By Carolyn Dorrian, Principal solicitor of Dorrian & Co

5 tips for businesses to prepare for the EOFY

 1.       Make sure your trust records and company papers such as company resolutions are current and valid – ATO is getting stricter on the paper trail and evidence especially in light of the Panama Papers.

2.       Be up to date with the simple work-related deductions and small business rules – especially with the various programs, deductions, grants available to innovative small businesses through the current government.

3.       Know the categories of your employees (e.g. casual, full time etc) and have your payment summaries sent to employees by 14 July even if you were not required to withhold any tax.

4.       Be organised and do things early. Putting yourself under pressure just before EOFY may increase risks, mistakes and risk business performance and efficiency. Financial data is important for decision making to business owners, directors and management staff as well as legal documentation.

5.       Follow up and urgently review your debtors (i.e. those that owe you money but haven’t paid you within your required time). Get a collection agent or engage a lawyer to draft a letter of demand for example prior to starting your EOFY lodgement.