End of Year to Do List !
The end of the financial year is a good time to review your business. It gives you the opportunity to rule off the past year and start afresh. However, do not fall into the trap of rushing through the review of the current financial year; make sure you learn lessons from it, avoid making the same mistakes and persist with successful strategies. Good business practice is not just about getting your house in order, it is about setting up your business for the challenges and opportunities it will face in the future.
I have put together 10 Important Points to help you with the end of 2014-2015 end of Financial Year.
1. Recorded All Income and All Expenses?
Ensure you haven’t missed recording any one off cash income or expenses, no matter how big or small.
2.Have You Any Pre-Paid Insurances Rents – or Registrations?
If you have pre-paid Insurances etc and you work on an accrual basis then remember to remove these from the current financial year.
3. Can you Justify your Motor Car Expenses?
Ensure you can prove the work use of your motor car expenses and receipts by keeping a log book.
4. Have you Reconciled every account?
It is impossible to have your books and therefore your business in order if they are not reconciled.
5. Written Off Any Old Stock and Recorded Stock Levels?
Check you aren’t holding any old stock that could be written off. Keep your stock levels on an even keel with your requirments so you don’t have excess capital tied up with unused stock.
6. Sent Out Your Employees PAYG Withholding End of Year Payment Summaries?
Payment summaries are an extra pay slip and record requirement enforced by the ATO. Check for the due date which will depend on your organisation DUE DATE
7. Have You BAS up to Date?
It is critical to have your BAS up to date so your accountant can check your entries against your ATO records.
8. Checked With Your Account Regarding Any Home / Office Claims?
Home and Office Claims can incur Capital Gains when it comes to selling your home so it is best to check with your accountant prior to making these claims.
9. Reviewed the Structure of Your Business for the Coming Year?
Make sure your business hasn’t outgrown it’s structure. You may be financially better off changing to a Company or Trust. Check with your Account or Financial adviser.
10. Understand Your Profit & Loss?
You may see a number of subtotals as you scroll down the columns in your accounting program, but the basic principles of a P&L are SALES minus COSTS equals PROFIT.
it is that time of year when you are about to complete your financial year reporting – how long is it since you had someone external take a look and do a Business Health Check or Financial Analysis on your Business?
