Many Australian companies are preparing for greater compliance scrutiny as the financial year comes to an end. The Australian Tax Office (ATO) has marked several areas of key approach to fiscal year 2014-25, including expired tax debts, work-related expenses, capital gains and rental income.
(1) Failure to comply in these areas can lead to substantial sanctions, interest charges and even legal actions, since repeated late accommodations can cause increased fines, while unresolved tax debts could trigger notices of shipping or legal procedures. (2) This serves as a timely reminder for companies of all sizes: take the end of the financial year (EOFY) seriously or the risk of facing serious consequences.
Fabian Calle, managing director, small and medium enterprises, SAP Concur Australia and New Zealand, said: “Companies with inconsistent record maintenance, unclear financial workflows or unpaid obligations are more likely to attract attention. ATO has invested in advanced tools for artificial data combination and intelligence (AI). Processing.”
Key approach areas for fiscal year 2000-25
The most common weaknesses during Eofy tend to reduce two things: disorganized processes and incomplete information. It is easy to lose valid deductions when receipts are dispersed in the entrance trays or stored on personal devices, since manual reconciliation can take days for financial equipment. Payments to suppliers can also pass cracks when approval workflows are not clear or do not follow consistently. These problems may seem less isolated; However, they often reflect deeper structural problems in how expenses and invoices are managed.
Fabian Calle said: “Now is the time to close those gaps. Companies must begin by gathering complete records of income, expenses, assets and liabilities. Financial personnel must go beyond the general accounting books and earnings and loss of profits, and carefully review the replacement claims of payments, subscription costs, software expenses and travel records and travel records.
“It is also important to verify if claims are aligned with ATO expectations. For example, ATO has again emphasized that work deductions from home must reflect real use, do not estimates them. It also continues to highlight common errors in rental income reports and capital gains statements. These areas are under surveillance of close surveillance and discrepancies are more difficult to defend when documentation is more Pathers “.
Compliance is only part of the Eofy image. Cybercriminals direct financial teams with scams with fiscal issues at this time of year. According to the Competition and Consumer Commission of Australia (ACCC), the Australians lost more than $ 152 million due to payment scams in 2024, compared to $ 91.6 million the previous year, which makes it one of the five types of main scams for financial loss. (3) This highlights the need for stricter controls. Business leaders must review who has approval access, how and where confidential documents are stored, and the process used to verify the supplier’s details. It is also essential to validate that all those involved in payments or account management understand these risks and are trained to detect suspicious activities.
Automation can be your Eofy advantage
Companies that wish to reduce the risk and simplify EOFY reports can obtain immediate profits by automating expenses and invoices management. Automation tools reduce dependence on spreadsheets and email chains while consistent rules and approval flows simultaneously apply, which helps equipment to process claims faster and less errors. This gives companies of all sizes a clearer visibility for spending and more precise data for compliance and strategic planning reports.
Companies can change their focus on FY25–26 ahead once EOFY’s obligations are completed. In particular, the electronic invocation will become mandatory for all the agencies of the Commonwealth and its suppliers from July 1, 2025. Adopting this early can help companies reduce processing times, reduce operating costs and improve cash flow.
Fabian Calle said: “The beginning of the financial year is the ideal time to step back and evaluate what is working and what needs improvement. Delays in the approval, the difficult reports to produce or the unclear expenses are signs of problems of deeper processes. Now it is the time to solve them. EOFY is an opportunity for companies of all those who improve expenses of expenses, reports, and decisions are improvements.
References:
(2) https://www.ato.gov.au/individuals-and-families/paying-the-ato/if-you-don-pay
(3) https://www.scamwatch.gov.au/system/files/targeting-scams-report-2024.pdf
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