End of Financial Year Prep: A Small Business Owner’s Guide
Let’s face it: financial management isn’t exactly everyone’s idea of fun. But as we approach the End of Financial Year, it’s a task that can’t be ignored. For small businesses, it’s a crucial time that demands careful attention and thorough preparation.
Here’s your friendly guide to tackling EOFY without (some of) the stress!
Essential End of Financial Year Tasks
Grab a notepad, copy/paste this somewhere or open your notes app. Organisation is key, and this list will help you keep everything in check!
- Income Statements
- Collect payslips, investment income statements, and any other revenue documents.
- Expense Receipts
- Gather all receipts for business expenses, travel costs, home office expenses, and other deductible items.
- Bank Statements
- Ensure all bank statements are up-to-date and reconciled to accurately reflect your business’s financial transactions.
- Superannuation Contributions
- Keep records of super contributions made by your business to meet superannuation obligations.
- Charity Donations
- Document any charitable donations made by your business for potential tax deductions.
- Loan Statements
- Collect statements for personal and business loans to track repayments and financial commitments.
Streamlining Your EOFY Preparation
Staying organised throughout the year is far more effective than scrambling at the last minute. Streamline the EOFY process in the months prior to June 30th with these key steps:
- Organised Documentation:
- Establish a systematic filing system to store and access financial records efficiently throughout the financial year. Even if it’s a folder divided into months. OR you can be a real financial queen and scan all of your receipts into your accounting software (HubDoc to Xero for example)
- Financial Performance Review:
- Evaluate your business’s financial performance throughout the year, documenting areas for improvement and strategic planning.
- Tax Compliance Check:
- Regularly ensure you are compliant with all tax regulations, including GST, PAYG, and other statutory requirements.
- Inventory Assessment:
- Conduct thorough inventory checks to account for stock levels and prepare for end-of-year adjustments.
- Employee Payment Summaries:
- Prepare and document accurate payment summaries for employees to comply with reporting obligations.
Seeking Professional Assistance
When it comes to navigating the end of the financial year, seeking professional assistance can be a game-changer. Here’s how expert guidance can elevate your EOFY preparations:
- Accountant Consultation:
- Consider consulting with your accountant to review financial records, optimise tax deductions (this is a big one!), and ensure compliance.
- Financial Advisor Support:
- Engage with a financial advisor to gain insights into financial strategies and planning for the upcoming year.
Setting the Stage for Success in the New Financial Year
As you tidy up your EOFY tasks, it’s time to shift gears and dive into setting up your financial roadmap for the upcoming year. Take a moment to look back at how things went, spot areas for growth, and map out a budget that aligns with your big-picture goals. Here’s how to craft your financial game plan:
- Reflect & Refine:
- Take a stroll down memory lane of your past performance. Celebrate wins, learn from setbacks, and tweak your strategies for a stronger future.
- Look at your expense list from the current financial year and see what you can do without in the next year. Ensure you cancel any unused subscriptions or memberships you signed up for that year and forgot about (guilty!)
- Spotlight on Growth:
- Identify those shiny opportunities for expanding your business and make them a focal point in your budget plans.
- Budget Building Blocks:
- Put together a budget that’s not just numbers but a roadmap to your success. Ensure it aligns with your strategic objectives and sets you up for your biggest year yet.
Learning to Embrace the EOFY
The EOFY doesn’t need to be a time you dread. Use this time to evaluate, strategise, and lay the groundwork for a year filled with growth and achievements. With a mix of dedication and forward-thinking, your small business can sail through EOFY with confidence and begin the new financial year prepped for growth and success.
