The end of the 2022-2023 financial year is approaching fast, so it’s time to check you have everything in place for your Client Manager, to make the process as quick and efficient as possible. Below are a few key points to feel confident that your books are in good shape to hand over.
- Check your accounting software information is up to date:
- All transactions need to be coded and bank accounts reconciled to balance date. Ensure the bank balance in your software matches the balance in your bank statements.
- Review the Profit & Loss and Cashflow reports to check your coding is accurate.
- Check that any asset purchases/sales have a description attached, and that you have invoices or Hire Purchase documents available.
- Review your Accounts Payable: Check there are no double ups of expenses already paid. And note that anything dated 31 March or earlier should be recorded as payable, even if it won’t be paid until April.
- Do a stock take: Stock on Hand measures all inventory items (such as goods for sale or livestock) available to sell at the end of the financial year and is taxable income in the year. However, there is a provision that if your total stock is worth less than $10,000 you are not required to record this in your accounts. Calculate the amount of stock on hand as close to Balance Date as possible.
- Review your Accounts Receivable and get a handle on your bad debts: Follow up on any amounts due to you. If you don’t reasonably expect to ever receive payment, this is a bad debt and you must record the debt as written-off in your system. If you do this before Balance Date, then you are not required to pay tax on income from the sale.
- Save a backup of your accounting system: If your software is desktop-based (e.g., older MYOB or Cash Manager versions), then perform a backup before you roll into the 2024 financial year and send the backup to our team as part of the annual accounts information. Keep another copy of the back up in a safe place.
- Consider revising your fixed assets: Review the Fixed Asset schedule from last year’s accounts for any assets that are no longer available for use by the business.
- Set aside information for your accountant: Our team will be in touch with a list of the information we require to prepare your accounts, but generally this will include the following information so you may wish to put this all together while it’s fresh:
- A list of Accounts Receivable and Accounts Payable.
- Statements verifying your bank and/or loan balances.
- Sale & Purchase agreements.
- Insurance statements.
- Hire Purchase agreements.
- Stock in trade.
The end of the financial year can be a stressful time. We hope this checklist makes the process a little easier. If you have any questions, please contact your Client Manager.
