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End of financial year is approaching fast. Here is how a business can prepare?

EOFY is the 30th June and it is nearly arrived. Here are 10 tips on how to prepare your business accounts for the end of the financial year.

 

  1. Reconcile your wages and PAYG for the year. Take the time to review your employee contracts and awards. Enter termination dates and make any employees that are not working in the business inactive. Check that the current employees have correct details in their cards before you complete the STP finalisation event. Before your first pay run for the new financial year make sure that the award rates for staff are correct as there may have been an increase in the minimum wage.
  2. Superannuation – Lodge and pay your super as soon as you complete the last pay run for the year as the super fund must receive the monies before 30th June to be able to claim the deduction for the current year. Make sure that your super reconciles for the financial year. Also, keep in mind the concessional caps for super for the financial year. Here is the ATO link. 
  3. Bad Debts – Review your aged receivables report and if there are monies that are owed to you and you have tried repeatedly to be paid and there is no chance of the monies to be recovered. Then you will need to write these off as bad debts. Remember there are conditions surrounding bad debts. Here is a link to the ATO website for more information. https://www.ato.gov.au/Business/Income-and-deductions-for-business/Deductions/Deductions-for-unrecoverable-income-(bad-debts)/
  4. If you are on a cash basis try to pay all your suppliers before 30th June to ensure maximum expenses are claimed.
  5. Are you a small business (SBE) and you need to purchase equipment or a Motor Vehicle? Check out the ATO link if you are considering purchasing this prior to 30th June for the instant asset write-off. 
  6. Prepare your paperwork for all assets purchased in the current financial year. If you use software such as Xero, MYOB or Quickbooks then attach the invoices to the individual transactions.
  7. Stocktake and inventory – If your business holds stock, a stocktake should be completed for 30th June this will ensure that the business has the correct stock on hand for the new year.  If there is missing stock or stock that shouldn’t be on hand, corrective action will need to be taken.
  8. Taxable Payments Annual Report – Does your business have to lodge the Taxable Payments Annual Report for contractors?  Check that the ABN and business details for your contractor are correct and match the ABN Lookup.  Reconcile your Contractor’s reports to the Taxable Reporting Summary.
  9. Suspense or unanswered queries – Make sure that if there are any queries surrounding transactions in your business that you have the necessary paperwork to resolve these queries.
  10. Remember to reconcile all accounts such as:
    1. Super
    2. Taxable Payments Annual Report
    3. PAYG Withholding
    4. Bank Accounts
    5. Credit Card Accounts
    6. Loan Accounts

 

If you are needing help with any of these tasks or would like a review of your file. We have experts able to assist you. Contact us.

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