Our Guide to Cloud Accounting addresses common misconceptions about the cloud, provides insights on how to make the switch as seamless as possible, and includes expert commentary along with local business case studies.
It comes off the back of new research revealing the majority of startups and small businesses are yet to take advantage of the range of affordable, easy to use online financial management systems available to them.
With June 30 rapidly approaching and your free e-book on moving to the cloud in hand, Intuit and our accounting and bookkeeping partners offer the following tips to help you prepare for the end of financial year and get a fast start to FY’16.
EOFY Tips for Startups and Small Businesses
1. Reconcile everything. This doesn’t just mean bank accounts and credit card accounts, but also reconciliation of your wages to the general ledger, as well as your balance sheet accounts, including pre-payments, payroll liability accounts, ATO Integrated accounts and GST accounts.
Alee Cochrane, an experienced accountant and Director of Total Bookkeeping & Business Solutions, advises to also: “check your suspense account if you use one, to ensure that all transactions have been allocated to the relevant expense or balance sheet accounts.â€
2. Prepare your paperwork. Collect all receipts and have supporting documents to hand for significant purchases such as insurances, registrations and finance arrangements. Remember to provide a copy of the paperwork even if you are unsure your purchase is an asset. If you are using cloud accounting software, you can easily scan or take a photo from a mobile device and attach your receipts directly to the relevant transaction and it will be stored forever.
3. Order your assets. Tell your financial advisor if any assets were sold, stolen or written off during the year, and review last year’s asset register (found near the back of your financial statements), marking any that are no longer relevant to your business. This will help keep your business asset register and depreciation schedule in order.
4. Provide statements ASAP and review un-cleared transactions. Bookkeepers and accountants love clients who provide bank and credit card statements that cover end of June, and do it as soon as possible, according to Diane Lucas, a certified bookkeeper, BAS agent and founder of Direct Management.
“Another good exercise is to create a list of un-cleared transactions such as unpresented cheques that demonstrate why your bank register may have a different balance to the bank statement. This is a real time saver and will ensure an easy reconciliation process,â€ she said.
5. Get your super and payroll sorted. Lielette Calleja, an accountant with 15 years’ experience and Director of bookkeeping consultancy allthatcounts, advises businesses to pay any super liability balances due before June 30 so they can be taken up as a tax deduction this financial year.
“When it comes to payroll and preparing annual payment summaries, little things count so ensure staff details are up to date including date of birth, email addresses, super information and tax file numbers. With cloud accounting solutions like QuickBooks Online, a great benefit is that payroll is also automated and integrated into your file, which helps simplify the business of EOFY,â€ said Calleja.
Please speak to a qualified accountant and/or the Australian Tax Office (ATO) if you have questions or require support.