10 Things To Do Before the Tax Year Ends
Out with the old, in with the new? Yes, maybe, but before we get to the 1 April 2011 what should we, as business owners, be doing?
- If you have trading stock (unless it’s clearly not going to exceed $10,000 in value) do a stock-take. Even if you have a perpetual inventory system on your accounting software you still need to check it’s accurate. Make sure you identify and write-off any unsaleable items or stock worth less than cost.
- Write off any bed debts to get tax deductibility as the accounting entries must be made before 31 March. It doesn’t mean you have to stop chasing.
- Review your fixed assets and identify and write-off any which you’ve disposed of or stopped using.
- Make sure you have everything to hand for your accountant, stock-take details, accounts receivable and payable, work-in-progress, year-end bank statements, any new loan or finance paperwork and use of home details in particular.
- Bring forward any planned expenditure to get tax deductibility early.
- If you have sufficient cash reserves and the customer or client won’t mind defer income by delaying jobs until after 1 April. Don’t, like a client of mine used to, just delay invoicing until the 1 April – it’s a bit obvious!
- Get your accountant to help you prepare some interim financials so you can take any necessary tax-saving steps or make sure you know your up-coming tax liabilities BEFORE the year-end.
- Trust resolutions allocating distributionsto beneficiaries must becompleted and signed within 12 months of the Balance Date.
- To pay dividends before the end of this income year you’ll need to pass the appropriate resolutions prior to 31 March 2011.
- Get a new accountant, one who is really interested and cares about your business, who doesn’t just focus on tax and year-end financials, see Six-reasons-to-change-accountants.
If you’re not clear on anything or want to make sure you stay on the right side of the IRD just give me a ring at no cost on 0800 ASK NICK or email firstname.lastname@example.org. There’s only a few days left to go!