The EOFY checklist every sole trader needs right now
Ready to get organised for tax time? We show you how Solo by MYOB can help.
Sponsored by Solo by MYOB. With Solo by MYOB for sole traders, you can get accurate data reconciliation, automated expenses and secure access from anywhere. Visit the MYOB website to learn more.
The end of the financial year is almost here. So if you're a sole trader, that means getting your finances and paperwork organised for tax time.
The good news is that it doesn't have to be daunting. Below, we'll take you through a checklist of some of the must-dos.
We'll also show you how having Solo, an app specially designed by MYOB for sole traders, in your arsenal can help make the process smoother.
❑ Invest in the right software tools
When you're running your own business as a sole trader, all of the responsibility for tax and administration sits with you.
That includes getting yourself organised when it comes to:
- Reporting
- Invoicing
- Tax management
- Paying GST
- Forecasting
- Liaising with your accountant
And of course, that's just the tip of the iceberg!
So it makes sense to look for a solution that brings together all of your business admin in one place. Solo by MYOB is a unified business app that lets sole traders organise a whole range of business admin while on the go.
When used correctly, it provides you with a source of truth and streamlines your processes. This way you're setting yourself up for success and freeing up time to grow your business and service your clients. You've got more control, instead of simply "setting and forgetting".
It also means that you're putting effective procedures in place if you ever decide to grow beyond operating as a sole trader.
❑ Organise your business expenses
As the old saying goes, you've got to spend money to make money. But you should also keep track of what you're spending, and make sure you claim it back on tax where appropriate.
Some of the most common things sole traders tend to claim include:
- WFH setups
- Travel
- Computing equipment
- Smartphones
- Internet bills
- Phone bills
When you don't have an effective system in place, it's very easy to end up with stacks of torn and faded receipts, spread across multiple locations. That's no good to anyone, especially when the end of the financial year hits!
However, Solo by MYOB lets you simply snap a photo, upload and then automatically categorises and organises it for you.
Having access to this type of feature lets you register expenses as you go throughout the year, and on the fly. That means you don't need to worry about blocking out a whole afternoon to sort through a stack of old, unorganised receipts!
Solo's AI-powered smart matching also automatically matches your business transactions and can suggest specific categories.
It cross-checks payments against your outstanding expenses and invoices. You can then review it, determine if it's right for you and categorise accordingly. Additionally, the more you use smart matching, the more easily it's able to spot your preferences and categorise transactions accurately in the future.
❑ Get your GST credits sorted
If you're collecting GST on your transactions as a sole trader, you may be eligible for GST credits.
You can read more about the specifics on the MYOB website, but one thing to keep in mind is that Solo by MYOB can actually help with this process.
Solo by MYOB automatically includes GST with each transaction, so you're easily able to prepare the relevant reports at tax time.
❑ Chase up unpaid invoices
If you're still waiting on outstanding payment, or more likely, payments, it's a good idea to get them sorted before June 30. Pushing back payment to the new financial year can be a pain at tax time, not to mention the potential cash flow issues it can cause.
Of course, this can be time-consuming and you've probably already got plenty on. On top of that, you don't want to feel like you're being pushy with clients.
The good news is that Solo by MYOB can actually do the chasing for you.
Solo allows you to design, customise and generate invoices and can then send automated reminders for you.
That means you save time, hours of paperwork, awkward calls and avoiding the runarounds.
❑ Book an appointment with your accountant
Last, but definitely not least, it's time to check your schedule and go see your accountant.
Obviously the sooner you do it, the better. But you do have some time if you're wanting to use Solo by MYOB to get organised.
As a sole trader, you'll have until March next year if you're lodging with a registered accountant.
Solo by MYOB helps create accountant-ready reports. And then when you're ready to meet with them, you can simply give them access to your Solo account. They'll be able to access the relevant files in order to lodge your tax return.
Learn more about how Solo by MYOB can benefit your business and sort your admin, all in the one place.
Sponsored by Solo by MYOB. With Solo by MYOB for sole traders, you can get accurate data reconciliation, automated expenses and secure access from anywhere. Visit the MYOB website to learn more.