Tick…tick…tick. You know it’s coming. It’s inevitable. And it’s not far away.
Preparing for End of Financial Year (EOFY) can be a daunting task for many business owners; but if you follow the right steps, not only will you be set for 30 June, but you’ll be striding into the next financial year with confidence – knowing where your business is at, and where it’s heading.
It’s more a marathon than a sprint
Don’t leave your EOFY preparation until June. A last-minute scramble to reconcile a year’s worth of paperwork within a month, will only lead to disaster. Pace yourself – maintain monthly financial records and do regular check-ups throughout the year to ensure accurate, up to date, financial data.
Vital steps for 30 June financial fitness
Follow these EOFY steps to get your financials into shape:
- Reconcile bank accounts. If these don’t match your bank’s records, it will only cause headaches. Remember – don’t leave it to the last minute. Reconcile accounts monthly!
- Reconcile accounts receivable. This may involve chasing down outstanding payments from customers. Another good reason not to leave it until the last minute!
- Reconcile accounts payable. Get all those outstanding invoices paid!
- Do a Write off obsolete stock or write down the value of stock.
- Business Activity Statement (BAS) and Super Guarantee (SG) Ensure these are accurate and up to date.
- Reconcile your payroll and provide payment summaries to employees by the due date.
- Review staff salaries. Ensure they’re in line with relevant awards and any other statutory requirements.
Here’s to a solid financial year ahead!
EOFY isn’t just about the year that was; it’s the perfect time to get your business into shape for the year ahead.
Follow these steps to improve your business health for the next financial year:
- Re-visit and update your business plan. This is a living, breathing document; its actions and strategies should change as your business grows and changes.
- Re-assess your budget. Compare actual performance with original forecasts and make applicable changes. Review actual and budget figures regularly to ensure your strategic goals will be met.
- Prepare a cash flow forecast. This is fundamental to good business practice. It should align with your budget and again, be monitored regularly.
- Have finance options – you’ll need a plan for seeking finance to support business growth. It’s also wise to have surplus finance to grab opportunities when they arise and to cover unforeseen events.
So how’s your business shaping up for 30 June?
As your outsourced financial partner, Cloud CFO can help get your business into tip top financial shape for 30 June. Call Elan now on 0402 107 062 or email firstname.lastname@example.org to chat about your EOFY fitness.