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Welcome
End of Year Preparation
Tuesday4th April,2017and
Thursday6th April,2017
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Deborah Thompson Pauline Walton
Your Presenters
Housekeeping
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Ask Questions
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capture all!!
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Changing to Audio
§ Select to change to phone call§ Dial in as per your info below§ Enter the code and pin as
shown (this is different each time and for each person
Agenda§ Bookkeeper End of Year Plan§ Bookkeeper EOY Business Review
– Financials– Payroll– Customers– Suppliers – BAS
§ Business Owner – Communication§ Bookkeeper – Implementing Change
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Bookkeeper –End of Year Project Plan
Bookkeeper – EOY Timeline
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Bookkeeper – EOY Plan
Apr/May
•Review End of Month Checklist•Reconcile ALL Balance Sheet accounts •Prepare and lodge March BAS and finalise ALL figures to end of March•Provide Business Owner March financials to discuss with Accountant prior to EOY•Send Business Owner letter or email re various End of Year Considerations•Prepare employees' details for Payment Summaries, (e.g. TFN, DOB, address, etc)
Plan
• List your Clients and EOY project/tasks• Review timeline for Project/Tasks and lodgements• Information required for each business
Diary
• Schedule Clients in diary• Email Clients for information required to complete EOY, e.g., lease documents, asset sale, verification
of June bank balances etc
Tasks
• Prepare or obtain stocktake value as at 30 June• Reconcile EOY file• Prepare TASKS - Payment Summaries, Payroll Tax, TPAR, BAS
Lodge
• Receive signed authorisation for each form to be lodged• Lodge EMPDUPE, Payroll Tax, TPAR, BAS• Email client receipt of lodgements
EOY
• Meeting with Client re the Business year• Prepare and send information for Accountant• Provide accounting file or access to online file for Accountant
Bookkeeper – EOY Plan
Apr/May
• Review End of Month Checklist• Reconcile ALL Balance Sheet accounts • Prepare and lodge March BAS and finalise ALL figures to end of March• Provide Business Owner March financials to discuss with Accountant prior to EOY• Send Business Owner letter or email re various End of Year Considerations• Prepare employees' details for Payment Summaries, (e.g. TFN, DOB, address, etc)
Plan
• List your Clients and EOY project/tasks• Review timeline for Project/Tasks and lodgements• Information required for each business
Diary
• Schedule Clients in diary• Email Clients for information required to complete EOY, e.g.,
lease documents, asset sale, verification of June bank balances etc
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Bookkeeper – EOY Plan Spreadsheet
Understanding Workflow
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Bookkeeper-Understanding Workflow
State of financials - understanding work load§ Use Dashboards to review all clients progress
§ Last Reconciliation§ Last BAS lodged§ Outstanding Debtors and Creditors§ Cash at Bank§ Documents Received
Dashboard – Gov Reports
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Dashboard – MYOB Software
Dashboard – Xero Software
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Dashboard – Xero Software
Dashboard – Intuit QBO Software
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Bookkeeper – EOY Business Review
End of Year Includes
EOY
Financials
Payroll
CustomersSuppliers
BAS
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EOY Business Review - Financials
Financials§ Finalise Financials to end of March – EOY Considerations
§ Reconcile ATO Running Balance§ Check all Balances on Balance Sheet
§ Assets – Banks, Debtors, Prepayments, Petty Cash, Stock and Assets
§ Liabilities – Prepayments, GST, Payroll, Vouchers, Loans, Creditors and Directors Loan/Drawings
§ Check Last Year Financials are finalised§ Are accountant’s adjustments are entered
Financials - Last Year FinalisedEnsure last year is finalised:§ Last year tax return is lodged and you have a copy
§ Are all adjustments from last year processed?
§ Have you adjusted the data file for any impact of the end of the FBT year?
§ Have you adjusted the data file for any adjustments by the accountant?
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Financials – EOY ConsiderationsFinancials - End of Year Considerations
§ Bad Debts§ Credits on Suppliers§ Unpresented deposits and payments§ Purchase and Sale of Assets§ Stock and Inventory§ Private Expenses Adjustments§ High Profit – Additional Deductions
Financials – EOY Considerations
Stock and Inventory§ Review stock list in detail including when the item last
sold and at what price
§ Consider selling dead stock, at a discount
§ Write off the value of stock that won’t sell
§ Require stock report at 30 June and entered through Inventory
§ Enter adjustment as required before sending reports to accountant
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Financials – EOY ConsiderationsPlant and Equipment§ Obtain the list of assets the accountant uses to calculate
depreciation§ Review the list and remove items that no longer exist or are
obsolete
§ Highlight any items sold - to the accountant§ Businesses are permitted to write off Plant and Equipment
that cost less than $100 (incl. GST)§ Business with turnover less than $2m using Small Business
Entity Concessions; write off assets that cost less than $20,000 (excl GST)
Financials – EOY ConsiderationsPlant and Equipment – Small AssetsBetween 13/5/15 and 30/6/17 Capital Assets purchased
under $20,000.00 ex GST - Claimed immediately§ Motor Vehicles
§ Office Equipment
§ Office Furniture
§ Electronic Equipment
§ Computers
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Financials – EOY ConsiderationsPrivate ExpensesThis can be an accountants area – however identify
private expenses for accountant
§ The ATO allows a ‘once a year’ adjustment to reduce the GST claimed for private expenses.
