How to avoid ending the financial year in a frazzle
As an Accountant, Financial Coach and Cloud Accounting Guru to start-ups and entrepreneurs, I often see clients come to me after 30th June filled with stress, anxiety, fear and embarrassment.
“It doesn’t need to be this way.”
So, instead of heading into the end of financial year in a frazzle, follow our simple checklist to being organised. It will make the tax return process so much smoother and easier, and dare I say it, you might even start to love your numbers.
1. Don’t leave things to the last minute. Preparing for tax time doesn’t start the day before your tax return is due. The earlier you start planning, the easier it will be.
2. Think about how you are storing your source documents. Are you storing them in a shoebox, folder, glovebox of your car (none of which we recommend!), or are you storing them online? Make sure you have everything together in the one place and you can find things easily if asked.
3. If you use an accounting system – does your bank account reconcile? So I am not asking if you have ticked off everything in your bank feed – I want you to compare your bank balance in your system to the physical bank balance on your statement. Check it now – nobody wants suprises at end of financial year.
4. If you are using a manual system (excel, word, etc) to record your sales and expenses, make sure your spreadsheet or document is in tip top shape. If you use our NA$$ spreadsheet, then the formulas and formatting is already done for you.
5. Have you had any major changes in your business this year? Employed staff, taken over a shop lease, offered new services – all of these things could drastically change your numbers. Keep a list of these changes to point out to your accountant at the end of the year.
6. If you hire employees, you need to provide end of year payment summaries to your staff by the 14th July, and an annual summary to the ATO by August. The time frame is limited to check, review and produce these so be prepared. Oh and always keep copies.
7. Review your numbers before you meet with your accountant. If you don’t understand your numbers how can you explain them to your accountant or to the tax office? This is where a fabulous (and experienced) bookkeeper can be such an asset to your business.
8. Make an appointment (in advance – shock horror) – with your tax agent. So contact them now and make an appointment for a convenient time in July or August. This will mean your work will be allocated and you are made a priority over those that leave it until the last minute.
“Now sit back and relax, knowing that you are now streets ahead of so many other business owners, who come 30 June, will be running around like headless chickens getting all their information in order.”
We know that many business owners struggle with their financial information.
We know that perhaps it is not your strongest point, that it stresses you out (no matter how organised you are) and often, you would love a helping hand along the way.
“We believe everyone can learn, you just need to find the right teacher.”