How to make your end-of-year financial statements preparation a breeze
Now that we are in August (time flies!) and well into the 2019 financial year, many of you are probably busy preparing your file to send to us for review. Year-end reviews can sometimes be a daunting experience as you never know what the result will be, or what more documents you need to bring in to us… So is there anything you can do to make both of our lives easier? Definitely!
- Reconcile bank transactions – For businesses that use an accounting system, it is important to ensure that all bank (and credit card, barter card, and loan) transactions are recorded properly in your accounting system. After reconciling all transactions from your bank, remember to run a reconciliation report for the period and check if the bank balance matches with the balance on your accounting system to ensure that you have included all the transactions.
- Bank statements – When sending in your year-end accounts for review, be sure you provide a copy of the bank statement showing balance as at 30 June – for ALL business bank accounts and credit card accounts. If you have a mortgage or car/equipment loan, you’ll need to bring them in as well.
- Payroll and super reconciliation – If you have prepared and lodged PAYG Summaries for staff, you would have prepared a payroll reconciliation to ensure the amounts on your PAYG Summaries match with what you have paid out, and that you have checked that the superannuation payments reconcile with the record in your accounting system. Please provide copies of the reconciliation report.
- Customers & suppliers record – check your receivables to ensure your customer and suppliers records are correct as at 30 June.
- Changes in last year – Did you buy (or sell) new car for business, new equipment or new property? Provide us with a summary of the transactions of your business over the last financial year, and include anything that is a little bit out of ordinary. If you have purchased new car under a loan, we may need the loan documents.
- Other supporting documents we may need –
- If you have a car in your business – have you kept a log book?
- If you run a property investment business – do you have a rental agent schedule?
- If you have bought or sold properties during year – copies of contract of sale and settlement statements
- If you carry stock for resale – did you do a stocktake as at 30 June?
- Insurance premium statements if your insurance policy is a mix of business and personal policies
It is worth having a conversation with us about your situation (via email or phone) so we can advise you what documentation you need to bring in, we may also be able to identify things you can do to increase your deduction from the conversation!