Are You Ready for the End of Financial Year?

With just weeks to go until the end of the financial year, it’s time to start preparing your admin.

As a contractor, if you’ve been working with more than one employer, this may not be as straightforward as you’d like.

But that definitely doesn’t mean you should ignore it. Instead, here’s what you can do.

Sort Out Your Deductions

Carefully review your transactions throughout the year. Depending on what you do for work you might find there are all sorts of opportunities for deductions: subscriptions, uniforms, ride share trips, tools, safety glasses, travel for the purpose of work may all be deductible.

Account for Working from Home

With a clear record of the hours you’ve worked at home, you may be able to claim for your home office expenses – like stationery, energy and office equipment, as well as the decline in value of depreciating assets you use for work such as an office chair and desk. You can also claim for repairs and maintenance to depreciating assets.

Gather Your Receipts

Start looking through your emails and folders now for receipts from purchases and suppliers that you’ll need to substantiate your deductions.

Make a Few Donations

If you’ve forgotten to donate to charities during the year, now’s the time – just make sure you check the deductible status of each charity before doing so and keep your receipts or record of your payments.

Boost Your Superannuation

If you’ve got any free cash sitting around, slip it into your superannuation. Not only can it reduce your tax, but you’ll also be making a solid contribution towards your retirement.

There are two types of superannuation contributions:

Concessional contributions are contributions made into your super fund before tax. They are taxed at a rate of 15% in your super fund.

Non-concessional contributions are from your after-tax income and not taxed in your super fund.

There are also a few things to remember:

If you’re on a low income, and you make extra payments to your super fund, you may be eligible for extra contributions from the government.

If you’re on a high income, it’s important to know that there are limits to how much you can pay into your super fund each financial year without having to pay extra tax. These limits are called ‘contribution caps’.

How much you can contribute to your super fund and whether your fund is allowed to accept your contribution may also depend on your age and total super balance.

Consider Spending

The end of the financial year is a good time to purchase any work or business-related items, like computers, subscriptions, association memberships etc as you can include them as expenses on this year’s tax return. There may be some membership fees that you can pay in advance.

Start Preparing Your Accounts

To avoid feeling stress when your accountant calls for your end of year paperwork, start preparing now. Export and compile reports on your income, expenses, assets, liabilities, sales and revenue, download your bank statements, put all your receipts together. Get it all as close as you can to finished before the financial year ends, and while everything is fresh in your mind. You’ll thank yourself for it later.

Check In with Your Accountant

Tax time is the busiest time for your accountant, so make a plan to check in with them now. They’ll provide you with some tailored advice to help you make the most of your financial situation, and to ease the burden at tax time.

Need Help?

As a contractor with The Ayers Group, don’t forget to take advantage of our sophisticated online tools to help prepare for tax time. Access our dashboard for all your contracts and timesheets, payslips, expenses, claims and personal data – it’s all there in one secure, user-friendly place.

And, if you need an accountant, just ask us to connect you with one. After more than 20 years in the business, we have a solid network of reputable professionals who can guide you through this process and help you grow your wealth in the future.