Bookkeeping – End of Financial year final pay falls in new financial year
Client question – Just a quick question.
We have an employee being paid fortnightly.
Next payment to be made 07/07/2017. This includes the week 26/6 to 30/6/2017. Does any of this have to be put through in EOFY for 2016/2017? Or will it be first payment for New year on new tax table?
Solution – Payroll is taken as a cash payment in the accounts – ie WHENit is paid.
Regardless of what period it covers – it is WHENit is paid.
So not included in previous tax year.
You can finish your payroll YE17 year, prepare the Payment Summaries – check you include in Gross Payments, any NEW payroll types/categories if you created any during the year.
Then roll forward to new payroll year, and you can process the 7/7/17 payroll that covers end of June days and some of July days.
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Accounting is often one of the toughest jobs for small business owners, especially those who don’t have a lot of experience or a strong background in bookkeeping. Following a few simple tips throughout the year can make it much easier to track expenses and file taxes when the time comes.
1. Plan Ahead
The first step is to look ahead at the potential needs for your company and plan for these expenses. For example, if you know that you will need to replace expensive equipment in the near future, make sure to set aside funds every month to cover the costs. Other major expenses that may arise include office supplies, inventory, maintenance, and repairs. You can also set aside money each month to cover the annual taxes, so you won’t stress about the amount you need to pay when April 15 arrives.
2. Use Reliable Software
Business bookkeeping software has come a long way over the past decade, and some programs make it much simpler to input expenses and cash flow. MYOB, ReckonandXero allow you to keep everything you need in one place for easy recovery as needed. From tracking the status of unpaid invoices, to creating customized invoices, to tracking billable hours and budget spent, online accounting software is a great way to save time and money. Some programs like Dropboxand Google Drive also offer cloud access to your files, which means that you can pull up information from anywhere instead of having to go to the office to find a document or receipt.
3. Separate Business and Personal
If you use your business credit card to pay for a personal expense, make sure to track that and separate it as soon as possible. It is much easier to separate expenses if you use separate accounts to pay for them, but you may accidentally use your business card for a non-company purchase. Business costs are tax deductible, so make it easier on yourself by separating them every time you make a purchase.
4. Schedule Yourself
When it comes to bookkeeping, it might seem easier to just put it off until the end of the year. However, this is going to result in a big headache when you are trying to track down receipts and invoices that may be months old. Schedule time each week or each month to work on your books and stay as current as possible. It may be tempting to skip this every so often, but when you can stick to the schedule, it will be much easier to stay on top of the finances without feeling so stressed.
5. Review Invoices
Be sure to keep close track of your invoices, since some (clients) are notorious for paying bills late. You can probably use your accounting software to run a monthly report and determine what invoices are still outstanding. This gives you the flexibility to send reminders and follow up on outstanding bills before too much time passes. It is also smart to keep a close eye on your cash flow statement, so you can avoid the dreaded insufficient funds message on a payment.
6. Call in a Pro
For some things, it is definitely worth the investment to bring in an expert. You may rely on a financial advisor who specializes in your industry, or you might just need an accountant who can pay your taxes and payroll. You can even use a student intern who is working on an accounting degree if the budget is tight.
7. Track Expenses
Most experts discourage business owners from using cash to pay for any business expense, since it can be very difficult to track. When you use a credit card or debit card, you can view the transactions right away and make sure that all items are true business expenses to avoid issues with write-offs and taxes.
Accurate bookkeeping is an important part of business ownership, so it is crucial to stay on top of the expenses and invoices to prevent problems. If you have questions about bookkeeping, you can always rely on an expert, but once you have your system down, it should be much easier to keep track of the money coming in and out of your company each day.
Need help? Not sure? Call for FREE30min advice / strategy session today!
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There are many areas of your business can have an effect on how much cash is available. Here are 5 things to attend to when cash is low. Additionally, controlling your expenses and increasing your sales, you can improve your cash flow.
1. Review stock levels
Holding too much stock will tie up cash and increase storage and insurance costs. Practicing good stock control is to keep stock at efficient levels to service customers, but not sit for months waiting to sell.
2. Manage customer and supplier accounts
Follow up those overdue debtor accounts who owe you money. Managing debtors by having good credit policies and enforcing them, will keep your cash coming in.
You may also be able to negotiate longer payment terms with your creditors/suppliers. If you can get payment from your customers before you pay your suppliers, you will have zero out of pocket expense – easier said, but sometimes can happen.
3. Review banking products
Using the appropriate banking transaction products can have the money in your pocket sooner. Consider a mobile EFTPOS device, or investigate services to take payments over the phone or online.
4. Increase sales income
Review your pricing (time to increase?), use an new advertising campaign or improve your customer service and sell add-ons (would you like Fries with that?) to see if you can increase profits. You may also want to consider other ways to growing your business, such as complimentary products or services.
5. Reduce overheads
Think about reducing staff overtime hours and controlling overheads. Make your business more environmentally friendly may reduce costs such as power and water bills and minimise wastage. Remember to clearly communicate your policies on these items to your staff.
Need help? Not sure? Call for FREE 30min advice / strategy session today!
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A client emailed, concerned about the extra Merchant Charges they pay when clients pay by credit cards. There are a number of ways to deal with it depending on the type of layout you use.
First, are there only specific customers who pay by credit card? If so, you could create a second invoice template and add the CC charge into it, then use the correct template to each customer.
Or, you could add the surcharge into your standard template (say after a subtotal) but then you’d have to credit back the surcharge if the customer paid using another method. Or have a message at the bottom to ignore the charge if not paying by credit card.
Another option is to create a large, bold text message box stating there is a surcharge for credit card payments and then show an example calculation after the text which would work out a set percentage of their invoice and actually show the amount that is extra. Your bookkeeper can make changes like these to your software templates, or call us to help!
Quickbooks – Can I back up the programme in case I lose the disk?
Ensure you have a good spot in your files for your latest Quickbooks disks and login details, registration, etc.
It is not possible to just copy the software from your computer as the installation installs parts of the software in different areas, not just in the programme folder under programmes. So best to keep disks safe, but if disaster happens, call your local country office and they will be able to help with a link to get a download
Downloads of recent versions are available from the websites:
