With end of financial year (EOFY) fast approaching, the Tailored Accounts team is counting down to the last day of the financial year! You may wonder why EOFY often becomes such a hectic time for bookkeepers and accountants. I hope this article can shed light on the inner processes of EOFY preparation. The following list articulates the main examples of magical touches that we exert to ensure your books are in the best order:
1.The year-end payroll Payroll reconciliations at year-end takes care and attention to ensure all requirements are met. Here are the core tasks that our team has been undertaking in the process of EOFY preparation:
- Final super payment runs must be done before 25th June each year to ensure the last super payment is eligible for a tax deduction in the current financial year.
- Payment summaries are to be communicated to employees via email/post before 14th July.
- Payment summary reports must be submitted to the ATO before 14th August in the following year.
2. The last GST & BAS of the financial year As you may be aware, April-June BAS is not due until 28th July in the next year. Regardless of the due date of BAS, our team finalises the last quarterly BAS before 14th July to reconcile balances between payslips and BAS. To prepare the end of the year BAS, we review all quarterly sets of BAS submitted during the financial year to reassure the integrity of your financial data since all adjustments need to be made in the final BAS.
3. The final review of all other accounts After the big year-end reconciliation processes of Payroll and BAS, our team also reviews every single account in your Trial Balance prior to closing your books. To deal with the sheer volume, the Tailored Accounts team prepares review and consolidation of all accounts after the reconciliation of Payroll and BAS.
One-hundred small business clients can be translated into a budget for 1,500 hours (equivalent to 6.5 full-time staff) at a minimum for six weeks prior to EOFY. This response, hence, addresses the original question, “Why are accountants and bookkeepers busy during the EOFY period?”
Harry Hoang is the CEO of Tailored Accounts “The Accounts Department of Small and Medium Business”