21st March, 2024
As the clock ticks down to the end of the financial year, you might find yourself in a familiar scramble.
You’re sifting through piles of paperwork, digital receipts and a year’s worth of financial decisions. And all while running your business as usual.
Fortunately, it’s not too late to make some smart moves that could significantly impact your tax liability.
Here are our top five EOFY tips and tricks from Team Bookkeeping’s Laura Mason:
Whether you’re adopting an e-commerce platform, streamlining operations with cloud-based solutions, or leveraging social media for marketing, tech tool costs qualify as claimable expenses that can lower your tax bill.
So, if you’re considering investing in that new project management software or upgrading your online store, now could be a good time.
Of course, check with your accountant or financial adviser first to ensure it’s a smart decision.
With the rising cost of doing business, many small firms rely on loans and financial assistance.
Remember that while loan repayments themselves aren’t tax-deductible, the interest and fees associated with them are.
Laura says accurately categorising these loans in your accounting software will mean you don’t miss any deductions.
“Make sure you consult your MYOB partner or bookkeeper to leverage all the great functionalities and save money.”
In New Zealand, small businesses can get a tax break when they buy new things for their company, like equipment, up to a certain amount.
Right now, you can immediately claim the cost for items up to $1,000. This helps lower your taxable income, meaning you could pay less tax.
Also, when you’re checking your stock and find items you can’t sell anymore, you can write off their value in your EOFY books, giving you another chance to cut your tax bill.
Laura explains that digital accounting solutions simplify tax prep and make your day-to-day business planning more insightful and effective.
The right software will help you with everything from transaction tracking and cashflow forecasting to automated reconciliation with bank accounts, tax and GST calculations.
It’s about giving you visibility so you can spot issues and plan for potential instabilities before it’s too late.
“If you’re looking at implementing new systems — technology as well as processes, it’s best to set up prior to the new financial year. That way, you’ll have all your data up to date and ready to go for next EOFY,” says Laura.
Another EOFY tip as the tax time clock ticks down: take a quick health check on your potential deductibles.
This isn’t just about spotting what you can claim – it’s also about maximising all possible deductions throughout the year.
Have you accounted for home office expenses, or vehicle costs, if you use your car for business?
What about professional development courses or subscriptions relevant to your industry? Laura says the easiest way to get this done on the go, in real time is with MYOB Capture.
“Snap a photo of your purchase receipt with the MYOB Capture app, and it lands right in your MYOB In-Tray, ready to turn into bills or match with bank feeds,” she explains.
“It’s smart, it’s fast, and MYOB AI means less typing, reduced data entry, and fewer missed opportunities for you.”
The end of the financial year is a chance to look at your business finances — what worked, what didn’t and what needs to change for the next financial year.
Whether that means refining financial strategies with the help of your tax agent, updating your accounting software, or saving cash to ride out income fluctuations, it’s about setting yourself up to thrive in 2024-25.
Ready to take the stress out of EOFY and set your business up for success? Get MYOB from $5 a month for 6 months*. Limited time offer only. T&Cs apply
Information provided in this article is of a general nature and does not consider your personal situation. It does not constitute legal, financial, or other professional advice and should not be relied upon as a statement of law, policy or advice. You should consider whether this information is appropriate to your needs and, if necessary, seek independent advice. This information is only accurate at the time of publication. Although every effort has been made to verify the accuracy of the information contained on this webpage, MYOB disclaims, to the extent permitted by law, all liability for the information contained on this webpage or any loss or damage suffered by any person directly or indirectly through relying on this information.
MYOB is not a registered entity pursuant to the Tax Administration Act 1994 Agent Services Act 2009 (TASA) and therefore cannot provide taxation advice to clients. If you have a query concerning taxation including filing your BASGST return or annual tax statements then you should consult with your accountant or other registered tax adviser.