Making sure you are ready for the EOFY!
By Vik Naidu
Time flies when you’re:
a) Having Fun, being productive
b) Wasting Time, doing nothing
You pick the answer … It feels unreal how fast the year is passing by, but this is just a reminder that the End of Financial Year is on 30th June and is one day away! Unlike for other people which it is just another ordinary day, for business owners it means that you must prepare your financials effectively and efficiently to save on tax when presenting to the ATO.
End of the Financial Year (EOFY) is one of the biggest days of the year for the business owners, similar to school children getting ready for the end of the year evaluations. How they’ve conducted their business, whether they have recorded everything accurately and on time are all going to reflect on this day. If you have done your homework right, there’s no need to panic at the last moment. But for most businesses, panicking starts when the EOFY is just around the corner. So how can you make sure you are well prepared for EOFY?
Here are a few tips you can follow:
1. Get yourself accountant ready: If you are at the verge of the EOFY, it is not the time for you to find yourself an accountant. Make sure you have an accountant from the beginning itself. Ensure your accountant is the type of person you are comfortable with being open about everything in your business? It is important that your accountant is someone you are comfortable talking and sharing all your business-related concerns.
2. Prepare from the beginning of the financial year: It is not very wise to start preparing all your accounts and ledges when it is just a few weeks or days away from the EOFY. To make yourself RED ZONE SAFE, make sure you are prepared from the beginning of the year. Record all your transactions and make sure they are accurate.
3. Accurate Employee Payroll Accounts: As a business owner and when you have people working within your team, it is important to consider that their salary accounts are done properly and at the end of the year they receive their annual salary summaries with no errors. It is one of the biggest headaches the business owners face during this period. Make sure the salaries, taxes and their summaries are all recorded and given accurately.
4. Purchase of Assets: Importantly, assets are a factor overlooked by many SME business owners. Overlooking this factor can put yourself in the RED ZONE! If you have purchased high-cost assets make sure all of these assets purchased are recorded correctly.
EOFY is surely a hectic time for any business owner. This period will give you a reflection on how you have spent the last dozen months in your business, whether the investments have given proper ROI or not, whether certain decisions are giving out positive or negative outcomes. EOFY should not be a scary time for any business owner but a time to identify and correct any issues and move forward. We as accounting and tax engineers will focus on you growing your business further and guarantee that you are RED ZONE SAFE! With our comprehensive Accounting and Taxation reporting technology which eliminates human errors, we make sure you don’t fall in traps of missed compliance. With so much to gain, ask yourself; “what have I got to lose?”
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