How Early EOFY Prep Can Save Your Business Money and Time

If 2022 hasn't been crazy enough for you, the end of each financial year (EOFY) is fast approaching, provoking mixed feelings in small and medium sized business owners.

But, no matter how we feel about it, the EOFY paperwork has to be done, and preparation is key to a (fairly) painless process.

Completing a few key steps before the 30 June cut off will help make life easier for the whole year.

Know What Your Business Can Claim

This is a big one because you need to have made all business-related purchases – whether that’s new office equipment, or repairs or replacements for existing assets – before June 30 to be able to claim, so again, preparation is key.

Other business-related expenses, such as staff wages, office costs and insurance, may be claimable as well if you prepay. To check what your business can claim go to the ATO website.

Don't forget to also check out our blog on the Federal Government tax incentive for SMEs spending up to $100,000 a year on digital assets, including cybersecurity, websites, cloud computing, or portable payment devices.

This boost to small business will equate to an additional 20% deduction on expenses relating to digital investment and will apply to spending from 29 March 2022 until 30 June 2023.

Transition to Digital

The ideal time to start digitising your business is at the start of the new financial year. Using an online tool (such as Adobe Scan or Expensify, both free!) to scan in and upload all of your paper-based invoices, receipts, and paperwork will quickly become second nature. Users of Xero also get access to Hubdoc as part of their subscription.

As well as making sure every item stays safe and in one place, even small businesses can benefit from less storage for dusty paperwork, and feel secure that nothing can be lost or damaged.

Beware of Tax Scams

It’s not uncommon for scammers to target small and medium-sized businesses around tax time.

Different types of scams include receiving a call or email saying your business is eligible for a refund, but to claim it there’s an admin fee. Another is a similar approach, but this time the scam will claim you’ve underpaid and if you don’t pay said-amount now you could be liable for prosecution.

While some scams are easy to spot, others can be extremely convincing and aggressive, designed to scare the person into acting quickly before checking credentials. Never give out any personal or financial details over the phone from unsolicited numbers and do not click on an attachment or link within an email that you don’t recognise.

You can head over to some of our previous blogs to find out more about keeping your information safe:

Prep, Prep, and Prep Some More

The Holy Grail of surviving EOFY stress without tearing your hair out is to prepare early and stay prepared.

Part of that means having a well-oiled, ideally digital, filing system for all your documents, invoices and receipts, updating this regularly, and having a cloud-based system that is fully protected from hacking or system failures.

Other tasks you’ll need to complete by certain dates might include compiling a profit and loss statement, completing an asset stocktake, and of course lodging your tax return.

Go to the Government’s guide to the EOFY for business for a comprehensive checklist that can help your business during tax time and get in contact with us to set up cybersecurity for your business including Microsoft 365 Backups and other Business Continuity systems.