As the end of the financial year (EOFY) approaches, businesses are gearing up for the flurry of activities that come with it. From reconciling accounts to preparing financial statements, there’s a lot to manage. Following are some tips for navigating year-end to ensure a smooth EOFY process as you navigate year-end challenges.
Check-in with your Accountant
Your accountant plays a crucial role in helping you navigate the complexities of EOFY compliance. Schedule a meeting with your accountant to review your financial records, discuss any potential tax deductions or credits, and ensure that you’re on track to meet your tax obligations. Their expertise can assist in maximising deductions and provide invaluable insights as you approach the end of the financial year. They can also assist you in planning effectively for the upcoming year.
Book your appointments with BAS Agent or Advisors
If you need help from your bookkeeper, BAS agent, or software advisor, ensure you schedule appointments well in advance to allow time for necessary adjustments. Year-end is the busiest time of year for these professionals and calendars fill quickly. Whether you need assistance with TPAR, STP Final, software upgrades or payroll reviews, ensure you book early!
STP (Single Touch Payroll) Final
You need to make an STP finalisation declaration by 14 July each year to ensure your employees can access their finalised information to complete their tax returns. Before reporting the STP final, it’s important to check your payroll information is up-to-date and accurate. Payroll reviews and reconciliations are recommended to ensure the accuracy of data and to allow time for any corrections that may be required. Need help? Contact us – we are more than happy to assist.
TPAR (Taxable Payments Annual Report)
The Taxable Payments Annual Report (TPAR) is a mandatory reporting requirement for certain businesses in Australia that make payments to contractors for services rendered in specific industries. The TPAR must be lodged with the Australian Taxation Office (ATO) by August 28 each year, covering payments made in the previous financial year.
The services that come under the Taxable payment reporting system (TPRS) are:
- building and construction
- cleaning
- courier and road freight
- information technology (IT)
- security, investigation, or surveillance.
If your business provides these services and pays contractors to deliver them, you may need to lodge a TPAR. Once again if you need help, please Contact us.
Bookkeeping Checklist
- Source documents: Ensure you have organised receipts, invoices, bank statements, and other financial documents in a safe place. Applications like Hubdoc are great for storing this type of information.
- Reconcile Accounts: Ensure that all your bank, credit card and loan accounts are reconciled and up to date before the end of the financial year.
- Review Transactions: Take the time to review all transactions for accuracy and completeness, including invoices, receipts, and expenses.
- Reconcile payroll: Review payroll for accuracy before lodging STP Final event.
- STP Final: Lodge STP Finalisation with the ATO.
- FBT: Check in with your Tax Agent if Fringe Benefits Tax (FBT) is applicable.
- Check Asset Registers: Review your asset registers to ensure that all assets are accounted for and correctly valued.
- Inventory Management: Conduct a thorough stocktake or inventory count, and reconcile it with your records to accurately reflect your stock levels.
- Reconcile AR and AP for accuracy: Check the balances of your Debtors and Creditor to ensure accuracy. Make adjustments where necessary.
- Bad Debt Review: Review your accounts receivable to identify any bad debts that may need to be written off before the end of the financial year.
- Prepaid Expenses: Identify any prepaid expenses and ensure that they are properly accounted for in your books.
- Accruals and Deferrals: Make any necessary accruals or deferrals to ensure that your financial statements reflect the true financial position of your business.
- Review Depreciation: Review depreciation schedules for accuracy and make any adjustments as needed.
- Superannuation: Ensure you meet the reporting deadline for Superannuation Guarantee to avoid SGC.
- Business Activity Statements: Ensure all Activity Statements have been successfully lodged.
- Plan for the upcoming financial year: Analyse financial performance and set goals. Create a budget and cash flow forecast. Review business structure and insurance coverage and back up any digital records for safekeeping.
Need help navigating the checklist?
We are a team of professional women who are passionate about bookkeeping and compliance. We help free up business owners’ time to do what they do best, run their businesses. We genuinely care about our clients and are here to help by providing advice and services to those who value good service, and the peace of mind that comes from knowing the job will be done professionally, compliantly, and on time.
Contact us today if you need help.
