The end of the financial year (EOFY) is quickly approaching! Completing end of financial year tasks can be stressful, But, with a few simple processes, your Workshop can make EOFY seamless and stress-free.
Workshop Mate has put together a quick checklist to help your Workshop speed up the EOFY process.
1. Prepare Financial Documents
One of the reasons why so many Mechanical Workshops struggle with End of Financial Year is because they don’t have all their financial documents together. Often mechanics, tax agents or bookkeepers have to run around to find vital business information – increasing both stress-levels and the risk of error. The first thing that your Workshop needs to do to prepare for End of Financial Year is to locate and prepare key financial documents.
A few of the key financial documents that your Workshop needs to locate and prepare includes:
- Receipts for sales and purchases
- Records concerning tax returns, activity statements and employee super contributions
- Business Activity Statements (BAS)
- Single Touch Payroll (STP)
The benefit of having all your key financial documents centralised and ready to go is it reduces the overall time-spent on the EOFY process. The more organised your Workshop is, the easier the process will be, it’s that simple.
2. Collect your Tax documents
When you think of End of Financial Year the first thing that comes to mind is Tax. Doing Tax returns is one of the hardest parts of the EOFY process, however there are ways to simplify it.
To streamline the EOFY process, it is so important that your Workshop accurately records and files all important Tax documents. Note down what your Workshop is looking to claim or deduct this financial year and have the relevant documentation needed to support your claim. Many businesses make the mistake of making claims and deductions without having the relevant paperwork which often leads to heavy penalties.
The Tax Documents your Workshop should collect include:
- Taxable Payments Annual Report
- Deductions e.g. instant asset write-off scheme
Having a simple recording process in place could save your Workshop thousands at tax time.
3. Do a Parts Stock Take
It is so important that your Workshop completes a full parts stock take prior to June 30. The benefit of completing a stock take before EOFY is if your shop has any incorrect stock numbers you can update your records prior to the new financial year beginning.
On top of this, completing a parts stock take gives your Workshop the ability to understand your current position. Based on your stock position, your Workshop can accurately determine the next course of action for the new year.
Related Article: 5 Common Mechanic Stock Management Mistakes and How You Can Avoid Them.
4. Complete Reconciliations
Reconciliations is a vital part of the EOFY Process. A Reconciliation is the process where your Workshop owner or bookkeeper compares your shops final yearly financial transactions against the supporting documentation like bank statements.
The reason why your Workshop needs to complete reconciliations is it gives your shop the ability to identify any discrepancies, or errors, before you submit your return.
5. Check Covid-19 Relief Packages
Covid 19 support packages such as JobKeeper and JobSaver may impact your workshops EOFY tax return. It is important that your Workshops checks and understands all the different Covid-19 Relief Packages and how it may affect your shop. You may want to seek further expert advice prior to submitting your return.
6. Know the Due Date
It is so important that your Workshop knows the relevant due dates for tax returns. Many businesses make the mistake of submitting late returns. Submitting late returns often result in large penalties.
The best way to stay on top of due dates is to set reminders on your electronic devices. Leave a reminder on your phone, computer, and email set ups.
7. Prepare for Next Financial Year
A mistake that many businesses make at EOFY time is thinking the process finishes after submitting their tax return. Your Workshop also needs to plan for the year ahead. Set out goals and KPIs that you want your Workshop to achieve this Financial year. The more you plan, the more likely you are to succeed.
To reduce stress and streamline the End of Financial Year Process, Workshops need to plan and implement processes that minimise manual labour. The tips mentioned above will help prepare your Workshop for End of Financial Year.
We hope you enjoyed reading this article. To read more articles like this, please visit the Workshop Mate latest news page here.
About Workshop Mate
Workshop Mate by Jeal is an Australian, Web-based, Workshop Management Software that simplifies and automates the daily tasks of running a mechanical Workshop. Using innovative technologies, Workshop Mate removes common frustrations experienced at the Workshop – opening your doors for future growth.
Workshop Mate features include Job Management, Stock Management, Quotes, Invoicing, Integrated Accounting, Barcoding, Customer Bookings, Service History, Job Allocation and more – in the one central, easy-to-use application.
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