Company news and small biz tips

Welcome to the latest instalment of the Reckon Review!

The End of the Financial Year (EOFY) countdown has begun. With just over thirty days left, every small business must wrap up its books, finalise its paperwork, and begin the process of declaring and filing its taxes.?

But while tax time is never easy, preparation can make it much easier. We’ve included some hot tips below, as well as some upcoming webinars and legislation changes to keep in mind.

Let’s get started.

How to have a happy EOFY

Happiness at the EOFY is entirely a matter of preparation. While there are some key dates and forms to know, the EOFY essentially boils down to these six steps.

1. Get everything in order. Tax returns report your expenses and income, so you need documents showing these to complete a profit and loss statement and balance sheet. Key documents include invoices, bills, payments, banking statements, Business Activity Statements (BAS), and payments to employees.
2. List your tax deductions. Tax deductions are expenses that lower your taxable income. These can include business-related costs like vehicles, uniforms, travel, phone bills, and rent. Some strategies for maximising deductions include claiming prepaid expenses, writing off bad debt or obsolete stock, and making contributions to your superannuation fund.
3. Know your deadlines. 30 June is the last day of the financial year; the new financial year begins on 1 July. Tax returns must be filed by 31 October (with some exceptions).
4. Lodge your tax return. You can lodge your individual income tax return through the Australian Taxation Office (ATO) portal. Company tax returns can be lodged via SBR-enabled software, a registered tax agent, or paper.
5. Be aware of changes to tax law. New income tax rates and super contribution rates go into effect from 1 July 2024. The instant write-off scheme for small businesses has also been extended for a year, which lets SMEs with annual turnovers under $10 million claim expenses under $20k in value. Stay on top of changes like these to be in the know.
6. Assess your business performance and prepare for next year. Congratulations on making it through EOFY! What worked well? What didn’t? How was your overall business performance? Take stock of everything, make adjustments, and prepare for next year.?

Lost at EOFY? No worries, Reckon is here to help. You can find more tips and free resources at our EOFY hub or speak to someone on our support team.

Pro-Tip! Business insurance can be tax deductible – if you’re comparing coverage options, check out our exclusive EOFY offer with Aon.

Did the new Federal Budget fight inflation?

Cost of living was a major focus for the 2024/2025 Federal Budget. Indeed, tackling inflation was one of the key wish list items for surveyed Reckon business owners.

“Higher costs of living represent a double-edged sword, where business owners are not only paying more for goods and services but are also pressed to pass these costs on to consumers,” explains Reckon CEO Sam Allert.

“This concern was laid bare by the data we collected, with 85% of small businesses looking for measures to address inflationary pressure.”

While there weren’t a raft of measures for small businesses, there are still some inflation-fighting supports to know heading into a new financial year.

• Instant write-off scheme extension. SMEs with annual turnovers under $10 million can instantly claim eligible expenses under $20k in value for another year.
• Energy bill rebates. Eligible small businesses will receive $325 off their energy bills, paid in quarterly instalments.
• Tax cuts for all incomes. From 1 July 2024, all tax brackets in Australia will pay lower tax rates.

You can read more about the Federal budget in our full budget recap.

Get your books in order with our EOFY professional webinars

Tax time can be a headache for accountants and novices alike. That’s why Reckon will sharing some of our best tax-ready tips in our June webinars, hosted by Clayton Oates and Reckon.

Highlights include how to handle your payroll through Reckon and a special masterclass with Microsoft productivity extraordinaire Donna Hanson, who will show you the best ways to master payroll Excel, from macros to reports.

Save the dates below:

• Excel Masterclass (with Donna Hanson): 11 June
• Payroll (with Reckon Accounts): 27 June?
• Payroll EOFY (with Reckon Payroll): 27 June

See you there!

Hot tip: Mates help mates during tax time. If you recommend Reckon to fellow accountants and business owners through the Reckon referral program and they stay signed up for 3 months, you could both get a $50 Amazon gift card. Happy EOFY!

Reckon team finds their creative spirit

May was Creativity Month at Reckon, so the team headed to Pinot & Picasso for a colourful paint and sip session.

“Our art skills may not be museum-worthy, but our team spirit sure was!” recalls Reckon Head of Product Mustafa Kohistani. “Loved every bit of this team bonding event – thank you, Reckon!”

Reckon also turned out for Australia’s Biggest Morning Tea to fundraise support for the Cancer Council of Australia – a worthy cause if ever there was. Here’s how you can donate for a cancer-free future. (And because it’s EOFY, remember to keep the receipt: you can claim the donation on your tax return!)

Trending on the Reckon blog in May

This month, on the Reckon Blog…

• Office wardrobe: what to wear in 2024.
• Finance in footy: best accounting software for sports clubs.
• Greening your business: top ways you can reduce plastic waste now.