The end of financial year (EOFY) is just over a week away, which means now may be a great time to do a stocktake of your money situation and prepare for tax time.

If you’re a small business owner, there are a few actions that may be worth taking to ensure you’re ready for the year ahead.

1. Think about the tax deductions you’ll claim

Generally, you can to claim expenses that relate directly to your ability to earn income. This will vary depending on the type of business, but may include:

• Car costs, if you have to drive to earn money (but you can’t claim your trips to and from work).
• Home office expenses, such as a computer, stationary, heating and cooling and maintenance.
• Work-related travel expenses.
• Tools you use in your business. E.g. If you need safety boots or gloves for work.

It’s important to keep good records and receipts as proof of what you bought and how the costs relate to earning money. 

2. Look at profit and losses

A profit and loss statement can show you how your business has performed over the financial year. It can track sales that come in and costs that go out, which can be handy for tax time and also to show how healthy your business is.

You can download a template of a profit and loss statement here. 

3. Be wary of tax scams

With millions of people preparing their tax, opportunistic scammers often lift their activity around this time of year. You may receive text messages or emails claiming to be from MyGov or promising a tax refund.

It’s worth being extra cautious during tax season and avoiding links in emails and text messages. 

4. Check in on your insurance

Depending on your type of business, some types of insurance may be compulsory, others may be worth having to protect yourself in the future and some may not be relevant.

You can check in on what type of insurance you may need for the next financial year on the Business.gov website (here). 

5. Make a plan for the new financial year

Once you have a snapshot of how your business has performed, the end of financial year is also an excellent time to set some goals. For example, you may wish to set some targets around business growth, new customers or investments for a great 2024-25.

Wondering how to price your work? This article may help.

Like every article on this website, this is not personal financial advice. For business tips, visit business.gov.au. For tax tips, visit ato.gov.au.