As the final day of May rapidly approaches, it's time to get ready for EOFY 2023!
As always, remember this is the time of year to chase up your outstanding invoices from customers. For those clients who invoice customers, keep an eye out for a list of those I have in Xero. If you have received payment on any of those I have sent through, please let me know when and how this was paid. Often, if payments have been received in store by EFT, I won't know to apply those payments.
Pay your Bills
The same goes for your bills which you owe your suppliers. Again, for clients who provide those bills to me prior to payment, I will send a list of those I have outstanding. If any of these have been credited by your supplier, or paid by cash, again, let me know so I can ensure this information is updated in your Xero file.
If you have staff, to maximise your tax deductions, it's always a good idea to pay any superannuation accrued before the end of the year. Remember, the payment date is not the date the funds leave your account, but the date they are received by the super fund.
Xero have announced that in order to make the EOFY cutoff for Super, payments must be authorised before 14 June 2023. For those smaller businesses which pay their Super via the ATO small business super clearing house, you have a bit more time up your sleeves. Their deadline has not yet been published, and I will let you know once I have that information.
I will get in touch with those clients I have who have staff early in June to find out if you want to take advantage of this deduction.
Finally, don't forget to do a stocktake and let me know the figures (ex GST) so that I can update that information for your accountant going into the new year.
From July 2023...
As always, coming into July, there will be some legislative changes with the annual pay increase and Superannuation Guarantee Changes.
As yet, there is no word from Fair Work Commission about the annual pay increase, but this will be communicated as soon as I get the word from them. If you have staff, please be prepared for this. Edited to update that this has now been announced. See my post here for more information.
As you know, Superannuation Guarantee is set to increase again from the current 10.5% to 11% from 1 July. I've not had confirmation from Xero at this stage, but I would suggest that as long as you have set up your super rate as the "Statutory Rate" it will be updated automatically again. For other software users, please check with your software provider if this needs to be manually updated.
Some of you may have seen the announcement in the recent budget, that payday super is coming. At this stage, there is nothing you need to do, however, if you manage a tight cashflow, now might be a time to start getting some reserves up to be ready for this.
Essentially, what the Government is proposing, that when you pay your staff, superannuation payments must be made at the same time to the relevant staff funds. Of course, there will be lots of questions about the software capability to do this, and I'm sure all major companies will be meeting with the ATO in the future to come up with a solution. Whilst this is slated to be mandatory from 1 July 2026, expect it to commence sooner.