Tips to Audit Proof your Business

Audit proofing your business is a sign of good corporate governance. The essentials to the concept of audit proofing your business is your manner of handling record keeping for your business and your knowledge of the laws that affect you on a day-to-day basis.

Make sure your record keeping is outstanding

Using a professional online accounting software solution should be your first order of business. Accounting software allows you to monitor your cash flow and your trading performance. It will also be of great help when you calculate your GST and PAYG payables.

In case you are subjected to a Business Records Audit by the tax office, the first thing they will ask is “How do you handle your income and expenses?” Utilising professionals to maintain your records and file official documents, such as ASIC forms, Tax Returns and Payroll Tax returns, will be of great benefit to you.

It is also recommended that you seek the help of a professional if you don’t know how to keep up with your taxation record keeping requirements, or if you’re not aware of what you can and cannot claim.

Keep a motor vehicle logbook

You may be exposing yourself to the risk of a rejected claim if you’re not aware that you must maintain a logbook for business motor vehicles for a 12-week period every five years. Things would be a lot easier for you if you can keep and record more supporting information relative to your business claims.

Maintain home office records

Do you need proof to support the fact that you are using part of your home as an office and making a claim based on that point? Then, take a picture of that area assigned as your home office. There may come a time when you could outgrow your home office and decide to move it outside the home. You could have converted your old home office for a different function. By then, it would be too late for you to take a picture!

Record travel activities

Record your travel activities by the hour if you are travelling for business for five nights or more. This way you’d know the percentage of your travel expenses allocated to your business activities.

Also take note that international business activities should be substantial. For example, if you’re in an arts-related job, going to galleries and museums and claiming that it is part of your job is not acceptable. Most people visit those places when they are on overseas holiday. To back your claim for airline tickets, meals and accommodations, you have to go to a work-related conference or attend several business meetings and negotiations.

Lastly, consider the corporate structure of your business. Would it be advantageous now to change to a corporate structure for limited liability protection? Keep in mind that the systems you implement from the very start will safeguard you and your business in the long term.

See a qualified tax advisor, accountant or bookkeeper to help guide you in making a tax change for the better. PJS Accountants can help you organise your tax, accounting and bookkeeping affairs. We work with large companies, SMEs, family businesses and individuals. For enquiries, contact PJS Accountants.

ABR will Automatically Cancel ABNs of Inactive Trusts

The Australian Business Register will be revoking the Australian Business Numbers (ABNs) of inactive trusts starting February 2016.

Those that will be targeted are entities with tax records showing that they have ceased to operate a business, meaning they have no filings of business activity statements (BAS) and/or income tax returns over the last two years.

According to the business register, about 220,000 trusts could have their ABNs cancelled.

Trusts that are listed with the Australian Charities and Not for Profits Commission, or are a non-reporting member of an income tax group or GST, are exempted from the ABN cancellations. However, a significant number of charities that had been inactive or had no compliance activity have already been de-registered.

A letter will be sent to trustees if their ABN has been revoked. The reason for the cancellation will be stated in the letter, as well as a phone number to call to have their registration restored. According to the government, the reinstatement will be acted upon immediately if the trustee disputes the decision, though it’s unclear if proof of activity or viability will be needed.

If your trust’s ABN is cancelled and you don’t get a letter, it’s probably because your contact information is not current on the ABN database of the Australian Business Register.

Contact your business adviser for any questions regarding ABN cancellation. Work with your accountant or bookkeeper to ensure you are compliant with BAS and/or income tax return lodgements.

PJS Accountants can help you organise your tax, accounting and bookkeeping affairs. We work with large companies, SMEs, family businesses and individuals. For enquiries, contact PJS Accountants.

Tax Returns and Annual Reports Tips

Tax time is here once again. Have you found time to evaluate your business to determine how it is performing? Or is your schedule to hectic to slot that task in? Being full of activity doesn’t always translate to profitability. For your business to grow, it’s important to evaluate performance regularly. It is also a smart move to review the accounts prior to the end of the year.

