Checklist: Financial Year End
As the end of the financial year approaches for most, consider these key actions for tax efficiency and compliance:
Review provisional tax payments
If you have experienced a significant increase or decrease in profitability this year, it may be worth us reviewing your results prior to the final provisional tax instalment date (7 May). If profits are up, we can ensure there is a plan to meet the additional tax implications to avoid penalties or interest. If profits are down, you may be able to reduce your final provisional tax payment.
Write off bad debts
Review your debtors list, particularly those which are over 30 days old. If you have invoices that won’t be collected, write them off before 31 March to be able to claim a deduction for tax purposes. If you are unsure how, please call our 24/7 help desk team - 0800 883 718.
Complete a stocktake
Complete a stocktake prior to or at year end to ensure you have an accurate value. Remember, stock is carried at the lower of cost or market value so if you have obsolete or slow moving stock, we may be able to write them down.
Check your fixed assets
Review your fixed asset schedule and identify any assets which are obsolete or have been disposed of during the year. If you have purchased any assets throughout the year, ensure you have invoices available (whether electronic or paper) to support the claim, including any finance documentation.
Confirm any employee bonuses
To claim these as a deduction at year end, the bonuses must be committed to before 31 March.
Gather documentation for home office expenses
Gather information to enable a home office claim (copies of rates notices, electricity, home loan statements etc). If you have moved during the year, consider what proportion of the house is utilised as a home office and note this information.
Balance sheet and loan balance verifications
For Business and Trust accounts we will require a copy of a bank statement or loan statement to confirm the balance as at year end. In addition, if you are aware of any bank covenants you have, particularly around when your year-end financials must be provided to the bank, please ensure we are aware of this date.
Review your record keeping
The IRD is very active with reviews and audits at the moment. Year end is a good time to ensure you have maintained proper documentation for all tax-deductible transactions. If you’re not already doing so, consider saving all invoices and receipts into Xero/Hub docs for the new financial year. Need help? Just give us a call.
Start planning
Make a plan for the new financial year including a budget/cashflow forecast. If you would like assistance to ensure you start the next financial year positively please arrange a time to meet with us.
For more tailored advice specific to your circumstances, please get in touch with us. We’re here to help you navigate year end smoothly!
Upcoming Financial Literacy Series
Upskill in 2025! We have an upcoming seminar series focused on financial literacy. This includes a module on taxes, record keeping and expenses that you are able to claim against your income. If you are interested in attending, you can find more information here - Financial Literacy Series.
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This article contains general information only and based on information available at the date of publication. You should obtain advice for your personal circumstances.