What does EOFY mean for your business?
With June 30 knocking on our door (can you believe it?!), you have likely seen end of financial year (EOFY) signs, sales and deals. But, EOFY doesn’t just mean great deals at the shops - it is also a very important time for your business. Whether you have a bookkeeper or not, ensuring you are on top of your business’ end of financial year requirements is crucial for everyone involved in a business.
Also remember - the more thorough you are during the year, the less work you will be required to do come 30 June... So, try and stay on top of the information required by your bookkeeper as much as possible during the year! Keep reading if you would like a little information about some of the important tasks needed when it comes to EOFY - and give Books Onsite a call if you would like to know more about our experienced bookkeeping team and how we can make EOFY easier for you.
Annual ASIC Review
If you are an Australian business, you will be required to complete an ASIC Review of all your registered details once a year on or before 30 June. This includes relevant addresses, names of shareholders and the board of directors, among other details, and you will be required to pay a fee to ASIC (which varies depending on the type of company you have). This ensures that your details are up-to-date and you are correctly registered with ASIC. More information can be found here.
Reviewing Financial Records
This point is more applicable to those who do not take care of things during the year (yes, you know who you are). If you wait until the end of the financial year to review everything, it is crucial to ensure you have sufficient financial records, including receipts, when June 30 arrives. If you keep track of your financial records during the year, come the end of June, you will likely have very few documents to obtain or handover to your bookkeeper. So, where possible, spend the extra time all year round!
If you have a bookkeeper, they will attend to your Group Certificates but if not, don’t forget! Your employees will always like to receive their Group Certificates sooner rather than later, as that allows them to complete their EOFY tax requirements, so it is always good to provide them as soon as possible after 30 June. It is also considered good practice not to make your staff wait too long for their Group Certificates, so try and keep on top of all your financial records all year round - this helps in more ways than one!
Accounts Receivable and Payable
The EOFY is a great time to review your accounts payable and receivable. From who is paying their bills to who is sidestepping their responsibilities, ensuring you are fully aware of the payment (and non-payment) of varying expenses allows you to make more informed decisions and plans when it comes to the following financial years. It also allows you to attend to things before they become an issue, which is an incredibly important (and often overlooked) part of running a business, and also helps your finances (and bookkeeper) in so many ways.
If your business has stock, completing a full audit and stocktake is important around 30 June. This ensures that you are aware of your position when it comes to stock and whether you need to alter the way in which your business is trading.
Remember - if you are:
- Classified as a small business; and
- Have an aggregated turnover of less than $10 million; and
- You estimate that the value of your trading stock has not altered by more than $5,000 in the year;
You are not required to complete a formal stocktake or account for any changes that may have occurred in the value of your trading stock over the past year.
Check your insurance
This may seem like a strange one but, if the financial reports obtained during EOFY show a significant change in the status of your business, you may need to change your insurance. It is important to ensure you stay on top of your insurance at all times but, if your business position has changed a lot, have a chat with your insurance provider to see if your current insurance is suited to your changing needs come the end of financial year time.
Planning for the next financial year
One of the most important tasks you can do around 30 June is plan for the next financial year. Using the financial reports that will be created, you and your business partners can utilise this information and plan for the year to come - what worked and what didn’t? What would you like to continue and what needs to be improved? All these questions, and many more, can be formed using financial data obtained during EOFY tasks, so make sure you utilise it as well as possible to ensure a positive year (or years) to come.
Chat to your bookkeeper
Here at Books Onsite, we always strongly recommend that you chat to your bookkeeper before the end of each financial year and discuss what they are doing/planning to do. This ensures that you are aware of the processes too!
If you would like to know more about how bookkeeping can save your business both time and money around EOFY (and all year round!), give Books Onsite a call today on 1300 2BOOKS (1300 226 657).