Every business owner needs to keep and maintain accurate business records. Record-keeping is vital for cash flow management, meeting tax obligations, and understanding the financial position of a company. According to the law, you must explain all financial transactions in your records, records should be in English and maintained for at least 5 years. The end of the year is not just about clearing the mess in business books, it is an opportunity to assess, plan, and improve your business operations. To help you organise, keep, and maintain business books, you can reach out to a bookkeeper for small businesses.
What is the end of the financial year?
The financial year is 12 months, which is a time period used for accounting and tax purposes. The Australian financial year starts on 1 July and ends on the last day of the following year on 30 June. This is the process of assessing, reconciling, and verifying all the financial transactions of the company. This involves calculating the expense of a business, revenue, equity, investment, assets, and more.
What is included in the year-end bookkeeping checklist?
Have a closer look at the end-of-year bookkeeping checklist:
Assess the financial condition of your company
You should start reviewing your financial records from the start date of the financial year. You need to check whether they are up-to-date and accurate. This is essential for understanding profitability, cash flow, and potential growth opportunities. For accuracy in financial records, ensure to reconcile bank accounts, review profit and loss statements, and balance sheets, and address unpaid invoices. Expert bookkeepers can clean up your financial records and ensure your financial data is accurate and organised.
Review your tax strategy
The end of the financial year is an important time period to prepare for the end of the fiscal year. Right tax planning can minimise liabilities and increase tax deductions, ensuring you are claiming what you are liable for. When dealing with tax matters, it’s better to reach out to a tax accountant near your area by searching online for a ‘tax accountant near me’. Tax accountants can help you:
- Spot tax-deductible expenses.
- If registered for FBT, review benefits offered to employees.
- Review payroll compliance.
Cash flow management
Strong cash flow is crucial for all businesses. Plan for cash flow now to avoid any surprises. You need to create a budget plan for 2025 and forecast expenses and revenue. Ensure to address upcoming investments and analyse trends and adjust forecast if required. Bookkeepers provide insights into financial information, helping you create a realistic budget plan and identify opportunities to boost cash flow.
Determine the operational efficiency
The year-end is a crucial time to determine the working of your back-office processes. A bookkeeper in Melbourne can help you audit the workflow of your bookkeeping and reporting. They will evaluate the current technology used to keep your business books up-to-date. Additionally, they will also help you with administrative tasks management.
Review legal obligations and compliance
It’s crucial to check whether your business meets compliance and legal obligations before the year ends. This avoids fines and penalties and ensures you start the year with the right strategy. Your bookkeeper will verify employee records, update business licenses and permits, and ensure your bookkeeping practices match the latest standards. Bookkeepers streamline compliance by maintaining your financial records arranged and updated, so you can focus on core activities of your business.
Year-end reporting preparation
Preparation of year-end reporting is vital for investors, stakeholders, and tax purposes. Error-free reports can help you make the right business decisions in 2025. Bookkeepers can help you organise accurate financial and operational reports, summarise key metrics, and share insights with your team. They provide real-time reporting to match your needs, offering confidence as you approach the end of the year. If you don’t have enough time to prepare these reports, you can get help from a professional bookkeeper.
Final Thoughts
When the financial year is nearing its end, you must be ready with your updated and accurate business books. If you are unfamiliar with bookkeeping practices, it would be better to choose reliable bookkeeping services.