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End of Year in Australia

For many Australian businesses 1 July means the start of a new financial year and with it many tasks that have to be completed. If you’ve already been using Xero for the year, you’re in a great position because your accountant will be very close to being ready to work on your end of year reports.

Here’s a check list of things you can do to manage the business side of the end of year in Xero. These should help you spread the load, saving time, money and angst!1. Invite your Accountant
If you haven’t already, invite your accountant into your Xero organisation so they can see your accounts in real time.

2. Enter Accounts Receivable invoices
Complete your invoicing for the month. If you have open credit notes follow up with your customers so these can be applied to invoices or refunded. Generate invoices and statements as needed – sending them off to your customers.

For your Aged Receivables (Reports>Aged Receivables, date as at 30 June), identify overdue invoices you don’t think you are going to get paid for (maybe the company has gone of out business or there is a dispute) and send the details to your accountant. For those that aren’t doubtful, start (or continue) your collection process.

3. Enter Accounts Payable invoices
Check that all Accounts Payable Invoices have been entered, check on the status of any credit notes and take them up as needed. Pay any outstanding invoices as required.

4. Enter and finalise expense claims
Make sure all expense claims for the year have been entered and processed, approving, paying or declining and voiding as required.

5. Finalise payroll
If you have employees, complete the payrolls to be paid in June. Remember that any payroll that will be paid in July (irrespective of the pay period) doesn’t relate to this financial year end.

If you are using the payroll solution of one of our Xero Network Partners, the payroll transactions will come through to Xero as Accounts Payable invoices, so be sure to approve them as you normally would.

There are some very important dates (14 July, 28 July and 14 August) for Payroll end of year and we’d recommend you discuss these with whoever manages your payroll.

6. Stock-take
If you hold stock, complete a stock take and valuation for all stock on hand at the end of the month and be sure that you’ve shipped any stock for invoices in June.

7. Assets, shares, dividends
Has your organisation purchased or sold any assets this year, such as cars, computer equipment or shares? Have you received any dividends? If so gather the paperwork and send it your accountant.

8. Reconcile bank accounts
Check that each of your bank accounts is up-to-date and has been reconciled. Have a look at the dashboard to see that your last reconciled date is in line with the last bank statement date and whether the Reconcile Now button is visible, if it is, you have transactions to reconcile. If you have bank feeds this is much easier for you to manage because they come in daily, but if you download bank statements check that you have the last one for the financial year from your bank and you’ve reconciled transactions up to 30 June.

For more information have a look at  the Year-End topic in our Help Centre.

 

Read more about Business, Australia, Tips (Xero Business)

 

2 comments

Stuart McLeod
28 June 2010 #

Excellent advice Hamish.

For Paycycle customers, we’ve published a blog at http://www.paycycle.com.au/blog/10-06-24/Happy_EOFYs that goes through the end of year tasks for payroll. We’ve made it as easy as possible for everyone!

Shawn Smith
28 June 2010 #

As mentioned above, great advise.

We are working hard to get all of our accounts finalised and everything in Xero before the end of the financial year. Fun times ahead.

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