Now is the time to get your books in order for End of Financial Year.
While the End of Financial Year is a busy time for everyone, small business owners can feel the brunt of it given there is so much paperwork to sort through.
However, if you have enlisted the help of bookkeeper, reconciling your businesses financial records is a much easier task – as the more you stay on top of your finances, the less time you will have to spend come EOFY.
Jo Hartmann, of A1 Business Accounts in Tamworth, said it is important for business owners to reconcile payroll accounts like superannuation payable and wages payable and ensure wages expense and superannuation expense are in line with profit and loss statements.
“All of these must also match up with the Single Touch Payroll that has been reported to the ATO – before business owners issue Income Statements (Old PAYG Summary/Group Certificates) and finalise their payroll year,” Ms Hartmann said.
“The accuracy of financial records is critical for effective decision-making.”
Ms Hartmann said a good bookkeeper can make the complex world of finance understandable and manageable.
“It’s about strategizing, planning, and helping to pave the way for a business’s financial success,” she said.
“Every purchase, sale, payment, and receipt paint an important part of the bigger picture.
“If you have any documents that detail income, profit and loss, balance sheets, expenditure, or deduction claims, be sure to send them to your bookkeeper.
“This is also a suitable time to check if you have any outstanding client invoices that need payment.
“You need a holistic understanding. Every transaction shouldn’t just be recorded but analysed and understood in the context of taxation laws and financial strategies.”
“If you are using accounting software such as Xero or MYOB, file consolidation will be much easier.
“As your reporting documents are all filed within the software, you’ll have to invite your bookkeeper to be a user.”
Ms Hartmann said this is a suitable time for you to reconcile your bank accounts and go through bills and expense claims and it is a great idea for small businesses to have an EOFY checklist to discuss with their bookkeeper.
“It is important to give your bookkeeper ample time to review your accounts and commence reconciliation work for the year.
“This strategy means you will streamline the EOFY reconciliation process and alleviate stress for both you and your bookkeeper come June 30th.
“Early engagement allows for strategic tax planning with your accountant, ensuring there are no surprises when it comes to your tax position at year-end.
“Reviewing your finances sooner rather than later allows you to assess current performance, identify discrepancies, and implement corrective measures.
“It also opens opportunities to maximise deductions, improve cash flow, and plan with confidence.
“It’s important to work closely with a good bookkeeper and accountant or tax specialist to ensure you are complying with tax regulations.”
Ms Hartmann also recommended to check out the ATO website www.ato.gov.au.
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