As the end of the financial year approaches, businesses face a flurry of tasks and responsibilities to ensure a smooth transition into the new fiscal period. To help navigate this critical period effectively, it’s essential to prioritise specific tasks that can set the stage for financial health and success in the coming year.
Effective planning and execution of these tasks can lay the groundwork for success and set the stage for achieving business objectives in the year ahead. As advisors to SME businesses, we are constantly asked what can be done prior to year-end to get the best possible financial outcome.
By prioritising these essential end-of-financial-year tasks, businesses can ensure compliance, accuracy, and financial stability as they transition into the new fiscal period.
Evaluate Capital Expenditure
Review capital expenditure made during the financial year and assess the impact on the business’s operations and financial performance. Determine the effectiveness of investments and consider future capital allocation strategies.
Reconcile your accounts
Conduct a thorough reconciliation of all financial accounts, including bank statements, credit card transactions, and accounts receivable/payable. Ensure that all entries are accurate and up-to-date to provide a clear picture of the company’s financial position.
Finalise Payroll Processing
Complete payroll processing for the final pay period of the financial year, including wages, salaries, bonuses, and deductions. Finalise single touch payroll and ensure compliance with relevant employment regulations.
Variance Reporting
Compare actual financial results against the budgeted forecasts to evaluate variances and identify areas of overspending or underperformance. Adjust future budget projections based on insights gained from the review process.
Review Financial Statements
Analyse financial statements, including balance sheets, income, and cash flow statements, to assess the company’s financial performance over the past year. Identify trends, areas of concern, and opportunities for improvement.
Tax Planning
It is important to plan for expected tax liabilities and obligations for the financial year, including income tax, GST, payroll taxes, and other applicable taxes. Ensure compliance with tax laws and regulations and explore opportunities for tax deductions or credits.
Settling Debts
Address any outstanding debts or liabilities owed by the business and whether the payment of these debts can generate additional tax deductions. Make necessary payments to avoid penalties and maintain positive relationships with creditors.
Plan for the year ahead
Develop a strategic plan and budget for the upcoming financial year based on insights from the review process. Set clear goals, priorities, and initiatives to guide business operations and drive growth and profitability.
