End of Financial Year (EOFY) is a stressful time for businesses of all types. The number of tasks never seems to end – from completing your bookkeeping and tax returns to writing off debtors.
The lead up to EOFY is also a time where you can do some ‘housekeeping’ that will provide benefits as you close out the year and begin the next. Here are six key tips you should consider for boosting productivity and cash flow in time for EOFY.
1. Chase Up Overdue Payments
Before EOFY it’s a good idea to tidy up your Accounts Receivable (AR). Identify all outstanding or overdue payments and send out notifications to customers with overdue payments. This will ensure you get your money back in time for EOFY, to maximise revenue.
There is a range of accounting software that can help you easily see your overdue payments. ERP software makes it simple to generate an Aged Overdue Invoice list report. The report provides statistics such as which payments are delayed and gives insights such as:
- Open Item not Paid
- Total Purchase and Sales
- Purchase Invoice
- Aging Buckets
- Total Outstanding Balance
2. Write Off Old, Obsolete and Damaged Stock
If your business sells products, then you’re probably starting to prepare for your stocktake in time for EOFY. Performing stocktake before EOFY is a good way to identify old, obsolete and damaged stock so you can write it off.
Writing off old, obsolete and damaged stock is a good way to see the bigger picture and see your overall increase in profit. Modern accounting software can help you run stock listing reports to simplify your stock counting and make EOFY easier.
3. Embrace Mobility
With the huge number of tasks to be completed before EOFY, we often find ourselves short on time. Make the most of your time by seeing if you can access your current accounting software from your mobile or tablet. Today most accounting software is available across multiple devices allowing you to work on the go, be more productive and get your work completed well before EOFY – no matter where you are. Take advantage of modern Enterprise Resource Planning (ERP) software, such as Microsoft Dynamics 365 Business Central, that allows you to access your data anytime anywhere with an internet access.
4. Better Manage Your Expenses
Summarising your income and expenses in a profit and loss statement is an essential task in preparation for EOFY. However, this task won’t always be easy if you find yourself left with a pile of receipts still needing to be claimed.
Make life easier for yourself and your employees by leveraging mobile apps that allow you to easily keep a track of where and when money is spent. Expense management tools, such as Concur Expense Management, connect with accounting systems to make reimbursing expenses a breeze. With Concur Expense Management you can capture receipt images from your mobile to quickly build expense reports in a click of a button. An investment in an expense management system will provide benefits into the future, through improved cashflow and a decreased administrative burden.
5. Back-Up Your Data
EOFY is a good time to take the measure to back-up your business data and ensure your business can stay up and running during unexpected events in the year ahead. A good step would be to request support from an external IT party or if you are already using accounting software, you may already have the option to back-up your financial data right from within the package. This will save you the time and money outsourcing the task to an external IT party. It makes sense to run a backup of your ERP before you roll over to the new year, so you can refer to it if needed.
6. Plan for the New Fiscal Year
With the abundance of tasks to do before EOFY, it can be easy to forget about what needs to be done for the new financial year. In your downtime, there are key things you can do to ensure a great fiscal year ahead.
If you are already using accounting software take advantage of features such as the ability to create a new fiscal calendar for the New Year. Modern accounting software, comes with features that allow you to create a new fiscal calendar without closing out the current year. This feature is great if you are awaiting final processing or audit adjustments, as the general ledger and other modules can remain open as long as you need.
You could also consider a Corporate Performance Management (CPM) solution, such as Solver. This is a business intelligence tool that integrates with your existing ERP. CPM will provide reporting, planning and dashboards, providing insights throughout the organisation of business performance, efficiency and productivity.
BONUS TIPS to get ready for EOFY
Besides the above six tips, here are additional areas you want to put in order to navigate EOFY smoothly and efficiently:
- Organize all financial records: Put together all the relevant financial documents including invoices, receipts, bank statements and payroll records.
- Review payroll and superannuation: Ensure that payroll records are accurate and up-to-date. Check that all superannuation contributions have been made by the due dates to avoid penalities.
- Maximise tax deductions: Identify all tax deductions and incentives.
- Ensure compliance: If the need arise, consult professionals to ensure full compliance to optimise financial outcomes.
Whether your business is big or small, these tips will ensure you get the most out of your EOFY and ensure a great year ahead. For more information on how you can make your EOFY better with accounting software, contact us today.
