EOFY preparation stressful & worrisome for more than half of SMEs
It’s official – Australia’s end of financial year (EOFY) experts have confirmed the best way for businesses to navigate this often-overwhelming time of year is through organised paperwork and regular guidance from their accountant.
In an Institute of Public Accountants (IPA) member survey conducted in partnership with MYOB, almost all the respondents said their clients were not fully prepared when submitting their EOFY statements (98%).
Top mistakes made with EOFY statements
The most common slip-ups Australian business operators make with their end of year paperwork are:
- Miscoding transactions (65%)
- Does not provide enough detailed or supporting information (64%)
- Not keeping accounts and records up-to-date throughout the year (62%)
- No contact with their accountant over the financial year (42%)
- Not fully trained up on accounting software functionality (39%)
When asked about the most important steps business operators could take to prepare for EOFY, accountants ranked ‘responding to requests for additional information in a timely manner’ first (88%). ‘Keeping accountants advised of major transactions as they occur’ followed (77%), then ‘handing financial reports in on time’ (69%).
IPA chief executive officer, Andrew Conway said, “There is a strong opportunity for businesses to draw on the expertise of their public accountant beyond financial reporting. They can provide strategic business advice and planning throughout the year, and assist with sales and growth forecasts, cash flow management, accessing funds and succession planning. By engaging their accountant, clients can gain more knowledge and advice to be more profitable.”
How business owners feel about EOFY
Another recent survey, by MYOB, confirmed the majority of small and medium business operators find getting ready for EOFY stressful and worrisome (56%). Nearly two-thirds said EOFY compliance was too much of a burden (61%) and nearly one-third found it difficult to know which legislative and compliance changes were relevant to their business (32%). The same proportion said they would often miss out on important personal or family events around EOFY due to the workload (32%).
Accounting software users were more confident than non-users that their accounts and book-keeping will be in order for EOFY (69% versus 62% respectively). 74% said software helped speed up the process of EOFY preparation and 33% said it saved them more than one day of time spent getting their accounts in order.
MYOB General Manager, Accountants Division, Adam Ferguson said, “All over Australia, accountants help make the end of the financial year as stress-free as possible for business managers. Those who work closely with an accountant and use trusted accounting software significantly reduce time-consuming errors. It makes life much easier to record all transactions as they occur through the year and regularly update their accountant.
“Using online accounting features such as bank feeds - where business bank transactions are automatically fed into your accounting system and coded for you - can make a big difference to your productivity and to admin pressures. Just ensure your provider guarantees highly accurate, reliable and secure data feeds. This eases the workload for you and your accountant and frees up time for them to focus on offering more value as a business advisor.”
Visit http://myob.com.au/EOFY for a summary of major tax changes, helpful tips, resources and more.
For further comment or other information please contact:
MYOB Public Relations & Corporate Affairs Manager
P: 02 9089 9068
M: 0407 450 860
IPA General Manager Media & Communications
P: 03 8665 3144
M: 0417 383 231
About the Institute of Public Accountants
The IPA, formed in 1923, is one of Australia’s three legally recognised professional accounting bodies with more than 24,000 members and students in over 51 countries. The IPA is a member of the International Federation of Accountants, the Accounting Professional and Ethical Standards Board and the Confederation of Asian and Pacific Accountants. The IPA was recognised in 2012 as Australia’s most innovative accounting organisation and listed in the top 20 in the 2012 BRW Most Innovative Companies List.
About MYOB Australia
Established in 1991, MYOB is Australia's largest business management solutions provider. It makes life easier for approx. 1.2 million businesses across Australia and New Zealand, by simplifying accounting, payroll, tax, practice management, CRM, websites, job costing, inventory and more. MYOB provides ongoing support via many client service channels including a network of over 40,000 accountants, bookkeepers and other consultants. It is committed to ongoing innovation, particularly in cloud computing solutions, and now spends more than AU$30 million annually on research and development. In 2013, MYOB expanded its offerings with the acquisition of accounting solutions provider BankLink. For more information, visit myob.com.au.