Last minute tips this financial year
Normally we do a spring clean, but with business, we need to do a financial year clean. As you dash towards the EOFY finishing line, it’s a great opportunity to get your business in shape.
Here’s your list of things to tidy up this end of financial year.
Six ways to maximise deductions
Make sure that all the expenses relating to this financial year are entered into MYOB.
It’s good practice to reconcile supplier statements against the bills in the system.
If you’re a cash-based business, then you should pay as many suppliers as possible.
2. Bills and invoicing
Look at your outstanding invoices. Are there any there that can be claimed as a bad debt?
See if there are any bills in the system that are not truly owed – for example, bills that have been double entered.
You should also look at your debit notes and make sure they’re true and applied to the relevant bills.
3. Asset purchases
Make sure your accountant knows of any asset purchases during the year, and flag any that were under $20,000.
Check that your accountant is aware of asset purchases from prior years, so that depreciation can be claimed.
Make sure that superannuation is paid – you can only claim superannuation that is paid in the current year.
It’s a good idea to get the June superannuation owing off to the super clearing house before 30 June.
5. Any loans on the books?
If you have financial institutions’ loans, make sure you have seen a statement for the year. Enter the interest expense and reconcile the account.
6. Get your accountant involved
Get your accountant to look at your file too, as they often have good suggestions.
MYOB Essentials makes it easy for your accountant to log into your live file.
Other tips for an EOFY spring clean
If you carry stock, then the end of June is the time to do a stocktake.
If you’re carrying old stock, June is the time to think about the best way to move it.
If you can’t move the stock, then think about writing off any old or obsolete stock.
Don’t forget to keep your stocktake records as your accountant might ask for them as justification for claiming the expense.
Reconcile your bank and credit card accounts as at 30 June and keep the reconciliation reports.
Many accountants ask for your statements and match them to the reconciliation reports.
Now’s the time to look at your bank and credit card reconciliations to see if there are lots of unreconciled transactions.
There may be duplicates that need to be reversed, or maybe you just aren’t up to date with your reconciliations.
Does everything look right?
Run your eye over the accounts and make sure that balances look sensible.
If you have clearing accounts, then the balances should be zero.
If you have reconcilable accounts like staff loans, PAYG payable, GST payable, Super owing payable or leases, then get them reconciled.
Have a look at your payroll for the year.
Have you exceeded the Payroll Tax threshold for your state?
If you have, make sure you’ve registered and reported your payroll tax as there are hefty fines for getting this wrong.
The same applies for Workcover.
Is your estimate for your wages for the year realistic?
If your estimate is too far out, Workcover will impose fines.