7 key things to get on top of for EOFY

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7 key things to get on top of for EOFY

There’s nothing like a bit of a deadline pressure to really get you into gear, and there’s no deadline quite like end of financial year (EOFY) for business owners (that’s 30 June for the majority of businesses).

Whether it’s your first year in a business or you’re an old hand, running around trying to find invoices and receipts and getting your accounts in order makes your life more difficult and can cause unnecessary disruption and possibly stress to your staff, too.

If this sounds way too familiar, then this is your year to turn things around.

By taking a closer look at the processes and administrative task of your business including record keeping and bookkeeping, you can make wrapping up EOFY much less stressful.

Here are 7 key things to get on top of this EOFY:

1. Review record keeping processes

A non-negotiable aspect of end of financial year means checking all reports and records are compliant with legislative bodies such as the Australian Tax Office (ATO) and Fair Work Australia (FW).

The ATO requires businesses to keep records for at least five years and if you employ staff then you must keep employment records for 7 years.

There are so many options to help you meet these requirements by going to a digital environment. From digital employee onboarding to receipt capturing these technologies help you to streamline your processes.

Work with your bookkeeper and accountant (your advisory team). These professionals have years of experience in ensuring your processes are streamlined and efficient, and you are getting every benefit from your business management tools like MYOB software solutions.

2. Finalise Your Business Activity Statements

Lodge your final business activity statement for the financial year by the appropriate due date, whether you lodge monthly or quarterly.

This is a good time to reconcile liabilities and ensure that you have paid all the GST required on your revenue, claimed all the GST for your business expenses and any other requirements of your statement for your particular circumstances.

3. Prepare a Taxable Payments Annual Report (if relevant)

Taxable Payments Annual Report (TPAR) is a key ATO reporting requirement for many organisations that make payments to contractors or subcontractors.

In recent times, the Government has expanded the list of industry sectors that are required to lodge a TPAR via the Taxable Payments Reporting System (TPRS). Currently, that list includes:

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In recent times, the Government has expanded the list of industry sectors that are required to lodge a TPAR via the Taxable Payments Reporting System (TPRS). Currently, that list includes:

Building and construction
Government grant providers
Courier services
Cleaning services
Road freight
IT services
Security services

Tip: A TPAR must be lodged by 28 August each year and you can find out more about them via the ATO website.

You should ensure you have all the required information for your contractors in your MYOB Business file to streamline this process and review all payments made in the financial year so you are ready to prepare this report.

4. Finalise payroll obligations

All relevant payroll information is reported through Single Touch Payroll (STP). Reconcile payroll and finalise STP to provide 2023/24 Income Statements to your employees.

Make sure that salary packaging, salary sacrifice superannuation contributions (RESC) and reportable fringe benefits are handled correctly. This must be finalised by 14 July.

Your super guarantee (SG) contributions also need to be up-to-date. If you have prior quarterly payments outstanding, contact your accountant or bookkeeper for guidance as soon as possible.

Your fourth quarter contributions must be received to the employees’ super fund by 28 July. This avoids incurring additional interest and penalties and the lodgement of late super SG statements.

Many organisations will be subject to state payroll tax annual reconciliations and payments, and are subject to state legislative requirements. Contact your advisors for further information.

Many states also require workers compensation insurance reconciliations and payments at EOFY.

5. Taking stock: Inventory, assets and liabilities

If your business carries stock, you should complete the stocktake of inventory as at 30 June 2024.

Additionally, if you have adjusted stock quantities and spoilage in your inventory, this should be adjusted as at 30 June 2024 to ensure it is reflected in your 2023/24 accounts.

If your business has substantial plant and equipment and you maintain an asset register. Review and record any adjustments including description, location, quantity and damage/obsolescence.

Also review your outstanding debtors, are there any bad debts that need to be written off?

READ: Assets and liabilities: getting to know the basics

6. Complete reconciliations for FY23/24

Part of your end of financial year checklist is making sure you’ve got everything reconciled.

Reconciliation is a process that compares actual transactions against supporting documentation in order to identify discrepancies.

Review your Balance Sheet, Profit and Loss Statement and other reports to show you have completed the following tasks:

Bank accounts, petty cash, credit cards, loans and HP/chattel mortgages, inter-company loans where applicable are reconciled to 30 June statements.
Compare your Accounts Receivable and Payable Reports to amounts shown on the Balance Sheet. Run reconciliation reports, which will show any out of balance amounts to investigate and rectify.
GST and PAYG withholding accounts are reconciled to the June monthly/quarterly Business Activity Statement (BAS).
Wages and superannuation and any deductions in the Profit and Loss report are reconciled to the STP Income Statement Reconciliation and to Balance Sheet liability accounts such as superannuation and PAYGW payable accounts and any payroll clearing accounts used in the business.
Amounts in suspense have been allocated to the appropriate ledger account or, if unsure, complete a note in the memo to assist your accountant or bookkeeper determine the correct treatment.
Ensure that personal expenses have not been claimed as a business expense.

7. Prepare for FY24/25

The last part of your end of financial year checklist. Make sure you’re also ready to hit the ground running for the next financial year.

With an ever-changing economic environment in play, business and tax planning is more important than ever.

We’ve collated the following shortlist of items for you to plan for as you head towards Financial Year 2024/25.

Reporting. As a result of the above along with any other changes you’ve identified coming down the pipe, now’s a good time to update Profit and Loss and cashflow budgets for the year ahead. Take the time to compare budgets versus actuals for this period and applying any forecasts to the next.
Price changes. Based on your updated reports and related planning, it may be time to reconsider your prices or even your pricing model.
Tax planning. Have this conversation as early as possible to ensure you’re in a better position with your taxes come year-end 24/25.
Policies and financing. The EOFY period is also a good time for business decision makers to take stock of their access to finance, repayment terms as well as any other insurance or similar policies that are currently in place and attracting cost.
Software and systems. When was the last time you reviewed your business management platform? This includes all the systems and processes related to your core workflows, such as accounting, payroll and inventory.
Finally, if you have disconnected systems, it’s time to review. Engage your advisors in helping you design a system that integrates all your financial and operational systems in an integrated business management platform. MYOB has many tools that can help you achieve this.

Information provided in this article is of a general nature and does not consider your personal situation. It does not constitute legal, financial, or other professional advice and should not be relied upon as a statement of law, policy or advice. You should consider whether this information is appropriate to your needs and, if necessary, seek independent advice. This information is only accurate at the time of publication. Although every effort has been made to verify the accuracy of the information contained on this webpage, MYOB disclaims, to the extent permitted by law, all liability for the information contained on this webpage or any loss or damage suffered by any person directly or indirectly through relying on this information.

MYOB is not a registered entity pursuant to the Tax Agent Services Act 2009 (TASA) and therefore cannot provide taxation advice to clients. If you have a query concerning taxation including filing your BAS return or annual tax statements then you should consult with your accountant or other registered tax adviser.

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General Advice Warning: This advice is general and does not take into account your objectives, financial situation or needs. You should consider whether the advice is appropriate for you and your personal circumstances. Before you make any decision about whether to acquire a certain product, you should obtain and read the relevant product disclosure statement.

All information above has been provided by the author.

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This article originally appeared on MYOB Blog and has been published here with permission.