6 essential tips to prepare for EOFY
18th March, 2016
Don’t be caught unprepared this end of financial year!
Taking a commonsense approach is the key to getting through it stress-free.
Here are six essential tips to prepare for EOFY.
1 Communicate clearly
Always keep your accounts and records up to date throughout the year – this is the single most important thing you can do to make EOFY a lot easier.
It’s essential to keep in contact with your accountant regularly, and be sure to advise on any major transactions throughout the year as they happen.
2 Get your records up to date
All transactions for the current financial year need to be recorded prior to 31 March — this includes all sales, purchases, payments and receipts.
Logging your transactions can be a very time-consuming process if left alone until March each year, so maintaining and updating your records regularly during the year will alleviate the pressure.
3 Eliminate and review
Talk to your accountant about deductions, write-offs and rebates available to your business, before March 31.
Eliminate worthless stock, plant and equipment by reviewing your asset register, which keeps track of your company equipment.
4 Be transparent
Provide all necessary financial information to your accountant, and finalise end of year adjustments. Respond to requests for additional information in a timely manner, provide clear and detailed supporting information, ensuring all documents are labelled and organised.
5 Back up
Create a separate copy of your accounts and back it up. Whether you’re working on your accounts in the cloud or on your desktop, you should consider making a backup outside your accounting system that creates a data file for the year.
6 Look ahead
The end of financial year is also a good time to reassess your business plan, to ensure you’re on the right path for the next financial year. It’s also a good idea to review your accounting software – if you are not already using cloud accounting, think about how it could benefit your business.