Time to Get Your Ducks in a Row
As we have all been caught up in everything COVID, End of Financial Year has well indeed crept right up on us. In response, this month’s theme is EOFY and audits in preparation for the month ahead. As before you know it, June 30 will be knocking on the door and demanding our attention. So, as a handy reminder, we have compiled a quick EOFY preparation checklist to ensure you have all your ducks in a row.
EOFY Preparation Checklist
Speak to Your Accountant
It is time to grab the phone and organise a meeting with your accountant to conduct some tax planning. This is all in the name of minimising the amount of tax payable this financial year. The increase in the instant asset write-off as part of the COVID stimulus package may benefit you with the purchase of a new piece of equipment. Chat to your accountant to see what is needed and possible.
In order to utilise your super as a tax deduction for the 2020 financial year, make sure all your super is lodged for the full year prior to June 21st.
Now is a good time to look at your 2021 budget and enter into relevant accounting software. Look at the year ahead and your estimated forecasts as we adapt to a post-COVID business environment.
Ensure all loan accounts are up to date. Make sure they are ready to reconcile and the accounts are all clean and free of error. This will ensure they are in the best shape for EOFY. If there are funds owed by a Director to the business, this opens up another form for the accountant called a division 7a.
Include all Stimulus Payments
It is important to remember that all JobKeeper payments plus the Cashflow boost form part of your taxable income. They must be declared. Keep in mind in your forecasting that there may be adjustments to the JobKeeper payment as the Opposition puts the pressure on to wind back the scheme. Adjustments to the eligibility criteria may also be on the cards. Factor this possibility into your post-COVID forecasts. Also, ensure that the JobKeeper and any Cashflow boost payments have been sent up correctly in your accounting software as other income (BAS excluded).
Double Check Fee Allocations
Check all fees in your Property Management software and ensure no double-ups.
A reminder that the ATO has extended EOFY and FTB due dates until June 5th. Getting this checklist underway early will ensure you and your business are in the best position coming into the EOFY period.
Jane Morgan is the Director of End of Month Angels, a consultancy firm specialising in Trust Accounting. Jane knows the legislative requirements of running a successful Real Estate office through her 23 years’ industry experience. Don’t trust just anyone with your trust accounting. Book an appointment with an End of Month Angel today.