End of Financial Year

You just got through the last one relatively unscathed, just a few bumps and bruises to show. You recovered… then you blinked and BOOM! It’s here again. And with it comes higher than normal stress levels, later nights, less sleep and a whole lot of thoughts about how you’ll do it better next year.

Well, the time is now.

Before this financial year is over, we want to help you plan the systems you need to put in place now, to make this the last ever EOFY where you are chasing your tail til the umpteenth hour and adding a whole lot of undue stress to your already hectic schedule.

Preparation is key.

Stop, breathe and follow our 3 steps to getting through this EOFY.

  1. EOFY Statement Previews

By generating EOFY statement previews, you can instantly see errors such as missing addresses and poorly allocated expenses and revenues at a glance. You then have the opportunity to amend the errors before you run the reports.

  1. Reconcile

If there is one thing you can do, don’t leave your reconciliation til the last minute. Any problems with your balance will see you unable to reconcile and will result in you pulling out a lot of much-needed hair. Most trust accounting software now allows you to reconcile on a daily basis. Making this a part of your daily routine will help to avoid a red-hot mess at the end of each month.

  1. Back up

Refer to Point #2 – make backing up a part of your everyday routine. Losing data is a huge headache you don’t want to encounter. It doesn’t take long and is well worth the effort.

Now say goodbye to EOFY stress for good!

So now you’ve made it through, start the new financial year on the right foot and implement these new systems on July 1 and watch yourself sail into your next EOFY. You’ve started the habit of reconciling and backing up daily – so now add these to your list:

  1. Internal self audits – that way you are prepared for when the real thing happens.
  2. Adopt a risk management plan – have a plan in place should the unexpected happen – like you lose your trust accountant (insert cold shudder).
  3. Train up – keep up to date with the latest rules and regulations relating to the industry. You can never know too much.
  4. Ledger account audits – conduct regular audits on your ledger accounts to clear out any built up funds and allocate to the correct account.
  5. Review agreements – ensure your agency agreements are current and in date. If not, update them.
  6. Update policies & procedures manuals – taking the time to run a quick eye over your policies and procedures will ensure your office is running as efficiently as possible and prompt you to ensure your staff are all fully across all office policies.
  7. Keep better trust records – information is key. Keeping good records ensures you aren’t left fumbling in the dark when faced with an auditor’s review with questions you cannot answer. Taking the time to jot those few notes on your reconciliation or bank deposit sheet will come in handy when you need it most.

Follow our EOFY trust accountant essentials this new financial year and you’ll be thanking your lucky stars a year from now.

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~ 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 19 years industry experience. Don’t trust just anyone with your trust accounting, trust End of Month Angels and get back to what you do best – growing your business.