Why should End of Financial Year be a stressful time?
As a business owner you need to plan ahead to meet all the compliance obligations and deadlines.
An important goal is to implement systems and to be organised. Keep up to date with your finances and collate all your information and documents, so you know where you are at.
Don’t leave anything to the last minute before you start organising.
Contacting Riches Bookkeeping Service & Business Solutions will help you organise and keep on track with all your compliance obligations and deadlines. Or have Riches Bookkeeping Service & Business Solutions do your book work and compliance for you.
Here are some helpful tips for you to prepare for the End of Financial Year
Record transactions regularly to avoid work piling up
Make sure you keep up to date with your accounts regularly to ensure your work doesn’t pile up. Regular recording of transactions with ensure that everything will be completed before 30 June. You should ensure that recording of sales, purchases; customer receipts and supplier payments are up to date. Regular review of your debtors should improve cash flow, but if need be chase overdue accounts.
Reconcile Accounts Receivable and Accounts Payable
Your debtor and creditor accounts should be reconciled to the general ledger regularly. Processing your transactions for sales and purchases, affect your subsidiary ledgers for debtors and creditors. And if all transactions have been entered correctly, this should match with your general ledger accounts for Trade Debtors and Trade Creditors. If these accounts do not match, this may be caused by incorrect data processing, which will need investigating and correcting. Once all reconciled, it may be a good time to check if any accounts need to be written off as a bad debt.
Reconciling your Bank Accounts and Credit Card Accounts
Reconciling your bank and credit card accounts regularly, ensures that your records in your accounting package matches your actual physical bank and credit card statement amounts. This check will highlight for any un-presented transactions that you may have to look into and correct.
Performing a Stocktake
Performing a stocktake before or on 30th June is required. A stocktake helps to highlight and identify any inventory shrinkage you may have and also may allow to write off any stock that has become obsolete or out of date. Conducting a stock take ensures that the value of stock agrees to y our general ledger inventory account. This also gives you an accurate picture of what stock you have.
Make sure before you start that your employee details are up to date, and all relevant details are keyed into your accounting package. This may include employees name, current address, start and if required termination date, tax file number, superannuation details and all other details including gross wage, any allowances, any deductions, leave accruals etc.
Reconcile your payroll to your general ledger to ensure you have accounted for all correctly and updated to 30 June. Each year you are required to provide your employees with their PAYG Payment Summaries by 14 July. And also provide the Tax Office with the PAYG Payment Summary Statement by 14 August.
Superannuation obligations also need to be paid.
Always backup your data on a regular basis, this ensures that if something were to go wrong, you can retrieve your data to a point of backup and then only need to process small amounts of data to get you up to date. Having an external backup file is important and, ensure that your backup is kept in a safe place.