There’s nothing worse than getting caught out last minute and finding you’ve missed the boat when it comes to the end of financial year (EOFY) preparations. Here we will cover some important dates, how you can streamline your preparations, and make the most of your EOFY opportunities.
Important dates and deadlines for EOFY 2024
Let’s begin by going through some of the important dates and deadlines you, as a small business, will be obligated to prepare for. This will get you going and starting to prepare. So, make sure you mark these dates:
| DATE/DEADLINE | OBLIGATION |
| 15 May 2024 | Deadline: 2023 Income tax return lodgements |
| 21 May 2024 | Deadline: lodgement of Monthly BAS April 24. |
| 7 June 2024 | Deadline: May 24 Payroll tax reporting and payment. |
| 21 June 2024 | Deadline: lodgement of Monthly BAS May 24. |
| 21 June 2024 | Deadline: payment and lodgement by BAS and Tax Agents of Fringe Benefits Tax annual return. 31 March marks the end of 2024 |
| 30 June 2024 | Deadline: payment of 2024 SGC Super contributions to qualify for tax deduction in FY24 |
| 30 June 2024 | Deadline EOFY: All financial transactions for the fiscal year must be complete |
| 14 July 2024 | Deadline: finalisation of STP reporting and lodgement |
| 21 July 2024 | Deadline: June 24 Payroll Tax and Annual Reconciliation lodgements |
| 28 July 2024 | Deadline: Q4 Apr-June 24 Super Guarantee Obligation (if not paid before 30 June) |
| 28 July 2024 | Deadline: Q4 BAS (Business Activity Statement) deadline for non-Agent lodgements |
| 28 August 2024 | Deadline: Taxable Payments Annual Report (TPAR) |
| 25 August 2024 | Deadline: Q4 BAS (Business Activity Statement) for BAS and Tax Agent lodgements |
Streamlining EOFY preparation for businesses
With those important dates marked and in mind. Let’s look at some of the things you will need to do to review and prepare your business leading up to the new financial year.
Review
- Profit and Loss Statement – seek to understand your financial accounts for the last year.
- Optimise possible tax deductions – The following of note -:
- Cost of Sales: materials, direct labour costs, freight and delivery
- Overhead expenses: Electricity, internet, phone, rent, MV, depreciation
- Travel Expenses
- Other operational expenses: Digital technology deductions, marketing and promotion, payroll (including SG contributions), software and hardware, assets and depreciation.
- Bad debts: Review receivables and write off any bad debts to claim a deduction and improve your financial position
- Professional fees: Accountants, legal and business advice
- Training: Self-education, staff training, and professional development
- Registrations, subscriptions, and memberships
- Donations: See details below
This is a time where the employment of professional services will be of critical service to you and your small business. For a more detailed overview of each of the above reminders, you can revisit some of our previous posts from Numble’s Bookkeeping & Finance blog:
What is End of Financial Year Aka EOFY?
Setting Yourself up for Success
- Business growth and marketing plan – As you review the above items, it is also a good time to begin to review and update your business growth and marketing plan. As you start to see the picture of your business’ growth over the last financial year, you are more readily able to picture its future and set goals for its continued growth.
- Business structure – Review its current structure and consider if that structure needs to be adjusted in any way.
- Staffing requirements – Is there a need to upsize, or is there a need to downsize? This is the time to consider the logistics of staffing needs.
Process
- Any outstanding BAS (Business Activity Statements): These will need to be lodged before any returns can be prepared.
- Payroll: Complete all pay runs and reconciliations, and ensure all staff have been paid. Staff must receive their wages in their bank account on or before 30th June 2024 to be assessable in your FY 2024 accounts.
- Bad debts: Process any outstanding debts that need to be written off and claimed as a tax deduction. This is good time to also review you debtors and make sure you’ve paid for all goods and services.
- Superannuation requirements: Make sure all your FY2024 super guarantee contributions have been met within the relevant deadlines.
- STP (Single Touch Payroll): Prepare and lodge the STP finalisation. Again, this is where your bookkeeper or accountant can assist you if you are unsure of your readiness.
