End of Financial Year Tax Planning for Perth Small Businesses

As the end of the financial year (EOFY) approaches, small businesses in Perth need to ensure their tax affairs are in order. Effective EOFY tax planning can help you reduce your tax liability, strengthen your cash flow, and set the stage for the new financial year. With the right strategy in place, guided by a trusted business tax accountant in Perth, your business can take full advantage of available deductions and incentives.

This blog outlines practical EOFY tax planning tips tailored for small businesses and highlights why partnering with a professional business accountant in Perth is key to achieving optimal results.

1. Review and Update Financial Records

The first step in EOFY tax planning is reviewing your records. Ensure all income and expenses are accurately recorded, invoices are up to date, and any outstanding debts are accounted for. Clean, consistent bookkeeping reduces errors and helps you and your small business tax accountant in Perth make well-informed decisions.

If you’re using cloud-based software like Xero or MYOB, reconcile your accounts and verify that all entries are categorised correctly.

2. Maximise Deductions and Concessions

Claiming all allowable deductions can significantly reduce your taxable income. Common deductions for small businesses include:

• Operating expenses (rent, utilities, insurance)
• Office supplies and tools
• Work-related vehicle and travel expenses
• Staff wages and super contributions
• Business-related education and training

Small businesses in Perth may also be eligible for the instant asset write-off or temporary full expensing of business assets. A business accountant in Perth can help determine which concessions apply to your situation and ensure you claim them correctly.

3. Prepay Expenses Where Possible

To lower this year’s taxable income, consider prepaying some business expenses before June 30. Eligible prepaid expenses may include rent, subscriptions, and insurance premiums. This strategy works well for businesses with strong cash flow and should be discussed with a business tax accountant in Perth to ensure compliance with ATO rules.

4. Check Superannuation Obligations

Superannuation contributions are deductible if they’re paid before the EOFY. To maximise your deductions:

• Pay any outstanding employee super
• Consider making additional personal contributions
• Ensure all payments reach the fund before June 30

Super payments take time to process, so don’t leave it to the last minute. Your business accountant in Perth can confirm the exact dates and contribution limits for your business type.

5. Write Off Bad Debts and Obsolete Stock

Review your accounts receivable and identify any debts that are unlikely to be recovered. Writing off bad debts before year-end allows you to claim a deduction and presents a more accurate view of your business’s financial health.

Similarly, assess your inventory and write down any obsolete or damaged stock. A clear stocktake and valuation can improve your tax position and streamline your reporting obligations.

6. Review Capital Gains and Losses

If you’ve sold business assets this year, assess any capital gains or losses. Capital losses can offset gains, reducing your overall tax payable. A small business tax accountant in Perth will help calculate and report these figures accurately while ensuring compliance with capital gains tax (CGT) rules.

7. Assess Your Business Structure

EOFY is a good time to review your current business structure. As your business grows, the structure that once suited your needs may no longer be the most tax-effective or legally protective. A business accountant in Perth can advise whether a sole trader, partnership, company, or trust structure best aligns with your goals and risk profile.

8. Plan for the New Financial Year

Use EOFY as a chance to assess performance and plan ahead. Set new goals, revise budgets, and schedule quarterly reviews with your accountant. A proactive approach to financial planning can help you manage tax liabilities and improve decision-making across the year.

9. Stay Compliant with ATO Requirements

Avoid penalties by meeting all your tax and reporting obligations. This includes:

• Lodging your income tax return on time
• Preparing and lodging BAS if registered for GST
• Ensuring payroll and PAYG summaries are complete
• Meeting Super Guarantee obligations

Working with a business tax accountant in Perth gives you peace of mind that your lodgements are accurate, timely, and fully compliant.

Conclusion

EOFY tax planning is more than just crunching numbers—it’s about positioning your small business for long-term success. By working closely with a small business tax accountant in Perth, you can make strategic financial decisions that reduce tax, improve compliance, and boost profitability.

Ready to optimise your EOFY strategy?
Visit our website https://perthtaxpeople.com.au/business-accountants-perth/ to speak with an experienced business accountant in Perth and get the professional guidance your business deserves.

Frequently Asked Questions

Q1: When is the end of the financial year in Australia?
The EOFY is 30 June. All income and deductions for the year must be finalised by this date for reporting and tax purposes.

Q2: What is the instant asset write-off?
It allows eligible small businesses to immediately deduct the cost of business assets up to a set threshold. Your business tax accountant in Perth can advise current limits and eligibility.

Q3: Should I prepay expenses before EOFY?
Yes, prepaying certain expenses can help reduce this year’s taxable income, but it’s important to discuss with your accountant to ensure it aligns with your business cash flow.

Q4: Can I claim superannuation payments as a deduction?
Yes, but only if payments are made before 30 June. Ensure processing times are considered so payments clear in time.

Q5: How can a business accountant in Perth help with EOFY planning?
They provide tailored advice, identify deductible expenses, ensure compliance, and help set up efficient processes for the new financial year.