Your easiest end of financial year checklist

For those involved in the accounts side of any business, they will know that year end work often begins well before 30 June. The organised and smart business will begin preparation well in advance to ensure a smooth running end of financial year. Below is a checklist of things to prompt you on action to take, but of course, be sure to see your Accountant or other professional for correct advice about your specific situation and needs.

Here is your end of financial year checklist:

June

• If you’ve not already done so, see your Accountant for year end tax planning – now!
• Contact your accountant for any FBT figures; they should have now, the FBT year finishes 31 March.
• If a private company is providing loans to directors, ensure appropriate loan agreements are in place or repay the loan before June 30.
• Ensure your employee records are up to date and all have your staffs’ full name, current address and TFN. If using programs, such as MYOB or Xero, ensure all details are updated.
• Do a stock take if required, on 30 June.
• Ensure all deduction are claimed. Don’t forget business expenses paid from private accounts, private credit cards or with cash.
• Small businesses can claim an immediate deduction for assets costing less than $1,000.
• Buy up on consumables. Stock up on stationery, printer toner, small hand-tools, glue, nails, reference books, cleaning goods etc. Buying large items, such as a motor vehicle for $40K, won’t give you an immediately deduction of $40K as larger items are depreciated.
• Plan when your annual bills fall due. You can organise that your annual insurance falls due in June. If you are on cash accounting (rather than accruals) pay these bills before 30 June.
• If on accrual accounting, claim deductions for prepayments including lease payments, rent, business travel, insurances, business subscriptions if you are wanting to increase your deductions.
• Staff super isn’t technically due to 28 July, but it’s always a good idea to pay this by June 30 to get the deduction in this year.
• Top up your own super but watch the contribution caps (see ATO website for your age grounp caps). This is another reason to visit your accountant before year end. If a top up is recommended, for it to be deductible in this year, it must be in the hands of the fund by 30 June.
• Now is the time to ensure your payables (creditors) and receivables (debtors) listing in your accounting programs are accurate. If you don’t expect to receive payment from a debtor, then wipe off that debt now. If your records are not accurate on your creditors, then clean them up now.
• Look at amounts held in “Deposits” or “retentions” and ensure these are correct and current.
• Ensure all pays to 30 June are entered into your accounting program, but don’t enter past this date. Programs like MYOB won’t allow you to enter pays past 30 June until you “roll”, but DON’T roll payroll until your payroll ledger and general ledgers balance AND your Payment Summaries are printed.
• Do not roll the Fiscal Year in MYOB till your accountant has prepared your financials for that year.

July & August

• Bank reconcile all your accounts to June 30 including all cheque and saving accounts, loans or credit cards. I strongly recommend you actually do this every month, but if you’re behind, catch up now.
• Ensure any “suspense”, temporary or clearing accounts in your accounting program are cleared out.
• Once the above is done, run off your Payment Summaries and produce your Empdupe by 14 July. The Empdupe needs to be to the ATO by 14 August.
• If you have inventory in your accounting program file, ensure this is balanced
• No need to change your staff super from 9.5% – the proposed rate increases have been deferred till 2021.
• You, or your bookkeeper should send your file to Accountant in the next couple of months.