Financial Year End Tax Tips

26 January 2018

With the 31st March coming up, here are a few things you can do to make things go smoother for your annual accounting and income tax returns.

Debtors – review the people that are owing you money, are there any on your list that are unlikely to pay? If so there is no use paying tax on them! Write off all bad debts prior to 31 March so they don’t show up on your debtors list. You can still chase them to try and receive payment – if you do receive payment you will include them as income then.

Creditors – make a list of suppliers names and amounts that your business owes money to at 31st March, 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 into your tax agent!

Buying Assets – if you really need some new equipment or gear and were thinking of buying it in the next few weeks – doing so before the 31st March will mean a months worth of depreciation can be claimed.

Paying Holiday Pay – if you pay out any holiday pay to staff from 1 April 2018 to 2 June 2018, let your tax agent know as this can be claimed for in the financial year to 31 March 2018.

Stocktake – if you’re carrying stock you are required to do a stock take to record how much you have on hand as at the 31st March 2018. The figures should be at cost, excluding GST. The good news is that if this is your first year and your stock is under $10,000 there is no requirement to include it in your financial reports, which means less tax to pay. However if you’ve had stock on hand in prior years financial reports you are required to carry on reporting this.

If you’re not sure of anything here or would like to chat about it, please contact us – we’re always happy to help!