The availability of a great variety of cloud solutions had made it easy for business owners to be updated. Efficiency and productivity are also easier to achieve with cloud enablement. In addition, it is now easier to collaborate with accountants and bookkeepers because they can easily get a hold of data to help you with being prepared and up to date.

You can make your year-end smoother by being organised in advance and establishing good systems. Your tax planning will be easier because of your access to live information. You can ready your year-end tax planning well before the end of the year with the help of your accountant.

You can utilise your online accounting software to complete your payroll year end compliance task promptly and efficiently. You can also do your GST, PAYG, payroll and superannuation tasks more easily. And with access to reporting features found in the cloud solutions, you can get information quickly for your compliance filings.

Linking your live feed banks directly with your file allows you to keep your data updated. Setting up your bank rules will let you automate your data processing so it doesn’t accumulate. This will provide you with data that is up to date.

Do the following when preparing for Financial Year End:

  • Bank/credit card accounts must be reconciled
  • Loan accounts, including intercompany loans, must be reconciled
  • Receivables and Payables must be balanced
  • Bad debts must be written off
  • Stocktake must be completed by 30 June
  • Payroll/PAYG withholding and Superannuation Accounts must be reconciled
  • Payroll payments and the totals reported for Payroll tax and workcover must be reviewed
  • GST control accounts must be reconciled
  • The sums reported to the ATO in the Business Activity Statement and Instalment Activity Statement must be reviewed to make sure the totals reported for the relevant year is right
  • Profit and Loss and Balance Sheet reports must be run and reviewed

Other items that must be considered when preparing tax:

  • Expenses prepayment
  • Interest prepayment
  • Asset and Depreciation Schedule preparation
  • If you have executed the acquisition of minor assets properly – know the allowable cap for immediate write off from your accountant
  • Sale of assets
  • Deductions for motor vehicle expenses
  • Unpaid expenses that can be deducted
  • Donate to charities
  • Defer income
  • Make payments to you superannuation before 30 June if you wish to make a claim for the expense in the present financial year
  • Sales orders must be checked twice in the event they are completed and must be invoiced
  • Purchase orders must be checked twice in the event they are delivered and must be billed
  • Invoices must reviewed to make sure that the products or services have been delivered – in case the products or services haven’t been delivered by 30 June, chances are they can’t be treated as income in the relevant year.

Doing some of these things above before the end of the year enables you to lessen the chance of paying more than what you actually owe. This is the reason why it is not advisable to postpone completing the tasks that is important to your business.

Advance planning paves the way for improved business performance and growth. There’s no need for business owners to be buried in paperwork when they possess all the means to build such efficiencies in the marketplace.

With the availability of online accounting solutions and the help of your trusted accountant, you should avoid encountering cash flow problems. Reporting and live information will be right at your fingertips anywhere anytime.

PJS Accountants offers a full range of services, including tax planning and compliance, accounting and SMSF services, and bookkeeping. For enquiries regarding our services, contact PJS Accountants.

What You Need to Know About Small Business Tax

It is important for business owners to know about their tax obligations.

The Structure of your Business

You probably have already chosen the structure by which to operate your business, whether as a sole trader, a partnership, a trust or a company. You may have already applied for and received your ABN with the Australian Business Register. It is vital to set up your business correctly.

If you are an Australian resident for tax purposes, you’re not taxed on the initial $18,200 of your income. This is termed as the tax-free threshold.

Allowable deductions for businesses

The list of expenditures or allowable deductions that businesses can claim is comprehensive. Here are some of them:

  1. Advertising
  2. Bank fees, charges and tax agent fees
  3. Business travel including transport and freight
  4. Depreciation of assets used in your business
  5. Electricity including other home office expenses
  6. Hired or leased equipment
  7. Interest on borrowed money
  8. Motor vehicle expenses
  9. Phone expenses

You need to keep:

  • a logbook to calculate the business use percentage
  • odometer readings for the start and end of the period you owned or leased the car, and
  • written evidence for all car expenses, except for fuel and oil costs.  Your logbook is valid for five years. You must have kept a logbook during the first year this method is used. The logbook must cover at least 12 continuous weeks

Applying for GST registration

A business with a turnover or gross income of $75,000 or higher, or a non-profit group with a gross income of $150,000 or higher, is required to register for GST. How do businesses collect GST for the government? It’s by including GST into the prices of their products or services. They then get their GST back from the ATO monies used on business expenditures.

