How to Prepare for Tax Time
1. Stay on Top of Your Bookkeeping
Up-to-date records are the foundation of a successful tax season. If your accounts are disorganised, tax time will be more complicated and potentially costly.
Tip: Use cloud-based bookkeeping tools like Xero or MYOB and schedule weekly check-ins to reconcile your accounts. Profit Services can help ensure everything is accurate and compliant well before lodgement deadlines.
2. Know What You Can Claim
Every business in Sydney has different tax-deductible expenses, but many miss out on valid deductions due to poor documentation or a lack of knowledge.
Tip: Keep records of all business-related expenses, such as office supplies, marketing, travel, software subscriptions, and equipment to help you prepare for tax time. An experienced bookkeeper can help identify what’s deductible and ensure nothing is overlooked.
3. Review Your Financial Reports
Tax time isn’t just about compliance, it’s also a great time to assess your business’s financial health. Reviewing your profit and loss statement, balance sheet, and cash flow report can give you powerful insights.
Tip: Review key financial reports monthly. This will not only make EOFY easier but also help you make informed decisions throughout the year.
4. Ensure You’ve Paid Super and BAS
Unpaid super or late Business Activity Statements (BAS) can result in penalties and interest charges from the ATO. These are common areas where small businesses get caught out.
Tip: Set calendar reminders for all ATO due dates, or engage a small business bookkeeper to manage lodgements and super payments on your behalf.
5. Separate Business and Personal Finances
Mixing personal and business transactions can create unnecessary complications and make your bookkeeping process a nightmare.
Tip: Open a separate bank account and business credit card to keep transactions clean and easy to track.
6. Reconcile All Accounts Before June 30
Reconciling ensures your income and expenses match your bank transactions, and it’s a crucial step in preparing for tax time and accurate financial statements.
Tip: Don’t leave it until the last minute! Start reconciling in early June and aim to have everything finalised before the new financial year begins.
7. Work with a Professional Bookkeeper
The best way to take the stress out of tax time is to have the right support. A professional bookkeeper doesn’t just organise your finances, they help you understand them.
Tip: If you’re not already working with a bookkeeper, now’s the perfect time to bring one on board. Profit Services will help you stay compliant, maximise your deductions, and save time and money.
Get EOFY-Ready with Profit Services
At Profit Services, we help Sydney small businesses simplify tax time with professional bookkeeping, financial clarity, and year-round support. Whether you need help tidying your books or staying compliant with ATO requirements, we’re here to make the process easy.
Contact us today to make your tax time stress-free this EOFY.
About the Author
Fabian Ianniello is a CPA accountant and the founder of Profit Services, a firm dedicated to transforming small businesses through effective financial management and strategic advisory. With over 15 years of corporate and commercial experience spanning from small enterprises to multinational corporations, Fabian specialises in enhancing cash flow and profitability for his clients. His proactive and forward-thinking approach ensures that businesses not only achieve financial stability, but also attain scalability and saleability. Fabian implements impactful changes that yield significant results, guiding entrepreneurs toward sustainable success.
