30 June deadline pressure getting to you already?
EOFY can be stressful, especially if you fail to plan.
There’s no need to panic if you get organised now.
Online accounting software has revolutionised the way accountants and business owners communicate on the accounts and prepare for End of Financial Year (EOFY).
Here are three top tips (and best practice) you can try today:
Keep up to date, organised and paperless
Collate, process and file receipts, paperwork including bank and credit card statements and file chronologically where possible. If you can do that digitally, that’s even better!
Keep all your records and books clean so nothing goes missing and is easy to put your finger on.
Try to avoid using cash as paper receipts can be easily misplaced, no matter how well organised your wallet / pocket / glovebox is. Instead opt for proof of bank or credit card transactions where possible.
If there’s no other option than to pay by cash, taking photos of dockets as proof of expenditure is a great way to have a record of everything which is easily organised. As we all know, trying to locate a specific docket is a lot easier with the click of a mouse than rummaging through a shoebox of receipts.
If you have everything organised, the end of financial year will be under control and, if you develop good habits now, the next EOFY will be a cinch.
And if you set up your accounting system correctly, you can save a huge amount of time on lengthy data entry processes. Make sure you ask us how if you’re unsure.
Review creditor and debtor accounts
Settle your accounts before 30 June so you can start the new financial year with a clean slate.
Luckily, if you’re already using an online accounting system it’s simple to generate reports of all outstanding debtors and creditors. You can only start the new financial year with a blank canvass if you know exactly who you owe money to and who is owing. Then, it’s a matter of sending reminders on payment or paying suppliers to whom you owe money. Most online accounting systems will even have templates to automate this process for you.
If you generate the reports now, you’ve a decent chance of receiving payment before the EOFY.
Reconcile, reconcile, reconcile
If you have unreconciled items sitting in any account, investigate them early. Live bank feeds mean that reconciling accounts should be a straightforward exercise.
Reconcile any accounts that you can, for example all clearing accounts should be reconciled back to zero and customer and supplier deposit accounts are all able to be reconciled. Ideally, you should be able to prove the balance of every account in your balance sheet so that all will be in order if an audit should take place.
Failing to plan now could means you starting the new financial year missing a beat!
Make this EOFY stress-less as possible by keeping your records up to date. To do this, implement robust systems around your business finances.