Hiring employees

You may have to employ additional staff as your business expands. Hiring employees is quite clear-cut. However, if you are not familiar with payroll systems and laws, you may end up being penalised.

You may need to withhold taxes from monies you pay to your employees and other staff and disburse these sums to the tax agency. To perform this process, you use the Pay As You Go (PAYG) withholding system. It is recommended that employers register for PAYG withholding prior to making their first payment.

Making super contributions

The ATO is implementing a government initiative called SuperStream, which is designed to make the superannuation system more efficient. It is a new system for handling information and payments that employers have to follow when paying the superannuation contributions for their workers.

Business owners are now mandated to submit data and payments electronically in line with the SuperStream guidelines when making super payments on behalf of their workers.

If you employ 20 or more staff, you have to implement SuperStream contributions as soon as possible. If you have 19 or fewer workers, you have to implement SuperStream beginning 1 July 2015. For larger businesses, the ATO has given them a grace period of until 30 June 2016 to have a plan in place.

SuperStream offers many benefits. One of which is that you can make unlimited super payments fast and easy without leaving the online accounting software that you are using.

BAS submission

GST registered small businesses report and pay several tax duties by submitting activity statements. A form issued by the Australian Taxation Office, the Business Activity Statement (BAS), is submitted monthly or quarterly. Included in your BAS is a summary of the sums of GST that your business should pay and should recover in a specific period.

PJS Accountants can help you organise your tax, accounting and bookkeeping affairs. We work with large companies, SMEs, family businesses and individuals. For enquiries, contact PJS Accountants.

Where are you in the Five Stages of Small Business Growth?

If it has been years since you started your own business, you undoubtedly can relive what you went through and realise that it has transformed dramatically over the years. A good number of businesses experience a life cycle with distinctive stages. It’s fascinating to observe the normal stages and learn what stage you are in presently so you can determine the best way to plan for your future.

Stage 1: Start up

Maybe you are employed in a company and always think you could do a better job and make yourself financially free. Or perhaps you just possess a keen business sense and are inspired to do things independently, so hand in your resignation and open your own business. If you’ve gone through this, or know of a person who has, you have knowledge of the fact that during the initial phases, it’s fairly simple to develop it. You are a newbie in the market and have something of value to offer, which on its own will lure in customers. In every occasion when you meet people, you mention that you have started up your own business and enquire if they know of someone who’d be interested in your product or service. Whenever the phone rings, you get it, hopeful that it is a prospective customer. You attend networking events to secure new projects. You start your business and you see it grow. Then comes Stage 2.

Stage 2: You are full of activities

This stage is when you cease doing the things your normally do when you were just starting. Every time the phone rings, you hesitate and stress a bit because it may be a customer calling to complain. You can’t go to networking events anymore because you’re too busy. You’ve ceased chasing after referrals, seeing that you already have your hands full with your present projects. And wonder of wonders, your growth rates go slack or stop. During this phase, you begin to feel discouraged and perhaps think it would have been in your best interest to continue working for someone else.

What you would also be aware of is the financial freedom that you wanted to achieve when you started your own business appears to be not happening as you expected. Yes, you may be making a decent amount of money, but it is rare for you to have the time to spend it. Stage 2 offers three options:

  1. Return to being a small operation to recover time for yourself
  2. Don’t take action and stay stressed and overworked
  3. Opt to expand and prepare for this by hiring more employees

A good number of businesses pick option 2, which in reality is the worst option. As Einstein said, “doing the same things over and over again is a great definition of insanity.”

