The end of the financial year (EOFY) is fast approaching! Getting your dealership's end of financial year work done smoothly is no easy task. But with some simple planning and preparation, EOFY can be a breeze.
EasyCars has put together a quick checklist to help your Dealership speed up the EOFY process.
1. Prepare key financial documents
The reason why many businesses struggle with the End of Financial Year process is because they don’t have all their key financial documents together. The first thing that your dealership needs to do to prepare for EOFY is to locate and prepare all financial documents.
A few of the key financial documents that your dealership needs to prepare includes:
- Receipts for sales and purchases
- Records concerning tax returns, activity statements and employee super contributions
- Business Activity Statements (BAS)
- Single Touch Payroll (STP)
Having important financial documents in together will ultimately streamline the process.
2. Gather your Tax documents
Tax is by far the hardest part of the End of Financial Year process. To streamline the EOFY process it is important that your dealership collects, files, and stores all important Tax documents.
The reason why your dealership needs to file and record tax documents is it will help you claims and deductions at tax time.
Some of the Tax Documents your dealership should gather include:
- Taxable Payments Annual Report
- Deductions e.g. instant asset write-off scheme
It is important that your dealership files all relevant tax documents as it could save your business thousands in returns.
3. Do a Vehicle Stock Take
It is important that your dealership completes a vehicle stocktake prior to the June 30. The reason for this is if your dealership has adjusted stock quantities or identified issues with vehicle inventory, you have the ability to update your records appropriately without effecting next year’s records.
In addition to this, completing a stock take gives your dealership the opportunity to assess your current situation. Your dealership will be able to make strategic purchasing and selling decisions to start the new financial year off on the right path.
Related Article: How Australian Motor Dealers Can Get More Vehicle Stock in 2022.
4. Complete Reconciliations
Reconciliations is an important part of the EOFY process. A Reconciliation is the process where a dealer owner, manager or bookkeeper compares your dealerships actual yearly financial transactions against supporting documentation like invoices or bank statements.
The reason for complete reconciliations is it gives your business the ability to identify discrepancies, errors, or any potentially illegal activities before you submit your return for the taxation office.
5. Check Covid-19 Relief Packages
Covid-19 support packages like JobKeeper and JobSaver may impact your dealerships EOFY tax return.
It is important that your dealership checks and understands the different Covid-19 Relief Packages and how they apply to you. You may want to seek expert advice prior to submitting your return.
6. Know the Due Date
This point cannot be understated. It is so important that your dealership understands the due date for your Tax return. Many businesses have received large penalties for late returns. Create and leave a reminder on your primary device such as your computer and phone to help keep on top of all the required due dates.
7. Prepare for Next Financial Year
The EOFY process isn’t finished when your dealership submits your return. Your dealership needs to plan for the year ahead. Create goals and KPIs that you want your dealership to achieve in the coming year. Ensure you have the right systems in place that escalate growth put your dealership in the best position in the years ahead.
The End of Financial Year Process can be both stressful and confronting, but it doesn’t need to be that way. To reduce stress and time-spent on the EOFY process, dealerships need to plan, prepare, and have set procedures in place that minimise manual labour. The tips mentioned above will help put your dealership in a strong position for EOFY.
We hope you enjoyed reading this article. To read more articles like this, please visit the EasyCars latest news page here.
EasyCars by Jeal is an Australian, web-based, dealer management system that automates the daily tasks of running a motor dealership. Using the latest technologies, EasyCars removes frustrations experienced at the dealership - opening your doors for greater growth.
EasyCars features include Simple Stock Management, Automated Advertising, Integrated Accounting, Government Compliance, Business Reporting, Reviews Management, Dealership Websites and more.
To learn more about EasyCars Dealer Management System and to arrange a no-obligation free demo, contact us today on 1300 473 744 or submit the form below.