Review Product Setup

Ensure products in Lightspeed are configured correctly, especially how bulk products are broken down into sellable units.

• Action: Refer to internal guides: Setting up Product relationships (standard or variant products) and specific guides on breaking down bulk products. 
• For a general overview, see Product Setup and Inventory Management articles in the Support Centre.
• Limitation Reminder: Be aware that serial numbers recorded in Lightspeed do not sync with Vital. Manage serialised inventory according to current best practice documentation. (See Current System Limitations)

Review and plan stocktake

This includes ensuring all transactions have been entered, received POs sent to Xero, sales invoices generated, stock transferred to their correct physical location, all registers for the period closed (including for service outlets). 

• Guide/s: Stocktake tips and tricks

Conduct a Stocktake

1. Perform a complete physical inventory count BEFORE THE END OF THE FINANCIAL YEAR. This is essential to reconcile your physical stock levels with the recorded stock in Lightspeed and subsequently Xero.
   • Guide/s: Follow the How to perform a stocktake count guide.
2. Identify any slow-moving, old, or obsolete inventory. Discuss potential write-offs or provisions with your accountant.
   • Guide/s: For making adjustments, refer to Adjust inventory & COGS values in Xero. To update product statuses or pricing in bulk, see Editing product using bulk update for prices, make inactive, remove tags.

Reconcile Your Bank and Credit Card Accounts

• Ensure that every transaction on your bank statements has been reconciled in Xero.
• The balance in Xero for each bank account must match the actual closing balance on your bank statements for June 30th.
• Guide/s: Consult Reconcile your Bank account and the Reconcile actual bank balance against Xero balances guides.

Reconcile Loan Account

Reconcile all loan accounts, including business loans, vehicle finance, and importantly, any Director/Owner loan accounts

• Ensure the balances match to lender statements. Ensure interest expenses and principal repayments are correctly split and categorised in Xero. Review movements in Directors loans for accuracy and proper documentation (eg. for tax purposes if drawings or contributions)

Reconcile Gift Card, Store credit and Customer deposit accounts

Run reports from Lightspeed to ensure the total value of the liabiltiy matches with the balance in Xero

• Guide/s: Using gift card report, Using store credit report

Reconcile Accounts Receivable

1. Verify that all client invoices for the financial year have been accurately recorded and issued.
   • Critical Best Practice: All completed service jobs must be invoiced from Vital. Processing service-related sales (cash or invoice) outside of Vital will lead to discrepancies in financial reporting and visibility across the Evolution Platform. (See Evo Platform | Essential Actions to Perform)
   • Guide/s : Consult How to invoice completed Vital Job (single invoice) and How to combine multiple jobs into one 'Batched' Invoice guides.
   • Limitation Reminder: Batch invoicing in Vital posts to the outlet assigned to the first user in the User Mappings table. This is often the Pooltrackr Support User. You must review and adjust this mapping, if necessary, to ensure invoices are assigned to the correct outlet for accurate reporting. (See ANZ | Current System Limitations).
2. Ensure any incorrect or cancelled invoices are voided correctly across all three systems: Vital (delete the invoice), Lightspeed (return in LightSpeed), and Xero (void). Failure to do so will cause reconciliation headaches, inventory mismatches, and reporting errors.
   • Available resource: To assist with this complex task, you can request the Evo Team to run a newly developed Inspector tool. This tool helps identify and address discrepancies across the Evolution Platform for invoices, their status, and linked payments. Please submit a ticket to request this.
   • Guide/s: See Editing and Voiding of invoices.
3. Review all outstanding client invoices and proactively follow up on overdue payments.
   • Apply any available client credits to their unpaid invoices in Xero. 
   • Limitation Reminder: Credits and partial payments applied in Xero do not automatically update the outstanding balance on the original invoice in Lightspeed or Vital. Always issue updated statements/invoices from Xero after applying credits or payments to avoid client confusion. (See Current System Limitations and Evo Platform | Essential Actions to Perform).
   • Guide/s: Running the Aged Receivables Detail Report and Sending Client Statements.
4. In consultation with your accountant, write off any debts confirmed as uncollectible (Bad Debts). In consultation with your accountant, write off any debts confirmed as uncollectible (Bad Debts).
   • Guide/s: Write off any Bad Debts
5. Address and clear any minor, unexplained positive or negative balances in client accounts.
   • Guide/s: Clearing small amounts in clients accounts

