How To Prepare & Get the Best this EOFY

Every person is impacted by the end of financial year and has an opportunity to get a better outcome if they do some prep work first. The Australian financial tax year starts on July 1st and ends the following June 30th, so while this end of financial year for those who follow this standard (there are some businesses even in Australia with different financial year start and end dates) you can still take positive action for positive results, but you must be quick!

1.     The double check and organise

Ideally, you have already been chatting with your accountant and business lawyer and so have ensured that you have all your important paperwork and documents prepared, checked, signed off on and ready to handover, together with any invoices that you want to claim this financial year.

However, if you are unsure if you have everything or it if has actually been completed and invoiced, or when doing the double check have realised you don’t have everything or haven’t don’t the final lawyer and accountant check to ensure you have done everything, then you need to book a quick appointment in ASAP with your accountant and lawyer to check on what is outstanding, or what you should seek to get done urgently so you can claim your costs now as well as ensure you and your business are properly protected and ready to go fast in the new financial year.

2.     Figure out your deductions

Connected to the above, make sure you have all required invoices (in the required format) and check with your accountant if these need to be paid before end of financial year.

It is a good idea to seek advice from your accountant on any additional deductions you may be entitled and what needs to be done to claim them. For example, the Federal Government has an asset write-off scheme for small businesses, and there are deductions available to claim for certain prepaid expenses.     

3.     Check what’s available for you

Additionally, there are many initiatives for events such as COVID-19 and the recent floods that you may be entitled to this EOFY.

Keep in mind claiming some of those initiatives may have an unexpected consequence on your other contracts/obligations, such as franchise agreements or lease arrangements, so check with your lawyer any risk factors here.

4.     Know your dates and legal triggers

The end of financial year is also often used as a trigger date for other obligations you may have to meet, with penalties applying if you get it wrong.

For those with leases and franchise documents, there are many terms in these agreements and/or the laws that apply to landlords, lessees, franchisors and/or franchisees, where the relevant party has to prepare and provide certain documents, complete audits and/or provide certain disclosures to the government and/or other parties.

Failing to do these activities when required, and by the time frames required, may result in you breaching your contracts, the law and/or incurring potentially extremely large penalties for what may seem like an innocent mistake, or a slight deadline miss.

The ATO will also penalise you if you miss deadlines for certain events relating to EOFY.

So, make sure you are aware of and have plans of action to prepare for and meet all the key dates for you to avoid harsh consequences and penalties.

5.     Regroup, strategise and set goals

There is nothing quite like the magic of a new year – so use the EOFY to restrategise and reassess your business and goals. This is the perfect time to evaluate your strengths and weaknesses over the last twelve months, and to put processes in place to create the success you want over the next year. To help you here achieve your goals and understand what needs to be done or even just relooking at what other unexplored opportunities are out there, book in now for a strategy session to see where you can take your business.

EOFY is fast approaching, so book in a free Discovery Call with us at Advantage Partners Lawyers now to ensure you are prepared and able to get the best out of EOFY with a successful new financial year ready to be achieved!

Please note that this is a general and brief update, it does not purport to be comprehensive legal advice of all information and/or relevant to your circumstances. Consequently, specific legal advice for each of your circumstances should be obtained first before taking or not taking any action in respect to this area.