Are you End of Financial Year ready?
We can all feel the End of Financial Year is a daunting time of year, right?
I know, that even saying “EOFY” can just seem to over-simplify what we all know to be complex. However, we find preparation is key.
Here are our top six tips that we use to keep the lead up to 30th June as stress-free as possible.
Top 6 EOFY Tips for Trust Accounting
Tip 1 - Reconcile your trust account
This is ideally completed regularly, if not daily. If completed regularly, you are simply reconciling the last day or two of the financial year.
Tip 2 - Review your Trial Balance for funds you are holding in trust
This is something you would ideally review monthly. If you have not completed this review in a while or don’t have ability to complete this often, take the time to review at minimum each quarter.
By completing regularly you can resolve any old balances, which are usually held for a known reason. By doing often, the reasons are top of mind, and are usually resolved quickly and easily.
Tip 3 - Review any Adjustments you have in your Trust Account
Adjustments are considered a very big ‘no no’ in trust accounting.
If you have any of these, review them and establish why they are there and if they can be removed.
Your auditor will query these, so you should ensure you have a detailed note as to why you have these in your system, and what steps are being taken to rectify and remove.
This is something you should do as part of your end of month reconciliations also.
Tip 4 - Prior to 30th June complete all disbursements
Complete all disbursements of funds held to your clients, suppliers and tenants.
You want to ensure any funds held that are to be reported on your client’s end of financial year report are disbursed to them on or prior to EOFY.
Tip 5 - Update Contact Records
Ensure your client’s contact records are up to date.
Make sure you know if each client would also like a copy of the End of Financial Year report sent to their accountant.
Tip 6 - Ready your email / letter template
Prepare your templates for the content you will include when sending your clients their EOFY report.
Some suggestions for inclusion;
- Your logo & contact information
- How to view your report online
- Tax time tips relating to Property
Bring it on, EOFY!....
If you have completed these reviews, your end of financial year process should be as simple as completing your bank reconciliation, your end of month report and then send your end of financial year reports to your clients.
We’re happy to assist you with any questions you have, your plan of review, help identify areas you may need to focus your review, or complete for you.