MYOB has released five tips for small and medium enterprise (SME) tackling their end of financial year (EOFY) obligations.
The Australian accounting software vendor said results from its business monitor survey from March 2014 show many SMEs are getting a head start on the often grueling task of end of financial year reporting.
MYOB chief executive officer, Tim Reed, said it was encouraging to see that a number of SMEs were starting the process early.
“Preparing for EOFY early means SMEs can start the new financial year on the front foot. While EOFY is a compliance-driven exercise, it can be an ideal opportunity to draw a line under the previous year and look at what worked for your business, and what didn't. This way when you look ahead to the next year you’ll have a much better idea of what activity will drive your success.”
Reed also offered five tips for business ahead of the pending EOFY.
1) Take advantage of deductions, write-offs and rebates before 30 June
MYOB suggests companies contact accountants to discuss deductions, write-offs and rebates. Take action to scrap worthless stock, plant and equipment by reviewing asset registers.
2) Provide relevant information to accountants or book keepers
Once the deduction step is completed, provide all necessary financial information to accountants or bookkeepers. MYOB said there are several options such as having a point-in-time copy from a data file in the Cloud made, or providing personnel with a secure copy of backed up files.
3) Finalise end of year adjustments
Reed said accountants or book keepers may want to make a number of adjustments to reports or accounts. Once changes have been updated, lock all accounts relating to that year so that data remains accurate. This will help ensure an easy transition into the new financial year.
4) Create a separate copy of your accounts and back it up
Whether working on an account in the cloud or on a desktop, MYOB said SMEs should seriously consider making a point-in-time backup outside accounting systems that create a data file for the 2013/2014 financial year only. Carefully save and store this 2013/2014 financial year file elsewhere in the cloud or offline.
5) Prepare for the new financial year
The company said EOFY should not be all reports and numbers. It is also a good time to reassess and tweak business plans and ensure organisations are on the right path for the following financial year. MYOB said SMEs should review accounting software and consider the benefits of cloud accounting solutions.