This guide provides clear steps to follow if you have been impacted by Cost of Goods Sold (COGS) inaccuracies at the End of Financial Year (EOFY).

Overview

We understand your concerns regarding the accuracy of your Cost of Goods Sold (COGS) data as of the EOFY. Correct COGS figures are essential as they directly impact your Gross Profit and overall Net Profit, which are critical for accurate financial reporting and tax calculations.

Please be assured that we are aware of the issue and anticipate having it corrected with ample time for your tax returns to be prepared and lodged on schedule. 

Timelines

It is important to remember the typical lodgement deadlines for income tax returns, which provide significant time to resolve these issues before they impact your tax obligations.

• For Australian Pty Limited Companies: The typical income tax return deadline is 15 May 2026 for the 2025 financial year, assuming a Tax Agent lodges your returns.
• For New Zealand Limited Companies: The typical income tax return deadline is 31 March 2026 for the 2025 financial year, provided you are a client of a tax agent who has an extension of time arrangement with the IRD.

Important Note: The income tax deadline may be earlier if you do not use a tax agent or if you have prior year income tax returns outstanding. Please confirm the specific tax deadline associated with your company and situation with your tax accountant.

Steps to follow:

Please follow these steps to manage the situation effectively:

1. Notify your accountant that your EOFY accounts are not yet final due to a pending COGS data corection. You can information them that you will provide an update when the accounts are finalised. 
2. When contacted by Poolwerx Evolution team regarding the COGS issue adjustments, respond or take action promptly. Your timely cooperation is crucial to ensure the correction processes can be completed quickly and efficiently.
3. Once you have been notified that the COGS data has been corrected, review the Profit and Loss statement in Xero to ensure the figures algin with your expectations.
4. Complete any remaining EFOY tasks by following the the End of Financial Year (EOFY) Checklist.
5. Notify your accountant that the EOFY accounts are now finalised and ready for them to review and prepare the tax return.  

Frequently Asked Questions

What is the direct impact of incorrect COGS?

 Incorrect COGS leads to an inaccurate Gross Profit and Net Profit on your Profit & Loss statement. This gives a false picture of your business's profitability and cannot be used for tax calculations until it is corrected.

Who can I talk to about the specific accounting impact on my business?
If you wish to discuss the impact of the COGS fixes with an external accountant who is familiar with the Poolwerx setup and this specific EOFY issue, you are welcome to book a free consultation with Dan from Accolution.

To book your free-of-charge consultation, please click here: Book a Consult with Accolution