The EOFY pre-clean: Why May is the best month to start
We have all been there. It is the last week of June and you are suddenly hunting for a faded petrol receipt from last November or trying to remember what that unidentified deposit in October was actually for. The end of the financial year always seems to arrive faster than expected, and the last thing any business owner needs is a mountain of admin piled on top of their daily workload.
While the end of financial year officially hits on 30th June, the real work happens in May. Starting your pre-clean now is not just about making your bookkeeper happy. It is about getting a clear and stress free picture of your business performance before the clock strikes midnight. When your records are tidy well in advance, you have the space to make informed decisions about equipment purchases or tax planning before the window closes.
Simple steps to take this month
Reconcile the old stuff: Go back to the start of the financial year and ensure those early months are tidy. It is much easier to remember the details of a transaction from six months ago now than it will be in the middle of the tax season rush.
Chase the paperwork: If you have missing receipt notes sitting in Xero, now is the time to track them down. Digital tools like Dext or Xero Expenses make this a breeze. You can just snap a photo and let the software do the heavy lifting so you can bin the paper for good.
Review your debtor list: Check who still owes you money. Sending out friendly reminders in May gives your customers plenty of time to pay before 30th June. This ensures that cash is sitting in your bank account rather than on your balance sheet when the new financial year begins.
Check your employee details: Now is a great time to ensure all your staff records are up to date. Double checking TFNs and super fund details now prevents processing errors when you are trying to finalise your STP year end data later on.
A little bit of housekeeping throughout May means you can head into July with a clean slate and total confidence in your numbers. It takes the pressure off the final week of June and lets you focus on running your business instead of shuffling paperwork.
Need a hand getting your ledgers ready for a smooth transition? Give us a call at Churchill & Way. We love a good tidy up.
This information is intended to be general in nature and is not personal financial advice. It does not take into account your objectives, financial situation or needs. Before acting on any information, you should consider the appropriateness of the information provided in relation to your own circumstances.
