EOY “Get your house in order” checklist

By June 15, 2017Blog

Are you ready for 30 June?

The end of financial year is upon us again and the team here at Advivo are already busy preparing Tax Planning and Forecasting for many of our monthly clients.  Fred Chang has prepared the below checklist for businesses to get ready for the end of financial year.

If you have a discretionary trust, you can expect to be contacted for clarification of your Trustee Distribution Resolutions as trust distributions are required to be decided upon and documented before 30 June.

Trust distributions and tax planning are often more complex than people understand.  This is partially because strategies appropriate for some may be completely inappropriate for others, and vice versa.  Most of our monthly clients require, and benefit from, tax planning strategies and forecasting pre-30 June.  If you are an annual client you can still benefit from tax planning techniques and forecasting tailored specifically to the needs of you and your family/group.  Please contact your Advivo partner or accountant if you would like to discuss potential tax planning opportunities further.

Not all of the below will apply to everyone but hopefully this list will provide you with a reminder of what may apply to your business.  Remember we’re here to help, if you have any queries, or if you’re unsure what does and doesn’t apply to you and your business, please don’t hesitate to contact your accountant for clarification.

EOY “Get your house in order” checklist

  1. Finalise Accounts Receivable
    • Review all open quotes and check status. Cancel any expired or duplicate.
    • Complete the sales invoicing for June
    • Review open Credit Notes and action as needed
    • Issue Invoices and Statements to customers for June and overdue amounts
    • Recoverable debts should be collected, contact the customers to arrange payment
    • Run the Aged Receivables report for June 30 and identify outstanding invoices that are doubtful for payment, identify ‘query invoices’. Send the doubtful list to accountant
  2. Finalise Accounts Payable
    • Review all opening purchase orders and check status. Chase supplier for invoice if goods have been received.
    • Enter all Accounts Payable Invoices
    • Consider which payables to pay before the end of June for GST Tax Credits, especially if reporting the BAS on a cash basis
    • Review Debit Notes and take them up as needed (apply to invoices or receiving refund?)
    • Pay Accounts Payable Invoices as required
  3. Finalise Payroll | PAYG Summaries
    • Complete the final payroll for the year (to be paid in June)
    • Review leave entitlement for employees
    • Reconcile Superannuation accrued with payments to the funds.
    • Reconcile other payroll liabilities you may have accrued over the year (child support, salary sacrifice, etc.)
    • Confirm FBT figures to report are included in the payment summary (if applicable)
    • Produce Employee PAYG Payment Summaries, check that RESC/FBT/Allowance have been recorded correctly, Ensure to retain an office copy
    • Produce the PAYG Withholding Annual Payment Summary Report and send it to the ATO
  4. Stock on Hand (SOH)/Work-in-progress (WIP)
    • Check that all stock/WIP invoices have been shipped
    • Perform a complete stock take noting quantities on hand and value.
  5. Reconcile all Bank Accounts
    • Check you have reconciled each bank account up to and including 30 June 2017
    • For each bank account run bank reconciliation report to ensure all items reconciled
  6. Review Profit and Loss & Lock Period
  7. Reconcile equipment and fixed assets
    • Review asset register and ensure all the assets on the books are valid
    • Identify written off assets and advise accountant
    • Review balance sheet for major assets purchased during the year and provide accountant a copy of the invoice.
  8. New Chattel Mortgage/Hire Purchase
    • Provide us with a copy of the document showing the date/loan/monthly repayment/number of terms
  9. Plan for Success! Review your full budget v. actuals for the year ended 30 June 2017 to identify and explain any variances, which will form a key part in confirming your budget forecast for the next 12 months.
    • Set goals and Targets and communicate to all– People need to know what they’re aiming for… including you!
    • Set a monitoring and review process– For the above at the same time.

 

Written by: Fred Chang