It’s time to start planning for your tax obligations now that the end of the financial year (EOFY) is near.
If you’re a medical practice, then October 31st is the date by which you must lodge your tax return and pay any outstanding taxes.
If you haven’t prepared your return yet, we’ve compiled a checklist of essential tasks to complete before the end of the financial year.
Medical facilities play a pivotal role in our lives, from routine check-ups to life-saving treatments. It’s crucial that these institutions are well-prepared, safe, and welcoming. In this blog, we’ll walk you through a comprehensive checklist for medical facilities. Whether you’re a healthcare provider, a patient, or simply interested in the healthcare environment, this checklist will shed light on the essential aspects that contribute to a well-functioning, safe, and patient-centered medical facility.
End-of-Financial-Year Checklist for Medical Facilities
As the end of the financial year approaches, it’s time for medical facilities to wrap up their financial matters and prepare for a fresh start in the new fiscal year. While it might not be the most exciting task on your to-do list, proper financial planning and organization are crucial for the success of your healthcare facility.
Medical practices have several significant responsibilities that must be fulfilled at the end of the fiscal year (EOFY) to maintain their financial health.
To begin, you should review the work that must be done. A stocktake, filing income tax returns, contributing to superannuation, and remitting past due bills are some of the yearly responsibilities that may fall on your shoulders.
We hope this checklist will be useful in getting your practice ready for the following year and keeping your finances in order, no matter how big or small your organisation may be.
1. Analyse Financial Efficiency
Medical facilities should evaluate their financial health thoroughly before the conclusion of the fiscal year. Revenue, costs, and margins must all be examined so that improvements can be made and targets for the future year may be established. It’s a good time to take stock of your financial situation and make any required revisions to your plan.
2. Keep Track of Client Payments
Your books should be current as of the end of the financial year. To ensure that your books are accurate, add any customer payments you have received but have not yet recorded by the end of June.
3. Check for Tax Compliance
Before the end of the fiscal year (EOFY), medical facilities must check to see that they are in full compliance with all tax requirements. This includes things like filing tax returns, balancing books, and collecting relevant paperwork. Medical accounting services can be a great resource for streamlining and verifying this procedure.
4. Remit Past-Due Bills & Accelerate Purchasing
It’s a good practice to settle any outstanding bills before the end of the fiscal year so that your books appropriately represent the whole year.
You may choose to advance purchases to deduct them this fiscal year. Is there a need for more printing, signs, office supplies, or services? It may be more economical to move items ahead if you expect to owe taxes this year. If you want to prepay any costs and then write them off this year, talk to your accountant beforehand.
5. Accounts Receivable Management
Accounts receivable management is essential to a company’s cash flow if it wants to thrive. Medical facilities with unpaid bills or invoices should assess their collections processes and take appropriate action. The practice’s financial security is directly tied to how well payments are collected on time.
Accountants for doctors should help them identify the problem and implement solutions. The sooner the problem is identified, the easier it will be to fix.
6. Taking Stock of Supplies
Before the end of the fiscal year, medical facilities that keep inventory should take a complete inventory. This entails checking inventory for damaged or expired goods and replacing them as needed. Maintaining precise stock levels, cutting down on waste, and aiding in annual budgeting are all benefits of careful inventory management.
7. Receipt all deductions
It’s easy to forget some deductions you’re entitled to claim on your company tax return, so it’s important to give this some thought ahead of time. To refresh your recollection of where your money has gone, review your recent bank and credit card statements.
8. Payroll and Superannuation
It is the responsibility of medical facilities to guarantee that their staff members’ superannuation needs are met. This involves processing payroll accurately and making any required superannuation payments. Payroll summaries for the year should be compiled, and any new information about employees should be included.
9. Check the Coverage of Insurance
The close of the fiscal year is a good time to evaluate the scope of medical facilities’ insurance policies. Reviewing current policies may assist in verifying sufficient coverage and reveal any holes that should be filled, such as with professional indemnity, public liability, and property insurance.
10. Planning a Budget and Managing Money
Budgets and financial plans for the following fiscal year should be made at or near the conclusion of the current fiscal year. Medical facilities must evaluate their financial objectives, plan for future costs, and distribute funds accordingly. This allows for efficient fiscal management and promotes growth in the long run.
Takeaway
The end of the financial year is a crucial time for medical facilities to assess their financial health and make necessary adjustments. Proper financial management not only ensures compliance but also helps healthcare providers deliver better care to their patients. By following this checklist, you’ll be better prepared for the challenges and opportunities that lie ahead in the new fiscal year. So, roll up your sleeves and get to work – your facility’s financial success depends on it!
Medical practices may effectively manage the financial obstacles at the end of the financial year by proactively completing the important activities specified in the above EOFY checklist and obtaining medical accounting services when needed.
Medical practices may better position themselves for success and development in the dynamic healthcare market by adhering to regulations, streamlining financial processes, and establishing quantifiable goals.
