Are you prepared for the end of the Financial Year?Welcome to the Autumn 2018 edition of our newsletter. As the temperature starts to cool, the end of the Financial year looms closer. We have tips and advice on how to better prepare for this. For many 1st April is a dark cloud on the calendar - a sign to start counting stock and getting the books together. However this process does not need to be painful. Let us help you be better prepared and ready to hit the new financial year running. In this issue we also look at changes to IRD online, minimum wage increase, Business planning and training events we have happening in the next few months. Enjoy the final days of summer and the warmer weather. Kind regards, The Ezebiz team Preparing for the end of the financial yearWith the end of the financial year just around the corner, it’s time to think about the things that you will need to do before the 31st March and the information that you will need to get ready to provide your accountant or bookkeeper. What do I need to do to get ready for the end of the financial year? Here’s a quick list of the things your accountant or bookkeeper is likely to ask for:
If you have used Xero throughout the year, a lot of this information could already be in Xero so check with your accountant if you are unsure. Some of these things could have an impact on your tax for the year, so it’s a good idea to address them now so you’re prepared because nobody wants to pay more tax than they need to. Stock - If you carry trading stock, you will need to do a stocktake of goods that you have on hand for sale at 31st March. These need to be valued at the cost you bought them for and if you’re GST registered, you will need to advise your accountant whether your stocktake figures includes or excludes GST. Some of you may be considering rushing out and buying more stock before the 31st March thinking that this will reduce your tax. That’s not necessarily the case as an adjustment is required to account for stock that was purchased before 31st March that won’t be sold until the next financial year. So don’t run your funds short buying unnecessary stock that is going to sit on your shelf in an effort to reduce your tax. Another item your accountant or bookkeeper will want to know when it comes to your stock, is whether you have taken anything for personal use throughout the year. Make a note of this so that an adjustment can be calculated for this. Expenses - If there are any expenses that you are planning on incurring in the near future e.g. repairing equipment, advertising or stationery; you make want to look at sorting some of these expenses before 31st March. Be careful though as there are conditions on this, so you might like to touch base with your accountant or bookkeeper if you have any doubts. Assets - Are there any assets on last year’s accounts that you no longer have? You might have sold them, or they could have reached the end of their useful life and have been thrown away. You will need to let your accountant know so that any old assets can be written off. If you’ve purchased any assets throughout the year that is over $500, make a note of these so they can be added onto your Asset Schedule. Don’t rush off and buy new assets over $500 before 31st March either thinking that this will reduce your tax. These items will need to be depreciated over time and the costs apportioned over a number of years rather than being able to claim it all in the year you bought it. Debtors (People who Owe You Money) - If you have some old bills that you are having trouble getting paid for, we suggest you make a list of these and discuss them with your accountant. If its unlikely that you are ever going to be paid for them, an adjustment could be made to account for them as “Bad Debts”. For Companies - For Companies, it’s a good idea to review what you have taken out of the business before 31st March and repay this if necessary. If you have drawn out more than the Company owes you for the year, you could be liable for interest charges on any funds that you have overdrawn. If you are unsure how to figure this out, you might want to talk to your accountant before then. You may also like to consider declaring a dividend and paying out dividends before the end of the financial year. There are a few things to consider before doing this (e.g. the fact it doesn’t reduce your company tax and/or whether the company has paid enough tax up until now) so we suggest you get advice on this first. If you are in doubt or would like clarification on any of these issues, don’t hesitate to give us a call. Check out our latest blog Changes to myIRIn April 2018, Inland Revenue are releasing the latest myIR upgrade to provide more advanced online services. The GST section will be changing to My Business and will include a PAYE returns account to replace ir-File. If you have a myIR account, we suggest you watch the video on the link below to find out about the changes that are coming. It is especially useful if you file your PAYE returns yourself. Minimum wage increaseFrom 1st April 2018, the minimum wage is set to increase by 75c to $16.50 per hour. If you are using an online payroll system, it should notify you to check pay rates for your employees. If you're calculating your payroll manually, you might want to think about going onto an easier system for the new financial year. Give us a call and we can outline the options for you. Business PlanningWith the new financial year just around the corner, have you considered creating and enforcing a Business Plan?? Here at Ezebiz Accountants, we have staff ready to meet with you to discuss all your business goals and to help grow your business. We also provide follow ups in the form of Quarterly coaching sessions. These provide you with increased accountability and support so you can achieve the results you want from your business. Get in touch today for find out how we can help you. We have a number of training sessions scheduled over the upcoming months. Theses sessions are a fantastic opportunity to increase your knowledge and ask questions from the experts.
Check out the links below for more details and book Xero TrainingTailored to the level of experience of the people attending, we can cover the basics or more advanced as needed.
Complimentary business reviewsIs it time for a business review? Taking time out to discuss what’s happening in your business will provide clarity of your future direction. New StaffWe would like to welcome Renske Forsyth to our team. Renske fills Erana's position as our Administartor. Renske is a Whakatane local and is looking forward to meeting and working with all our clients. |