The End of Financial Year (EOFY) can be a stressful time for businesses. However, with the right tools and guidance, you can navigate this period smoothly and efficiently. At Business Edge Advisors, we’ve created a comprehensive guide and video to help you through the EOFY process, particularly focusing on STP finalisation and using Xero. In this blog, we’ll summarise the key points from our video and provide additional insights from our EOFY payroll checklist.
Key Steps for EOFY Compliance
1. Review Employee Information
Ensure that all employee details are accurate and up-to-date. This includes personal information, tax file numbers, and bank details.
2. Reconcile Payroll
Reconcile your payroll for the entire financial year. Check that all payments, superannuation contributions, and deductions have been correctly processed and recorded.
3. Finalise Single Touch Payroll (STP) Reporting
Complete your STP reporting for the year. This involves submitting your final payroll information to the ATO, ensuring all employee earnings and superannuation contributions are reported accurately.
4. Provide Payment Summaries
Although STP reporting may cover most of your obligations, ensure you provide payment summaries to any employees not included in your STP reports, such as contractors or terminated employees.
Detailed Checklist from Business Edge Advisors
1. Employee Information:
- Verify personal details
- Update bank account information
- Ensure correct tax file numbers
2. Payroll Reconciliation:
- Match payroll records with bank statements
- Check superannuation contributions
- Validate deductions and allowances
3. STP Finalisation:
- Submit final STP report to ATO
- Check for any errors in previous reports
- Confirm year-end totals match your payroll records
4. Payment Summaries:
- Issue summaries to non-STP employees
- Ensure all figures are accurate and reconciled
EOFY Tips for Smooth Processing
1. Use Reliable Payroll Software
Invest in reliable payroll software that simplifies the reconciliation and reporting processes. Xero is an excellent tool for managing your payroll and ensuring accuracy.
2. Stay Updated on ATO Requirements
Regularly check for updates from the ATO to ensure compliance with the latest regulations and requirements.
3. Seek Professional Advice
Consult with accounting professionals to ensure your EOFY processes are accurate and compliant.
Xero EOFY Guide
To help you step through the EOFY process in Xero, we’ve linked a detailed PDF guide here. This guide covers everything from reconciling your payroll to finalising STP reporting within Xero. Download the guide here and follow along to ensure you’re on track.
Watch Our Video
For a visual step-by-step guide, watch our detailed video.
The video provides additional insights and practical examples to help you through the EOFY process.
EOFY doesn’t have to be daunting. With the right preparation and tools, you can streamline your processes and ensure compliance with ease. Watch our detailed video and download our comprehensive EOFY payroll checklist for a smooth and efficient EOFY process.
Call to Action
For personalised assistance and more detailed advice, contact us at Business Edge Advisors. Our team is here to help you navigate the EOFY with confidence and ease.