Following on from our previous post regarding cash flow in tough times, let’s discuss some important information when it comes to EOFY prep and bookkeeping. We have some End of Financial Year bookkeeping advice and tips for real estate agencies to keep in mind as we head into the new financial year.
Single Touch Payroll
For those with 19 or fewer employees, STP should have been reconciled and published to ATO by 31st of July, or the 15th of June for over 19 employees.
You will have noticed payment summaries are now a thing of the past. This information is now stored in your MyGov ATO account. Employees will receive an email advising when their payment summary is finalised and ready to submit with your tax return.
Ensure you line up all your ducks and check of these EOFY prep items:
- Reconcile all balance sheet items
- Ultimately, start doing this as best practice quarterly with your BAS. This is especially good for Single Touch Payroll and for those who don’t do standard wages. For those who do allowances and salary sacrificing, it’s easier to reconcile quarterly as opposed to annually.
- Reconcile your GST and pick up any variations in this period
- Xero users can benefit from its fabulous GST reconciliation report.
- Lock your periods after everything has balanced. Download your reports, file and send your bank statements to the accountant.
- Lodge EOFY early this year. If you have less income tax to pay it will reduce your BAS.
BAS Lodgement Dates
- Note that is using a BAS Agent, they have extended lodgement dates of an additional 5 weeks.
- If you are struggling throughout this time, do ring the ATO for a deferral. There are no additional interest charges for deferrals. The ATO recognises the additional pressure on businesses at this time and is being more lenient than in past years. They are allowing debts to be repaid over three years to help with cash flow and to keep businesses afloat. However, do note, if you take a payment plan option, you are required to meet every obligation.
- The ATO has released additional measures for tax professionals with Victorian clients, specifically:
- lodgment deferrals for upcoming lodgment dates
- payment only deferrals for amounts that may be due
- flexible payment plans
- changing clients’ GST reporting cycle or varying PAYG instalment amounts
- remissions to the general interest charge
- payment arrangements for the superannuation guarantee amnesty.
Job Keeper 2.0 is currently undergoing some changes due to the recent lockdowns again in Victoria. Further changes were announced on the 7th August to adjust the reference date and eligibility criteria for employees. This will give more employees access to the scheme. From 28th September, businesses will need to reassess their eligibility with their actual turnover and an extension of the scheme will run through from 28th September to the 28th March 2021. Keep an eye out on updates to this once the legislation has passed.
Ask for Help
If in doubt, ask your bookkeeper or accountant. They are the experts in these areas to give the assistance you need. They have access to all the nifty tools to help make your bookkeeping life that much easier! Xero, for example, offers free AI software called Hubdoc which automatically syncs your receipts through to Xero, saving you time and money. We are a Xero Silver Partner which means we can offer you a 20% discount on all Xero plans. Take advantage of both our skills and access to affordable bookkeeping software.
As a Xero-only, paperless office, we can get you on track to seamless, paper-free bookkeeping. Simply send us an email enquiry and we’ll get in touch!