Preparation for the end of the financial year is key to ensuring your books are in order and your income tax return properly reflects how your year has been. Here is our guide to preparing for EOFY so that when it rolls around, your obligations are easy and pain-free for both you and your tax accountant.
Things to keep account records of:
Regularly staying on top of your bookkeeping tasks throughout the year is a great way to prepare for the End of the Financial Year and makes it as easy as possible for yourself and your TW accountant. Make sure you hold onto your records of the following items:
Bank Statements/Reconciliation
- A record of your closing bank balance(s) at the balance date.
- Ensure all bank feeds are reconciled up to the balance date.
- If you do not use Xero/MYOB/QB’s live bank fees, you’ll need to hand over all bank statements for all your business accounts for the entirety of the Financial Year.
Loan/Financial Agreement Statements
- Statements show any new investment(s), loans, or hire-purchase(s) taken out during the year.
- Details of any business funds or assets used or purchased privately during the year.
- We’ll need to know the closing balance on any loans at your year-end date.
Business Credit Card Statements
- Reconcile your credit cards in Xero or provide us with these statements throughout the year.
- If you have a personal credit card that you occasionally pay for business expenses on, highlighting these on the statements will make it a lot easier on our end.
Purchase Invoices
- Upload your purchase invoices and expense receipts to Xero throughout the year. This is useful for your own storage and makes it more efficient for your TW advisor when preparing your annual accounts.
- Specific purchase invoices your TW advisor may require to include any large purchases, legal expenses, and insurance payments
Sales Invoices
All income from sales invoices is paid and unpaid (these details will already be in Xero if you use it).
Payroll Records
If TW does not handle your payroll, ensure proper records are kept during the year on your payroll program.
Leftover Transactions
- Details of any transactions, including the invoice(s), that you were unsure of how to treat during the year.
Cash Value
- We will need to reconcile your cash so keeping records of your petty cash receipts and petty cash balance at year-end is important
Stock Value
- Completing your June stocktake
Business Vehicle(s) Details
- If necessary, keep a record of all your business vehicle logbooks and mileage records throughout the year.
Things to keep tax return records of:
Superannuation Payments
- Keep a record of any personal superannuation payments paid during the year. These are called Non-Concessional Contributions.
- You must lodge an s290 – Notice of Intent to Claim a Superannuation Deduction before lodgement of your annual tax return or 30 June, whichever comes first.
Additional Income
- We will need records of any additional income you received from any source; including dividends received, any interest earned, and rental income (including details on your property management expenses, mortgage interest, and overseas income).
- We will need records of any employment income you receive in addition to your business income (if applicable)
- We will need records of all capital gain events on investments, such as disposal of shares, property, cryptocurrency etc. (both purchase and sale records are required).
By staying on top of your bookkeeping throughout the year and being aware of the records that may be required come tax time, completing your EOFY obligations will be a more stress-free process and ensure the reflection of your business finances is accurate. TW Accounting not only provides regular bookkeeping services, but we can also assist with all your quarterly and annual tax obligations. Be sure to book in for a free consultation to discuss your business accounting requirements.
