End of Financial Year Checklist

As the end of financial year approaches, it is essential to ensure you check off the many tasks involving your business compliance.  This year there may be additional tasks as a result of the COVID-19 crisis many businesses need to address. 

We have prepared a checklist for businesses to assist you and links to resources for further information. 

• Accounts
   Review Accounts and ensure these have been finalised. Finalise auditing, if needed. ASIC has extended the deadline for Disclosing Entities to lodge financial reports by one month for certain balance dates up to and including 31 July 2020. This is to assist businesses whose reporting processes are taking longer due to COVID-19. However, where possible, businesses are encouraged to continue to lodge within the statutory deadlines.
  See ASIC for more information. 
• EOFY meetings 
  All required board and shareholder meetings should be held to ensure business needs to be approved by 30 June 2020 are accepted. Meetings can now be held virtually Organisations should consider updating their Constitution at their next AGM to allow for such online AGMs and updates permanently.
  Read more at ASIC. 
• Business Solvency
  Review whether you have reasonable grounds to believe the company is solvent, and ensure you make the directors’ declaration of solvency. Businesses may need to consider issuing a qualified statement of solvency (depending on their financial circumstances) and whether that is a suitable route to take given the practical, commercial and legal implications. There has been a unique extension of insolvency issues in the extended Safe Harbour Rules due to the effects of COVID-19. For more information. 
• Trust and Trust Declarations
  ​If you have a trading trust or discretionary trust which have made, or must make, distributions during the financial year, you will need to hold the appropriate meetings and make trust declarations by EOFY.
• Superannuation Contributions
  Review your super obligations as an employer and if you need assistance with amnesty contact ATO to check your eligibility. 

• If you are self-employed and not subject to the contribution caps, determine and contribute any excess cash into your fund.
• Insurance Renewal Season
  Insurance renewals typically run to financial year end, and you should assess whether your insurance coverage is adequate for the legal and financial risks that may arise for the next fiscal year. It is essential you know what exclusions are noted in your policies. You will want to be protected in the event of business interruptions. COVID-19 was an unforeseen business interruption. 
• Banking and Finance Arrangements
  If you have loans or charges (or similar) from banks or other institutions, check the terms and determine if they have Financial Year covenants or solvency requirements (eg. specific capital or debt ratios, or solvency declarations). Review those matters to determine if reporting to your creditors are required.
• Commercial Leases
  Most Rent reviews/CPI increases run per financial year. You should understand the timing and terms of your rent reviews (eg. ratchet clause or increase due to changes in CPI). You may also be eligible for the various rental relief packages available due to COVID-19.

While there is an understanding and sympathetic approach to compliance at this time, the obligations on you and your business are still enforceable. If you are facing financial distress with any areas above, we are here to help. Our calls are confidential, and the initial meeting or telephone call is cost and obligation free. 

Please phone us on +61 2 8304 9302 to speak to a dedicated team member.