As far as your accounts go, this is the biggest month of the year. The end of March is the end of the financial year for most businesses, so it’s time to get everything organised so we can get all your compliance sorted as quickly as possible
What do you need to do to make your accounts run more smoothly? A few simple things will ensure a hassle-free process:
- Reconcile all your transactions in accounting your system.
- Make sure you’ve sent out all your invoices for the year.
- PDF a copy of all March bank statements including loans and credit card statements to us.
- Gather any hire purchase documents and send them through
- Are you paying bonuses? There are rules about when they need to be paid in order to claim a deduction this year, so let us know if you’re going to hand out a bonus – including shareholder drawings.
- Work out the value of the stock on March 31.
- Have you sold or thrown out any assets? Let us know so we can write them off.
- Have you purchased any assets? Please ensure you include all details with your records i.e. what was purchased, when and for how much.
- Consider writing off any bad debts – if you’re really not going to see the money, you can at least make it tax deductible.
So what are we going to do once we’ve got all that information? This is our busiest time of year – collecting, reviewing and analysing all your accounts. Here are a few of the jobs for the SME team at the end of the financial year:
- Check your accounts are reconciled.
- Figure out where those incorrectly coded transactions should really go.
- Make sure you’ve paid the right amount of GST.
- Run your depreciation.
- Adjust your profit for non-deductibles.
- Make sure you’ve completed your annual return and that your shareholdings match up.
- Decide on a tax strategy for your business – we try to make sure you’re not paying even a dollar more tax than you need to, but also to check you’re not underpaying.
- Complete your tax return and file it electronically with Inland Revenue.
We know that accounts and tax aren’t the fun part of being in business. But it’s well worth investing a chunk of your time this month in getting them right. It will help us to give you the best going forward. For more details on what you can do, or what we can do for you, give us a call on 09 366 7025.