End of Financial Year: Business Tips from our Commercial Lawyers

The end of financial year (EOFY) has surely fast approached . Presenting a perfect time for businesses to reevaluate their practices and procedures, our Sydney Commercial Lawyer has listed the top seven tips for EOFY:

1. Don’t wait until last minute

Undoubtedly, the earlier the better when preparing paperwork, lodging tax returns and assessing all other necessary documentation. Holding off until last minute can lead to errors that are not worth making. In this, it is also essential for businesses to not overlook crucial requirements such as conducting an efficient stocktake.

2. Understand what can/cannot be claimed

However, many individuals and business owners may be unaware of what to claim. In this same token, many may also not know what not to claim.  An example is travel expenses. Individuals can claim expenses from business trips or the use of diesel fuel. On the other hand, individuals may not be able to claim home to work travel.

3. Take precautions against tax scams

This year we’re hearing this topic come to light more frequently. Unfortunately, fraudulent scams are commonly occurring around tax time. This means it is important for your business to be wary of this and not be subject to deceitful practices. Targeting small businesses in particular, general scams may include things such as “tax owed” notifications.

4. Report all records

Businesses may be required to:

• Prepare a Profit and Loss Statement
• State all asset purchases and expenditure
• Where applicable, conduct a stocktake
• Complete and lodge tax return

5. Remember employee entitlements

By law, employers have both tax and superannuation obligations to employees. This may apply to contractors in some instances. Every employee must receive a Pay As You Go (PAYG) Payment Summary. PAYG requirements oblige employers to deduct certain amounts of income from wages. This also applies to superannuation requirements.

6. Plan for the new year

Reviewing the records and reports of the year is a great way to evaluate business performance. This allows for a strong start to the new financial year.

Opportunities may lie in:

• Tax opportunities
• Assets
• Income and expenditure
• Business structure and more

EOFY is the best time to start!

7. Seek advice

Seeking advice is essential. This will ensure all requirements are met. As commercial lawyers, we can assist in the business processes. These may range from reviewing structure to confirming legal compliance.

Write to us at info@prominentlawyers.com.au

The comments in the article are general in nature and should not be relied upon as a substitute for professional advice. Anyone intending to apply the information contained in this newsletter should seek their own professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. This article is issued as a helpful guide to clients and for their private information. Therefore, it should be regarded as confidential and not be made available to any person without our prior approval.

Liability limited by a scheme, approved under the Professional Standards Legislation.