As the end of the financial year (EOFY) approaches, it’s the perfect time to assess your business’s revenue, expenses, and overall profitability.
Taking a proactive approach to reviewing these key financial areas can help ensure your business is on track for success in the year ahead.
Whether you’re preparing for tax time or simply looking to optimise your financial performance, this checklist will guide you through the steps needed to maximise your outcomes.
Key Steps to Maximise Your Profitability: This list of key tips will help ensure you’re ready for EOFY!
Meet with Your Accountant to Plan Ahead
Before June 30, it’s essential to meet with your accountant. This will give you an opportunity to review strategies such as extra superannuation payments and directors’ wages to maximise your tax savings.
Review Your Asset Register: Avoid Depreciation Mistakes
Take a close look at your asset register to ensure all sold, scrapped, or disposed assets are removed.
- Review your Accounts Receivable to identify any overdue invoices.
- Follow up on overdue invoices promptly to maintain cash flow.
- Consider writing off bad debts if they are unlikely to be recovered.
Organise Source Documents for Accurate Reporting
Ensure you have copies of receipts and invoices for any new assets purchased. This documentation is crucial for accurately reporting expenses and ensuring you can maximise your profitability by claiming relevant deductions
Send Invoices & Recognise Revenue Before June 30
Sending invoices before June 30 ensures that revenue is accurately recognised for the current financial year, allowing you to have a clear understanding of your earnings and how they contribute to your overall profitability.
Record All Supplier Bills to Track Expenses & Deductions
Ensure all supplier bills are entered into your accounting software to track expenses accurately. Keeping track of every cost is essential for maintaining a healthy profit margin, maximising profitability and ensuring you don’t miss out on valuable deductions.
Chase Up Outstanding Payments: Improve Cash Flow
Review your Accounts Receivable report and chase up any overdue invoices. It’s also a good time to consider writing off any bad debts.
Plan Accounts Payable for Maximum EOFY Benefits
Take a look at your Accounts Payable and plan any payments that can be made before EOFY to gain the maximum tax benefit.
Ensure Superannuation Payments Are Processed on Time
If you need to make superannuation contributions before June 30, ensure they reach your employees’ super funds on time to claim them in the current year.
Review WorkCover Policies: Stay Protected & Compliant
Reviewing your WorkCover policy is essential to ensure compliance with workers’ compensation laws and avoid costly mistakes. Ensure your cover is adequate, especially if you’ve added new employees or contractors. By taking these steps, you can optimise your premiums, and ensure you maintaincompliance with workers’ compensation laws, contributing to the overall profitability and stability of your business
Reconcile Bank & Loan Accounts for EOFY Accuracy
Finally, make sure all bank and loan accounts are reconciled. Have the latest bank statements on hand for easy reference when preparing your EOFY reports.
By following this checklist, you’ll be well-prepared for EOFY and able to maximise your revenue, control your expenses, and enhance your overall profitability. If you’re unsure about any of these steps, don’t hesitate to reach out to your accountant for expert advice
For more insights on EOFY planning, check out our previous blog post on 10 Essential Tips for Kicking off a Successful New Financial Year