Stage 3: Regulated growth

You choose growth if you pick option 3. Studies reveal that a small number of businesses go this route. It is common to see small businesses fail before the five year phase, and a very tiny percentage reach a turnover of $10 M. However, if you choose to grow, take note of the following important points:

  • You have to be content with success, not perfection. Obviously, no one will be able to match your passion to your business, and you might think only a handful of people are capable of doing the work you put out. Learn to be satisfied with it because you can’t do everything by yourself.
  • While growing, learn to accept that you need to employ people who are more capable than you are. You will need them to improve your business.
  • Search for more helpful measures to grow. What do you need: new products or more customers or both? What’s better: remain in your local area or expand outside it?
  • Hiring marketing specialists with experience on lead generation activities. You will not be able to sustain the growth of your business through personal relationships alone. A new marketing campaign is needed for your business to gain new customers.

Stage 4: The ‘next’ stage

This sounds ambiguous but there is a good explanation for this. The landscape in most industries is constantly changing. They experience change, set in motion by many factors including legislation, technology, environmental issues, new opportunities, and availability of offshore labour. Whether you enter Stage 4, or skip it and enter Stage 5, is determined by how you respond to change. This means that you have to be mindful of the changes occurring in your industry and be prepared to adjust to it. Be the first to capitalise on new opportunities. You can do this by having time to think – another reason you should employ capable people.

Stage 5: Deterioration

There’s a good chance your business will decline if you miss Stage 4. You will see your sales slow or drop. Getting new work will become harder and harder. You’re more nimble competitors adopting new technology will cause your prices to drop. You may experience hardships in attracting or keeping good staff as leading-edge competitors is luring them away.

How do these stages align with your business?

A huge number of businesses go through this stage without intending to. If you are running a solid business and you wish to escape a decline, do something now to determine what your Stage 4 may be and begin doing things differently to extend the life of your business.

Contact PJS Accountants to determine what you and your business needs. We offer a full range of services including accounting, taxation, business improvement, superannuation, business valuations, asset protection, succession planning and bookkeeping. We have over 30 years’ experience with local businesses in Capalaba, Cleveland and the Redlands. Our team will be at your disposal, ready for your call to assist you to stay in charge of all aspects of your business.

Tips to Avert Cash Flow Problems that Could Hurt your Business

There is no doubt that cash flow is very important. However, how much power does it actually have? Well, cash flow problems kill businesses. According to studies, nine out of 10 small businesses fail because of their failure to manage cash flow properly.

Cash flow management is not complicated. Basically, it means making sure money goes into your business as fast as possible and goes out as gradually as possible. Also, it means keeping the future in mind and implementing actions to ease any possible problems that may arise along the way.

Of course, everything is not easy, that’s why there is a high rate of business failures due to cash flow issues. If you don’t want to become another statistic, here are 7 ways to avoid cash flow surprises:

1. Profitability Does Not Translate to Cash

Money-making businesses are just as likely to fail due to cash flow problems as businesses that are not making money. You can quickly compromise your business if your costs are excessive or you are spending the profits of your business.

2. Forecast, Forecast, Forecast

Gather as much foreknowledge as you can relating to when cash is expected to go in and go out the business. For this, you need cash flow forecasting. The benefits of having a cash flow forecast is to assist you in making sense of your future cash circumstances and help you identify any surprises and do something to avoid them.

3. It only becomes revenue when it is already in the bank

You may have a balanced monthly budget and a great P&L statement, but if you don’t get paid by your clients in time for you to pay your monthly bills, then you may have issues with cash flow, though short term.

4. Learning about Seasonality

Cash flow is heavily influenced by business seasonality. If you operate a seasonal business, a lot of your inventory purchases, employee expenses and other outgoings are incurred before you make a sale. Make plans beforehand and study trends carefully so you will know when business is up and when it is down. This will help you manage your stock and employment expenses better.

