Here’s our checklist for Year End Preparations for June
Service & Repairs: If your business vehicles need servicing, have this done before June 30. Rental property needing repairs? Same applies. Only repairs not capital improvements which are an immediate deductions.
Undertake your stocktake: on June 30 – even if you are a smaller business who is exempt from this as a tax requirement it is always wise to review your stock regularly.
Ensure all deductions are claimed: Quite often business owners pay things from different accounts or personal cash. Be sure to have a clean out of your paper receipt spots and scan your statements to ensure you capture everything.
Stock up on consumables: Now is the time to stock up on stationary, printer cartridges, hand tools, glue, materials, nails, books, cleaning goods, basically any items that are usually expensed and if your cash flow allows, anything you need for July and August as well. Receive the deduction now instead of 12 months time.
Staff superannuation: for fourth quarter isn’t technically due until 28th July, but it is always a good idea to pay this by June 30 to receive the deduction in this financial year. Note: The money has to be received into the hands of the super fund by June 30 to get the deduction.
Top up your super: This is another reason for you to visit your accountant before year end. If a top up is recommended for it to be deductible in this year you must pay the amount before June 30. Again, the funds must be in the super fund account by June 30.
Now is the time to ensure your payables (creditors) and receivables (debtors) showing in your accounting programs are accurate: If you don’t expect to receive payment from a debtor then wipe off that debt now by raising a minus sale and marrying it up in the system coded to bad debts. Do this before June 30 so that the credits pick up not only in this year but also if you are on accruals for your BAS, clean this up before your BAS is lodged. Likewise, clean up your creditors. Look at your payables list and if there is anything you know you are not going to pay, clean it off the listing by raising a minus purchase for that supplier and also clean up any small cents adjustments for debtors and creditors.
Finalise payroll: Ensure all pays to 30 June are entered into your accounting program but don’t enter past this date. Programs such as MYOB will not allow you to enter pays past 30 June until you “roll” so do not roll payroll until your payroll ledger and general ledgers balance and your payment summaries are printed off. As part of this process check that all ay cheques have cleared the bank account by June 30.
Bank reconcile: all your accounts in your accounting program to June 30, including all cheque and saving accounts, loans and credit cards which belong to the business. I very strongly recommend you actually do this every month, but if you’re behind, catch up now.
Ensure any “suspense”, temporary or clearing accounts in your accounting program are cleared out by 30 June. If there are some mystery transactions in there, investigate what they are, seek assistance if needed, and get them sorted. Best to tidy this up yourself if you can or else your accountant will need to do it.
Do not roll the Fiscal Year over until your accountant has prepared your financials and the alignment journal has been done. You do not necessarily roll your file right away, it may be months before everything is ready, so do not just “roll” on July 1st.
Take multiple back ups of your file before doing any rolling. Need help? Call 1800 750 919.
HAPPY NEW FINANCIAL YEAR! Remember your Stone Bookkeeping Team are here to help and support you as much as required. Call us on 1800 750 919.