June is a great month to review contracts, equipment and fixed assets so your business keeps running smoothly, and make sure your customer service is keeping customers coming back for more.
EOFY tax obligations for employers
At the end of the financial year, employers have two main obligations:
- give your employees, workers and other payees a pay as you go (PAYG) payment summary showing the payments you made to them and the amounts you withheld from those payments during the financial year by 14 July
- send the ATO a PAYG payment summary annual report by 14 August. Sending it earlier makes it easier for your employees to lodge their tax returns as the ATO uses this information to pre-fill their tax returns.
From 1 July 2018, if you have 20 or more employees, you need to use payroll software that is enabled for Single Touch Payroll. You will report your employees’ salaries and wages, PAYG withholding and super information to the ATO each time you run your payroll and pay your employees.
If you operate an employee share scheme you must provide an ESS statement to your employees by 14 July and lodge an ESS annual report by 14 August.
Of course, there are other end-of-year obligations you will have as a business, for example lodging an income tax return to report your business income and claim business-related deductions. What you need to report, by when and how you lodge the annual tax return for your business depends on your type of business entity.
Find out more about your end-of-year obligations on the ATO website:
- PAYG payment summaries
- Make sure you're reporting through Single Touch Payroll (STP)
- Employee share schemes
- Reports and returns
Review equipment and fixed assets
Keep your business equipment and assets in good running order to avoid losing revenue or unexpected replacement costs if they break down.
How to review equipment and fixed assets
- Make a list of the equipment and assets of the business – review your bookkeeping system and print the list.
- For each item on the list, do a physical check on operational effectiveness.
- Note any items in immediate need of maintenance
- Highlight items that require spare parts that can be stocked, and ensure adequate parts are available.
In addition to this review, part of the ongoing operations of your business:
- regularly maintain equipment and assets – have a maintenance schedule that ensures a person is responsible for maintenance of all key assets
- for high value assets, ensure they're covered by warranty or insurance
- keep an asset register which has all the relevant details such as purchase date and price, location, maintenance schedule and spare parts required.
Review key business contracts
Understanding your business contract responsibilities will ensure there are no surprises to your business operations that could result in interruptions and loss of revenue.
How to review key business contracts
- Review all key contracts in the business – such as leases, hire purchase agreements, staff contracts, insurances, rentals, utilities – against business needs.
- For each contract, make a list of any compliance requirements and put key dates in your diary.
- Assign responsibility to staff to ensure each compliance requirement is met – include these compliance tasks in your financial policies and procedures manual.
- If during the review you discover possible changes or improvements, negotiate with the supplier for these changes.
When managing business contracts and compliance:
- keep all key business contracts filed together in a safe, easy accessible place – consider keeping copies offsite so you have a back-up in case of fire or another emergency crisis
- where compliance requirements are assigned to a staff member, regularly check they're meeting the requirements
- read the entire contract and make sure you understand what's required from the business – if there are words or terms you're not sure of, ask for an explanation
- think about any potential problems that may arise in your business – consider the impact on your major contracts and then discuss these with the supplier.
Review customer service
The success of your business relies on good customer service that entices customers to return and tell their friends about your business.
How to review customer service
- Look at all key features of your customer service and how it's delivered – such as enquiries, orders, sales and packaging, and deliveries.
- Have a policy and procedure in place to ensure all staff provide consistent good customer service.
- Maintain regular contact with your customers through email newsletters or other tools – keep them up-to-date with information such as new products and services, or specials.
When reviewing your customer service:
- understand what's important to your customers – keep a database with details of purchases and orders to make sure you know what your customers want
- be sure to have a marketing strategy in place so you're using the right communication tools to reach your customers
- consider implementing a loyalty program to reward your regular customers.