§ If you have $1100 of private expenses, then reduce your next GST claim by $1100/11 = $100.
§ You do not have to inform the ATO, just keep the records
Financials – EOY ConsiderationsAdditional Deductions if Cash Flow is good:§ Get the cars serviced and replace tyres
§ Service Equipment
§ Pay the membership fees, subscriptions
§ Pay the insurance bills etc
§ Get a discount on rent by prepaying for a period
§ Pay yourself additional wages and superannuation
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End of Year Includes
EOY
Financials
Payroll
CustomersSuppliers
BAS
End of Year Review - PayrollPayroll
§ Payment Summaries Requirements § FBT Employee for Payment Summary§ Missing Employee TFN, DOB, Full Name and Address, Super
choice form, Fair Work Information Statement§ Check registration and additional payment summary for Working
Holiday Makers§ Software Compatibility for version EMPDUPE if required § How and Authority to Lodge§ Authority to Email Payments Summaries
§ Check Wages YTD – Payroll Tax Threshold§ Check Superannuation Threshold
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Payroll – Payroll Tax Threshold
Payroll - Payroll Tax Threshold
Check all relevant wages, contractors, directors and superannuation is included in calculation for the year – See ICB Resource
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Payroll - Superannuation Threshold
Payroll - Superannuation Threshold
Unused concessional cap carry forward 2017-18 2018-19 2019-20 2020-21 2021-22
General Contributions Cap $25,000 $25,000 $25,000 $25,000 $25,000
Total unused available cap accrued
Not applicable $0 $22,000 $44,000 $69,000
Maximum cap available $25,000 $25,000 $47,000 $25,000 $94,000
Superannuation balance 30 June prior year
Not applicable $480,000 $490,000 $505,000 $490,000
Concessional contributions $nil $3,000 $3,000 nil nil
Unused concessional cap amount accrued in the relevant financial year
$0 $22,000 $22,000 $25,000 $25,000
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End of Year Includes
EOY
Financials
Payroll
CustomersSuppliers
BAS
End of Year Review - Customers
Checklist§ Check Returns and Credits§ Check for Bad Debts§ Check Outstanding Orders§ Marry Prepaid Deposits on Orders/Events§ Review Retentions
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Customers - Receivables
Review the Receivables report:§ Validate all are still outstanding
§ Check report reconciles, if not:– Check for predated payments– Check audit log for any changes– If unable to determine advise accountant
report is correct for them to adjust at EOY.
Customers - Bad Debts
§ Check outstanding debtor has not been paid elsewhere ie. Cash, Contra
§ Review receivables with Business Owner
§ Credit invoice to Expense ‘Bad Debts’, include GST if the original invoice included GST
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Customers - Contra Accounts§ Review:
- Is account balancing back to zero?§ Contra criteria:
- GST law still applies- Same net GST must apply to both sides- Supply must be taxable- Both parties registered for GST- Supply and purchase recorded in same BAS
period
Customers – Advance Payments
Types of advance payments:§ Gift Voucher/Certificates§ Layby§ Deposits
§ Security§ Bond§ Advance payment
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Customers – Deposits, Layby, Bonds and Part Payments
What are they?• Security deposit is held against damage or future
event
• Customer Deposit is paid in advance of eg: function, delivery of goods
• Lay-by is instalment payments in advance for item
• Bond is held to ensure goods returned or paid for
Eg: Rental bond – returned on vacating if in good order
Customers –Orders/Payments
§ Review outstanding orders and remove old orders§ Print outstanding orders report from POS and
Accounting software to EOY.§ Ensure figures are the same and compare to
Balance Sheet:– Customer Payments Liability = Orders Report– Customer Laybys – Laybys Report
§ Try manual reconciliation to try and determine difference.
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Customer – Gift Vouchers
§ Voucher for goods and services NOT a specific event or item
§ Ensure you have a liability account for moneys received for voucher
§ Ensure a register is kept of expiry dates etc
§ Check for expired vouchers and reallocate from liability to income account inclusive of GST
§ Gift Vouchers/Cert Liability = Gift Vouchers Register
Customer – Gift VouchersSingle Store Journal Entries
Date Type Account DR CR30/4/16 Liability Gift Vouchers un-presented $2200
Income Sales $2000Liability GST Collected $200
Write of Expired Gift Vouchers
Multiple Stores Journal EntriesDate Type Account DR CR30/4/16 Liability Gift Voucher Store X Liability $110
Liability Gift Voucher Store Y Liability $110Income Sale $200Liability GST Collected $20
Multiple Store Voucher Redeemed
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Customers - Retentions
Retentions are held to secure performance of a project§ Percentage base of contract withheld from
progress invoices
§ Retained and not released until pre agreed conditions/compliance are met.
