We are on the official countdown to the End of the Financial Year (insert collective moan – or applause, your call).

So, that means it’s time to start planning, checking, and double-checking your files to ensure everything is recorded correctly.

So where do we start?

A simple checklist for EOFY prep

  1. Correct Chart of Account

    A correct chart of account allocation is important so your clients can claim the correct deductibles.

  2. Maintenance vs capital works

    It’s important to distinguish between capital works and maintenance.

    There are many items that are incorrectly classified as maintenance but are indeed capital works.

    Repairs and maintenance maintain and restore your rental property to its original condition whilst capital improvements are any works that better your property beyond its original state. You will be pinged on capital works attempting to pass as maintenance so be sure to get your maintenance file out and start reclassifying where needed.

  3. Lagging Trust Account funds

    Have you had funds in your Trust Account for over 1 year? That’s a big no!

    Trust money is considered ‘unclaimed’ if it is held by a licensee for more than two years in a Trust Account.

    In NSW, once it hits the 2 years and 1 day mark, it’s time to send it over to the Office of State Revenue.

    This applies to all amounts of money.

  4. Withheld funds

    Are you withholding any funds for landlords for future bills?

    If so, ensure you have confirmation in writing that you have approval to hold these funds.

Now whilst your weekends want to be spent doing anything other than EOFY prep, be aware that June 30 does indeed fall on a weekend this year.

To ensure you are not caught out, start prepping now, so you can be sipping Pina Coladas by the pool come June 30 (or something like that).

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 27 years’ industry experience. Don’t trust just anyone with your trust accounting. Book an appointment with an End of Month Angel today.