Tax time can be a stress period for many small business owners. We are here to make that easier for you by having a detailed checklist so you can be organised when it gets to the end of the year. This will make tax season become manageable as well as providing further opportunities with improving cashflow.
This checklist outlines the key steps that small business owners should undertake to prepare for tax time efficiently for 30 June 2026.
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Reconcile your accounts
First step is ensuring that all of the accounts are fully reconciled. This will provide you a clear picture of the business’s financial position and performance. Make sure everything is reconciled up to 30 June, including:
- All business bank accounts
- All business credit cards
- All invoices and bills are entered and reconciled correctly.
It is important to make sure that the bank reconciliation in your software has no variances and when you check your invoices and bills these are all accurate.
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Collect and organise receipts
Ensure that you have receipts for your expenses. Without proper records, actual deductions could be lost if there is an ATO audit. To keep up to date with your receipts, there are digital storage options available:
- Hubdoc
- Xero
- MYOB
It is also important to upload receipts regularly and not wait until the end of the year. Make sure you have a system in place. Do this once a week, fortnight or month depending on the scale of your business.
Categorise your expenses by their type. Try not to use ‘General Expenses’. For example, if you pay for your motor vehicle registration, categorise this to your ‘Motor Vehicle Expense’ account. If you have any office expenses, put this to the ‘Office Expense’ account rather than general expenses.
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Review your Deductions and Write offs
This time of year, is the best time to review your deductions and ensure nothing is missing or categorised incorrectly. Common deductible expenses to be reviewing are:
- Unpaid invoices from clients – write these off if you are not going to receive payment
- Review any large equipment purchases, i.e have they been recorded correctly
- Review any entertainment / staff amenities and you have all expenses classified in the correct accounts
- Review your insurance payments to ensure that the GST claimed on the invoice is correct
Review super and employee obligations
If you have employees, you need to make sure that you understand the employer obligations and make sure all obligations have been met. This includes:
- All super contributions are paid
- Ensure all payroll information is accurate and up to date
- Checking that all PAYG withholding has been paid correctly on the employee wages
Any unpaid superannuation or superannuation that is paid late, this will be not tax deductible. It will result in penalties with the ATO and you will need to lodge Superannuation Guarantee Charge (SGC) forms.
For any PAYG Withholding that was not paid correctly, please ensure you lodge amended BAS’s or IAS’s to get the payments up to date.
Prepare your financial reports
Keeping your reports up to date is important. It will help you and your accountant assess the business and address any tax issues. Ensure that you have the following completed:
- Review accounts receivable and write off any bad debts
- Review accounts payable for any errors and ensure all payments are made if due
- Complete a stoke take at 30 June to show the stock you have on hand
Check for ATO updates
The tax rules and thresholds can change year to year. Make sure that before you are lodging returns, ensure you are aware of any updates from the ATO that may affect yourself personally or your business. These could include:
- Changes to tax rates and thresholds
- Changes to deadlines with your lodgements
- Updated compliance requirements
By being informed with the above you will avoid any penalties or risks of error.
Check in with your accountant
Lastly, ensure that you speak with your accountant before the end of financial year. Communicating with your accountant will lead to a less stressful time when it comes time to prepare your tax.
By checking with your accountant, you will be able to implement any strategies from a tax planning meeting. This will also make sure you understand all deadlines and requirements for this financial year as well as making sure there are no errors in your records.
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