End Of Financial Year Tips 2019
Can you believe it’s almost that time again? EOFY! 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 keep thinking there’s plenty of time, before you know it there it is yet again! Now is the time to start tidying up your accounting file and preparing for a more stress free end of year process.
What would do without our online accounting software! It’s never too late to have your bookkeeper and or accountant sign into your file to conduct a review and make some last minute suggestions to you. We always recommend after your March quarters’ BAS lodgement to book at time with your financial advisor or accountant for some strategic tax planning.
To help you get prepared in the nick of time, here are 10 quick tips.
10 Quick Tip to prepare you for EOFY:
- Reconcile Bank and Credit Card Accounts – Plus keep an electronic copy of your last statement and reconciliation as at 30 June
- 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.
- 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)
- 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.
- 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.
- Reconcile Loan Accounts & Intercompany transactions – these must be reconciled as at 30 June and deductible interest and bank fee expenses must also be entered.
- Reconcile Payroll Tax – Review your monthly lodgements are correct and complete your final reconciliation once you complete your last pay run for June.
- 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.
- 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.
- 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 2018-2019 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 2018-2019, including salary sacrifice and employer contributions.
You 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.
STP – Single Touch Payroll
- Are you STP ready? Single Touch Payroll has already begun for some but all employers unless exempted need to report come the start date of 1 July. If you are not yet ready please contact us to make a time for us to assist you to get prepared.
- If you are not reporting to the ATO via STP, you will be required to provide 2019 PAYG Payment Summaries to your employees by 14 July 2019 and your Annual 2019 PAYG Payment Summary must be lodged with the ATO by 14 August 2019. Otherwise there may be penalties imposed by the ATO if they are not lodged on time.
- If you are reporting to the ATO via STP, you are exempt from providing payment summaries to your employees and from lodging a PAYG payment summary annual report for the amounts you’ve reported through STP as long as you undertake the finalisation declaration by the prescribed date. You will have up until 31 July to ‘finalise’ your employees’ EOFY payroll information through your STP enabled payroll software – but this can be finalised as soon as you have reconciled the information and you are comfortable that it’s accurate. From there your employees will be able to access their income statement online via myGov under the employment tab. If your employees don’t have a myGov account and cannot create one, or do not have a registered agent, they can call the ATO on 13 28 61 and they will provide it to them. You are certainly still able to provide a copy to your employee, however there’s no legal requirement to do so.
- Ensure your records are compliant with the ATO. The ATO requires businesses to keep records for at least five years and more and more businesses are choosing to go paperless. Consider if this is something you would like to implement from 1 July 2019.
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!
Download our FREE 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