Accountants share top 5 EOFY business mistakes

SYDNEY - June 25, 2013 - PRLog -- It’s official – Australia’s end of financial year (EOFY) experts have confirmed the best way for businesses to navigate this often-overwhelming time of year is through organised paperwork and regular guidance from their accountant.

In an Institute of Public Accountants (IPA) member survey conducted in partnership with MYOB, almost all the respondents said their clients were not fully prepared when submitting their EOFY statements (98%).

Top mistakes made with EOFY statements

The most common slip-ups Australian business operators make with their end of year paperwork are:

1.         Miscoding transactions (65%)

2.         Does not provide enough detailed or supporting information (64%)

3.         Not keeping accounts and records up-to-date throughout the year (62%)

4.         No contact with their accountant over the financial year (42%)

5.         Not fully trained up on accounting software functionality (39%)

When asked about the most important steps business operators could take to prepare for EOFY, accountants ranked ‘responding to requests for additional information in a timely manner’ first (88%). ‘Keeping accountants advised of major transactions as they occur’ followed (77%), then ‘handing financial reports in on time’ (69%).

IPA chief executive officer, Andrew Conway said, “There is a strong opportunity for businesses to draw on the expertise of their public accountant beyond financial reporting. 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. By engaging their accountant, clients can gain more knowledge and advice to be more profitable.”

How business owners feel about EOFY

Another recent survey, by MYOB, confirmed the majority of small and medium business operators find getting ready for EOFY stressful and worrisome (56%). Nearly two-thirds said EOFY compliance was too much of a burden (61%) and nearly one-third found it difficult to know which legislative and compliance changes were relevant to their business (32%). The same proportion said they would often miss out on important personal or family events around EOFY due to the workload (32%).

Accounting software users were more confident than non-users that their accounts and book-keeping will be in order for EOFY (69% versus 62% respectively). 74% said software helped speed up the process of EOFY preparation and 33% said it saved them more than one day of time spent getting their accounts in order.

MYOB General Manager, Accountants Division, Adam Ferguson said, “All over Australia, accountants help make the end of the financial year as stress-free as possible for business managers. Those who work closely with an accountant and use trusted accounting software significantly reduce time-consuming errors. It makes life much easier to record all transactions as they occur through the year and regularly update their accountant.

“Using online accounting features such as bank feeds - where business bank transactions are automatically fed into your accounting system and coded for you - can make a big difference to your productivity and to admin pressures. Just ensure your provider guarantees highly accurate, reliable and secure data feeds. This eases the workload for you and your accountant and frees up time for them to focus on offering more value as a business advisor.”

Visit http://myob.com.au/business/customer-service-support/end-of-financial-year-support-1257828347718 for a summary of major tax changes, helpful tips, resources and more.