Industry Update: Start this financial year the Right Way.
Don’t let the EOFY blues hit home.
Look out for the mistakes below to start this financial year with a plan in place and end it on a high!
The financial year has come to a close. We can all finally take a moment to sit back, and relax, right? Not exactly. This is the time to plan for the year ahead and at Scott Partners we are full steam helping our clients start this financial year the right way.
The stress of growing piles of receipts and invoices can affect the clarity, confidence and reliability of reports and accounts when EOFY rolls around. If you’re not prepared, it can lead to a stressful and tenuous time (and a terrible personal tax return).
We thought we’d help you out by listing the five common mistakes to avoid throughout the year. Take note, and try your best to start the new financial year with a plan in place.
If you need any further guidance, remember, Scott Partners Accountants and Advisers are here to help you.
For a seamless 2018-2019 EOFY, avoid these mistakes:
1. Not updating your accounts regularly.
We understand updating your accounts all the time is time consuming and not that exciting. But, failing to keep your accounts up to date can make the end of the financial year even harder than necessary. The best advice we can give is to book regular appointments with us, and let us do the hard work for you. If you fail to monitor incoming and outgoing cash flow within a set time-frame your business could be left without funds vital to servicing its obligations.
2. Leaving everything to the last minute
Take it from us, leaving your financial statements to the last minute will get you in a pickle. We’re sure you remember how effective late night cramming for exams turned out to be (not effective kids – don’t do it), it’s the same for last minute reconciliations and document provision. It takes time to make sure your financial statements are clearly and accurately represented. Keeping your accounts up to date will help ensure better quality and accuracy in statements. We can help with that if you are struggling.
3. Inefficient training and understanding of accounting software
It’s not a secret that Scott Partners Accountants love Xero. It’s beautiful accounting software and it makes our client’s lives much easier. Businesses often don’t have the data or software to monitor and track ongoing, fixed and variable costs and ad-hoc expenses for the business.
You can use an accounting program like Xero to track:
- – Cash flow
- – Key expenditure
- – Payroll
- – Inventory
- – Invoice and billing management
- – ATO Payments such as PAYG and GST (a necessity for business)
Call us today and to discuss how we can help you understand your accounting program (Xero) and advise you on how to use the real-time information to further grow your business.
4. Bad record-keeping and no supporting information for financial statements
Detailed accounts and records are required for reconciliation. If you struggle with record keeping and have gaps in your accounts, contact us today. Scott Partners Accountants can create an action plan to mitigate this and create sustainable accounting practices.
5. Not talking to your Scott Partners Accountant throughout the year
It’s okay, we’re used to only seeing you once a year. But wouldn’t it be nice if we caught up more often? Using an Accountant or bookkeeping services to keep your accounts in order and provide timely advice throughout the year can be hugely beneficial for your business. We’ll keep you up to date on any accounting or tax changes, and also advise you on how to grow your business and maximise your position at tax time.
Don’t let the blues of last EOFY take over.
We want each new financial year to start and end on a high. Contact Scott Partners today and we can walk you through tax time and help you structure your business for success next year and into the future.