The end of the financial year is fast approaching. We look into a few things to do before the end of the year which should make the preparation of financial statements and tax returns that much easier.
Last years tax return
What? If this isn’t done you can stop reading now and get in touch
Too many companies with stock rely on estimates often procured months after the end of the financial year. You should be looking to be physically counting this now, and even going monthly with this next year. If you complete an inventory stocktake prior to year end you can also write off obsolete stock and get a deduction in the current year.
Make sure to credit any bad debts to ensure you get the deduction in the current year.
You’ve probably paid all these expenses personally by now so its a great time of the year to be getting these together. These can include rent/mortgage interest, rates, power and insurance based on the % of the total house you occupy for business purposes.
Check On Vehicle Private Use
If its practical for employees to store a company car at home, you should be checking regularly to ensure the vehicle isn’t being used privately.
GST period change
Ideally if you’re looking to change between two and six monthly returns, you should get this cleared with the IRD before a new period begins.
Disclaimer: Information provided to the best of the authors knowledge at time of publication. Laws are subject to change and independent advice should be sought. The above information is general in nature and should not be construed or relied on as a recommendation.