EOFY - End of Financial Year Helpfuls
For most small business owners, EOFY can be a headache.
Government compliances stare at us.
Payroll obligations ramp up.
And stress mounts.
Check out some EOFY helpfuls..
E is for Early Start:
Avoid leaving your accounts to the very last minute before you start the inevitable organizing process.
Ok, it's possibly too late for this year, but head into next FY with a new vigour to plan ahead.
A far better idea than playing "catch-up"!
Leaving everything till the last week of June cranks up the time pressure which means you could have to take too many hours out of work time to do the bookwork or to pass information on to your accountant.
Time pressure in turn leads to mistakes. It can be a vicious cycle.
If you don't prepare early, you can fall short of getting together the necessary documentation to satisfy the tax office.
Note to Self: reconcile and update accounts regularly throughout the year.
O is for Organised:
Be organised by putting in place a system for your business finances.
There's lots of easy software out there which helps you keep up to date with any new changes to tax and super, for instance, MYOB, Quickbooks, Reckon, Xero.
Cloud based systems are definitely worth looking at too, before you make the final choice.
Beware of choosing a package that is far more complicated than your business needs. Keep it simple and relevant to your type of business.
If you're not confident in using the software, then a bookkeeper is your answer.
Hiring a bookkeeper who comes in once a week or fortnight will certainly solve lots of problems.
Regularity will depend on the size of your business, but you'll notice how much you'll will benefit by having someone with that skill by your side.
They'll track down poor payers, organise, collate and update records and be able to provide your accountant with a working file from which to generate reports, make tax assessments and so on.
Time and Money saved at the expensive end!
F is for Filing & Future Planning:
File your finances: Keep receipts and record sales, purchases, supplier payments in an organised way - not in a shoebox!
Keep track of slow payers, non payers so they can be followed up.
Scan in receipts and invoices then save them in electronic files which link to the names of your spreadsheets.
Scanning in a number of relevant documents onto the same page will save time and space.
Make filing and collating for tax purposes an everyday or weekly habit.
Learn from lateness, shortfalls or past mistakes.
Resolve that next year's tax time will be easier and run more smoothly just because you've been organised, sourced professional help, used helpful software and kept yourself in the loop about any new government changes to business obligations.
Lack of planning creates stress and can result in a critical tax deduction being missed.
Y is for Yearly Tasks:
That means planning, reporting, and keeping on track for the next year.
Knowing about tax rebates, types of allowable deductions and write-offs should be part of yearly planning.
If you have inventory, you need to take a stocktake on or just prior to 30 June so you can account for any shrinkage or theft and write-off any obsolete stock.
Keep up to speed by using the skills of your bookkeeper and accountant to make sure you're on track.
There's a week to go before the new SOFY.
Even if you need to spend that next week buried in paperwork and over stimulated by coffee, resolve to make next year better
so you can focus on running and growing your business.