2020 TAX CHECKLIST€¦ · Copy of PAYG Payment Summary Statement, and PAYG Payment Summaries...
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Accounting & Tax Bookkeeping Auditing Business Solutions Financial Services 2020 TAX CHECKLIST for businesses sole trader, partnerships, trusts & companies This list is to be used as a guide to assist you in compiling the information needed to prepare your 2020 income tax return. Some items may not be relevant to you. PLEASE COMPLETE THE RELEVANT PARTS OF THIS FORM AND RETURN IT TO PROPEL BUSINESS GROUP WITH ALL SUPPORTING DOCUMENTS. FORWARD THINKING
Transcript of 2020 TAX CHECKLIST€¦ · Copy of PAYG Payment Summary Statement, and PAYG Payment Summaries...
A c c o u n t i n g & T a x
B o o k k e e p i n g
A u d i t i n g
B u s i n e s s S o l u t i o n s
F i n a n c i a l S e r v i c e s
2020 TAX CHECKLISTfor businessessole trader, partnerships,
trusts & companies
This list is to be used as a guide to assist you in compiling the information needed to prepare your 2020 income tax return. Some items may not be relevant to you.
PLEASE COMPLETE THE RELEVANT PARTS OF THIS FORM AND RETURN IT TO PROPEL BUSINESS GROUP WITH ALL SUPPORTING DOCUMENTS.
F O R W A R D T H I N K I N G
F O R W A R D T H I N K I N G
2020 TAX CHECKLIST for bus inesses
Please complete the checklist below relevant to the accounting solution used:
2.1 XERO CHECKLIST
If using a cloud based accounting solution, such as Xero, please confirm all entries have been made for the financial year and ensure we have been set up as a user.
Refer to the following link for year end checklist: http://help.xero.com/au/#Q_YearEnd
2.2 MYOB CHECKLIST
If using MYOB, please complete the following checklist.
2.3 OTHER ACCOUNTING SOFTWARE
Please complete the following checklist.
PLEASE COMPLETE AND RETURN TO PROPEL BUSINESS GROUP WITH ALL SUPPORTING DOCUMENTS.
Please take care when completing this checklist as the responsibility for the accuracy and completeness of the particulars and information provided by you rests with you.
Any advice given to you is only an opinion based on our knowledge of your particular circumstances. You have the obligation under self-assessment to keep full and proper records to facilitate the preparation of accurate returns.
If you need any assistance with the checks below please contact us on (08) 9440 7100.
Please ensure that:
A rollover to the new year has NOT been performed. (If a rollover has been done then any adjustments that we may require you to enter can not be entered)
Your MYOB data file has been locked (Important)
This ensures that transactions are not accidently entered in the financial year being finalised. Your version of the data must remain the same as the version you are forwarding to us. If you find that an adjustment is required, please advise us.
To lock your file to June:
1. Go to “Setup” menu and click the “Preference” option
2. Select “Security” tab
3. Ensure the “locked period function” is ticked and specify the period to June 30
PLEASE COMPLETE AND RETURN TO PROPEL BUSINESS GROUP WITH ALL SUPPORTING DOCUMENTS.
Please take care when completing this checklist as the responsibility for the accuracy and completeness of the particulars and information provided by you rests with you.
Any advice given to you is only an opinion based on our knowledge of your particular circumstances. You have the obligation under self-assessment to keep full and proper records to facilitate the preparation of accurate returns.
MYOB CHECKLIST
Feel free to get in touch with us. We are available to chat using any of the options below.