Reconcile Accounts Payable

1. Ensure Purchase Orders (POs) marked as 'Received' in Lightspeed have been correctly billed and sent to Xero.
   • Best Practice: Always create new suppliers in Lightspeed first. Allow them to sync to Xero automatically. (See Evo Platform | Essential Actions to Perform)
   • Guide/s: Receiving and Billing Purchase Orders
2. Update the due dates on bills in Xero to reflect the actual payment terms agreed with your suppliers.
3. Enter any non-stock related bills (e.g., rent, utilities) directly into Xero.
   • Critical for Accuracy: Xero bill dates for stock must align with the Lightspeed PO received date. Do not alter the bill date that imports from Lightspeed into Xero, as this can impact COGS timing, inventory valuation and across stack alignment. See Why you should retain bill date imported from lightspeed into Xero.
   • Guide/s: Create and manage supplier bills and Create bills (non - stock).
4. Thoroughly review all outstanding supplier bills.
   • Identify and void any duplicated bills. Pay close attention if bills are sometimes entered manually in Xero as well as flowing from Lightspeed.
   • Apply any supplier credits to unpaid bills and ensure all overdue bills are scheduled for payment.
   • Guide/s: How to use the duplicate bill detection, Manage Supplier Bill duplicates in Xero from LS PO, and Running Aged payable detail report.

Review and Reconcile Clearing Accounts

• Pay special attention to accounts like 'Undeposited Funds' and 'Cash on Hand' in Xero.
• These accounts should ideally be cleared regularly, meaning debits and credits offset each other over a short period.
• You must be able to explain any balance remaining at month-end (e.g., the 'Cash on Hand' balance should match your actual physical cash on hand; 'Undeposited Funds' should represent payments received but not yet banked, expected the following business day).
• Best Practice: Each register (including those for service vans/technicians if set up as separate outlets in Lightspeed) must be closed at the end of each day. Failure to do this means Cost of Goods Sold (COGS) will not be recognised correctly in Xero, leading to significant financial discrepancies. (See Evo Platform | Essential Actions to Perform).

Accounts Review (General Ledger)

1. Investigate and resolve any balances in suspense or miscellaneous expense/income accounts, such as a 'Shortages and Differences' account.
2. Utilise approved methods for clearing very small, immaterial balances on customer or supplier accounts if they cannot be otherwise resolved.
   • Guide/s: Shortages and differences account and Options for clearing Small balances on customer / supplier accounts.

Employee Payroll Data Verification:

• Confirm that all employee payroll records in Xero Payroll are accurate and completely up-to-date (e.g., pay rates, allowances, deductions, contact details).
• Verify your payroll processes comply with current Australian employment laws, Fair Work awards, and other regulations.
• Review all pay run transactions throughout the financial year and correct any identified payroll errors.
• Finalise your STP data through Xero Payroll and submit it to the ATO. The deadline is typically 14 July.

• Review and export relevant payroll reports from Xero as needed for your records or for analysis (e.g., payroll activity summary, leave balances).

• Guide/s:Check transactions and fix any payroll errors and Finalise your STP.

Employee Superannuation guarantee Contributions:

• Ensure all Superannuation Guarantee contributions for eligible employees have been correctly calculated, processed, and paid by the relevant quarterly due dates, in line with ATO requirements.
• Limitation Reminder: Xero Payroll does not automatically factor in an employee's age or hours worked to determine superannuation eligibility for employees under the age of 18. This calculation must be done manually for these employees.
• Guide/s: For guidance, refer to Managing Superannuation for Employees Under 18 Years. For processing, see Process Automatic Super payments and Reprocess failed, returned or late auto super payments.

1. Carefully review your primary financial statements generated from Xero for accuracy. This includes the:
   • Profit and Loss
   • Balance Sheet
   • Cash flow statement
   • Fixed Assets reports (if applicable).
2. Scrutinise all revenues, expenses, assests, and liabilities. Ensure all transactions are accounted for and have been categorised correctly in line with Australian tax regulations and accounting standards.
3. Reconcile any identified discrepancies and address any outstanding issues before finalising your accounts or sending them to your accountant.
4. Ensure all your BAS obligations for the financial year have been met accurately and on time.
5. Understand how to correctly account for items like voided invoices on your BAS.
   • Guide/s: How to use the Activity Statement to Lodge BAS and How to account for voided invoices on BAS

What should I do if I discover discrepancies during my EOFY reconciliations?

First, consult the specific How-to Articles linked in this checklist relevant to the area of discrepancy (e.g., bank reconciliation steps, inventory count procedures). Double-check your data entry and the processes followed. If you cannot resolve an issue that appears to be system-specific within the Evolution Platform, please contact Evolution Support for assistance. For matters relating to accounting treatment, tax implications, or complex financial discrepancies, always consult your professional accountant.

What to do if impacted by the COGS issues?

We understand your concerns that COGS may not be accurate as of the EOFY.  We fully expect to have the issue corrected in plenty of time for tax returns to be lodged on time. To be sure please follow steps oulined in this guide.   

How do the noted "System Limitations" impact my EOFY tasks?

It's crucial to be aware of the known system limitations as highlighted throughout this checklist and detailed in the Current System Limitations document. Understanding these limitations (e.g., credit note sync behaviour between Xero and Vital/Lightspeed, the default posting outlet for batch invoicing, or manual superannuation checks for under 18s) allows you to implement necessary manual checks or workarounds. This proactive approach is key to ensuring the overall accuracy of your financial data.