As the end of the financial year (EOFY) approaches, small businesses across Australia face the critical task of ensuring their financial records are accurate and up-to-date. Effective bookkeeping not only helps in complying with legal obligations but also provides insights into your business’s financial health, guiding better business decisions. Here are ten essential bookkeeping tasks that small business owners should complete before EOFY to avoid the rush and start the new financial year on the right foot.
- Reconcile All Bank Accounts
Ensure that your bank account balances match the figures in your bookkeeping records. Discrepancies can indicate errors that need to be addressed, such as double entries or unrecorded transactions.
- Review Outstanding Invoices
Chase up all outstanding invoices to improve your cash flow. Consider writing off any bad debts to clean up your books and claim a tax deduction where applicable.
- Record Inventory
Perform a stocktake to record the quantity and value of all inventory. This not only helps in reporting accurate cost of goods sold but also identifies obsolete stock that can be cleared, reducing unnecessary storage costs and freeing up capital.
- Check Payroll Records
Verify that all payroll transactions are correctly recorded and reconcile them with your bank transactions. Ensure that all employee details, including year-to-date wages, superannuation, and PAYG withholding, are accurate. This is crucial for preparing payment summaries and ensuring compliance with the ATO’s reporting requirements.
- Review Fixed Assets and Depreciation
Evaluate your asset register and check if all new assets acquired during the year are correctly recorded and depreciated. It’s also a good time to dispose of any assets no longer in use and adjust your asset register accordingly.
- Prepare GST Reconciliation
If you are registered for GST, reconcile your GST accounts and ensure that all sales and purchases are correctly recorded. This will make your quarterly BAS submissions easier and more accurate.
- Analyse Profit and Loss Statements
Generate and review your profit and loss statement to understand the business’s financial performance over the past year. Look for any unusual fluctuations that need to be investigated.
- Update Your Budgets
With current year data almost complete, it’s an excellent time to revise your budgets. Comparing your actual financials to your budget can reveal areas that need attention and help you set more accurate figures for the next year.
- Check Loan Accounts
Review any loan accounts to ensure that all payments are accounted for and interest is correctly calculated. This is also a good time to consider whether refinancing or paying off loans early could be beneficial based on your financial situation.
- Meet With Your Bookkeeper
Schedule a meeting with your bookkeeper to discuss your financials. A professional bookkeeper can provide insights and strategies to improve your financial management and compliance.
EOFY can be a stressful time for small business owners, but proper planning and execution of these bookkeeping tasks can alleviate much of that stress. Regularly managing these tasks throughout the year can also help maintain financial order and provide ongoing insights into your business’s operational performance.
Ready for a smoother EOFY?
Don’t let the EOFY rush catch you unprepared. Contact Katia Chehade, an expert bookkeeper and registered BAS Agent, at Sudoku Bookkeeping for personalised and professional assistance. With Katia’s expertise, you can ensure that your bookkeeping is meticulous, compliant, and strategically aligned with your business goals. Get in touch today to make the most of your financial year-end preparation and set the stage for a successful new year!
Sudoku Bookkeeping is committed to helping Australian small businesses thrive by providing expert bookkeeping services that cater specifically to your needs. Let us help you streamline your finances and take the stress out of EOFY. Reach out to Katia Chehade and start your journey towards financial clarity and compliance now!