We’re here to help with your end of financial year…
We know this end of financial year is a little different, and we want to help you feel prepared for whatever is around the corner. Kidsoft’s CFO, Di, sat down with Cass, from our Customer Success team, to compile a list of tips and advice to get your business end of financial year ready. Watch the video and review the summary of tasks below.
Review your parent debtors for those that may have become “bad debts” (families that you are not going to be able to get to pay at all), ensure you look at both your “active” and “inactive” debtors for those that you might need to write off, you can do this by accessing the Aged Balances Report within Kidsoft.
When your accountant or bookkeeper asks you to give them your financial reports for the year, for instance your financial summary report or your financial detailed report, we would suggest waiting until after the 13th July 2020 when free childcare ends before running those reports as you may have unsubmitted attendances that weren’t submitted by the 6th of April, when the Federal Government brought in free childcare. Additionally, you might have attendances that may need adjustments and require a variation to be submitted. Once you are happy with your attendances and you have submitted them all, you can then run a Financial Summary or Financial Detail Report within Kidsoft.
The Federal Government have put transition payments in place from the 13th July to the 27th September 2020, as a result services are unable to increase their fees in July as what has become common place. However, if you wish to increase your fees post 27th September 2020, you can do this now ahead of time in Kidsoft by pre-populating changes to your fees with a scheduled go live date in the future.
The 2020/21 financial year rates for CCS have already been released and these have been updated within the Kidsoft platform to apply from the 13th July 2020. If you wish to give your families their Customer Account Statements in advance so they know what their gap fee payment will be post Free Childcare you can estimate this by running a Customer Account Statement in Kidsoft now.
It’s that time of the year to remind your families to put their new income estimates into their MyGov accounts for the 2020/21 financial year. Families also need to confirm their income for the first time for CCS for the 2018/19 financial year, this is done by either having lodged your tax return for that year or by going onto the MyGov portal and letting the ATO know you don’t need to lodge one, if this is not done by the 13th July 2020, CCS payments will cease. Once a family has estimated their income for the new financial year there is a possibility that their CCS entitlements may change, if their circumstances have changed. A good tip is to look out for the CCS entitlement notifications on the front screen of Kidsoft, you can see these in more detail also in the CCS Entitlement Variation Report. Further also remind your families that CCS balancing will occur once their 2019/20 financial year income tax return is lodged comparing their actual income to their previous estimate.
It’s a great time to start thinking about budgets and what KPIs you would like to set for your business for the new financial year. The Kidsoft KPI Report will help to provide reporting on these key metrics including utilisation, revenue, debtors, and much more.
One of our favourite settings in Kidsoft is Balance Lock, this setting “Locks” your transactions to a particular period, and prevents new transactions been entered once the period has been “Locked”. This is to ensure that reports you use to assist things like End of Month reporting or lodging your BAS Statements and your income tax return, your numbers won’t change.
For more advice, or assistance on preparing your business for the end of the 2020 financial year please don’t hesitate to reach out to our Customer Support team.