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Disclaimer

This is not advice. Items herein are general comments only and do not constitute or convey advice per se. The information contained in these articles is for guidance only and should not be relied upon without obtaining professional advice having regard to your direct circumstances.

 

Your end of financial year checklist

The work for the end of the financial year begins well before 30 June. The organised and smart business will begin preparation shortly after the March quarter BAS is lodged – around April/May.

MAY

• Payroll & FBT. Contact your accountant in May/June and get any FBT figures. The FBT year finishes 31 March. Your accountant will need all vehicle odometer readings at 31st March to prepare FBT Returns.
• Ensure you have visited your Accountant before end of financial year. Yearend tax planning, to be most effective, really needs to have occurred before 30 June. Book an appointment around April/May.
• If a private company is providing loans to directors, ensure appropriate loan agreements are in place or repay the loan before June 30.
• Pay private super before 30 June. If you are a low income earner the Government will give you up to a $1500 contribution, if you personally contribute $1000.
• Payroll. Ensure your employee records are up to date and all have your staffs’ full name, current address and tax file number. If you are using computerised accounting programs, such as MYOB or Quickbooks, ensure these details (including staff termination dates) are in those programs.

JUNE

• Do a stocktake, if required, on 30 June.
• Ensure all deductions are claimed. Watch for business expenses paid from private accounts, private credit cards or with cash.
• STS/SBE small businesses can claim an immediate deduction for assets costing less than $1000. If you have purchased throughout the year on asset under $1000 (excluding GST) this could be an immediate expense and not spread out over 3-4 years.
• Buy up on consumables. Now’s the time to stock up on stationary, printer toner, small hand-tools, glue, nails, reference books, cleaning goods etc. This means only small items which are usually expensed. Buying large items, such as a motor vehicle for $40,000.00, won’t give you an immediate deduction of $40,000.
• If you need to upgrade business equipment, such as a motor vehicle, do so before June 30.

• Plan when your annual bills fall due. You can organise that your annual insurance falls due in June. Ensure (especially if you are on cash accounting) you pay these bills before 30 June to get the deduction now.
• Claim deductions for prepayments including lease payments, rent, business travel, insurances, business subscriptions etc.
• Staff super isn’t technically due till 28 July, but it’s always a good idea to pay this by June 30 to get this deduction in this year.
• Top up your super. 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, you must pay the amount before 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.
• Payroll. Ensure all pays to 30 June are entered into your accounting program, but don’t ever pass this date. Programs like MYOB won’t allow you to enter pays past 30 June until you “roll over”, so DON’T roll over payroll until your payroll ledger and general ledgers balance AND your Payment Summaries are printed off. As part of this process check all pay cheques have cleared the bank account by 30 June.
• Do not roll over the Fiscal Year as MYOB allows you to have three years in a file before the need to roll over. Ensure you take a backup of the file before any rolling.

JULY

• 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 by 30 June.
• Payroll. Once the above is done, run off your Payment Summaries and produce your Empdupe by 14 July. The Empdupe needs to be sent to the ATO by 14 August.
• If you have inventory in your accounting program file, ensure this is balanced.
• If you have (PC program) Retail Manager ensure “Till Shortages” amounts are realistic. Also check Lay-Bys are up to date and that your stock list looks correct and that the “last cost Variance” amounts look realistic.
• If using MYOB or similar, move all pending transactions forward if still applicable, or cancel if not.
• You, or your bookkeeper, should send your file to Accountant in the next couple of months.

Donna Stone
My Business, May, 2009

 


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