Finance and Accounting

Don't let your Financial Year End be a Taxing time.

As the financial year nears its end it's time for businesses to tidy up their books and ensure that they have all the required information for their Tax Accountant.

You are paying your accountant for his time to prepare your tax return and each time he has to stop and request additional information and then restart at a later date this all adds to the bill. By taking a few simple steps and putting together an end of year pack I have seen clients reduce their Tax accountants' time and bill drastically and let's face it who doesn't want to save the dollars. So here are a few pointers to help you on your way.

Finalising Payroll

After the last pay period of the year (this is the pay period end date that falls on or before 30 June) and before the next pay you will need to:

  • Print payroll reports
  • Reconcile the PAYG tax for the year
  • Ensure all employees have tax file numbers and current addresses
  • Backup
  • Produce employee payment summaries and disk for ATO (make sure these balance back to the PAYG reconciliation)
  • Ensure you save a copy of the summaries
  • Start a new payroll year ensuring new tax tables are loaded
  • Submit required information to the ATO by the due date

The Accounts

Has your accountant supplied you an alignment journal for the last financial year? This journal brings your accounts into line with those of the accountant. If this isn't done he will spend more time in checking the opening balances. Has this been entered and checked?

Reconcile Balance Sheet accounts

Payroll

  • Ensure all payroll payments have been processed

Bank

  • Ensure all accounts are reconciled up to end of year
  • Ensure there are no undeposited funds or outstanding electronic payments.

Accounts Receivables

  • Ensure receivables balances to the aged printout

Credit Card accounts

  • Make sure these are reconciled up to end of year

Accounts Payable

  • Ensure payables balances to the aged printout

GST

  • Reconcile against end of year payment and any outstanding debtors and creditors if on cash basis
  • Make sure all GST has been paid during the year check payments against what has been accrued. You can adjust the June return to balance things up.

ATO Account

  • Check that you have allowed for outstanding ATO balances correctly check against your ATO statement or online at the business portal

PAYG

  • Make sure all employee PAYG deductions have been paid during the year

Prepayments

  • Any prepaid amounts should be for the next financial year

Intercompany Loan Accounts

  • If you have multiple entities make sure loans between entities are the same

Asset Leases

  • Any leases for equipment make sure the interest during the year has been expensed and the principal payments have been deducted from the loan amount

If you have inventory conduct a Stocktake and update the accounts.

Backup your data file.

Documentation Required By Accountant

  • Invoices for any capital purchases
    • So the accountant can add to depreciation schedule (anything under $1,000 should be expensed and not put in as an asset.
  • Documents for any leases or loans
    • So accountant can check principal and interest amounts and check they are entered correctly and update schedules
  • Reconciliations of accounts
  • End of year bank statements to "prove" the bank balance
    • The accountant needs to sight the physical balances of your bank accounts to check against your reconciliations
  • End of year credit card statements to "prove" balance
    • As for bank accounts
  • Backup of Accounting File make sure you take one before rolling over payroll and/or accounts
  • Balance Sheet
  • Profit and Loss
  • Debtors Listing
  • Creditors Listing
  • Backup file of accounts

Additionally try to ensure account entries are memoed during the year this cuts down queries from the accountant which add to his time and costs.

Backup your data file. Keep a copy safe offsite.

Remember a lot of the above should be done on a monthly basis and can be prepared beforehand. Be proactive and save yourself some stress and money at the end of the year.

For more information call Ross Wakelin from CAD Parters on 0432 302 774 or This email address is being protected from spambots. You need JavaScript enabled to view it..

 

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