Begin by looking at what you owe & what customers owe you
Now's a good time to have a look at the customer invoices outstanding and the bills you owe your suppliers. If there are any bad debts, ensure they're written off by 30 June. Are there any bills on your Payables report that you don't actually owe? If so, reverse them at 30 June. Also, check your Balance Sheet Accounts –Trade Creditors (what you owe) and Trade Debtors (what is owed to you) & make sure they match your reports. If you do have any issues, procedures need to be created to minimize them.
Conduct a physical stock-take as close as possible to 30 June. Stock adjustments will then be added. It is a good time to review your inventory systems and adjustments made, if necessary.
Reconcile your bank accounts
Always reconcile all of your bank accounts/credit card accounts as at the 30 June. If your statement's closing date is after 30 June, simply rule a line after the last June transaction, calculate the closing balance on the statement, & reconcile to that point. This also checks the matching Balance Sheet-Bank accounts/Credit Card Accounts
Backup your file
Once all the transactions for the financial year are entered we will be making a backup & sending it to your accountant. However, having extra backups never hurt so, after you have completed your data entry, make sure you do two backups of your file. Store one at your place of business & the other in a separate, secure location.
The following areas we review/reconcile as part of our End of Financial Year procedures. We review these areas, so we can highlight any relevant issues or concerns to your accountant:
Debtors/Creditors, Stocktake, Bank Accounts Reconciliation, Payroll – Payment Summaries – Superannuation (SGC & Salary Sacrifice), New Plant & Equipment purchased - Any sell-off of Assets GST reconciliation & BAS’ completed
The types of information we supply the accountant, when we give them the end of year data file
- Letter of explanation, notes and queries
- Backup of the datafile after bookkeepers review or detail how they can gain access to the file
- Copy of the years Business Activity Statements Q1, Q2, Q3, Q4
- Documentation of New Assets bought, sold and/or financed
- Outline of all Insurance policy’s paid through the entity and their purpose
- Bank Reconciliation reports @ 30th June for all banks, loans, credit cards
- Documentation of Shares bought and sold if any