With the end of the tax year just around the corner, it's time to get end of year stuff together for your accountant or tax agent to prepare your tax accounts.
If you haven't seen your accountant yet, here are some helpful hints.
Don't despair — do the questionnaire. Your accountant usually will send you an end-of-year questionnaire to prompt you for information and copies of documents. They're designed to help collect information to minimise tax.
Make an appointment and go through the questionnaire if you don't understand it. Incomplete, inadequate information could also mean more fees and delays.
Do your stocktake — if your stock is over $10,000 at cost, you'll need to do a stocktake. If it's under 10,000 you don't need to. You'll pay tax on this number so if you can ditch or sell old stock you'll save some tax.
Review your assets list if you suspect a few of the items no longer work or exist. You could be surprised at what lurks on the schedule. Assets you purchase under $500 can be written off.
Bad debts are bad for business but if you write bad debts off before March 31, you'll save some tax. It may also improve your mood not to see them.
If you're paying out annual leave 63 days after March 31, 2018 to your staff you can claim them in the 2018 financial statements.A tax deduction is a bonus after balance date.
Bonuses paid may also qualify but the commitment needs to be made to do this before year-end. Redundancy payments won't. Advice on your specific situation maybe required here.
Contract work is becoming more popular. If you have income or a contract that spans past balance date into the new financial year check to see which year the income falls into. There's some fact-checking required here so if you think this is relevant check with a professional.
Jeremy Tauri is an associate at Plus Chartered Accountants.
Phone: (09) 438 3322
Fax: 438 8455
134 Bank Street, Whangarei
If we had to sum up Brent and the team at Plus CA it would be - humorous, efficient, professional with a real focus on making your money work to its best ability for you...we will continue to deal with them even though we are moving overseas as we know they have our best interests at heart.
Jeremy thank you for your patience, assistance and general chit chat over the years. I would have absolutely no issue in recommending your services to everyone and anyone – in fact, I do.
We recently employed Jeremy Tauri of Plus Chartered Accountants and have been thrilled with the improved service we have received. Jeremy is really approachable and always available to answer queries. At his instigation we have set up quarterly meetings so that we are regularly reviewing our business and avoiding any ‘end of year surprises’.