Keep Calm in preparation for the 31st March

With the financial year end just around the corner it is time to get organised and make life easy on yourselves when your accountant comes knocking. It is always better to get things sorted in a timely and efficient manner before life takes over again and the last financial year is but a distant memory. Trying to remember what happened in the last financial year six months down the track can prove difficult so we recommend collating your information as close to year end as possible.

The added benefit of getting your financials sorted early is that you can appraise the last financial year in a timely manner, make any changes that need to be made and move forward in the right direction.

Some things to consider in preparation for year end:

Stock

If you carry stock in your business whether you are a retailer, a wholesaler or a trades person do a physical stocktake on or as close to the 31st March as possible. Prior to doing your stocktake physically dispose of anything that is obsolete or damaged so it is not counted in the stocktake. It’s a good excuse for a tidy up.

Debtors

You should be reviewing your debtors on a regular basis and ensuring you get paid when you should but if you find yourself in the unfortunate position of not being able to collect a debt then write it off before the end of the year so that you are not paying tax on it.

Banking

We live in an electronic age where most people pay by direct credit but if you do find yourself in possession of cash or a cheque make sure it is banked before the 31st March. If you run a petty cash system then make sure this is reconciled and accounted for at the 31st March too.

Some other things that need reviewing and collating before you send your year end information in to us:

Log Books

If you keep a log book for your vehicle, make sure it is up to date and complete at the 31st March.

Home Office Expenses

If you use part of your home as an office you are entitled to claim a portion of things like your rent or interest on your mortgage, rates, home and contents insurance and power.

Fixed Assets

Have a look at your Fixed Asset Register included with last year’s financials and note anything that has been sold or written off.

You will find all our year end checklists to help with collating your information on our website https://businesslike.co.nz/checklist-and-business-tools/

Please contact us if you want clarification on anything as we head towards the 31st March – we love helping you to be proactive!

Article by Rachel Lamb