The end of another financial year is fast approaching and with that in mind here are our top tips to ensure you are ready:
- Get your 2019 financials completed ASAP so you know your position:
We will be sending end of year questionnaires towards the end of this month. We have reduced these in size to make it easier for you. The sooner you get this done the sooner we complete your work. So get it to us ASAP so you can sit back and relax with the peace of mind that your financials have been sorted.
- Write off bad debts:
Don’t pay tax on money you won’t receive! If you have done all you can to recover a debt and are ready to write them off, you need to make sure this is done before 31 March 2019 in order for the tax deduction to apply. If you are unsure how to write off a debt give us a call. Also if you haven’t already, consider sending the debt to a debt collection agency such as these guys: https://www.collectit.co.nz
- Complete a stock take:
If you carry stock of more than $10,000 then you will need to complete a stock take so we know how much stock you have at 31 March 2019. Stock can heavily affect your profit and therefore tax so its important we get this right. When completing the stock take we need the GST exclusive figure. The amount you give us should be the lower of what you paid for the stock and its estimated value. (9 times out of 10 this will just be the cost value).
- Get your records ready:
Whilst most of the information will be in Xero we do require some items from you:
- Ensure your Xero is up to date;
- Bank statements at 31 March so we can confirm the Xero balances are correct;
- Bank loan summaries at 31 March;
- Invoices for assets purchased;
- Any new finance/HP agreements.
- Home office:
If you are completing work from home, a portion of your home expenses can be claimed as a business expense. Common home expenses that can be used in this calculation are rates, home & contents insurance, power, internet/phone and rent or mortgage interest. You will also need to provide the total area of your house along with the total area of the space set aside for work related tasks. For more information about this, check out our previous blog Tax tips with MHCO part 1 – Claiming Home Office
- Consider your goals for the upcoming year:
Now is the perfect time to reflect on the year that was and then look forward to the upcoming year. Set some goals, update the business plan, prepare a budget. Our most successful clients have a business plan and a budget, is this you?
We are pumped for another year and looking forward to working again with all our great clients.