Start the New Year the Right Way

For business, July is the month you need to make sure you have properly closed off the last year and can start the New Year the right way.  Here is the essential checklist to prevent last year overflowing into this year:

• Reconcile your GST control account.
• Does the income declared in your BAS for the last year reconcile to your annual income?
• Check that the minutes for all director and trustee resolutions pre June 30 are documented and signed off.
• Make sure that your stock take has been completed and documented.
• If you have paid management fees to a related entity during the year, ensure that all of the tax invoices have been documented and that there is a reasonable commercial basis for the charges applied.
• Where dividends have been declared to manage Division 7A loan payments, ensure that there are letters of instruction on file that the dividend is to be credited against the loan account. Dividend statements still need to be completed.
• If you have cross border related party transactions make sure you have your transfer pricing file completed with all of the requirements signed off.
• Review all contractors for the year going forward to ensure that they would not be deemed to be employees.
• Get your operating budget completed for the year.
• Get your cash flow budget in place.
• Check the adequacy of your funding arrangements with your bank.
• Check that you meet any loan covenants that you have with the bank at June 30.

Please contact our office on (03) 5331 3711 if we can be of any assistance.

DISCLAIMER: The material and contents provided in this publication are informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information alone. If expert assistance is required, professional advice should be obtained.