5. Be Prepared for Surprises

Your bottom line can be affected by unplanned expenses and emergencies like a natural disaster, the loss of your star salesperson, illness, etc. Plan for the unexpected, whether it is business insurance, a financial cushion, or cross-training of key sales staff.

6. Have an efficient invoicing and collections systems

Small businesses have problems with clients who don’t pay on time. Take a look at some of these figures:

  • Just 50% of businesses pay on schedule (D&B)
  • 64% of small companies said that invoices are left unpaid for no less than 60 days (NFIB)
  • 14% of small companies listed late payments are the No.1 problem (Kauffman Foundation)

There are several ways to solve this problem, including being prompt in sending invoices out, arranging invoice reminders, and practicing an effective invoicing system. Follow up with payments as soon as you sense that they will be delayed.

7. Be Prepared for Expansion

Growth is accompanied by extra expenditures – marketing campaigns, equipment, inventory, and so on, Be ready for growth, without putting your cash flow at risk, by learning to deal with challenges that hinder business expansion, including cash.

Don’t let your business be impeded by poor cash flow management. Enlist the help of professionals for setting up a good invoicing system for your business. PJS Accountants provides a full range of services including accounting, taxation, business improvement, superannuation, business valuations, asset protection, succession planning and bookkeeping. We have spent more than 30 years dealing with local businesses in Capalaba, Cleveland and the Redlands. Our team is always available to take your call and assist you in whatever business needs. For enquiries, contact PJS Accountants.

What are the Signs that you Need a Bookkeeper?

Many business owners may have had the time to oversee all aspects of their business when they were just starting out. But when their business begins to expand, it is time to weigh things up. Is outsourcing certain tasks the way to go?

It is more important that business owners concentrate more on the areas of the business that can benefit from their expertise – and assign other jobs to other experts.

One of the tasks that business owners can allocate to experts is the financial record keeping. Think about engaging the services of a good bookkeeper. However, when can you say it is the right time to hire one?

Here are 4 signs that you need a bookkeeper:

1. You are spending more time doing the books than managing your business.

It is time to hire yourself a bookkeeper if you find yourself spending a significant part of your day or week doing financial tasks such as keeping financial records of the business.

There are many tasks that a bookkeeper can take on, including pursuing customers with debts, checking vendor invoices, reviewing bank account balances and transactions and ordering stock. Having these tasks off your shoulders will allow you to pay more attention on other areas of your business.

2. You are failing to keep up to date with all business operations.

Growing paperwork and record keeping goes with a growing business.

Many business owners are pressed for time, resulting in them leaving the vital task of updating the records to the last minute – typically for tax time or BAS. If records are not kept updated and there are financial problems that are not seen early, you are in for major problem and you won’t even be aware of it.

Failing to keep up to date with records is definitely a sign that you need to hire a bookkeeper.

3. You doubt that you are keeping records properly.

It’s time to get yourself a bookkeeper if you are spending time checking your books and questioning whether the figures are accurate or correct.

You can save yourself a lot of hassle and give yourself more time to strengthen other aspects of the business by using the knowledge and experience of a good bookkeeper.

4. It is no longer simple doing your tax and/or other compliance.

Complying with rules and other requirements, such as accreditation, are very important for your business, but performing these responsibilities can take a lot of time.

You have to be up to date with regulatory changes and bring your business processes and records up to date to keep in step with those changes. A good bookkeeper can help your business remain compliant.

It’s not always easy telling when the right time is to enlist outside help for your business. When you see the first sign of trouble, make things easier yourself and hire a good bookkeeper.

PJS Accountants offer a full range of services, including tax planning and compliance, accounting and SMSF services, and bookkeeping. For enquiries, contact PJS Accountants.

How to Fund your Small Business when Interest Rates Increase

When the economy improves, interest rates tend to rise over time. While interest rates have been on hold at low record levels for many months, this will not be the case forever.

For small business owners, an increase in interest rates means securing their sources of capital earlier rather than later. This would allow them to have a facility available when they need extra cash flow.

