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Simplify tax time with Minfos

As the end of the financial year approaches, pharmacies need to start organising their annual tax documents. While many pharmacy owners will dread this task, with a bit of planning and the right tools, tax time can be a breeze.

 

Here are our top five tips to help you sail through tax time this year.

 

Preparation is key

Like most things in business, one of the keys to success is proper planning.

 

Key dates to be aware of include:

  • Financial year: 1st July – 30th June
  • End of Financial year: 30th June
  • Tax Season: 1st July – 31st October

 

Pro tip: The Minfos Accounting Module includes all your transactions (customer and supplier) making it easy for you to meet your tax obligations. It also integrates with 3rd party accounting platforms such as Xero or MYOB via a third-party connector. To find out more about our Accounting Module, talk to our Account Managers today.

 

1. Know your obligations

It is worthwhile to meet with your accountant or bookkeeper to understand what documents are required from you to meet your tax obligations.

 

Pro tip: You can use our practical guides, which walk you through the best practice and key reports that you will need to help you prepare for the end of the financial year.

 

2. Conduct a stocktake

As an inventory-based business, you will need to conduct a stocktake before the end of the year.

To help assist you with your pharmacy’s stocktaking process, be sure to check out 6 tips for an easier EOFY stocktake.

 

3. Prepare your financial statements

There are several financial reports you will need to submit to your Accountant for them to be able to prepare your Financial Statements. You can use the Minfos Accounting Module to help you compile the following information:

  • Trial balance – this is used to determine the closing balance of each General Ledger Chart of Accounts. 
  • Profit and loss statement – this ascertains the gross profit and net profit after all the operating expenses and income for the financial year are considered. This will depend on many factors such as:
    • How you choose to operate your business
    • Track sales
    • Order stock

      For example, do you average your COGS on ordered lines or run a FIFO policy?

  • Balance sheet report – this will provide the financial position of assets and liabilities for the business as of 30th June
  • GST Audit report for ‘Supplies’ – this discloses the GST payable for all the stocked items and also the Total Income to be disclosed in the Balance Sheet.
  • GST Audit report for ‘Acquisitions’ – this provides the details for GST input tax credit.
  • GST BAS Report – this is required for all quarters or months for the financial year (depending upon the frequency of the GST BAS Report).

 

Pharmacies using Minfos Accounting Module

If you are already using the Minfos Accounting Module, make sure you:

  • Reconcile the Debtors and Creditors at year’s end.
  • Run a Debtors and Creditors report on the 30th June and these must match the Trade Debtors/Creditors in the Trial Balance.
  • Reconcile Bank Transactions in Minfos Cash Manager for the financial year and finalise for 30th June.
  • Conduct stocktake and run a stock-on-hand report as of 30th This must be generated to ascertain the Closing Stock-on-Hand as of 30th June and must have been reconciled against the purchases and sales for the year.

 

Pro tip: While the financial year concludes on 30th June, most businesses will have until at least the end of October to submit their documentation to the tax office. There may be a range of other reports you will be required to run for your business, check with your Accountant to determine what your tax obligations are. 

 

Support yourself with the right tools

4. Reduce manual tasks

The less hands-on input required ahead of tax time, the better. While being adequately prepared is a big part of this, so too is having the right tools at your disposal. Minfos is built on accounting principles. This means all your important financial data is properly structured in our software and can be easily synchronised with your accounting platform of choice (e.g. Xero, MYOB). That is, all customer transactions and supplier payments managed using Minfos flow directly into the Minfos Accounting Module. This helps to save time as the financial data can be easily exported without the need for manual reconciliation.

 

5. Review and plan ahead

Once you have all your accounts for the year complete and settled, it’s worth reviewing the year’s performance and planning for your year ahead. It may be a good idea to engage the services of a business advisor or accountant who can work with you. Minfos Cash Manager, Payables and Receivables helps provide a quick and easy view of your pharmacy’s cash position, enabling you to plan ahead.

 

Looking to effectively manage your accounting? Minfos software enables you to manage every aspect of your pharmacy – from dispense to retail. Let us show you a demo.

 

All advice provided is general in nature and is not intended as legal advice.