"Preparing for the Year End" Article by Steve Marsten

Well the financial year is drawing to a close, as a business owner, your focus will soon be on year-end accounting and bookkeeping tasks as well as forward planning for the new financial year. We’ve provided you with this handy checklist to ensure you have all your accounting and bookkeeping sorted for EOFY:

• Ensure that your BAS lodgements and super guarantee (SG) contributions are accurate and up-to-date.

• Update your payroll software to get the latest tax tables, including the increase in Medicare levy from 1.5% to 2% from 1 July 2014.

• Reconcile your payroll and provide 2014 PAYG Payment Summaries to your employees by Monday 14 July 2014. Ensure that the salary sacrifice superannuation contributions and certain reportable fringe benefits have been included on the PAYG Payment Summaries. The 2014 PAYG Payment Summary Statement needs to be lodged with the ATO by Thursday 14 August 2014.

• If your business carries stock, the stocktake of inventory should be completed by 30 June 2014. If you have adjusted stock quantities and identified spoilage in your inventory, this should be adjusted as at 30 June 2014 to ensure it is reflected in the 2013/14 accounts.

• Review your asset register to identify any adjustments required and damaged assets or obsolescence that need to be recorded in the assets schedule.

• Review your balance sheet and profit & loss statement to ensure you have completed the following items:

-          Bank accounts and loans are reconciled

-          Receivables and payables ledgers are reconciled to the general ledger

-          GST and PAYG withholding accounts are reconciled to the June BAS

-          Wages in the profit & loss are reconciled to the PAYG Payment Summaries

-          Capital items such as plant & equipment purchases have not been expensed as repairs

-          Amounts in suspense have been allocated to the appropriate account

-          Personal expenses have not been claimed as business expenses

-          Material differences to the prior year can be properly explained

 

At Sothertons we assist businesses prepare for year end with an EOY Business Review. This ensures business owners are financially well organised for the year ahead. Call 07 4972 1300.