Points to remember at financial year ending: A virtual bookkeeper can simplify your work?

The financial year ending is a significant time for Australian firms, no matter small or large. In addition, it is time, these firms analyse their financial well-being and document financial statements. However, the 30th June i.e., financial year-end signifies the necessity to finish your tax return. 

A tax return includes the income generated during that financial year and the summary of expenses; utilised by the Australian Tax Office (ATO) to calculate the tax owed to your firm. These records must be held by your accountants for at least 5 years (whether in hard copy or compliant software) and if unable to do so, the ATO has the power to penalise your firm. 

What do you have to do before 30th June?

Below we have talked about the tasks you would've to complete and records you'll have to give to your accountant and bookkeeper.

Financial reports: At the time of lodging your tax return, you’ll have to give Bank statements and accounting program files which should be made from compliant software (XERO, MYOB, Quickbooks etc). Bank statements must show the purpose behind every single deposit and withdrawal, the amount of interest your firm has received or paid and then a closing balance till 30th June. 

You must have a statement copy for all loans owed by the business (and absolute interest paid) and insurance policies information (including the amount of premium paid) with account balance as of 30th June. 

Debtors and creditors: Debtors and Creditors list with the value of stock till 30th June will also be submitted. 

Business assets: You must have a proper list of assets and the details regarding the purchase, price, costs if additions are made, any repairs or maintenance charges. 

Government support schemes: If your business has leveraged any government schemes to survive during lockdown for example job keeper schemes, then it must also be included in the file. 

Ensure STP data is accurate: It is integral for Single Touch Payroll data in your compliant software to be correct before you finally declare. Also, let your staff know that they won’t be able to see their payslips through STP-enable software as their salary statement will be utilised to pre-fill their tax return with the myGov app or maybe through their tax agent. 

Payment Summary of contractors, freelancers and other agreements should be there with the precise time period. 

Travel and Motor Vehicles Expenses: Any costs incurred on registration, fuel, repairs, oil, maintenance, total kilometres travelled, and insurance, with the firm’s motor vehicle. Moreover, if you’ve travelled for business work then it must also be there. 

Other relevant information: If you’ve made any petty cash expenses or have any lease of premises that affects your tax liability then it must be mentioned in the file. 

Check https://www.ato.gov.au/ to know more about expenses you can claim or the income you must add. 

Closing Note: 

The end of the financial year is a phenomenal opportunity to set yourself up for the year ahead. Consider your objectives and needs, business strategies, and new opportunities. You should go over your bookkeeping with your accounting partner to check whether you met your objectives and what you have to do for the next following financial year.

If you find all this a little too intimidating, you can choose bookkeeping outsourcing and accounting outsourcing to ease up your work, allowing you to focus more on core objectives of your business that will help you to grow and sustain. 

How can a virtual bookkeeper help firms?

There are times when you want to access your data and files even during your travel times, right! In this case, a virtual bookkeeping service near me can help where your data can be accessed in real-time from anywhere and anytime provided you have an internet connection. You get access to all your documents within a click of your finger tips with top-notch security and privacy protection. 

Gone are the days when firms were looking for on-site bookkeepers and bookkeeping services to handle and manage their bookkeeping activities. With the changing time and COVID-19 situation, a lot of businesses in Australia are opting for virtual bookkeeping services. They are much more convenient than on site bookkeepers. The outsourcing bookkeeping provides a host of bookkeeping services at an affordable cost. 

Benefits of choosing a virtual bookkeeper:

These benefits will convince you to switch to a virtual bookkeeper and virtual bookkeeping services:

• Save Money 

• Reduction in cost of overheads 

• Real-time information

• No concerns related to software 

• Affordable and cost-effective 

• Customised services 

• Access to expertise 

• Data privacy and security.  

Outbooks is a leading bookkeeping partner of Australian SMBs, they can help you provide accurate financial reports of your firm before deadlines.