The end of the financial year can be either stressful or a seamless part of what you do.
Ideally, your end-of-year accounts will confirm what you think your business has been doing for the past 12 months.
Being prepared is the key to avoiding end-of-year financial drama and stress.
- 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. Don’t forget receipts for charitable donations.
- Look at writing off old debts. Scrap redundant or worthless assets, so you get a deduction on your books.
- Print out profit and loss, balance sheet and general ledger listing reports and store them safely.
- Have a final look at your payroll reports. You don't have to give summaries to your staff, but if you give them Earning Certificates, they can be used to check IRD information.
- Note odometer readings on vehicles and ensure logbooks noting business and personal use, mileage and costs etc. are in order.
- Dispose of obsolete stock by the year end or write it down to its net realisable value.
- Talk to your accountant about any planned dividend payments, as managing imputation credits will be important.