“The essential small business checklists to prepare for the End of Financial Year”
EOFY Bookkeeping Checklist
Business Activity Statements BAS
- It’s crucial that you check to see if your BAS lodgement and payment (if required) is up to date.
- Review your current BAS to see what debt is currently due.
- BAS and Tax agents can usually defer the lodgement of the BAS, contact a Jim’s Bookkeeper to apply for the deferral.
- If you are paying BAS by the Cash method, it’s recommended to pay accounts before the EOFY so you can claim the GST in the current BAS period.
- Payment plans are available from the Australian Tax Office (ATO)
- Do a mini audit of the year BAS, check all claims are correct for GST.
- Check with the ATO portal that your GST account is reconciled with your accounting
- Check that your bank account is reconciled to your accounts. It’s recommended that business use cloud-based accounting software like XERO, MYOB or QuickBooks.
- Get the business books up to date, to review tax and GST planning.
- Reconcile the payroll before the EOFY and correct any entries.
- Check with the ATO portal and reconcile your payroll account.
- Employee payment summaries are due before the 14th July
- Single touch payroll (STP) should be used for payroll and lodgement of the employee payment summaries.
- Audit employee’s payroll award to ensure that you are paying them correctly
- Review and reconcile the superannuation guarantee payments have been made.
- Pay superannuation guarantee payments before the EOFY to claim as a tax deduction in this year
- Note: superannuation guarantee increases to 10% in the new year, review your cash flow.
- If possible, pay maximum limit into your own superannuation, check tax advice.
Profit & Loss/Balance Sheet
- Reconcile and review the accounts before the EOFY
- Check Bank accounts, credit cards, loans etc are reconciled
- Reconcile the ATO portal compliance balances with your accounts
- Prepare depreciation report and double check all the balances, especially in the balance sheet with closing balances.
- Review the estimate net profit and seek tax planning advise before the EOFY.
- Check the balance sheet does balance.
- Review all accounts in the balance sheet to make sure they are allocated correctly.
- Review that loan payments have been made in the accounts.
- If trading as a company make sure there are no debit loans to associates, if so, seek tax advice before the EOFY.
- Check no personal expenses are being claimed
- Review if Fringe Benefits are being paid to associates/employees. Seek tax advice for fringe benefit tax