25th May, 2015
Similarly, with the process that you followed last week, you need to ensure that who your accounting software says you owe money to be correct.
If there is an account that you are disputing, why not get it settled before June 30? If this means contacting that supplier and communicating your grievance, then so bet, do it now! You may be able to negotiate a compromise, clear the air which will allow you to both move into the new financial year without unnecessary baggage.
If you do not use the Accounts Payable module in your software, just review the system that you work with ie. manual records, excel etc.
Print out a Creditors report. In MYOB AccountRight, go into Reports, select Purchases, and then select the Payable Reconciliation (summary) Report either as at 30 April 2015 or the current date depending on how up to date your file is.
What you are looking for is that only the suppliers that you still owe you money is on this list and after you review that is exactly what this list will say.
Review the Payables Reconciliation list especially the 31-60, 61-90 and 90+ day columns for accuracy and correct for the following anomalies:
In relation to the accounts that remain unpaid, you may like to check with your accountant if you should pay these accounts before June 30. If your turnover is less than $2 million you may be able to receive a tax deduction in the current year.
If you missed last week’s blog, head to countdown to tax time: 7 weeks from 30th June – review your debtors
The information provided here is of a general nature for Australians and should not be your only source of information. Please consult an experienced and registered tax agent as each small business’s circumstance will vary.