The end of the financial year is a busy time for everyone, but small business owners can take the brunt as there is so much paperwork to go through.
However, if you’ve enlisted the help of an accountant, reconciling your company’s financial records is a much easier task – because the more you keep track of your finances, the less time you’ll spend on EOFY.
So, as a small business, what can you do to prepare your accountant for the end of the financial year? We’ve put together a handy EOFY checklist to help you prepare.
EOFY checklist
Keep your paperwork up to date
As a small business, it is important to keep all financial data up to date. This includes all income, expenses, bank statements, pay slips, and business purchase data. If you plan to make a tax claim, you will need proof of expenses and itemized bills such as a usage log and account statements.
Send documents and receipts to your accountant
If you have documents with detailed information about income, profit and loss, balance sheets, expenses, or deduction claims, you should send them to your accountant. This is also a good time to check if you have any outstanding customer invoices that need to be paid.
Salary and pension obligations
EOFY is a good time to check that you meet the wage and pension obligations that are required for your employees. Your accountant can help you verify that salaries meet legal requirements.
A summary of your EOFY checklist:
Provide your accountant with a statement of income and expenses so that he can prepare a profit and loss statement.
Provide supporting documentation of all expenses incurred by the company, including inventory, purchases and repairs, and anything you sell.
Proof that you meet the pension requirements.
Xero EOFY Checklist
Using accounting software like Xero makes file consolidation a lot easier. Since your reporting documents are all stored in the software, you must invite your accountant to become a user. Now is a good time for you to reconcile your bank accounts and review bills and expense reports. In addition to performing the above tasks, a small business using Xero should also review the following Xero EOFY checklist.
Make an overview of obsolete receivables
Running an obsolete receivables summary report is a quick way to see if customers owe you money and how long that bill lasted.
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Run a GST reconciliation report
This report links the data you have submitted to the recipients and records all transactions during that period. This ensures that no sales or purchases are misreported.
Trial balance report
Since this report is quite complex, it may be better to hand this part over to your accountant. A trial balance report will look at any discrepancies in the account totals and provide a final financial statement.
We hope we’ve provided you with a comprehensive guide to the items you’ll need for your EOFY checklist. If you’re feeling a bit overwhelmed and need help consolidating your books, our bookkeepers can help you save money and time.
For more information visit website www.numberspro.com.au
