Financial Year End Tips
While early preparation is best, it’s not too late for you to get your accounts sorted. There’s a few things that you can do, so that everything is in order and you’re ready to start the new financial year on the right foot.
1. Look over your debtors. Are there any on your list that are unlikely to pay?
Chase them up and see if you can receive payment but if they are very unlikely to pay, there’s no use paying tax on them. Write off all bad debts before the end of year so they no longer show up on your debtors list.
2. Do a Stocktake Make sure you record your stock before the end of the financial year at cost.
If it’s your first year and it’s under $10,000, you’re not required to include it in your reports - meaning less tax to pay. If you have over $10,000 in inventory take this opportunity to dispose of or discount any obsolete or slow moving stock.
3. Bring forward any repairs and maintenance work.
It will help minimise your tax bill as you can bring forward the tax deductions by a year.
4. Reflect on your business plan and make sure you’re on the right path.
It’s a good chance to consider how your business can benefit from cloud accounting solutions like Xero that will make the next end of financial year easier to manage.
5. Make sure your end of year accounts are sorted.
If you’re not sure of what do to for the year end we can help you with this. We understand how much of a stressful time of year this can be especially to complete your compliance obligations. Please get in touch if you’re not sure about any of the above or what to do for processing the year end. Call 033795338 or send through an email.