EOFY Guide: Reconciliation

As June 30 quickly approaches, now is the time to ensure that your accounts are reconciled ready for the End of Financial Year.

Below we have put together a list of key items that need to be addressed in the lead up to the End of the Financial Year.

Accounts Payable

Make sure your Accounts Payable Summary report agrees to your Balance Sheet Accounts Payable or Creditors balance at 30 June.

Accounts Receivable

Make sure your Accounts Receivable Summary report agrees to your Balance Sheet Accounts Receivable or Debtors balance at 30 June.

Bank & Credit Card Accounts

Reconcile statement balance to 30 June.

Clearing Accounts

Clearing accounts should have a zero balance at the EOFY.

GST Liability

The balance reflected in this account as at 30 June should be the amount that is payable/refund to the ATO.  This usually would be 3 months (last quarter Apr – Jun) if on quarterly BAS.

Inter-company Loans

If you operate multiple entities and they borrow and loan money to each other you want to ensure that these loan amounts are reflected in both company accounting files.

Inventory

If your business tracks and stocks inventory you will need to run an inventory valuation report as at 30 June.  Make sure the balance on this report agrees to your Balance Sheet Inventory or Stock on Hand figure balance.

PAYG Withholding

The balance reflected in this account as at 30 June should be the amount left to remit to the ATO.  This usually would be 3 months (last quarter Apr – Jun).

Petty Cash 

Petty should be counted and reconciled to balance as at 30 June. Ensure that all receipts have been entered into your accounting system and reconciled to a petty cash tin held by the business.

Salaries & Wages 

Prior to producing payment summaries to staff you need to ensure that the gross wages in your payroll report agrees to the balance in your profit & loss for the year and also agrees to the total sum of payment summaries produced.

Superannuation Payable

The balance reflected in this account as at 30 June should be the amount left to remit to the Super funds.  This usually would be 3 months (last quarter Apr – Jun).

Undeposited Funds

This account should reflect any amounts not banked as at 30 June.

For more information specific to your business please call our office on (03) 9338 8889 or by email info@firstpoint.expert

 

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