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Xero – End of Financial Year 2023 Australia – Support for preparation of your books
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Published on Tuesday, 20 June 2023 23:13
XERO supply many resources for you to prepare the books for your accountant - but more importantly for you to have an accurate set of books to UNDERSTAND and gain INSIGHT to MANAGE your business BETTER!
Your books/accounts are a store of information that tell you about the health of your business and what areas you can work on to improve your business financial results!
When is the Australian financial year?
The Australian financial year (also the Australian tax year) runs from 1 July to 30 June. At midnight on 30 June, the financial year ends, your business books are closed, and you report your financial situation to the Australian Tax Office (ATO). They use this information to figure out how much tax you owe.
1 EOFY checklist - Summary
- Reconcile bank, PayPal, Stripe, Square and credit cards to 30 June date to the statements
- Reconcile Payroll, PAYG, super
- Finalise Payroll STP
- Stock Take – reconcile Inventory
- Sales and Purchases all entered as dated up to 30 June
- BAS – review detail reports and any adjustments required ready for 28 July
- State Payroll Tax – report in July
- Superannuation – previous month or quarter – due 28 July
- Workcover – can lodge online in July, once Payroll completed
2 Key Dates to action
Here are the key EOFY milestones you need to know.
Check out their handy key dates calendar so you can meet your year end requirements on time.
- 30 June: The Australian financial year runs from 1 July to 30 June. At midnight on 30 June, the financial year ends and your business books are closed off. Super contributions must be paid to qualify for tax deductions.
- 14 July: Reconcile your payroll in Xero so you can submit your end-of-year ATO finalisation declaration via Single Touch Payroll (STP) by 14 July. Your employees can then complete their income tax returns.
- 28 July: Lodge and pay your Q4 business activity statement (BAS). If you lodge online, you may be eligible for a 2-4-week extension. If you have employees, your super and PAYG instalments are also due.
- 31 Oct: You have until 31 October to submit your tax return, but there are exceptions. Check the ATO website or ask your tax agent.
3 You may need to do a stock take
Unused inventory needs to be declared as an asset. You’ll need to count what you have and assign a value to each item.
If you carry a lot of inventory, consider getting an app to keep track of it. An inventory app allows you to record inventory as you buy it. It’ll also sync with your sales system, so items are subtracted from your inventory as they’re sold.
Perform a stocktake and record any adjustments to inventory items. For more information on stock adjustments, click here. Tip: Run an Inventory Item List report to help with stocktake.
4 Resources from Xero to prepare end of financial year
A great resource page that has links to key dates, jargon buster, payroll reporting, STP finalisation of payroll year end, and more GO HERE.
Closing the books
Familiarise yourself with everything from stock taking inventory, to bank reconciliations and closing off your accounts.
Download processing checklist
Download EOFY basics one pager
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