End of Financial Year 2024 Checklist for Businesses

Written by Azure Group | 17-Jun-2024 03:51:39

The end of the financial year (EOFY) is an important time for businesses. It’s essential for businesses to start preparing to ensure a smooth transition and to maximise their tax benefits.

By following this checklist, you can ensure that your financial records are accurate, your tax obligations are met, and your business is in a strong position for the year ahead.

Having a comprehensive checklist can make the process less daunting, so here’s your ultimate EOFY checklist for 2024:

1. Review Financial Statements

Balance Sheet
☑ Ensure that all assets and liabilities are accurately recorded.
☑ Reconcile any discrepancies.

Profit and Loss Statement
☑ Verify all income and expenses are recorded.
☑ Look for unusual items that may need adjustment.

Cash Flow Statement
☑ Confirm all cash transactions are accounted for.
☑ Review operating, investing, and financing activities for accuracy.

2. Reconcile Accounts

Bank Accounts
☑ Reconcile all business bank accounts to ensure transactions match your records.

Credit Cards and Loans
☑ Match credit card statements and loan accounts with your accounting records.

3. Stocktake

☑ Conduct a physical stocktake of your inventory.
☑ Write off obsolete or damaged stock.
☑ Adjust your inventory records accordingly.

4. Review Debtors and Creditors

Accounts Receivable
☑ Follow up on outstanding invoices.
☑ Write off bad debts if necessary.

Accounts Payable
☑ Ensure all supplier invoices are recorded.
☑ Schedule payments to improve cash flow.

Related: How to improve Your Business Cash Flow during periods of instability

5. Assess Fixed Assets

☑ Review your fixed asset register.
☑ Consider disposing of obsolete or unused assets.
☑ Ensure depreciation is correctly calculated.

6. Employee Obligations

Payroll
☑ Reconcile payroll records with bank statements.
☑ Ensure all employee entitlements, including superannuation, are paid up to date.

Employee Benefits
☑ Review fringe benefits provided and ensure they are correctly reported.

Related: Smart timing could Save You Money when Paying Bonuses to Employees

7. Tax Obligations

Income Tax
☑ Estimate your tax liability and make necessary provisions.
☑ Consider any tax planning strategies to minimise tax payable.

GST and BAS
☑ Ensure all GST transactions are recorded accurately.
☑ Prepare and lodge your Business Activity Statement (BAS).

8. Review Financial Performance

☑ Analyse your financial performance over the past year.
☑ Identify areas for improvement and set goals for the next financial year.

Related: The benefits of Financial Modelling for Small Businesses

9. Plan for the Next Financial Year

☑ Prepare a budget and cash flow forecast.
☑ Review and update your business plan.
☑ Consider any major investments or changes in business strategy.

10. Consult Your Tax Accountant

☑ Schedule a meeting with your accountant.
☑ Discuss any complex issues or concerns.
☑ Ensure you are compliant with all regulatory requirements.

Related: How to choose the right Tax Accountant

Preparing for the end of the financial year is a critical task for any business. By following this checklist, you can ensure that your financial records are accurate, your tax obligations are met, and your business is in a strong position for the year ahead.

Taking the time to review and prepare now can save you a lot of headaches in the future and set you up for continued success. Get in touch if you need help.

Remember, this checklist is a guide only and may need to be tailored to fit the specific needs of your business. Happy EOFY 2024 preparations!

Contact our Tax Team

Azure Group's has a dedicated Tax Team that understands the significance tax plays on our clients’ wealth and place an enormous emphasis on tax planning to manage our clients’ overall position.

Our team consists of more than 40 professionals, led by experienced Partners from both Big 4, Mid-Tier and boutique, chartered environments with over 100 years' experience. Our team are experts in supporting Corporate / Private / Tech / International / Medical Healthcare clients with effective Tax Planning Strategies and reviewing their affairs before 30 June each year. We utilise our unique 4-tier tax methodology that covers structuring, planning, reconciliations and compliance management. It is combined technical chartered and commercial tax expertise that enables us to deliver a superior client experience. Get in touch.

Have you noticed our EOFY 2024 Tax Tips... here's one that relates to Business Structure

"Time for a check-up! Ensure your business structure is the most tax-efficient. It could make a big difference!”

This article is intended to provide general information only, and is not to be regarded as legal or financial advice. The content is based on current facts, circumstances, and assumptions, and its accuracy may be affected by changes in laws, regulations, or market conditions. Accordingly, neither Azure Group Pty Ltd nor any member or employee of Azure Group or associated entities, undertakes responsibility arising in any way whatsoever to any persons in respect of this alert or any error or omissions herein, arising through negligence or otherwise howsoever caused. Readers are advised to consult with qualified professionals for advice specific to their situation before taking any action.

View full post