End of 2019 Financial Year Checklist
Get those deductions!
Have you had a great year and need a new laptop or could use some new uniforms etc? Every little bit helps but you have to prove this was a work related expense. The ATO has a handy app for just this purpose and makes the end of the year much easier if you use it regularly. Alternatively, occupation specific guides can be found here
A common example is the 5,000 km a year for car expenses. Unless you have a logbook, or a GoFar this could be difficult to prove. Find out what you are entitled for here keep in mind that although it’s great to have deductions you should ask yourself if you are spending this money to grow your business or just for the deduction, which would be a waste.
Last but not least keep in mind the $30,000 instant asset write off for business owners. This could be a very handy way to get that new equipment for work but don go rushing out and buying a new car before checking with your accountant to see if you are eligible.
Make your super contributions
Don’t bang on the door of your super fund at 4pm on the 28th with a sock full of 5 cent coins, you will have missed the cut off date. Contributions for employees can be done through your accounting software or via internet banking and you should considering getting this done today.
If you are self-employed don’t forget you can pay $25,000 to super this year and claim it as a deduction but be careful that another employer or someone you contracted to has not made a payment on your behalf as exceeding your cap could be costly. It is also worth considering making a non-deductible Superannuation contribution to get access to the Govt Co-Contribution if you or our spouse have earned under $36,813 this year.
As of 2019 you are able to carry forward your contributions cap from above to next year, for 5 years. So if you are expecting to earn significantly more next year, or have a capital gain on the horizon, it might be worth while holding off on maxing out your contribution for the year.
Call us or your Super fund to see what payments have been made and top up your retirement savings in the most effective way possible.
If you are stashing cash in an offset account to be used for tax or business purposes make sure you move it back across to your company account so your books show true value on 1 July. Try and get your bills paid ASAP and hopefully those who owe you money will do the same, maybe nudge them a little, so you know exactly where you stand this year.
Update your details on myGov
MyGov is becoming the primary point of contact for the government and the taxpayer. You can link the ATO and dept of human services portals to your account and off you go. Make sure you update you details if you are planning on using child care facilities next year. MyGov are also taking direct reports from your health insurer so that will make life a bit easier this year.
Review your insurances
Now you have spent the time looking at your financial position you can compare this to your current insurance cover. Whether it be life and income protection, public liability, fire and theft or cyber insurance you can be sure this will change over time so be sure it matches your current situation.
Back up your data!
If you are still carrying a tape drive with this weeks back up on it...maybe it’s time to get on the cloud. Cloud storage is very affordable and easy to use. If you are with MS Office 365 they will include a terabyte of storage with your license fee and other options such as Dropbox or Google Drive are equally affordable. If you do this right, losing a laptop or mobile should be no more stress than replacing the hardware, connecting to the internet and watching the progress bar as everything is put right back where you left it.
Look to the future
So you had a great year, is it time to expand or to withdraw a little? Markets and customers change all the time so make sure you remain relevant and provide those customers with the service they value the most.
Has your success been in large part to any key employees? Finding good people is one of the hardest parts of any business so make sure you let them know you couldn’t have done it without them (a little bit of recognition goes a long way).
Last but not least, how is your work life balance? Did you flog yourself this year at the expense of your health and family? Do the kids think you are just someone who lives in the house from time to time? Handing the reins over can be tough but as they say, nobody sitting on their death bed wishes they had spent more time at the office. Success is not always just financial, a person earning $80,000 a year who can sit on a beach any day of the week without a care in the world could be considered far more successful than someone earning $200,000 working 70 hrs a week on the fast track to their first divorce and heart attack.
We are here to help!
These are some ideas to point you in the right direction, but everyone’s situation is different. NoR Financial and its network of professionals can help you to address each and every one of these issues and get you on track to ensure that end of financial year is a time for reflection and forward planning, not a mad scramble to get things done before June 30.