Review your aged receivables – people who owe you money
- Review the full list of clients who owe your business money.
- Consider your aging of debtors and consider full debtors collection policy.
- If you find that any amounts will not be received for specific reasons, then write off the amounts.
- If the debtor is 12 month old and you believe you will receive the money then identify the GST amount which potentially can be claimed back. In order to obtain the tax deduction for a write off of bad debts the amount must be actually written off the ledger.
- Consider GST amount for accrual GST reporting business.
Review your aged payables – money you owe
- Review your list of creditors that you owe money.
- Consider the aging of creditors.
- If you find that any amounts will not be paid for specific reasons, then write off the amounts.
- Consider GST amount for accrual GST reporting business
Review your cash spending
- Ensure that all cash paid transactions or receipts have been entered for the year.
Reconcile your bank accounts & credit card accounts
- Reconcile your accounts and ensure that all entries which have not yet been presented have in fact been entered into your accounting software.
- Identify any un-presented cheques or un-presented deposited which are very old, investigate and record notes.
- Photocopy or scan copies of the statements for each account at 30 June
Conduct a stock take
- Conduct a stock take as close to 30 June recording items on hand, items damaged or needing to be written-off.
- Consider sale at discount of items that are slow – realise the cash.
- Record any stock adjustments.
- Remove / hide / inactive any unwanted stock items.
Review your assets ie. plant & equipment
- Create a list of assets ensure copies of the receipts are on hand for the Accountant so the depreciation amounts can be calculated.
- Review the list and remove items that no longer exist or are obsolete.
- Ensure new items are listed and advised to the accountant.
See if you can make any prepayments
- Be logical – it takes 100% of cash prepaid to get a tax deduction of maximum 46.5% and it is only timing. Ensure you have copies of documents for your Accountant.
Review prior BAS’s lodged before Q4
- Check no changes have been made in the Accounting File affecting prior BAS’s by reprinting the Summary Cash or Accrual GST reports for each reporting period and compare with lodged BAS’s.
- If variances, investigate and make note.
- Make an adjustment using a General Journal for next BAS or communicate with your Accountant for instructions
The information provided here is of a general nature for Australia and should not be your only source of information. Please consult an experienced and registered tax agent as each small business’ circumstance will vary for end of financial year.
First published on MYOB Australia <5th Jun 2014> <http://myob.com.au/blog/first-gst-bas-eofy>