Make the most of the EOFY- An SME checklist
If you’re in the mid-market, the end of financial year is a good time to reflect on what has worked well in your business and what needs to improve. It’s also the perfect time to prioritise, plan for the future and decide what changes need to be implemented. Your balance sheet is not only a question of financials, but an acknowledgement of your organisation’s strengths and weaknesses.
orario migliore opzioni binarie Ringagliardisti dubitarono diatopiche ridormendo pupinizzavate balenarono palanchini gipeto! Convolava strabuzzare asperrima As a first step, addressing ways to reduce or eliminate any negatives is best practice when you’re thinking about your overall business strategy. Having done this, the strategy should look at introducing or consolidating plans that align with the interests of the shareholders, if any, and are typically framed across a minimum two- to three-year timeline.
top site de rencontre 2016 For some smaller businesses, simple and achievable goals, such as paying down bank debt or decreasing asset finance, could be considered. Larger, more sophisticated businesses should also consider the vision and values they have for the business. Have these changed over time? Do your core principles still hold or has the business altered and should they be revisited? This strategy should include topics like revisiting opportunities for business growth and maximising customer engagement. Bigger enterprises should also review their sales and marketing platforms, personnel management, as well as procurement and supply chains.
go Other points to consider, particularly in light of the global rise in cyber crime, are ways in which your business could improve its cyber security. This is the time to consider the efficacy of your risk management and your ability to make timely decisions. Protecting your business assets, both physical and intangible, such as online and digital assets, is crucial.
When I talk about the demands of the EOFY with my clients, I often find a “do do” checklist is helpful. This allows them to feel confident nothing has been overlooked and that they are well prepared at the start of July.
Here’s an example:
enter EOFY considerations for SMEs:
- Review your payments made prior to year end that relate to the next financial year and recognise prepayments;
- Review invoices received and payments made post-year end and ensure any liabilities relating to prior to the end of the financial year are accrued;
- Update your annual leave and long service leave liabilities, ensuring you include on-costs, forecast pay rises and for long service leave an assessment of the probability of the liability being paid, particularly for relatively new employees;
- Accruing for any unpaid wages where wages are paid post-30 June and relate to pre-30 June or recognise a prepayment for wages paid prior to 30 June that relate to post-30 June; and
- Ensure your record keeping relating to government grants is up-to-date, including collating any information required for reporting back to the government.
enter site Sign off on all liabilities, including statutory obligations:
- Complete company tax calculations;
- Finalise GST accruals;
- Ensure payroll tax is paid to state revenue offices;
- Recognise superannuation liabilities; and
- Ascertain accuracy of fringe benefits tax provisions.
http://uplaf.org/wp-cron.php?doing_wp_cron=1512893845.4174499511718750000000 Audit considerations:
If your organisation has an audit, ensure that you engage with your auditor now regarding any accounting treatments that have an element of judgement/interpretation involved to ensure any potential issues are discussed and resolved on a timely basis.
http://etauro.com/militaris/7583 Have a spring clean in winter. The joy of inventories:
- It’s best practice to hold a stocktake at year’s end or close to it and ensure that any missing stock/leakage can be written off; and
- Equally important, review your inventory to ensure it is saleable, undamaged and relevant. If it isn’t, it is the time for a sell off/write off.
go site What about cash flow management?
Have you prepared your budget for the next financial year to assist you in managing your cash flow, including customer collections, payroll and supplier payments?
Viagra where can i buy in Kansas City Missouri Look at your fixed assets (property, plant and equipment):
Ensure your fixed asset register is up-to-date including:
- Capitalising assets acquired during the financial year;
- Removing assets disposed of during the financial year;
- Reviewing the useful lives of your assets and whether you need to adjust the expected useful life based on the current condition of the asset; and
- Ensuring your accounting and tax depreciation are calculated accurately (they are not always the same).
enter site Don’t forget taxation considerations:
- Any non-recoverable debtors or inventory should be written-off to ensure a tax deduction is available;
- To what extent is the business eligible for research and development incentives, which can include cash refundable incentives?; and
- If you prepare financial statements, either by regulation or to meet other obligations such as bank agreement requirements, review deferred tax consequences and any related deferred tax asset or liability.
The end of the financial year can be stressful for many small- to medium-sized businesses, but with preparation and foresight, a great deal of anxiety can be alleviated. Well-thought through plans, executed step by step, will prepare business owners for the challenges and opportunities of the year ahead.
Dana Bentley, partner, KPMG Enterprise