance: A Guide

Posted on May 6, 2024 by admin


Managing a trust comes with its share of responsibilities, especially regarding tax compliance. To assist trustees and administrators, the ATO has provided a checklist that can be used to streamline the tax process. This is a crucial tool for ensuring that the trust’s affairs are managed efficiently and effectively in accordance with tax regulations. Let’s delve deeper into what the Resolutions Checklist entails: Distribution Resolutions: One of the primary tasks is to determine how income will be distributed among beneficiaries for the financial year. This resolution must be documented and finalised before 30 June to optimise tax outcomes for the trust and its beneficiaries. Trustees must consider each beneficiary’s tax position and financial circumstances when making distribution decisions. Trustee Resolutions: Trustee decisions throughout the year, such as acquisitions or disposals of trust assets, loan agreements, or changes to the trust deed, need to be documented and ratified through resolutions. These resolutions serve as formal acknowledgments of the decisions made by the trustees and provide a clear record of the trust’s activities. Trust Income Allocation: Trust income comprises various components, including assessable income, exempt income, and deductions. Trustees must accurately determine and record each component to ensure compliance with tax laws. […]


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Strategic Planning for Business Resilience: The Importance of Disaster Management, Crisis, and Continuity Plans

Posted on April 29, 2024 by admin


Strategic planning for businesses ensures resilience and continuity in adversity. While businesses often focus on growth and expansion, preparing for potential disruptions and emergencies that could threaten operations is equally essential. This is where disaster management, crisis, and continuity plans come into play.  Disaster Management Plans Disasters can strike without warning, ranging from natural calamities like floods, earthquakes, and hurricanes to human-made incidents such as cyberattacks, data breaches, or supply chain disruptions. Disaster management plans outline strategies and protocols for responding to and recovering from such events swiftly and effectively. These plans typically include measures for ensuring employee safety, protecting critical assets and infrastructure, and minimising downtime. By having a comprehensive disaster management plan, businesses can mitigate the impact of disasters and expedite the recovery process. Crisis Management Plans While disasters are often external events beyond a business’s control, crises can arise from internal factors such as leadership failures, product recalls, or reputational issues. Crisis management plans are designed to address these unexpected challenges and mitigate their impact on the organisation’s reputation, brand equity, and bottom line. These plans outline communication strategies, escalation procedures, and decision-making frameworks for managing crises promptly and transparently. By proactively addressing crises and demonstrating resilience, […]


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No More Shortcuts: The Methods You Can Use To Claim WFH Expenses

Posted on March 25, 2024 by admin


Ensure you’re up to date on how to claim your working-from-home expenses! As the business landscape shifts back and forth between office, hybrid and home-based work opportunities, it’s important to remember what methods are available to you when it comes to claiming. If part of your role allows you to work from home, you may be able to claim certain expenses on your tax return this year using one of the following methods. The Revised Fixed Rate Method: Under the revised fixed rate method, individuals can claim 67 cents per hour worked from home during the relevant income year. This rate includes additional running expenses, such as home and mobile internet or data, phone usage, and electricity and gas for heating, cooling, and lighting. Importantly, using this method, you cannot claim separate deductions for these expenses. To use this method, taxpayers must maintain records of the total number of hours worked from home and the expenses incurred while working at home. Additionally, they must keep records of expenses not covered by the fixed rate per work hour, demonstrating the work-related portion of those expenses. What Records Do You Need? Previously, taxpayers required a dedicated workspace at home. From 1st March […]


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Holiday Hustle: Crafting Engaging Content for April’s Festive Occasions

Posted on March 20, 2024 by admin


As April rolls around, businesses have a perfect opportunity to refresh their content marketing strategies and engage with their audience in new and exciting ways. With the changing season and various events occurring throughout the upcoming month, there are plenty of opportunities to connect with customers and drive brand awareness. Here are some creative content marketing ideas tailored for Australian businesses to consider this April: Easter-Themed Content Tap into the festive spirit of Easter by creating themed content that resonates with your audience. This could include: Easter-themed social media posts featuring your products or services. Creating an Easter egg hunt contest on social media with prizes for winners. Sharing Easter recipes or DIY craft ideas related to your niche. Partnering with local businesses for Easter-themed collaborations or promotions. Autumn Vibes As autumn settles in, create content that celebrates the changing season and highlights how your products or services fit into this time of year. This could involve: Sharing tips for transitioning your wardrobe or home decor for autumn. Showcasing seasonal products or services that are particularly relevant during this time. Creating autumn-inspired visuals or videos to capture the mood of the season. Hosting a photo contest encouraging customers to share […]


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Common EOFY Mistakes Made That Can Be Fixed Before 30 June

June 20, 2024

Finding yourself increasingly more busy as the EOFY approaches, particularly with meeting your tax obligations? It’s coming on tax time, so it’s time to ensure you’re prepared for your tax returns.

This period can be stressful and complicated, leading to common mistakes that can result in financial penalties or missed opportunities for tax savings.

Here’s a guide on avoiding common EOFY tax mistakes to ensure a smooth and efficient tax lodgement.

1. Errors in Claiming Deductions

Mistake: Many taxpayers either overclaim or underclaim deductions, which can lead to audits or missing out on tax savings.

Solution:

2. Incorrect Reporting of Income

Mistake: Failing to report all sources of income, including side gigs, investments, or rental income, can lead to discrepancies and potential audits.

Solution:

3. Missing Deadlines

Mistake: Missing the tax return filing deadline can result in penalties and interest charges.

Solution:

4. Incomplete or Inaccurate Documentation

Mistake: Submitting incomplete or inaccurate documentation can delay your return processing and potentially trigger an audit.

Solution:

5. Overlooking Superannuation Contributions

Mistake: Neglecting to make superannuation contributions or misunderstanding the rules can lead to missed tax benefits.

Solution:

6. Ignoring Tax Offsets and Rebates

Mistake: Not claiming eligible tax offsets and rebates can lead to higher tax liabilities than necessary.

Solution:

7. Failing to Review Past Returns

Mistake: Overlooking errors or missed claims from previous years can result in lost refunds or uncorrected mistakes.

Solution:

Avoiding common EOFY tax mistakes requires careful preparation, accurate record-keeping, and timely action.

By understanding deductible expenses, accurately reporting all income, meeting deadlines, maintaining comprehensive documentation, maximising superannuation contributions, claiming eligible offsets, and reviewing past returns, you can ensure a smoother, more efficient tax filing process.

If in doubt, consulting with a tax professional like us can provide peace of mind and help optimise your tax situation.