Organising your documents now will mean you can get your tax return completed earlier and access any refunds due or start planning for tax payments.
Getting your business records up to date means you can concentrate on the year ahead rather than think about your compliance for your BAS and tax returns. Eat that Frog!
What Records do you Need to Have Ready for the Tax Agent?
- Have you bought or sold assets? If so, you need full details of acquisitions and disposals. Make sure you have copies of the invoice.
- Have you taken out a new loan or other finance? You must have details of the finance arrangements and statements of monies owing at 30 June. Amortisation statements from the financier help to record your interest and fees correctly
- Check that any bonds or deposits paid or received have been allocated correctly.
- Have you prepaid for insurance or other large business expenses that need to be apportioned to the following financial year? Make note of the portion applicable to the current financial year.
- Do you carry stock? If so, you need to perform a full stocktake at 30 June (unless you qualify for the simplified trading stock rules).
- List any doubtful or bad debts to be written off.
- Review your debtors and creditors (accounts payable and receivable). Is the list current and correct?
- Do you have loans with related entities? Reconcile the loans to and from each entity to ensure the same value is reported in the accounts of both entities.
- Ensure that all payments to company directors have been correctly captured. Any loans should to Directors should be repaid or there may be Div 7A consequences
- Provide records of any government grants received during the year.
There are many other matters that may need to be captured, such as cryptocurrency transactions, capital gains, vehicle usage, private usage apportionment or superannuation. This year, there may also be new elements to discuss if you have received grants, refunds, credits or deferrals of business expenses and liabilities.
Remember you need to keep all your business records for seven years, so store everything securely and where possible electronically for safety and ease.
This post was originally written by BOMA and has been updated to make it more personal.
