End Of Financial Year Tips 2018

With 30th of June fast approaching, are you prepared for end of financial year?  Each year seems to come around faster than the last and although we tell ourselves there’s plenty of time, before you know it it’s upon us yet again!  So now is the time to start tidying up your accounting file and getting ready.

ComputerThank goodness for online accounting software!  It’s never too late to have your accountant sign into your file to conduct a review and make some last minute suggestions to you.  We always recommend after your March BAS lodgement to book at time with your financial advisor or accountant for some strategic tax planning too.

To move things along and to help you get prepared in the nick of time, here are 10 quick tips.

 

10 Quick Tip to prepare you for EOFY:

  1. Reconcile Bank and Credit Card Accounts – Plus keep an electronic copy of your last statement and reconciliation as at 30 June
  2. Reconcile your Creditors – Plus clean up any old bills that have been sitting there for a while and ensure that your payables are reconciled to your supplier statements.
  3. Reconcile your Debtors – Plus tidy up any old debtors that are not likely to pay you (keeping in mind the ATO requirements in relation to bad debts and record keeping)
  4. Reconcile GST and BAS – Ensure these agree and there has been no changes that require taking up with your last BAS lodgement for the year.
  5. Reconcile Inventory – Plus perform your 30 June stocktake and electronically file this for your accountant. Keeping your stock records accurate throughout the year will be beneficial.
  6. Reconcile Loan Accounts & Intercompany transactions – these must be reconciled as at 30 June and deductible interest and bank fee expenses must also be entered.
  7. Reconcile Payroll Tax – Review your monthly lodgements are correct and complete your final reconciliation once you complete your last pay run for June.
  8. Reconcile Superannuation – Make sure all your contributions for your employees are paid into their superfund through your clearing house. Ensure you allow enough time for payments to clear by 30 June if you wish to claim the deduction in the current financial year.
  9. Reconcile Wages and PAYG Withholding – Review your YTD figures are correct for your employees and reconcile to your Wages accounts and PAYG Withholding accounts balance.
  10. Review Assets Bought and Sold – Prepare this information in an electronic format for your accountant as they do request source documentation for each asset.

In the final weeks of June, you should pay superannuation liability if you want to claim that payment as an expense in the 2017-2018 financial year.  Use your MYOB/Xero/QBO superannuation reports and look at the balance in your superannuation liability account to determine the amounts payable.

Keep in mind too, that the ATO has concessional contributions caps for maximum allowance for 2017-2018, including salary sacrifice and employer contributions.

ReportsYou should check your accounting software payroll super reports to see if any employee is likely to exceed the concessional contributions caps for the year, before you make your final superannuation payment for the financial year.  Here is a link to these on the ATO site.

Once you have finalised you financial year end, and after your financials have been prepared, the final step is for you to enter your Year End Adjustments from your accountant to agree your figures to your lodgement.  From there you are ready to Start a New Financial Year!

End of Financial Year Checklist

We have also prepared a more detailed checklist to help guide you through the process if you need it, which you can download below.  If you need any help with this workload, 2 Peas has experts available to come out and give you a hand.

Enter your details and download our End of Financial Year Checklist