Face to Face Appointments
Zoom Online Appointments
Over the Phone
Email Us
F O R W A R D T H I N K I N G
IncomE / EXPENSE DETAILSATTACHED(Y, N, N/A) COMMENTS
RECONCILIATION OF BANK/LOAN APPLICATIONS
1. Check the figure per the banking reconciliation report matches the bank statement at 30th June for all bank accounts
2. Check the loan account balance per the balance sheet matches the bank statement at 30th June for all loan accounts
3. Check the credit card account balance per the Balance Sheet matches the credit card statement at 30th June for all credit cards
4. Confirm the petty cash account per the Balance Sheet is correct
GST AND OTHER TAX PAYMENTS
5. Check payments to the ATO have been coded correctly. Note: BAS payments can be made up of many different components which need to be seperately coded; these may include:
• GST collected• GST paid• PAYG withholding• PAYG instalments• FBT instalments
6. Check the balance on the GST collected and GST paid accounts match the GST summary report as at 30th June
7. Check GST has been included on any assets disposed of in the year to 30th June
8. Check GST has not been claimed on expenses which are exempt from FBT e.g. entertainment
9. Review the GST detailed report and check all transactions have been coded correctly for GST purposes
10. Check the PAYG withholding (tax on wages) balance matches the payroll activity report for the month/quarter ended 30th June
BALANCE SHEET ITEMS
11. Review the Receivables Reconciliation Summary as at 30th June and confirm no bad debts
12. Have all asset purchases been coded to the asset account and not an expense account? Note: generally an asset is a purchase which has a useful life of more than 12 months, e.g. computer, office furniture
13. Review the Purchases Reconciliation Summary at 30th June and confirm all balances considered payable
14. Check superannuation creditor per the balance sheet to the Payroll Activity Summary for the month/quarter ended 30th June
15. Check hire purchase payments been recorded against the relevant liability accounts on the Balance Sheet
2020 TAX CHECKLIST for bus inesses
F O R W A R D T H I N K I N G
INCOME AND EXPENSE ITEMS
16. Check items included in repairs and maintenance expense accounts on the Profit and Loss are not capital in nature
17. Review sundry/miscellaneous expenses and provide further detail where necessary
18. Confirm all travel is related to the business
19. Check Wages & Salaries account on the Profit and Loss account match the Payroll Activity Summary for the year to 30th June
20. Check superannuation expense on the Profit and Loss matches the superannuation per the Payroll Activity Summary for the year to 30th June
21. Confirm subcontractor payments will not be considered employee payments by the ATO? Decision tool can be found on the ATO website or by clicking here
22. Check if FBT employee contributions need to be included for the year to 31st March
23. Check you have provided the following documentation:
Data file (emailed or thumb drive). Please provide version number, login details and password
Bank statement with bank reconciliation report as at 30th June
Loan statement as at 30th June
Credit card statement as at 30th June
Invoices for legal fees
Invoices for large expense and fixed asset items
Explanation of unusual items
Copies of new Hire Purchase/lease contracts or HP/lease calculation schedules
Details of fixed asset and motor vehicle purchases and sales including date and cost price, OR copy of depreciation schedule (if not prepared by us). Advise if you have self assessed the effective life of any fixed assets or motor vehicles
Closing stock as at 30 June (exclusive of GST). Value at lower of cost and net realisable value
Copy of FBT return and schedules (if not prepared by us)
Details of Research and Development expenditure
Share transaction details (Date of Purchase & Sale, Quantity, Cost & Proceeds)
Dividend income statements for dividends received
Trust distribution tax statements for trust distributions received
2020 TAX CHECKLIST for bus inesses
F O R W A R D T H I N K I N G
Copy of PAYG Payment Summary Statement, and PAYG Payment Summaries issued at year end to your employees
To determine income tax implications, please provide general ledger reports and full details of:
Any prepayments made. i.e. expenses paid in advance which span two financial years
Accruals account
Repairs & maintenance
Donations
Entertainment expense
Subscriptions
Gifts
FBT expense
Provision accounts
Provision accounts
2020 TAX CHECKLIST for bus inesses
Your interest is our interest!Feel free to get in touch with us. We are available to chat using any of the options below.
