Joanne Porter, First Class Financial Group
Your end of financial year checklist
With the end of the financial year looming for June 30, many small business owners are likely to spend the coming weeks tied up with gathering records and completing paperwork.
How do you get back on track for end of financial year?
.Being organised is the best way to ensure tax time success. Make sure you have collated receipts, invoices and other tax material or we can recommend products like Receipt Bank or Hubdoc to automate a lot of the work. It is important to keep your records in order all year round so that you’re not in a panic at tax time.
There are certain procedures that businesses need to following and at First Class Accounts we use detailed checklists to prepare and hand client’s work to their accountants for End of Financial Year. These checklists include our End of Year Payroll checklist, End of Financial Year checklist and Accountants checklist – all ensure there is full compliance and information provided is correct.
Here are some hints and tips you need to consider especially if you have employees:
- Checking all employees’ details for current addresses and tax file numbers
- Check terminated employees have a termination date
- Check employees annual leave entitlements
- Do a Stocktake (or at a time approved by your Accountant)
- Review your customer/client list and in particular any poor payers
- Complete your normal BAS checklists and reports and check your annual figures agree with your BAS/IAS for the year
- Check your Payment Summary totals agree with figures submitted on your BAS. (The ATO will do this also).
- Reconcile all GST control accounts
- Assess your expenses – consider prepaying expenses you know are imminent or delay them until next year depending on your profit.
An example of some accounts that need to be reconciled include bank accounts, credit cards, undeposited funds, electronic payments, petty cash, trade debtors and creditors, Inventory and BAS (including PAYG withholding).
Use the time between now and June to sit down and see what worked for you, what hasn’t and what you would like to improve over the next 12 months.
________________________________________________________________ For further advice to ensure you are ATO compliant and using the best systems and automation contact your local First Class Accounts Bookkeeper. PH:1800 082 066