4/4/17. Welcome. End of Year Preparation

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1 Welcome End of Year Preparation Tuesday 4 th April, 2017 and Thursday 6 th April,

2 Your Presenters Deborah Thompson Pauline Walton Housekeeping IF YOU CANNOT HEAR ME!! CHECK YOUR PC SOUND Sound will be through your computer s speakers You should be able to hear me now????? If NOT please check your sound is on During the presentation we will mute This avoids background noise 2

3 Ask Questions Interact with US!! We would like to interact more with you so we will be selecting members questions for a chat We still want you to type your question so we can capture all!! If you would like to interact please raise your hand in you panel and we can then check at Question time If you don t have a microphone on your computer you can change to phone audio 3

4 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 4

5 Bookkeeper End of Year Project Plan Bookkeeper EOY Timeline 5

6 Bookkeeper EOY Plan Apr/May Plan Diary Tasks 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 re various End of Year Considerations Prepare employees' details for Payment Summaries, (e.g. TFN, DOB, address, etc) List your Clients and EOY project/tasks Review timeline for Project/Tasks and lodgements Information required for each business Schedule Clients in diary Clients for information required to complete EOY, e.g., lease documents, asset sale, verification of June bank balances etc Prepare or obtain stocktake value as at 30 June Reconcile EOY file Prepare TASKS - Payment Summaries, Payroll Tax, TPAR, BAS Lodge EOY Receive signed authorisation for each form to be lodged Lodge EMPDUPE, Payroll Tax, TPAR, BAS client receipt of lodgements 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 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 Clients for information required to complete EOY, e.g., lease documents, asset sale, verification of June bank balances etc 6

7 Bookkeeper EOY Plan Spreadsheet Understanding Workflow 7

8 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 8

9 Dashboard MYOB Software Dashboard Xero Software 9

10 Dashboard Xero Software Dashboard Intuit QBO Software 10

11 Bookkeeper EOY Business Review End of Year Includes Financials BAS EOY Payroll Suppliers Customers 11

12 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 Finalised Ensure 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? 12

13 Financials EOY Considerations Financials - 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 13

14 Financials EOY Considerations Plant 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 Considerations Plant and Equipment Small Assets Between 13/5/15 and 30/6/17 Capital Assets purchased under $20, ex GST - Claimed immediately Motor Vehicles Office Equipment Office Furniture Electronic Equipment Computers 14

15 Financials EOY Considerations Private Expenses This 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 Considerations Additional 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 15

16 End of Year Includes Financials BAS EOY Payroll Suppliers Customers Payroll End of Year Review - Payroll 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 Payments Summaries Check Wages YTD Payroll Tax Threshold Check Superannuation Threshold 16

17 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 17

18 Payroll - Superannuation Threshold Payroll - Superannuation Threshold Unused concessional cap carry forward 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 18

19 End of Year Includes Financials BAS EOY Payroll Suppliers Customers 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 19

20 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 20

21 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 21

22 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. 22

23 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 Vouchers Single Store Journal Entries Date Type Account DR CR 30/4/16 Liability Gift Vouchers un-presented $2200 Income Sales $2000 Liability GST Collected $200 Write of Expired Gift Vouchers Multiple Stores Journal Entries Date Type Account DR CR 30/4/16 Liability Gift Voucher Store X Liability $110 Liability Gift Voucher Store Y Liability $110 Income Sale $200 Liability GST Collected $20 Multiple Store Voucher Redeemed 23

24 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 Financials BAS EOY Payroll Suppliers Customers 24

25 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. 25

26 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 26

27 Suppliers Preparing TPAR 53 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) 27

28 End of Year Includes Financials BAS EOY Payroll Suppliers Customers End of Year Review - BAS Checklist Check change of prior BAS s Check ATO Running Balance Reconcile GST Worksheet Check GST Threshold 28

29 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 29

30 BAS GST compilance BAS - Fuel Tax Eligibility Many 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 30

31 Business Owner EOY Communication Business Owner EOY Communication 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 31

32 ICB Client ebrief Use 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 32

33 Business Owner EOY Authorities Lodgement Authorities 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 Payment Summaries Electronic Payment Summaries Contact employees and gain authority to payment summaries or access via employee portal Employers must have a signed authority to payslips and payment summaries 33

34 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 34

35 Discussions Implementing Change Discussions Simpler BAS Business Information Sheet Simpler BAS 35

36 Discussions Cyber Security Business 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 36

37 Questions and Answers CPE Note: CPE added to register at the end of the month 37

38 We Appreciation your Feedback Thank You 38