Essential housekeeping for end of financial year
As the end of the financial year looms for many businesses, we suggest the following steps to get your records in order…
- Bank Reconciliations – Make sure that all your bank reconciliations are up to date as at 31 March 2022.
- Write Off Bad Debts – Review your outstanding debtors ledger. If you have tried to recover a debt it is possible you may be able to write it off. Bad debts need to be written off in your accounting system before 31 March 2022 in order to claim the deduction in that tax year. Please note that although you may choose to write off a debt this does not mean that you can no longer pursue its recovery.
- Stocktake – You need to record exactly how much stock you are carrying at the end of the financial year (excluding GST). If the stock is less than $10,000 and your turnover is less than $1.3m for the year, you won’t need to include your stock movement for tax purposes.
- Software Back Up – If your software is not cloud based, make sure you take a back up of your accounting software before you roll into the 2023 year.
- Employee Leave Balances – Review the amounts owed to employees as at 31 March 2022 such as Holiday Pay, Bonuses, Long Service Leave and Redundancy Payments. These can be claimed in the 2022 financial year if paid within 63 days of balance date, 02 June 2022.
- Creditors – Make a list of supplier’s names, and amounts that your business owes money to as at 31st March 2022 (these are the suppliers accounts that you would normally pay in April). Doing this, when the timing is current, will mean a lot less back tracking when you’re getting your information ready to send to us.
- Higher income – If your income is higher this year compared to the previous, you may wish to consider making an extra voluntary provisional tax payment.
- Assets no longer used in the business - Review the business asset depreciation schedule to determine if there are assets that are no longer in use.
If you have any questions, please do not hesitate to contact us on 876 8124 or via email at firstname.lastname@example.org