IT IS that time of year, when shoppers go into a sale frenzy, business owners need a snorkel to get through the piles of paper work and accountants become your best friend.
That's right, it's the end of the financial year.
In an Institute of Public Accountants member survey conducted in partnership with MYOB, 98% of respondents said their clients were not fully prepared when submitting their end of year statements. They said the most common slip-ups Australian business operators made with their end of year paperwork were:
- miscoding transactions (65%);
- not providing enough detail or supporting information (64%);
- not keeping accounts and records up-to-date throughout the year (62%);
- not making contact with their accountant during the financial year (42%); and
- not being fully familiar with accounting software functionality (39%).
When asked about the most important steps business operators could take to prepare for the end of the year, 88% of accountants ranked "responding to requests for additional information in a timely manner" highest.
This was followed by keeping accountants advised of major transactions, as they occured (77%); and handing financial reports in on time came in third at 69%.
"There is a strong opportunity for businesses to draw on the expertise of their public accountant beyond financial reporting," IPA chief executive officer Andrew Conway said.
"They can provide strategic business advice and planning throughout the year, and assist with sales and growth forecasts, cash flow management, accessing funds and succession planning."
Another recent survey by MYOB confirmed the majority of small and medium business operators found getting ready for the end of financial year stressful. Visit myob.com.au/EOFY for a summary of major tax changes and helpful tips.
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