As a business owner are you ready for EOFY (End of Financial year)
Have you diarised 30 June?
The 30th of June is often seen as a “looming deadline date” for business owners ….. “End of Financial Year”
It’s amazing how this ONE date can cause stress, overwhelm and anxiety.
The truth is, there is just no getting away from it! It is coming, you cannot avoid it and you know that if you’re not ready you are likely to incur penalties.
In this article I will share the 5 key things that you can either check or do NOW to ensure that your data is accurate, up to date and ready to submit.
If you have been doing these on a weekly and monthly basis – well done! If you haven’t managed to do so, by starting now you will have just short of 5 weeks to get it up to date and ready to submit to your accountant to process your annual tax return.
1) Income:
- All income should be recorded and up to date on a weekly basis.
- This may be done through your cloud-based accounting software such as Xero, MYOB, and Quickbooks.
2) Expenses:
- All expenses should be recorded on a weekly basis. All receipts and invoices should be either attached to your cloud-based program such as HubDoc, or the hard copies filed and easily accessible.
- Don’t forget to keep records of your home office expenses. Your accountant will be able to guide you on what can be included in “home office expenses”.
This bonus of your expenses and income being up to date on a monthly basis ensures that you know where you are financially at any given time, not just at EOFY
3) Payroll:
- Your payroll should be kept up to date and reconciled dependent on how often you run your payroll. This may be weekly, every second week or monthly.
- Payroll that doesn’t reconcile, particularly for those running large payrolls, can create difficulties and confusion.
4) Mileage travelled:
- The first 5000kms travelled for business are claimable without documentation.
- If you are audited you may need to show proof of the kms travelled.
- This could be in the form of a log book or a spreadsheet.
- Remember to include start address, end address and number of kms.
- Again, keeping this up to date throughout the year means one thing less to worry about at EOFY.
5) Bank, credit card and loan accounts reconciled:
- These should be done on a monthly basis. This ensures that the balance on your bank account in your accounting program matches the amount on your bank statements.
- In a perfect world, all of the 5 items above should be up to date on a weekly basis which will mean a stress free EOFY. If they are not up to date, I would strongly recommend that you spend the time between now and 30 June to gather and prepare the info as you will need it in order by then!
6) Next Steps:
And while you are ahead – why not book an appointment with your accountant NOW for early July so that they can process your annual tax return!
If you are interested to discuss this topic further, then I encourage you to reach out to Amber Business Support, I am your Business Accountability Mentor and would love to be part of your business journey!
