Financial year end is fast approaching. Here are 10 quick tips to help you get ready for financial year end:
1) Bank Statements - Start collecting key account statements for the period 1 April 2023 to 31 March 2024. For example, bank statements, loan statements, hire purchase statements and store accounts. If you are using an accounting software system such as Xero or MYOB to record your transactions throughout the year, you may only need to collate statements that fall over the 31 March 2024. Talk to your accountant if unsure.
2) Accounts Receivable - Make a list of your accounts receivable (debtors) as at 31 March 2024. If you use an accounting software system, such as Xero or MYOB, to record your accounts receivable, review your debtors prior to 31 March to make sure they are updated.
3) Bad Debts - Write off any bad debts prior to 31 March 2024 so they can be included as a deduction in the 2024 financial year. Bad Debts are invoices you think will not be paid. If you do not write them off before 31 March, they will be included as income and you will have to pay income tax on them.
4) Accounts Payable - Make a list of your accounts payable (bills you need to pay) at 31 March 2024.
5) Asset Purchases - If you purchased any assets in this financial year eg. Vehicles, Plant and Equipment over $1,000, start collating your invoices for these items.
6) New Loan or Hire Purchase Documents - If you have any entered into any new loan or hire purchase agreements during the financial year, you will need to collate these documents.
7) Stock on Hand - If you have any stock on hand be prepared to do a stock take at the end of trading day on the 31 March.
8) Work in Progress - If you have any work-in-progress be prepared to calculate the amount at the end of trading day on the 31 March.
9) Home Office Costs - If you use an area of your home as an office for your business, you can claim a percentage of your home office costs. For example: Home loan interest, Rent, Rates, Power & Gas, House Insurance, Phone, Internet and Repairs and Maintenance. Start collecting your home office information for the financial year.
10) Time to move to an accounting software system? - If you are NOT using an accounting software system such as Xero or MYOB, the beginning of a new financial year is a perfect time to get started. If you want to learn how an accounting software system can help your business become more efficient get in contact today.
If you have any questions about being ready for financial year end please get in contact.