Ep 474 - Getting Ready For Year End đ„”
It is the most wonderful time of the year...year end.It is nearly that time of year again when accountants need to complete a set of accounts to keep the IRD happy. Banks are also increasingly asking for more accurate and timely financial information.If you have debt or are considering lending, you need to ensure this process is as fast as possible so that your accounts do not become the bottleneck in these discussions.Here are some things to start thinking about (that your accountant will most likely request):Confirmation of bank and loan balances at 31 March 2025. [Perhaps you could take a screenshot at 31 March so that your accountant can ensure Xero / your accounting system matches up with the bank]Did you buy or dispose of assets during the year? Do you have copies of receipts? [Accountants need these to have on file should the IRD request them - compile those]Do any of your invoices need to be written off as your customer/client is no longer going to pay you? [This brings your revenue down and your profit too, impacting final tax]Were there any unusual purchases or sales during the year you need to run past your accountant that you havenât already?Does your accountant know about any cash you bank personally from business or asset sales?Have you completed your annual home office calculation? We have included a link below for you to make a copy of the spreadsheet our clients use. [This allows you to claim some home office costs and brings your profit down, decreasing final tax]Do you have stock? Complete your year end stock take [This tracks the total stock left on hand to better account for your purchases]Remember Provisional Tax installment 3 is on the 7th of MayThe low value asset threshold is $1k so get minor asset purchases in before then to decrease your profit and tax [Don't buy assets you don't need though].Any new additional income like rental, crypto transactions, dividends, overseas income? Let your accountant know.Do you have donations to let your accountant know about?Any bank or credit cards not showing in your accounting software? You may be missing claiming expenses.We know this stuff is boring at times, but it is still important and important to do it right.If your accountant seems to niggle you for the information, it's because they want to get it out of the way for you so that you can carry on running your business.We hope that helps,Luke & Philhttps://docs.google.com/spreadsheets/d/0B4dISa15v3-WREdSeFhCaHBxU3lWVnU1SFRQcTdiWmpJYksw/edit?resourcekey=0-s6N7ryy34cyFCCsGG3NN0A&gid=882865644#gid=882865644