Review all current and past employee information in your payroll system. You may wish to consult the link below for templates and guides that you can use to ensure that you have the required information.
The total of the Creditor’s list should agree with the General Ledger Accounts Payable liability amount. You will need to reconcile any discrepancies. Ensure that payments have been processed and reconciled with supplier statements.
The total amount on the Debtor’s ageing list should agree to the General Ledger balance. You may need to create a provision for bad debts as well as write off any un-collectable amounts. Consult http://www.ato.gov.au. for more information on the specific treatment of bad debts.
Prepayments and Accruals
Make sure that expenses that are immediately deductible have been deducted see prepayment rules at http://www.ato.gov.au.
If you have accruals you will need to do a reconciled schedule of amounts owing at year end. This includes pay as you go income instalments, rent payable and wages payable.
Fixed Asset Register
The register should be reconciled with the ledger balances of fixed assets. This ensures that any new assets have been recorded and disposals appropriately treated. Year-end depreciation or amortisation adjusting entries will need to be done or provided by your Accountant.
Profit and Loss Statement
Analyse your profit and loss and budget versus actual variances. Explain any deviations. Use this information in preparing the upcoming year’s budget.
A lot of companies under budget on critical areas such as training and marketing. Your business needs to have enough funds set aside for critical projects. Certain expenses such as your tax liability can already be estimated from your accounts. Variances can also explain and highlight areas where your business performed well or not so well. Can you improve, salvage or do you need to abandon certain projects?
Budget and Cash Forecast
Create a budget for the New Year. Budgets should be made concurrent to your goals and strategy. A Cash forecast for the year should also be prepared based on your budgeted revenues this allows you to maintain control over your cash flow. Throughout the year you should be monitoring and be analysing any variances.
Make sure that reconciliations have been done for your tax liabilities, wages, superannuation, PAYG withholding tax as well as bank reconciliations.
Review your insurance policies and subscriptions.
Payments need to be scheduled for renewals where applicable.
Arrange a meeting with your Bookkeeper/Accountant
This is to review your financials and set goals for the coming year.
If you need a bookkeeper contact us at email@example.com. You can invite us to do a business health check. The below are other links and helpful resources for your EOFY transition.