End of Year Includes
EOY
Financials
Payroll
CustomersSuppliers
BAS
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End of Year Review - Suppliers
Checklist§ Review Suppliers§ Check Supplier Orders and Prepayments§ Stocktake timing and Cost§ Check Stock Received with no Invoice§ Check Suppliers Valid ABN§ Check Suppliers for TPAR - Flagged,
Address
Suppliers/Purchases – Outstanding Payables
§ Check payables are STILL outstanding
§ Request up to date statement from supplier
§ Follow up with business owner
§ Check if paid via “spend money”
§ Decide with business owner if you void.
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Supplier/Purchases – Invalid Invoice
§ Invalid – ABN or GST Registration
§ Advise Client – Consequences:
§ Contact supplier for clarification
§ Request new invoice
§ No response from supplier, advise business owner§ Must hold 49% of payment and note on BAS at W4 if
details not corrected
Suppliers - EOY Stock
§ Stock Review– Incorrect Average Cost– Stock Returns– Damaged or soiled stock– Samples stock
§ Stock received with no Invoice – Obtain before EOY§ Stocktake timing§ Where is the stock?
– Vans– Consignment – Customers stores– Agents
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Suppliers – Preparing TPAR
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TPAR – Valid Suppliers ABN§ TPAR requires lodgement regardless if the ABN is valid or not
§ Helpful to check that an error has not been made– Use ABN Lookup spreadsheet to check ALL suppliers
(excel sheet can be kept as confirmation)§ https://abr.business.gov.au/Tools/AbnLookup
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End of Year Includes
EOY
Financials
Payroll
CustomersSuppliers
BAS
End of Year Review - BAS
Checklist§ Check change of prior BAS’s
§ Check ATO Running Balance
§ Reconcile GST Worksheet
§ Check GST Threshold
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BAS – Reconciliation Worksheet
BAS - GST Threshold Reached
§ GST Threshold $75,000 to register§ 21 Days to register after reaching $75000
§ GST Threshold - $2m turnover§ Move from Cash to Accrual GST –
Implications§ Discuss with Business Owner and Accountant
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BAS – GST compilance
BAS - Fuel Tax EligibilityMany businesses are eligible to claim the fuel tax credits. Some businesses that are likely to be eligible are:§ Road transport§ Construction§ Manufacturing§ Agriculture§ Fishing§ Forestry§ Electricity generation§ Landscaping
Eligible fuels:§ Petrol§ Diesel§ Kerosene§ LPG
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Business Owner – EOY Communication
Business Owner – EOY Communication
Email Business Owners
§ Suggested times for discussion of March Financials, (as part of normal monthly visit or special appointment)
§ Attach ‘End of Year Considerations’ and other relevant documents
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ICB Client eBriefUse ICB’s monthly Business Newsletter called "Bookkeeping eBRIEF".
Remind Client to Plan ahead
ICB Business Information Sheets
Use ICB’s Business Information Sheet to advise clients of changes to process
Add your own logo
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Business Owner – EOY Authorities
Lodgement Authorities required @ EOY§ Payment Summaries to lodge§ TPAR to lodge§ Superannuation to lodge
Other Authorities§ Move GST cash to accrual or vice versa§ Register for GST as over $75,000 threshold§ Register for Payroll Tax
Employee Authority –Email Payment Summaries
Electronic Payment SummariesContact employees and gain authority to email payment summaries or access via employee portal
Employers must have a signed authority to email payslips and payment summaries
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Remember - Lodgement Dates§ 14 Jul - Payment Summary to employees
§ 21 Jul – Monthly BAS to ATO
§ 28 Jul – Quarterly BAS to ATO (Ext: BAS Agent 25 Aug)
§ 28 Jul –Previous Quarter’s Super must be IN THE FUND
§ 14 Aug – Payment Summaries to ATO
§ 28 Aug – TPAR to ATO
§ 31 Oct – PAYG Withholding – No ABN Quoted
§ 31 Oct – PAYG Withholding – Interest, Dividends, Royalties
§ 28 Feb - GST Annual Return
Business Owner – Discussions§Review Business Systems to plan Improvements§What new strategies does client need?
–Encourage Business Owner to upgrade
• Bank Feeds
• Automated Superannuation
• Electronic Invoicing
• Electronic Records
–Simpler BAS – ICB Business Info Sheet – Simpler BAS
–Cyber Security
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Discussions – Implementing Change
Discussions – Simpler BASBusiness Information Sheet – Simpler BAS
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Discussions – Cyber SecurityBusiness Information Sheet – Cyber Security
ICB EOY Resources
§ End of Month Checklist§ EOY Checklist§ Payroll EOY Checklist§ Payroll Tax§ GST Threshold§ Financials Policy Template§ Payroll Management Policy
Template
§ EOY Bookkeepers Project Plan§ EOY Business Owners Project
Plan§ Business Owner EOY
Considerations§ Directors Payments and
Employments Matters
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Questions and Answers Email
CPE
Note: CPE added to register at the end of the month
