Year end planning

If you require assistance with year end planning, ensure you have booked in with your bookkeeper or BAS Agent to get the help you need when you need it.  Year end tasks have deadlines and most businesses will be facing the same deadlines therefore your bookkeeper and BAS Agents are going to be busy.  Booking in advance can ensure you will be able to get the tasks completed in a compliant manner.  If you’d like to have all of your important appointments booked a year in advance, talk to us today about our Elite service. 

Ensure you have made contact with your technology advisor with regards to year end and software updates.  Whilst most cloud based accounting software just upgrades all on its own, other desktop software will require physical upgrading and the installation of service patches to remain compliant.  Timing of software upgrades can also be very important as sometimes tasks need to be completed prior to the upgrade therefore it’s best to liaise with your technology advisor to ensure you have your timing right.  It’s also most probably the busiest time of your for your advisor so best to get in now to secure your appointment.  If you’d like to have all of your appointments for technology booked a year in advance, talk to us about our Essential service.

Check creditor and debtor balances prior to forwarding your files to your accountant. If balances are incorrect it may well be that items need to be written off or adjusted. If you’re not sure as to how to do this properly, talk to your bookkeeper.  It’s also the perfect time to check that all payments and been correctly applied to debtor and creditor accounts.  This is especially important if you are reporting GST on a cash basis to ensure the accuracy of your GST reports.

If your business is required to perform a stocktake it’s a good idea to plan it.  Stocktakes can be time-consuming and frustrating at the best of times, but some simple planning can assist with making the task manageable with less error.  Develop a process that employees and managers can follow together to allow for efficiency whilst uncovering any discrepancies and inaccuracies in inventory values. 

Review your balance sheet regularly. Do the asset balances match your assets? Do your liability balances match what you actually owe? Does your balance sheet account for maintaining ATO balances match your integrated client balance?  If not, perhaps seek assistance from your bookkeeper or accountant to analyse why and have it cleaned up.  One of the reasons that a balance sheet can be inaccurate is if you are not adding closing journals once your taxation has been completed.  The closing journals take up things like asset depreciation and are required if you are to rely on the accuracy of the balance sheet.

One of the most time consuming monotonous jobs at year end can be collating all of the source documents required by your accountant or bookkeeper.  These source documents are necessary to allow for the completion of tasks such as account reconciliations, taking up interest on loans and depreciation calculations.  Whilst most of us these days are saving documents in cloud based applications (or attaching directly to transactions in accounting software) there are still some of us using the paper method.  If that’s you, then try to ensure the documents are in order and filed in such a way that you can easily retrieve if requested from the accountant or an auditor.
If you need help with setting up a cloud based document management system, contact us and we will be more than happy to offer advice on systems that will allow for the secure storage and collaboration hence saving you time at year end.

Most business owners would have liaised with their accountant by now to ensure they get advice on what actions to take before year end for taxation planning.  If you haven’t as yet, call your Accountant to ensure you are on track and have the advice you need before the year is finished.  

Get your file to your accountant early. Why leave it to the last minute, risk being late and then face late lodgement penalties? At the end of the day your liability for tax will not be payable early if you lodge early, it will still be due on the due date. Alternatively, if you’re due for a refund, the cash is better back in your bank account earning interest.

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