There are 5 funding options available for small business owners:

Factoring of receivables

When a business is paid cash in return for the legal rights to monies payable to it from a sale, or its accounts receivables, this is called factoring. With this method businesses that have normally lengthy receivable arrangements can get more cash faster than it otherwise would. Businesses need to ensure that they have sufficient margins to take in the cost as cash obtained from factoring is a mark down from your invoice amount.

Pre-selling of products or services

This method of funding is commonly seen in crowdfunding campaigns, or in tasks that will need large resources to accomplish. Pre-selling of goods or services is when a business asks to be paid upfront, before they deliver the product or services. Businesses can use the cash to complete the delivery to the customer without incurring any financing costs. They are also not selling equity, which is advantageous. On the other hand, they are inputted as a liability to the customer on the business’ books until they deliver the product or service. Both customers and businesses can make this a win-win situation by setting clear and upfront terms.

Traditional lending

Though banks may be open to extend a loan to small businesses, they normally ask for three years’ worth of financial statements and for tangible assets to guarantee the loan, in case of a default. With credit cards, however, the requirements may be minimal but you may have to pay much more. These funding sources may be suitable for some businesses, but may not be easily available to others.

Alternative lending

Small businesses can avail of private investments from Funding Circle, Dealstruck, Kabbage and others without the rules and requirements normally requested by financial institutions. These sources of funds can be useful in taking a business to the next level. However, expect to deal with a range of costs. Also, rates can be higher compared to traditional loans.

Equity Investments

Smart investors understand the benefits of diversifying their portfolios. Owners of small businesses may have a large portion of their wealth invested in their business. Aside from helping owners “take some chips off the table” and spread their personal wealth, equity investments can also build strategic relationships and knowledge that trigger business expansion. But you should always have a main purpose other than money when selecting your equity partner.

When you are considering options on how to finance your business, always remember not to assume too many risks. Make sure you do not overextend yourself in your pursuit of funding. So, consider establishing an orderly repayment plan that is founded on real data and practical expectations.

Get up to date financials from your accountant and use the data to gain a clearer image of what stage your business is in and what it requires. You can also use it when making a decision on debt or equity facilities.

PJS Accountants provides a full range of services including accounting, taxation, business improvement, superannuation, business valuations, asset protection, succession planning and bookkeeping. For enquiries, contact PJS Accountants.

5 Key Tests to Pass When Applying for a Loan

If you’re considering applying for a bank loan to fund the growth of your business, increase your chances of getting your loan application approved by being prepared. Banks present 5 key tests to their loan applicants. Passing these tests improves the likelihood of you being successful in your loan application. These tests are referred to as the 5 Cs by banks.

1. Character

Believe it or not, this is one of the most vital considerations for financiers. This is because the individual running the business is the one who will pay the loan.

Your personal integrity, reputation and willingness to repay the loan will be checked by the bank. To decide objectively, lenders also use financial statements.

Your character is judged by the bank by assessing your payment history with other existing or past loans. Whether you paid on time and your taxes are up to date are also checked by the bank.

Lenders also want to see how business owners have handled any past crises. They will check for a history of defaults, writs, judgments or bankruptcy.

2. Capacity

Banks will look at the ability of your business to repay the loan, because they, obviously, want to be repaid.

You will be required to submit copies of a budgeted profit and loss statement as well as a cash flow projection that spans the life of the loan.

For the two statements, remember to put the interest and repayments of the loan you’re applying for to prove that your cash flow is sufficient and you will remain profitable during the time frame of the loan.

3. Collateral

A fancy word for security, collateral is what banks will ask you to provide when you apply for a loan. The usual collateral for small business is the applicant’s home or business premises (if they own them).

The bank wants to make sure they can recoup the money they loan you if you happen to default on it. As an example, if you want to get a loan to run a café, it is not likely for the bank to accept your fit out and stock as collateral because the value of these assets will be insignificant if the business folds. This is the reason why you have to have sufficient security to cover the loan.

4. Capital

The bank will want to check your business’ financial status when you apply for a loan.