- Set your FY24/25 budget: you’ve had time to review your business’ growth and your marketing and business plan. You’ve also looked at how it can be structured better. So, the next step is to set your forward budget for your business. Once more, this is the perfect time to begin your focus on the next financial year and setting up your business for future success.
Making the Most of EOFY Opportunities
This is the time of year to really take advantage of EOFY opportunities. From maximising donations to taking advantage of investment strategies.
Maximising donations for tax benefits
There are several things you need to remember when claiming donations for tax benefits.
- Donate to deductible gift recipients (DGR) – Make sure the charity or organisation is a DGR. You can check if an organisation is a DGR on the Australian Business Register or the ATO website
- Understand the types of donations and keep records – There are three types of donations.
- Monetary – Cash donations are straightforward. You can claim the amount donated as a deduction. Keep receipts for all donations. They should include the name of the DGR, the amount donated and the date.
- Property donations – If donating property (including shares and other assets), specific rules apply, especially if the property is valued over $5,000 or was purchased within the last 12 months. You may need a valuation from the ATO if the property is valued over $5,000.
- Donations of time – Volunteering time is not tax-deductible, but out-of-pocket expenses related to volunteering might be if they are not reimbursed by the charity. Again, keep receipts.
- Plan your donations – Two things that are key to effective donations:
- Bunch donations: Instead of making small donations over several years, make a larger donation in a single tax year to exceed the minimum deduction threshold and maximise the deduction impact.
- Timing: Make sure donations are made before June 30 to claim them the current financial year.
- Get professional advice – Tax laws can be complex, and a tax professional can provide personalised advice to maximise your tax benefits from donations.
Investment strategies for EOFY
As EOFY approaches, small businesses can implement these investment strategies to optimise tax benefits:
- Instant Asset Write-off: Being extended for another year, the instant asset write-off is available to small businesses. They can immediately deduct the cost of business assets costing up to $20,000, provided they are purchased and installed by 30th June, 2024.
- Superannuation Contributions: Make additional superannuation contributions for yourself and your employees before June 30th to claim deductions and reduce taxable income.
- Prepay Expenses: Prepay expenses such as rent, insurance, and subscriptions to bring forward tax deductions into the current financial year.
- Write off Bad Debts: Review receivables and write off any bad debts to claim a deduction and improve your financial position.
- Review Depreciation Schedules: Ensure all eligible assets are depreciated correctly.
- Employee Bonuses: Pay employee bonuses before EOFY to claim a deduction and boost staff morale.
- Investment in Technology: Invest in technology upgrades and software that improve business efficiency, qualifying for immediate deductions under the instant asset write-off scheme.
- Stock Valuation: Review and write down obsolete or slow-moving stock to claim a deduction for the reduced value.
- Contributions to Offset Accounts: If you have a business loan, contribute to an offset account to reduce interest expenses and improve cash flow.
- Utilise Small Business CGT Concessions: Plan asset sales to take advantage of CGT concessions, such as the 15-year exemption, retirement exemption, and rollover provisions.
Staying Informed and Prepared
Tax laws change, bringing with them both positive and negative implications for small businesses. Staying informed of these changes is important to your preparations of the EOFY.
Key financial changes and updates for EOFY 2024
With the recent Federal Budget announcement, there are a few changes that small businesses need to be aware of. We have discussed these changes in more detail in our 2024 Budget Snapshot for Small Business blog. But let’s quickly review them here.
- Instant Asset Write-off: As of 2024, the instant asset write-off threshold has been extended for another year. It allows eligible businesses to immediately deduct the cost of business assets costing up to $20,000.
- Energy Bill Discount: Receive a $325 discount on your business energy bill.
- Reduction of Compliance Costs: This will strengthen the business merger process and abolish many tariffs.
- Tax Compliance Taskforce Extension: There will be an extension to the tax avoidance taskforce for another two years.
- Superannuation on Paid Parental Leave: The government will provide extra support for small business employers for the superannuation on paid parent leave.
List of online tools and resources
- ATO Online Services for small businesses –
- Xero
- MYOB
- QuickBooks
Final Note
It has been mentioned here several times the importance of seeking professional advice when approaching the EOFY. Certainly, if you are seeking to make the most of your preparation for the EOFY, get in touch with a Numble representative now for an obligation-free consultation.
Let’s Go!
