When it’s the end of the financial year, it’s crucial to reflect, check, and plan your finances effectively. Whether you are a business owner, a salaried individual, or an investor, the End of Financial Year (EOFY) is a significant point in your financial calendar. It’s the time when your financial statements are finalised and income tax returns are lodged. However, you need to consider one thing very seriously: Is your accountant meeting with you to go through your EOFY financial statements and tax returns? If not, it’s worth asking, why not?
An end-of-financial-year is not just a responsibility, it’s a strategic session that can provide a better direction to your financial future. Let’s explore why these meetings are not just valuable, but essential.
The Importance of Working with an Accountant at EOFY
Working with an accountant at the End of the Financial Year provides far more than a simple review of documents. They help transform raw financial data into actionable insight. Here’s what you get from working with your accountant at this critical time:
- Gain Clarity and Insight
Working with an accounting firm will ensure that you simplify financial data. It’s a great opportunity to gain clarity on your financial position by engaging a professional accountant who will break down the figures into understandable insights. Basically, this allows you to see beyond the numbers and understand what they truly mean for your business or personal financial future.
- Identify Opportunities and Challenges
A thorough EOFY discussion with an accountant will reveal valuable tax planning strategies, areas of risk that need to be addressed, and restructuring opportunities. Whether it’s increasing deductions or reducing financial risks, these insights can directly influence your outcomes in the following year. Despite this, if you are looking for information on 401k vs superannuation, you can read our blog.
- Strategic Planning for the Year Ahead
End of Financial Year is not solely about closing your business books, it’s the right moment to set goals for the next financial year. An accountant can help in developing a strategic financial roadmap, which might include investment planning, budgeting, or cash flow management.
- Ensure Accuracy and Compliance
An EOFY review ensures your tax returns are accurate and compliant with current regulations. This minimises the risk of audits, penalties, or unnecessary scrutiny from tax authorities, giving you peace of mind that everything is in order. When lodging tax returns, you must have accurate records to support the claim you are applying for. With access to bookkeeping in Melbourne, you can have accurate records throughout the year, which help you and an accountant at the time of tax return lodgment.
- Ask Questions and Concerns
When you work with an accountant, this time means you can raise any concerns or uncertainties. Whether you are confused about a specific deduction or worried about cash flow, your accountant is there to provide clarity and guidance. EOFY is not just about compliance, it’s an opportunity to build your financial future with clarity and confidence. Make sure you are making the most of it.
You can enjoy numerous advantages by engaging professional accountants in your business, especially when it comes to reducing your tax and increasing your tax benefits. They know what the tax rules are and when they are likely to change. They can suggest claiming deductions for expenses, such as bills or rent.
The Australian Taxation Office (ATO) requires you to lodge an income tax return by 31 October each year. If you fail to file an income tax return by the specified date, it can result in ATO penalties such as interest charges and late lodgment penalty fees.
Conclusion
The blog shares the significance of involving a professional accountant for a year-end tax review. You can also speak to Reliable Melbourne Accountants if you find it difficult to stay updated on ever-changing tax laws.