End of Financial Year Checklist for Small Business Owners
The end of financial year has a way of sneaking up on you. One minute it is April, and the next you are staring down 30 June wondering where the past twelve months went and whether your bookkeeping is anywhere near ready.
The good news is that a little preparation now saves a lot of stress later. I have put together this EOFY bookkeeping checklist to help you work through the key tasks before the end of June, so you can close out the financial year feeling organised and actually get to enjoy the start of a new one.
And if you want something to keep on your desk and tick off as you go, there is a free downloadable version of this checklist at the bottom of the post.
Key Dates to Know
Before we get into the checklist, here are the important dates to have on your radar. Missing these can mean missed deductions or unnecessary penalties, so it is worth putting them in your calendar now.
• 30 June: Superannuation guarantee contributions must be received by your employees' super funds by this date to qualify as a tax deduction in this financial year. Check with your software as the payment often needs to be made several days earlier to allow time for processing.
• 14 July: EOFY payroll finalisation. Employers must make their end of year finalisation declaration in Single Touch Payroll (STP) by this date.
• 28 August: Taxable Payments Annual Report (TPAR) lodgement due.
Talk to Your Accountant Before 30 June
Your accountant is one of the most valuable people in your corner at this time of year. I work closely alongside my clients' accountants, and the conversations that happen before 30 June are often the ones that make the biggest difference.
Before the end of June, have a conversation with your accountant about:
• Whether you should purchase any assets for a tax deduction before 30 June
• Any prepayments worth making before year end, such as memberships or subscriptions
• The maximum superannuation you might want to pay yourself
• Any recommended wage adjustments
• Any changes to tax law, small business concessions, or deductions that apply to your situation
The better your books are when you hand them over, the easier that conversation is. Which is where the rest of this checklist comes in.
Reconcile Everything
Bank reconciliations are one of those tasks that quietly pile up when life gets busy. If yours have slipped behind, EOFY is the time to get on top of them.
Ideally your accounts are being reconciled monthly, but I know that for a lot of small business owners, especially when you are also the one doing the actual work in the business, bookkeeping ends up at the bottom of the list. You are not alone in that.
Work through each of the following and make sure everything is reconciled and ready before 1 July:
• All bank accounts
• Credit cards
• Petty cash
• Loan accounts
• Any clearing accounts
• Any unpresented cheques or outstanding deposits
Review Your Business Finances
Once your accounts are reconciled, take a good look at what the numbers are telling you. Before 30 June, work through these:
• Review your Aged Receivables and write off any bad debts
• Check whether there are any additional expenses that can be paid before 30 June to bring the tax deduction into this financial year
• Consider any payments that could be made to claim GST in this financial year
Payroll Preparation (if you have employees)
This section is only relevant if you have employees. If you are a sole trader with no staff, you can skip ahead.
Payroll is one of the most time-sensitive parts of EOFY and the area where mistakes can cause the most headaches. Work through the following well before 30 June.
Make sure all employee details are up to date, including:
• Current address and email address (remove any full stops or commas from addresses)
• Date of birth
• Tax file number
• Termination date for any former employees
• FBT information if applicable
In your software:
• Check that all pay runs for the financial year have been posted with a payment date that falls within this financial year
• Check that wages reconcile (run your Payroll Summary and General Ledger reports and compare the totals)
• Check all payroll-related transactions have been reconciled, including wages, PAYG, and superannuation
Finalise Single Touch Payroll:
• Follow the STP finalisation process in your software and submit your EOFY declaration by 14 July
Superannuation:
• Decide whether you want to pay all employee superannuation before 30 June to claim the tax deduction in this financial year. Remember to allow processing time in your software.
Award rates:
• Check for any award rate increases coming into effect on 1 July and update your wage rates in your software before the new financial year begins
Download the Free EOFY Business Checklist
Everything in this post, plus a bit more, is pulled together in a free two-page EOFY Business Checklist you can download and work through at your own pace. It is designed to be a practical, no-fuss resource you can keep coming back to each year.
Need a Hand Getting EOFY-Ready?
Sometimes knowing what to do and actually having the time and headspace to do it are two very different things. If your books need attention before 30 June and you are not sure where to start, I would love to help.
Book a free curiosity call and let's have a chat about where you are at and what support might look like for your business.
