We’re fully aware that there can seem to be more than a few moving parts to be brought together for End Of Financial Year (EOFY). Deductions to claim, documents to find, queries to answer, reconciliations to be done. And that’s on top of your day job! But if you can make the time to tick those boxes, it’s also a great opportunity to reflect, celebrate your wins, acknowledge your losses, and reset for the new financial year.
While it can be tempting to move tax time onto the tomorrow list (and other things compliance related!), prioritising getting your house in order at 30 June will save you time in the long run, and help set you up for success in the year ahead.
Read on for our 5-point checklist to help you with your EOFY wrap-up.
Here at MWM Advisory, we love a celebration, and this year we have plenty to celebrate.
We have a fantastic and enthusiastic team who love what they do and know how to deliver the best financial outcomes for you, our clients.
The past year has seen some great successes within the amazing business community here on the Gold Coast.
5-point EOFY checklist for business owners
- Are you up to date with your taxes?
The rate at which you pay taxes to the government will depend on your location, type of business, turnover, expenses, assets, and numerous other factors.
However, the EOFY is the most common time for businesses to settle their tax account for the year that has passed – even if you’ve been up to date with your taxes quarterly. In some instances, you may even be due a tax refund from the government, and you don’t want to miss out on that!
It’s time to crunch the numbers, claim relevant deductions, unlock government incentives you qualify for, and for all employers finalise your businesses Single Touch Payroll requirements for the 2023 financial year.
- Are your finances in order for the year ahead?
As well as your taxes, you have several in-house financial statements to prepare including your Profit & Loss Statement, Balance Sheet, and Cashflow Statement. All of these provide important data to analyse the financial position of your business.
- For example, do you have enough cash in the business to pay wages and other expenses?
- Are there any outstanding invoices that need to be followed up?
- Are you declaring any bad debt that will affect business decisions moving forward?
If finance and accounting aren’t your thing, these statements may look like a foreign language. But it’s critical for you as the business owner to be across such vital information and reach out to the team at MWM Advisory when you need help to dissect these documents and gain insight.
- Have you done a stocktake?
If you sell physical products, the EOFY is a great time to schedule a stocktake. With returned items, multiple distribution centres, numerous selling platforms, faulty goods, and several different people managing the process, it’s inevitable that your digital records of stock are out of sync with the physical inventory.
Stocktakes are essential to ensure you have adequate inventory on hand to fulfil orders, especially if you’re negotiating wholesale deals and committing to large contracts.
Depending on the goods you sell, the production time could take weeks or even months – time you don’t have when customers want their purchase tomorrow.
- Have you backed up important files?
Backing up files, such as contracts, training documentation, work products is essential for managing risk in any business.
Most smart business owners will already have a digital file-storing system in place, such as Dropbox or Google Drive. These cloud-based platforms ensure your important documents are stored safely, securely, and automatically backed up to provide peace of mind.
- Have you reviewed your growth plan?
The final checkpoint on our list is about the future. What does your business growth plan look like?
We often get caught in the day-to-day operations of our businesses and lose track of the direction we’re going. The EOFY is a good time to take a moment, reflect on where you are at, and get your team back on the bus and headed in the right direction.
The final EOFY wrap up!
If you’ve been too busy running your business and overlooked the detail of financial documents, budgets, plans, and insurance among other things, now is the time to reach out to the team at MWM Advisory for some professional accounting and commercial advisory support.
