Are you one of two million Australian small business owners on the quest to getting your finances organised in time for ‘end of financial year’ (EOFY)? Here’s your small business tax checklist to ensure you’re having a smooth and pain-free tax time.
As the EOFY approaches, stress levels amongst small business owners are skyrocketing. The complexity of the Australian tax system strikes unnecessary fear in the hearts of many entrepreneurs. As a small business owner, you have enough on your plate – no need to make things worse by stressing about making mistakes or not having all the documentation needed.
Having worked with hundreds of businesses over the years and understanding how important it is to make tax time as pain-free and efficient as possible, we think a change is overdue!
That’s why we’ve created a comprehensive yet easy to digest guide that’ll get you ready for EOFY in no time!
By following our guide step by step, you’ll be spending less time on tax and can return to focussing on your business priorities before you know it.
An Overview: Your Small Business Tax Checklist
- Know your dates! When is your tax due?
- Collect your relevant documents and records.
- Know which tax forms you will need.
- Follow up on documentation you require from other people.
- Know how to apply for an extension if you need one.
- Know who to hire for tax help.
Important Tax Dates For Small Business Owners
Doing your tax returns is an important part of being a small business owner. Yet, a lot of entrepreneurs get anxious when EOFY approaches. Many are worried about making mistakes, not understanding what deductions apply to them or how to enter data correctly. This anxiety often leads to procrastination, and a fast-approaching deadline only makes matters worse.
It’s therefore wise to keep an eye on important small business tax dates and plan to face some of the scary unknowns sooner rather than later. Get in touch with our tax team for important deadlines.
Relevant Documents and Records
With a little preparation, tax time becomes much less scary! Here are the documents you need to gather before lodging your tax, whether you do so yourself or get help from your bookkeeper, accountant, or tax agent.
|Annual business turnover||Employees|
– Copies of payment summaries
– Copies of annual reconciliation for salaries and wages
|Income from sales or the provision of services:|
– Bank statements
– Cash takings
– QuickBooks/ MYOB files
– A list of all businesses you have debit and credit accounts with
– Information about super contributions made for each employee
– Contributions paid on behalf of each of the business owners
– Bank statements, receipts, invoices, cashbook records, interest payments
– Details of all expenses incurred
– Rent paid by the business
|Bank statements with total interest received||Motor vehicles|
– Expenses for fuel, registration and repairs
– Total business kilometres for the financial year
– Odometer readings for the first and last date of the financial year
|Statements of rental income received||Loans|
– Trading statements
– Dividend statements
– Policies, claims, memberships, cover details
|Disposal of plant and property|
– Dates and values of sale
– List of business assets with the date of purchase, price, description, purchase or lease details
– Details of any repairs or maintenance during the tax year
|Capital Gains ( (business and personal assets sold or acquired)|
– Details of personal or business assets acquired on or after 20 September 1985 sold in the tax year
– Travel expenses
– Petty cash expenditure summary
– Documentation of other items that might be deductible
E.g. purchase and repairs of furniture and equipment, utility bills and cleaning expenses, council rates
Other relevant documentation
- GST documentation (including deductions)
- Employee summaries – PAYG, Subsidies, salary sacrifice
- Invoices showing the value of purchases made throughout the year
- Creditor and debtor details
How to Apply For An Extension
Exceptional and unforeseeable circumstances are exactly that – events that are out of your control. One of the best examples is COVID19 – a global pandemic that forced many small business owners to temporarily shut their businesses over the past year and a half.
What happens if exceptional and unforeseeable circumstances affect your ability to meet a deadline and lodge your tax in time? The ATO offers a way out of your predicament: You or your tax agent can submit a deferral request online and extend the due date for lodgement.
To find out if you are eligible for a deferral and submit an application, please visit the ATO guide on lodgement referrals.
Small Business Tax: Where to Find Professional Help
Whilst preparing your small business tax gets easier over time, the quickest way to get it over and done with is by hiring an expert. To get your small business tax prepared correctly, speak to your trusted accountant and bookkeeper.
If you haven’t found a tax professional yet, speak to the tax gurus at Shoebox Books and Tax. The Shoebox concept is simple: Collect your receipts, invoices and other documentation from the list above, and the Shoebox team will do the rest for you.
To help you keep on top of your finances and business tax needs this year, we’ve put together a few other helpful guides:
- The Easiest Solution To Separating Your Personal and Business Tax
- Master Keeping Track of your Receipts in 2021
- To Audit or Not to Audit: A Guide For Small Businesses
- Understanding and Overcoming Financial Stress
Give us a call on 1300 65 35 83 to get started or use our contact form to get in touch. We’re looking forward to hearing from you.