The Close of the Financial Year: Best Practice and Considerations
The Close of the Financial Year: Best Practice and Key Considerations With the end of the financial year approaching, companies and individuals need to gear up to close their books, check their finances, and confirm tax compliance. Whether you're a business operator, an investor, or a worker, EOFY is the time to gauge your financial fitness and set sights on the future. Here is a checklist on how to optimize this important phase. 1. Reconcile and Check Your Financial Books It is essential that all financial transactions be properly recorded. Companies should reconcile bank statements, check outstanding bills, and confirm that all the expenses and income are properly accounted for. The process avoids discrepancies and makes it easy to file taxes. 2. Maximize Tax Deductions and Credits The EOFY is the best time to optimize tax deductions and credits. Companies can deduct expenses like office supplies, professional fees, and staff salaries. For individuals, work-related expenses, cha...