18th March, 2016
Don’t be caught unprepared this end of financial year!
Taking a commonsense approach is the key to getting through it stress-free.
Here are six essential tips to prepare for EOFY.
Always keep your accounts and records up to date throughout the year – this is the single most important thing you can do to make EOFY a lot easier.
It’s essential to keep in contact with your accountant regularly, and be sure to advise on any major transactions throughout the year as they happen.
All transactions for the current financial year need to be recorded prior to 31 March — this includes all sales, purchases, payments and receipts.
Logging your transactions can be a very time-consuming process if left alone until March each year, so maintaining and updating your records regularly during the year will alleviate the pressure.
Talk to your accountant about deductions, write-offs and rebates available to your business, before March 31.
Eliminate worthless stock, plant and equipment by reviewing your asset register, which keeps track of your company equipment.
Provide all necessary financial information to your accountant, and finalise end of year adjustments. Respond to requests for additional information in a timely manner, provide clear and detailed supporting information, ensuring all documents are labelled and organised.
Create a separate copy of your accounts and back it up. Whether you’re working on your accounts in the cloud or on your desktop, you should consider making a backup outside your accounting system that creates a data file for the year.
The end of financial year is also a good time to reassess your business plan, to ensure you’re on the right path for the next financial year. It’s also a good idea to review your accounting software – if you are not already using cloud accounting, think about how it could benefit your business.