Mandatory requirements for all small business owners with employees

• Provide employees with Payment Summaries before 14 July. Review your payroll data with the general ledger to ensure results match prior to issuing payment summaries.  If results do not match check pay run history and make any necessary adjustments.  This is also a good time to ensure the annual leave entitlements for all employees are accurate.
• Lodge the PAYG Withholding Annual Report as soon as you provide payment summaries. It makes it easier for your employees to lodge their tax returns.   The ATO uses this information to pre-fill employee tax returns.  This annual report is due on 14^th August and provides information on the wages, salaries and other work-related payments you have paid over the financial year.
• Within your accounting software, close the payroll period and update the tax tables. The accounting software you use will provide you with updates which include new tax tables. Start the new financial year on the right track and when completing your first pay run check that you are using the current PAYG withholding rates for your employees with the ATO tax tables.
• Payments for the quarterly superannuation period ending 30^th June are due on 28 July 2016. All small businesses (19 or fewer employees) must have meet the SuperStream standard by 30^th June 2016.  To be compliant small businesses need to pay super contributions for your employees electronically (EFT or BPAY) and send the associated data electronically. The ATO has provided compliance flexibility to small businesses not yet SuperStream ready, until 28 October 2016.  The ATO will not be taking compliance action against small businesses that missed the 30 June deadline.
• If you are registered to lodge Payroll Tax, you must submit wage details every month, even if you do not have a payroll tax liability. Since employers self-assess their liability on a monthly basis all employers must lodge an annual reconciliation by 21^st July each year.
• Lodge any outstanding BAS Statements as the ATO cannot process refunds until all your lodgements are up-to-date. The Business Activity Statement for the period ending 30^th June 2016 , is due on the 28^th July 2016.  Ensure the final BAS lodgement for the year adjusts for any errors made in the previous three BAS submissions.

Best practice year-end processes

• Check and ensure the accuracy of the records in your company file.
• Reconcile all bank, petty cash, loan and credit card accounts ensuring that the bank account balances in your company file match your bank’s records.
• Check that all tax invoices dated on or before 30^th June 2016 have been entered in the accounting software. Review any credit notes and purchase orders.
• Check that all invoices have been entered for services provided on or before 30^th June 2016. Send out statements to customers who have outstanding balances.
• Review the fixed asset register to ensure all assets are included. When the financial year records are finalised depreciation journals can be correctly applied.
• Perform an inventory stocktake and record any adjustments for the inventory items.
• Identify and write off bad debts as they will offset your taxable income.
• Run reports to identify and correct discrepancies in your records.

Once the financial records for the year have been accurately recorded, verified and finalised, reports can be generated to evaluate the performance of your business.  These reports are of interest to not only the managers and shareholders but also investors, lenders and creditors.