Conducting a bookkeeping review is a smart move for Australian businesses as the end of the financial year (EOFY) approaches. Rather than waiting until June 30, assessing your financial records now can help you catch errors, optimise tax deductions, and ensure compliance. A proactive review also reduces the EOFY workload and offers valuable insights into your business’s financial health.

Why Perform a Bookkeeping Check?

Reviewing your finances allows you to assess current performance, identify discrepancies, and implement corrective measures. It also opens opportunities to maximise deductions, improve cash flow, and plan ahead with confidence.

Key benefits include:

• Maximising Tax Deductions: Identify all eligible deductible expenses to ensure you’re not missing out on savings.

• Ensuring Accurate Records: Keep your financial data clean, compliant, and ready for EOFY reporting.

• Optimising Cash Flow: Adjust spending and payment schedules to improve liquidity.

• Reducing Tax Surprises: Stay ahead of obligations to avoid unexpected liabilities.

Practical Steps for a Financial Review

1. Reconcile Bank Accounts and Financial Statements
Regular bank reconciliations help ensure your accounts align with your records. Addressing discrepancies early avoids larger issues later.

2. Categorise and Review Business Expenses
Ensure all expenses are correctly recorded and supported. Common deductible items include office supplies, software, and business travel.

3. Assess Fixed Assets and Depreciation
Update depreciation schedules and review capital purchases for potential deductions under current tax incentives.

4. Evaluate Accounts Receivable and Payable
Follow up on outstanding invoices and confirm supplier payments are on track to avoid penalties or missed discounts.

5. Check Payroll and Superannuation Compliance
Verify employee wages, PAYG withholding, and superannuation contributions are accurate. Completing super payments before June 30 secures deductions this financial year.

6. Review Division 7A Loans
Ensure shareholder loans or related-party transactions meet Division 7A requirements to avoid unwanted tax implications.

7. Identify Tax-Saving Opportunities
Consider strategies such as pre-paying expenses or deferring income. A tax advisor can tailor recommendations to your situation.

8. Partner with Professionals
Engaging an accountant or bookkeeper during a mid-year review can provide valuable insights into tax-saving opportunities and compliance measures. Firms like Supervision Group offer specialised support to ensure your financial statements are accurate, up-to-date, and fully compliant with Australian tax regulations.