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How to prepare your business before End of Financial Year
Here it is , as promised. My 5 top tips to get your business prep for EOFY! End of Financial Year, like it or not, is an important time for small businesses, completing bookkeeping, tax return and planning for a new financial year. Having the basic core structure for your business at the beginning of the year, helps you be organised and work smarter throughout the year.
Here are some tips to get you prepare:
Reconcile all accounts & payroll: Many of you reconcile your bank account through a bank feed, but do you know you need to reconcile any loan accounts and petty cash account, if applicable?
If you you have clearing accounts, make sure they are reconciled as well. It is best practice that all accounts are reconciled regularly so any errors are picked up and resolved early.
~ Payroll reconciliation is an important process and must be done before payment summaries are issued, by14th July 2018. This is something that you can start doing now (after finalising May18 payrun), so you would only have June 18 figure to check. This will ensure that you meet the ATO due date for Payment Summary.
3 Common problems with payroll at EOFY ~ incorrect handling of returned pays ~ coding sub-contractors invoices to wages ~ discrepancies between payroll reports and BAS & IAS reports
Review your Aged Creditors & Aged Debtors: This will be the perfect time for you to write off any bad debts in the book. Remember, you want clean aging reports, so you will have an idea of what money will be coming in to recover the expenses that need to be paid accurately.
Reduce your tax liability before 30 June 2018: If you have not already scheduled an appointment with your bookkeeper & accountant, make sure you secure the date soon! As you know they are very hard to get hold of especially around this time of the year.
Few examples to reduce your tax liability ~ contribute to your superfund & pay your employees super ~ pre-purchase insurance & subscriptions ~ consider purchasing assets with value less than $20K for immediate deduction.
Online accounting software: If you are not using an online accounting software for your business, maybe it is time to do some research and see which software is catered for your business. Why? I cannot stress enough that, to have a successful growing business, you need a good strong core system to your back-end book. It is just like a good and hearty sauce on a bowl of your favourite spaghetti bolognese. A good and robust software can do so much for your business. Check out XERO, MYOB & QBO
What are the benefits of using online accounting system? ~ Complete year-end procedure easily ~ Easily meet your tax obligations ~ Produce 'live' report to help business owners making business decisions ~ Payment Summary & Superannuation contributions can be done electronically
Start Planning for Next Year: After finishing all the EOFY requirements, it is now time to start planning for your next year.
~ Update your business plan ~ Prepare a budget for the next 12 months ~ Review your finance arrangement ~ Review your insurance and update coverage
Bookkeeping By Lily is here to assist you with any of the above processes. Book me in to help you!
More details here -->> Book For FREE 30 mins ConsultationBook EOFY for Small Business
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