Keeping on top of quarterly reporting and financials helps keep the ATO from knocking and gives you the clarity to plan your next business move with confidence.
That’s why we’ve put together an end-of-quarter checklist to help set you up for a smooth ride into the next quarter without the jargon, headaches, or existential crises!
1. Reconcile Your Accounts – Regularly!
Think of account reconciliation as tidying up your business finances before the new quarter kicks off.
This means:
- Matching transactions in your accounting software to your bank statements;
- Checking for any missing invoices or payments; and
- Identifying and addressing any discrepancies.
A clean set of books provides fewer surprises when tax time rolls around. Plus, it keeps your cash flow healthy, because nothing ruins a good quarter like missing money!
Doing this regularly – either weekly or daily depending on the number of transactions going through your business, is a good habit to get into to make sure your bookkeeping doesn’t become overwhelming.
2. Review Your BAS
If your business is registered for goods and services tax (GST), end of the quarter probably means that it’s BAS time. For most businesses, your Business Activity Statement is due every quarter, and lodging it late can incur penalties to the tune of hundreds of dollars for each month you’re late.
Make sure to include:
- All invoices and expenses;
- Details of GST payments and collections;
- Payroll and superannuation obligations;
- PAYG withholding; and
- Any other applicable taxes.
Not sure if your BAS is in good shape? That’s where having an accountant (like me!) on your side comes in handy.
3. Chase Up Overdue Invoices
Outstanding invoices can squash your cash flow. And you deserve to get paid for all your hard work.
Now’s the perfect time to:
- Follow up with clients who still haven’t paid (send those polite but firm reminders);
- Review your payment terms to see if they need tightening up; and
- Consider automation and helpful tools to streamline invoicing and reminders.
Pro tip: Consistently following up on invoices every month helps prevent a last-minute, end-of-quarter scramble.
4. Check Your Superannuation and Payroll Compliance
If you’ve got employees, keeping up with payroll and super isn’t optional, it’s essential. Ensure that:
- All super contributions for the quarter have been paid;
- PAYG withholding is accurate and reported correctly; and
- Employee entitlements (leave, overtime, allowances) are up to date.
If you draw a salary from the business, don’t forget to pay yourself super. Not doing so will cheat you out of that sweet compound interest for your retirement.
5. Assess Your Cash Flow, Budget and Performance
Healthy cash flow keeps your business thriving. Take some time to:
- Compare actual earnings vs. projected revenue;
- Assess if you’re setting aside enough for your tax obligations;
- Identify any upcoming expenses; and
- Adjust your budget and financial goals for the next quarter.
If your cash flow looks tighter than expected, now is the time to take proactive steps, whether that’s revising expenses, pricing, or streamlining invoicing.
Numbers don’t lie, and reviewing your business performance each quarter helps you make informed decisions. Ask yourself:
- Did we hit our revenue and profit targets?
- What worked well, and what needs improvement?
- Are we on track with our strategic goals?
And most importantly, take a moment to celebrate your wins. Running a business isn’t easy, so acknowledge the progress you’ve made.
6. Plan for Future Growth
Quarterly reviews aren’t just about compliance, they’re also a great opportunity to strategise for growth. Consider:
- Whether you should invest in new resources, staff, or technology to accommodate growth; and
- Any government grants or incentives you could take advantage of to help your expanding business.
If your business is growing (or struggling), don’t wait until the end of the financial year to chat with your accountant. Ongoing support can make all the difference, and doing a quarterly review of your accounts means that we can be proactive and strategic about any concerns as they come up.
Wrap Up
Running a business can be a lot. You have to juggle the work at hand and the administrative tasks to keep compliant and thriving.
However, having a system in place to keep on top of your quarterly financial admin can avoid headaches in the future.
As always, we’re here to provide hands-on support tailored to your business to take the stress out of your finances. Get in touch today!