Face to Face Appointments
Zoom Online Appointments
Over the Phone
Email Us
IncomE / EXPENSE DETAILSATTACHED(Y, N, N/A) COMMENTS
RECONCILIATION OF BANK/LOAN APPLICATIONS
1. Check the figure per the banking reconciliation report matches the bank statement at 30th June for all bank accounts
2. Check the loan account balance per the balance sheet matches the bank statement at 30th June for all loan accounts
3. Check the credit card account balance per the Balance Sheet matches the credit card statement at 30th June for all credit cards
4. Confirm the petty cash account per the Balance Sheet is correct
GST AND OTHER TAX PAYMENTS
5. Check payments to the ATO have been coded correctly. Note: BAS payments can be made up of many different components which need to be seperately coded; these may include:
• GST collected• GST paid• PAYG withholding• PAYG instalments• FBT instalments
6. Check the balance on the GST collected and GST paid accounts match the GST summary report as at 30th June
7. Check GST has been included on any assets disposed of in the year to 30th June
8. Check GST has not been claimed on expenses which are exempt from FBT e.g. entertainment
9. Review the GST detailed report and check all transactions have been coded correctly for GST purposes
10. Check the PAYG withholding (tax on wages) balance matches the payroll activity report for the month/quarter ended 30th June
BALANCE SHEET ITEMS
11. Review the Receivables Reconciliation Summary as at 30th June and confirm no bad debts
12. Have all asset purchases been coded to the asset account and not an expense account? Note: generally an asset is a purchase which has a useful life of more than 12 months, e.g. computer, office furniture
13. Review the Purchases Reconciliation Summary at 30th June and confirm all balances considered payable
14. Check superannuation creditor per the balance sheet to the Payroll Activity Summary for the month/quarter ended 30th June
15. Check hire purchase payments been recorded against the relevant liability accounts on the Balance Sheet
F O R W A R D T H I N K I N G
other accounting software
2020 TAX CHECKLIST for bus inesses
INCOME AND EXPENSE ITEMS
16. Check items included in repairs and maintenance expense accounts on the Profit and Loss are not capital in nature
17. Review sundry/miscellaneous expenses and provide further detail where necessary
18. Confirm all travel is related to the business
19. Check Wages & Salaries account on the Profit and Loss account match the Payroll Activity Summary for the year to 30th June
20. Check superannuation expense on the Profit and Loss matches the superannuation per the Payroll Activity Summary for the year to 30th June
21. Confirm subcontractor payments will not be considered employee payments by the ATO? Decision tool can be found on the ATO website or by clicking here
22. Check if FBT employee contributions need to be included for the year to 31st March
OTHER QUERIES
23. Check you have provided the following documentation:
a) If you use an accounting program (MYOB, Quicken, Cashflow Manager etc), a copy of the data file (emailed or via USB drive)is required. Please also include version number, login details & password.
b) If you use other programs or manual systems, a copy of the Trial balance (with account numbers) and Financial Statements (showing this year and last year figures) is required.
Bank statement with bank reconciliation report as at 30th June
Loan statement as at 30th June
Credit card statement as at 30th June
Creditor listing as at 30th June and agreed to general ledger control
Debtor listing as at 30th June and agreed to general ledger control
Invoices for legal fees
Invoices for large expense and fixed asset items
Explanation of unusual items
Copies of new Hire Purchase/lease contracts or HP/lease calculation schedules
Details of fixed asset and motor vehicle purchases and sales including date and cost price, OR copy of depreciation schedule (if not prepared by us). Advise if you have self assessed the effective life of any fixed assets or motor vehicles
Closing stock as at 30 June (exclusive of GST). Value at lower of cost and net realisable value
F O R W A R D T H I N K I N G
2020 TAX CHECKLIST for bus inesses
Copy of FBT return and schedules (if not prepared by us)
Details of Research and Development expenditure
Share transaction details (Date of Purchase & Sale, Quantity, Cost & Proceeds)
Dividend income statements for dividends received
Trust distribution tax statements for trust distributions received
Copy of PAYG Payment Summary Statement, and PAYG Payment Summaries issued at year end to your employees
To determine income tax implications, please provide general ledger reports and full details of:
Any prepayments made. i.e. expenses paid in advance which span two financial years
Accruals account
Repairs & maintenance
Donations
Entertainment expense
Subscriptions
Gifts
FBT expense
Provision accounts
Provision accounts
F O R W A R D T H I N K I N G
2020 TAX CHECKLIST for bus inesses
