Preparing Your Books For EOFY
As the end of the financial year approaches, it can be tempting to put off your bookkeeping until the last minute. However, this can lead to unnecessary stress and potential errors in your financial records. As experienced bookkeepers, we recommend following these three tips to get your bookkeeping in order ahead of the end of financial year:
Keep track of your expenses and income regularly:
One of the most important things you can do to ensure your bookkeeping is in order is to stay on top of your financial records throughout the year. Make sure you are recording all your expenses and income on a regular basis, and keep your receipts and invoices organised. We love to use programs like Xero for this! This will save you a lot of time and hassle when it comes to preparing your end of year financial statements.
Reconcile your accounts:
Reconciliation is a critical step in the bookkeeping process that involves comparing your business records to your bank statements. This ensures that all transactions are accurate, and any discrepancies are identified and addressed. Make sure you reconcile all your accounts, including bank, credit card and other accounts, before the end of the financial year.
Review your financial reports:
Take the time to review your financial reports before the end of the financial year. This will help you identify any potential issues or discrepancies that need to be addressed. Review your profit and loss statement, balance sheet, and cash flow statement to ensure they are accurate and up-to-date.
By following these three tips, you can get your bookkeeping in order ahead of the end of financial year and avoid any last-minute panic. However, if you need help with your bookkeeping or accounting, don't hesitate to contact LK Accounting Services. We can help you get your books in order and ensure your financial records are accurate and up-to-date. Contact Lee-Anne today to learn more at lee-anne@lkaccounting.com.au.