What they will check is the type and liquidity of your business’ assets and the type and nature of the business’ debts or liabilities. They would see you in a better light if you have capital that went into the business, so you and the bank are both at risk in the business.

5. Conditions

Lastly, the bank will try to find out if you and your business are capable of fulfilling all of the loan’s terms and conditions to make sure you won’t default on the loan. The proposed repayment schedule will be checked against your expected cash flow and your capability to fulfill all the requirements of the loan.

The requirements may consist of submitting quarterly financial statements, keeping certain financial percentages, and presenting proof of insurance. The insurance type may vary and may include key-man insurance in the event the business owner dies or becomes disabled.

Be prepared – this is the key to a successful loan application. Ensure that you and your business can pass these tests and you are sure to get that loan.

By presenting you with the tests that are required when you apply for a loan, we hope to help you succeed in your loan application. If you would like to seek our advice about loans for your business, or if you have any enquiries about our portfolio of chartered accounting and business services, please contact PJS Accountants.

Checklist for Small Businesses at the End of Financial Year

How ready are you for the end of the financial year?

You can begin to get ready even before the start of June. Start early and ease any end of financial year (EOFY) stress. There are a number of things you can do to be able to lodge your tax promptly and to get ready for the coming year. Here is a checklist for small business owners to help them get ready and minimise end of financial year problems.

Follow ATO rules

There are several EOFY tasks that you must accomplish by the end of the financial year. These tasks are:

  • Lodge your income tax return
  • Complete your Business Activity Statements (BAS)
  • Reconciling your PAYG withholding payment summary report
  • Payroll Tax
  • Fringe Benefits Tax

Businesses that employ 20 or more people must have migrated to the SuperStream system before 30 June 2015. This system is designed to simplify the sending of super contributions by employers on behalf of their employees. Businesses that employ 19 or fewer people have until 30 June 2016 to comply with ATO requirements.

Financial software

The financial management of a business is founded on financial software. These days an inexpensive yet powerful, robust cloud-based software service is readily available. You will find this service helpful, especially when the EOFY approaches. By using an online accountancy service, you’ll be able to collaborate with your accountant real time, as well as your automated bank data feed.

Accounts reconciliation

The accounts that you have to reconcile include:

  • Your bank and investment accounts
  • Customers who have hefty unpaid debts
  • Your outstanding debts with vendors and other creditors
  • Your leased equipment
  • Office leases

Payroll reconciliation

The internal payroll matters that you need to reconcile include:

  • Outstanding leave
  • Superannuation
  • Long-service entitlements
  • Other payroll issues that have financial commitments attached

Working capital review

It is important to account for all your stock balances. The perfect time to clear out out-dated stocks with a sale is at the conclusion of the financial year. This is also the right time to review your ordering systems to ease your surplus stock issues.

Small businesses that provide professional services must account for work-in-progress. Find out whether any resources are being held up by individual projects and whether clients are paying bills on time for ongoing work.

Determine the market value of assets

For possible investment opportunities, find out how much is the actual market value of your assets. This information can be useful when applying for bank loans for funding the expansion of your business, or when you want to sell assets that are just idle.

Establish financial performance goals

Were you able to hit your objectives this year? And what targets you want to achieve by the end of the financial year the following year? You can stay on track by putting in place achievable targets for the entire financial year.

Set a cash flow projection

It would benefit you to plan your cash flow in advance. You have to be alert of any possible cash flow deficits so that you will be able to pay your employees and vendors.

If you’re sending out invoices to clients, make sure to find out which clients are failing to pay their bills on time. Keep track of dates when invoices are due, together with other important dates that are related to your cash flow.

Avoid stress when the end of the financial year approaches. Enlist the help of professionals to help you stay on top of the tasks you need to accomplish. PJS Accountants, chartered accountants, provides a full range of services including accounting, taxation, business improvement, superannuation, business valuations, asset protection, succession planning and bookkeeping. For enquiries, contact PJS Accountants.