With not long until year-end, we encourage you to spend a few minutes this week reading our top tips to sort your end of year paperwork.
- First make sure you have all the documents we'll need, such as PAYE statements, bank statements showing interest earned, dividend statements for shares, and receipts for expenses. It can be tricky to keep track of everything so if you're not already, go digital. Scanning receipts and saving electronic invoices in the cloud saves time and space. Xero offers a great service to enable you to do this, and remember, even if you are on a great accounting system such as Xero, we do still need that additional information!
- Look at writing off old debts – if you don't think that a bill is going to be paid, then write these off before year end.
- Review your inventory. The value of your stock affects your business's taxable profit. Do a meticulous stocktake before year-end. Get rid of any out-of-date or damaged items so they can be written them off. See our helpful fact sheet on stocktakes.
- Check out your assets – year-end is the time to ditch surplus assets. If you can sell them, great, otherwise write them off. And if you're planning to buy any new equipment or assets, do it on or before 31 March (rather than 1 April) to reduce your taxable income and gain a full month's depreciation.
- Talk to us on any planned dividend payments, as managing imputation credits will be important.
- And lastly, if you were considering a move to Xero, then the start of the new financial year is the most ideal time to do this. Give us a call and we can provide expert advice on how to convert, as well as provide the most tailored Xero subscription to your needs.