EOFY (End of Financial Year)
Author – Cathy Love
June 30th is approaching (EOFY). As allied health business owners, there’s lots to do on the finance front in the coming weeks. Whilst this may not be our favourite activity, it is a business necessity. We need to learn the numbers and manage like a boss in order to run powerful and profitable businesses. Here are some EOFY considerations for you to consider and apply to your business as appropriate:
- Check you practice management software for aging debtors, get cracking with them to get their outstanding invoice paid.
- Check your creditors, who you own money to, and pay these invoices. We all like to get paid.
- If you sell items, conduct a stock take; your inventory management system will give you a stock report to work from.
- You may have a depreciation schedule to update and check, as per your accountant’s instructions.
- Prep the necessary PAYG summaries and superannuation summaries for employees.
- As a business owner, you may wish to make a personal superannuation contribution—check with your accountant about the rules and tax benefits for your personal circumstances.
- Ensure all expenses and income are accurately loaded into your accounting system. The next step is to generate month-by-month ‘Profit and Loss’ statements and a ‘Year to Date P&L’. Whilst these reports may not give you the numbers you want, they are the numbers you need to learn to understand. Work with your accountant or bookkeeper on these critical reports. Back everything up. Twice.
- Check with your accountant ASAP regarding tax management strategies, personal superannuation, and any EOFY tasks you are unsure –this is what they are for and your discussions could save you significant amounts of money.
Review all aspects of your business and personal finances. As business owners, it is smart to take a step back and look over the entire year, highlights and lowlights, the alignment with your proposed budget and targets met, and, hopefully, exceeded. I highly recommend you write up a report about the year that was, with learnings, challenges, suggestions. This will be useful in planning the coming financial year’s budget and business activities.
What EOFY tasks must you do?
Have you booked them into your default diary?
When are you due to meet with your accountant?