Well, it is getting to that time of year again when we see “EOFY Run out” type of advertisements across the media. It IS going to occur, and it does involve quite a bit more work as the End of Financial Year (EOFY) approaches and passes.
Here are a few things you can do to prepare your business for the End of Financial Year that will save you time, save you stress, save you sleep, and save you money:
Are there some invoices that need to be written off as a bad debt?
Are there some that need to be followed up to ensure they are paid by 30 June?
Are there orders you have placed that you would like to pay for prior to 30 June?
Are there purchases that you would like to make prior to 30 June, e.g. staff training, asset purchases?
Meet with your Accountant
Have you arranged to meet with your accountant to discuss Tax Planning? Talking to your accountant too close to or after 30 June may be too late.
Slow moving stock or old stock on hand – now is the time to get these off the shelf.
What specials or incentives to attract sales of these items can you activate?
What method and media will enable the movement of this stock?
Extra Superannuation contributions – now is the time to think about making extra superannuation contributions. Speak to your accountant or financial advisor.
If you wish to claim April to June 2021 quarter SGC in the 2021 financial year, this must be processed and received into the superfunds by 30 June. Otherwise, the June quarter SGC is due into the superfunds by 28 July and the expense is claimed in the 2022 financial year.
Have you been reconciling your accounting system bank accounts with actual bank statements?
This is a simple exercise that you can complete that will save a lot of time post 30 June when it is time for EOFY reconciliations.
Does your organisation comprise of multiple entities with separate accounting system files? Now is the time to make the necessary reimbursements and reconcile your accounts between each entity business.
Locate the paperwork for equipment, motor vehicles or any asset purchase greater than $1,000 that you have made throughout the year and either upload these documents into your accounting system or copy them for your accountant.
Single Touch Payroll
From 1 July 2021, employers must report any closely held payees through Single Touch Payroll (STP).
A closely held payee is someone directly related to the entity they receive payments from, including:
- Family members of a family business
- Directors or shareholders of a company
- Beneficiaries of a trust
You should already be reporting any other payees through STP. Employers who haven’t started reporting through STP and don’t have a deferral or exemption in place need to start reporting now.
These are just a few tasks that will help you prepare for EOFY before 30 June. The following links may also assist with further information.
Need assistance with any of these tasks? We are MYOB and Xero specialists, and can do this either for you or provide you with training, whether in a face-to-face class room training, 1-1 at your premises, or online/remote training – Contact Elke at firstname.lastname@example.org or call 0410 819 783.
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