End of Financial Year Bookkeeping Checklist

As the end of the financial year approaches, there are a number of key things to remember as a small business owner when getting your books and accounts in order. Here we have provided a checklist of items for your reference. If you do your own bookkeeping, this list is especially important as it will assist us in preparing your business’ Tax Returns in a timely and efficient manner. Whether you manage your own bookkeeping, or we look after the books for you, the following is a list of EOFY bookkeeping items that need attention prior to 30th June 2016:

Reconciliation of bank accounts & credit cards

  • This includes making sure your accounting software (Xero or MYOB) bank balance matches the balance on your physical statements. Any discrepancies should be investigated and adjusted as necessary.

Reconciliation of Debtors and Creditors

  • This includes analysing old outstanding invoices owed to you, and if necessary, writing off any bona fide bad debts;
  • Check outstanding purchase invoices – can/will these be paid prior to 30th June?
  • Check any outstanding credit/debit notes and apply to the relevant invoices.

Reconcile Payroll

  • Pay Runs
    • Have all pay-runs for this financial year been processed? Make sure any pay-runs with payment dates prior to 30th June are physically paid from the bank account.
    • The Payroll Accruals Payable account (on the balance sheet) should be zero (or show an amount to be paid after 1 July).
  • Superannuation
    • Ensure Superannuation Guarantee Contributions, for payments prior to 30th June 2016, are paid before 30th June, with time to allow the clearing house to process the contributions.
    • Any additional Super contributions should also be paid before 30th June to ensure contributions are deductible in the 2015-16 financial year.
    • The Superannuation Payable account (on the balance sheet) should be zero.
    • Ensure all employee data is up to date and accurate and ready for SuperStream compliance (must be compliant by 30 June 2016).
  • PAYG Withholding
    • Reconcile the PAYGW amounts paid in the monthly/quarterly IAS/BAS with the amounts shown on the Payroll Summary Reports (monthly/quarterly).
    • Check the outstanding PAYGW amount on the Balance Sheet matches the Payroll Summary Report (this will be paid in the June BAS).

Review Depreciation of Assets

  • Review last year’s depreciation schedule, and assess depreciation calculation for this year.
    • Keep in mind the Small Business Asset Immediate Write-off concession for assets with a cost of less than $20,000, or a low-value pool with a balance of less than $20,000 at 30 June 2016.

Reconcile inventory (where trading stock inventory is held)

  • Write off obsolete stock (file report for future reference);
  • Perform stocktake and check Average Cost of Stock;
  • Compare stocktake balance against Stock on Hand balance on the Balance Sheet.

Review Profit & Loss Reports

  • Determine YTD net profit and estimated tax liability.

Review expenses and income positions and implement tax strategies as needed to reduce the tax bill!

For help with any of the bookkeeping items mentioned above, feel free to call our office directly on 02 9299 7044. To read more information on getting your business ready for the EOFY, please refer to our 'End of Financial Year Tax Tips' article.

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