If you're a property manager you know how hectic the end of financial year can be. It's traditionally the busiest and most stressful time. We all dream of a stress free EOFY, however constant interruptions and unforseen errors can make it difficult.
Rockend Education Consultant Leesa Sinn gives us her advice and provides a simple checklist to ensure your EOFY is smooth sailing all the way.
The key to a smooth and efficient EOFY is the PREPARATION! I can't stress it enough. More time should be spent on the pre-end of month checks than the actual process itself. This guide will take you through some tips on how to make this and future EOFYs run smoothly and most of all, stress free.
1. Get those accounts paid
Around this time of year, a lot of phone calls and emails are received from owners asking to ensure that their accounts are paid before 30th June. As soon as you get these requests, check to ensure the owner has enough funds to pay these accounts. If not, give your owner the option to either pay the account themselves or transfer funds to the trust account to pay these accounts. There may be some accounts which owners have specifically instructed you not to pay this financial year. Keep these separate so they are processed after the end of financial year. Don't leave them floating around your desk; you don't want to accidentally process the invoice in a mad rush.
2. Give creditors a deadline for invoices
Just like at end of month, give your creditors until a certain date to get all of the invoices in to avoid receiving too many on the last day of the month.
3. File paid invoices in same order as statements print
Some agencies have processes in place where the owners only receive copies of paid accounts at the end of financial year. Of course this saves time collating statements and accounts after each end of month, but it can be a big job at end of financial year if processes are not in place. A suggested process would be to file the paid invoices in the same order your statements print (ie. property alpha or owner alpha order) to make collating a lot quicker and easier.
4. Charge an EOFY statement fee
If your Managing Agency Agreements include a fee to produce this statement, remember to charge it! It is also important to check that you have charged the fee correctly and have not under or overcharged your owner.
5. Ensure to have removed any old global statement comments
As it has been a year since producing the last batch of end of financial year statements, you want to ensure that you have removed any old global statement comments. This is also an opportunity to add a new global comment if your software program allows for it.
6. Double check
Finally, this would be my number one tip! Double check to make sure all statements are correct prior to sending them to the owners. Ensure that all income and expenditure is reported correctly. We all know how many problems it causes when end of month statements are incorrect, and this is compounded at EOFY. The size of your rent roll will determine how much time you need to put aside to do this. It will save you time in the long run.
In addition to the above, it is still important to complete all normal pre-end of month checks such as checking fees and ensuring the bank reconciliation is balanced.
It's important to check all of the above before you begin your EOFY process. It's ideal to block out time the day before. Try to not take calls or answer emails and don't make any appointments to allow yourself time to complete these checks and processes.
Treat the day of running EOFY just like you would end of month. You're really just running a normal end of month with just a few extra steps along the way. So prepare, prepare, prepare and block out time so you can run your end of financial year interruption free and stress free.
To know more about processing EOFY with your Rockend software, just go to your software's Knowledgebase: