A handy EOFY checklist for small business owners

With the financial year drawing to a close, as a business owner, your focus will soon be on year-end accounting and bookkeeping tasks as well as forward planning for the new financial year. We’ve provided you with this handy checklist to ensure you have all your accounting and bookkeeping sorted for EOFY.

  • Ensure that your BAS lodgements and super guarantee (SG) contributions are accurate and up-to-date.
  • Update your MYOB payroll software to get the latest tax tables, including the increase in Medicare levy from 1.5 percent to two percent from 1 July 2014.
  • Reconcile your payroll and provide 2014 PAYG Payment Summaries to your employees by Monday 14 July 2014. Ensure that the salary sacrifice superannuation contributions and certain reportable fringe benefits have been included on the PAYG Payment Summaries. The 2014 PAYG Payment Summary Statement needs to be lodged with the ATO by Thursday 14 August 2014. There may be penalties imposed by the ATO if they are not lodged on time.
  • Ensure your records are compliant with the ATO. The ATO requires businesses to keep records for at least five years. If you’re using accounting software, record keeping is easy. But be sure to back up your files prior to the rollover.
  • Have your accountant review the GST codes assigned to the profit & loss and balance sheet items to ensure you are lodging an accurate BAS.
  • If your business carries stock, the stocktake of inventory should be completed by 30 June 2014. If you have adjusted stock quantities and identified spoilage in your inventory, this should be adjusted as at 30 June 2014 to ensure it is reflected in the 2013/14 accounts.
  • If your business has substantial plant & equipment, the stocktake of fixed assets should be completed by 30 June 2014. Any adjustments required to the assets register identified in the stocktake including description, location, quantity and damage/obsolescence need to be recorded in the assets module as at 30 June 2014 to ensure it is reflected in the 2013/14 accounts.
  • Review your balance sheet and Profit and Loss Statement to ensure you have completed the following items:
    • Bank accounts and loans are reconciled
    • Receivables and payables subsidiary ledgers are reconciled to the general ledger
    • GST and PAYG withholding accounts are reconciled to the June BAS
    • Wages in the Profit and Loss are reconciled to the PAYG Payment Summaries
    • Capital items such as plant and equipment purchases have not been expensed as repairs
    • Amounts in suspense have been allocated to the appropriate account
    • Personal expenses have not been claimed as business expenses
    • Material differences to the prior year can be properly explained

Bonus EOFY Tip

To help you improve your current business performance, we’ve outlined an additional checklist:

  • Update your business plan to provide some forward direction for your business
  • Update the profit & loss and cash flow budgets for the next 12 months. Compare your actual performance to your original budget. You may be able to reduce your costs in areas identified as excessive in the current year.
  • Review your financing arrangements. Don’t be afraid to shop around for a better deal
  • Review your business insurances to ensure you have an adequate level of coverage
  • If you are still using a manual accounting system, then consider upgrading to a cloud based accounting software such as MYOB AccountRight to process the day to day transactions, manage cash flow and also keep track of purchases and payments.

Check out MYOB’s Tax Changes Information section for more guides, tips and tricks on your end of financial year accounting needs.

The information provided here is of a general nature fors Australia and should not be your only source of information. Please consult an experienced tax agent as each small business’s circumstance will vary for end of financial year.