Your EOFY essentials to-do list

Your EOFY essentials to-do list

An EOFY checklist: what you need to do this end-of-financial-year 

End-of-financial-year (EOFY) isn’t just a frantic scramble to get all your paperwork sorted. Now you’ll also have a clear picture of what happened during the year so it’s the best time to assess how your trade business is tracking and to think about what you should be planning for next year. 

We’ve put together this handy checklist of what to do for EOFY. 

Get your business house in order 

You’ll be working with your accountant to complete these tasks and finalise your end-of-year returns. As Ryan Addinsall, founder of Elevate Accounting explains, 

“EOFY is a deadline of actioning things to ensure you get the best tax outcome”. 

  • Generate a profit-and-loss statement. This is a critical part of your tax return, but it’s also a wealth of info on how much real profit you’ve made. 
  • Do a stocktake. If your team carries stock – even if it’s just some fuses or bits of pipe – it’s important to get a clear record of what they’ve got on hand. You’ll need this to make claims for deductions. 
  • Get a record of debtors and creditors. If you have a decent job management system like Tradify, and digital bookkeeping software like Quickbooks, MYOB or Xero, it’s as simple as pushing a button. If you’re still on paper, now’s the time to rifle back through your emails, compare them to your bank account, and take note of any invoices that are still unpaid
  • Gather your receipts. If the business has bought some new tools or upgraded a truck or premises, make sure you have a record of what was spent to go with receipts for petrol, rent and other operating expenses you’ve been collecting throughout the year.  

Make plans for next year

Now you’ve got that paperwork out of the way, it’s the perfect time to reflect on the year that was, and hatch a plan to get your business rocking along. As Ryan explains, 

“It’s a great time to draw a line in the sand and do things like change technology systems, change accounting or job management systems

The jobs to do around EOFY are: 

  • Get those debts in. You’ll now have a list of all the people who owe you money, so it’s never been a better time to start getting that cash in
  • Review your insurance cover. Things change, and your insurance needs to as well. Maybe you’ve taken on more staff, expanded your services or moved premises. Now is the time to make sure your business is protected, and the easiest way is to consult an insurance broker. 
  • Ask your accountant for a cash-flow forecast. Ever wondered how your partner can be rushed off their feet but there’s still no money to pay the bills? It’s all about cash flow. With a cash-flow forecast, you’ll have a better handle on when the money will be coming in – so you can prepare for the leaner months and plan to make that big purchase when you know money will be flowing.
  • Analyse your profit and loss. Looking over what you earned and spent last year can give you insight into what you should be doing in the next twelve months. It will help you decide if you need to change tack anywhere – maybe look at your pricing, your sales and marketing strategy, or the services you offer.  
  • Set your goals. Goals are an amazing tool for getting where you want to be. Start by asking yourself why you’re in business. Perhaps you’re doing this to build an empire, or maybe your family just wants a steady income with plenty of time to spend together. Both are legitimate, but the way you run your business could change depending on what you really want. Then consider what your business should do to deliver on that big vision. Perhaps you need to hire more staff or invest in a big piece of equipment. From there, you can set yourself monthly targets that bring you closer to those overarching goals. Talk to a business coach about setting these goals –  when you have hard, accurate EOFY data at your fingertips, it’s the perfect time to do this. 
  • Review your operations. Now you’ve seen how the year went, it’s time to consider how you could be improving the way you do business. Perhaps some investment in tech could help improve your efficiency (and make your life easier!), or maybe you need to refine some of your processes or SLAs.

Taking stock for the future

EOFY means completing some important work – stock-take, profit-and-loss statement, receipts, outstanding bills – and it’s also your opportunity to plan for the future. Starting with that EOFY data, you can examine your business – who owes you money, if your insurance needs updating, how healthy your cash flow is, and what your profit-and-loss analysis is telling you. From there, you can decide where you want to go with your business and how you’ll get there.

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