1. Reconcile, reconcile, reconcile!

This may seem obvious to some but the first step to ensure all transactions are ready for your accountant is to make sure the balance of your bank accounts in your software matches what is on your physical bank statement – on occasion a transaction on your bank feed might be missed or duplicated.

2. Aged receivables.

Review your receivables and the list of outstanding invoices, are there bad debts that should be written down? Do you have invoices showing as unpaid that you know you have received payment for? Could this be a duplicate or did you receive the funds to an account not shown in your accounting software? Review your outstanding unpaid sales and make sure this is accurate.

3. Aged Payables.

Have these bills been paid or are they truly outstanding to be paid? Should Credit notes have been received, are there duplication’s? Were any bills paid from personal finances that have not been recorded?

3. Payroll.

Check your employee cards are correct, that the TFN is quoted, employees contact information is current and the employment status is correct. Has your wages payroll control account been cleared back to nil? If you have a difference here this needs to be investigated. Perhaps some wages were miscoded to the expense instead of the clearing account. Have you coded some expenses reimbursements here in error? Once payroll is correct you are ready to complete the employee annual income statements.

4. Inventory

Do a stock take and log stock on hand as at June 30th.

5. Petty cash.

Does the cash and receipts on hand match the balance of your petty cash account in your software? Now is the time to process any outstanding receipts and top the petty cash back up.

6. Accruals.

Yearend accruals are adjusting entries to make sure your revenue & expenses are recorded in the correct financial year. Adjust for revenue earned but not posted to the general ledger accounts. What has been incurred but not posted? What bills will you receive in July that relate to expenses incurred in June?

7. Provisions.

 After reviewing your aged receivables journal any amounts to doubtful debts. Once you have reviewed your payroll create a journal for Annual & Long Service Leave provisions for any leave owed and not yet taken by staff.

8. Fixed assets.

Have any assets been disposed or depreciated, ensure this is reflected in your books.

9. Check your financial Statements.

Profit & Loss and Balance Sheet – Does everything appear correct. Review line by line. Look for negative dollar amount, balances that seem too high or too low, substantial variation to this time last year without significant changes to trading conditions. It can help to compare your P&L month by month

10. Lock in the date.

Once everything has been reviewed lock the date as at June 30th so no changes can be made. You will need to unlock to process your accountants end of year journals but otherwise no changes should be made once a financial year has been finalised

If this all seems like too much hard work, give me a shout, I’d be happy to help you out.


Facebook: @PJCBookkeepingServices

Paula is a Certified Bookkeeper, Member in practice of the Institute of Certified Bookkeepers. Silver Xero partner and registered BAS agent 24722200. Cert IV in Bookkeeping, with over 20 years experience in the UK and Australia. Specialising in all aspects of bookkeeping for sole trader, NFP and small businesses. Payroll, Bank reconciliations, Aged debtors (Keep on top of your cashflow), financial statements, BAS returns. Cloud based software which means I can work on our books from my office and you can access the information from yours.