Business Must Do’s During The End of the Financial Year

As the end of the financial year quickly approaches, it’s a good idea to take note of everything you have done and things that are still to do before March 31st 2024. It’s also time to start looking ahead to the next financial year to make sure that you are prepared for the year ahead.

As a sole-trader or business owner, this can often be a stressful time of year, but you can help relieve some of this stress by ensuring that you have everything you need ready to go.

Here are some steps that are often missed out when it comes to preparing yourself for the end of the financial year:

	Bad Debts	Compile a list of any unpaid invoices from customers that you consider unrecoverable.
	Trading Stock	Complete a stock take on 31st March.
	Work in Progress	Review any work in progress for jobs started but not complete as of 31st March.
	Fixed Assets	Review your asset schedule and check for assets purchased, sold or written off during the year.
	Accounts Receivable	Ensure you have billed your clients for all work that has been completed as of 31st March.
	Accounts Payable	Check you have received all outstanding invoices for goods or services used by your business in the financial year.
	Entertainment, Fines & Penalties and Legal Fees	Provide details of these expenses so your accountant can determine if they are deductible for income tax purposes.
	Donations	Cash donations paid to donee organisations or registered Charities are deductible up to the level of net income. If the business is in a tax loss position, consider the owner making the donation and claiming the donation rebate.
	Income Tax	The third instalment of 2024 provisional tax is due 7 May 2024 based on actual results to 31 March, so it is important to have your records in order to determine this if you are not paying standard uplift. Remember, the tax rate for individual’s income over $180,000 is now 39%.

You may also need to consider providing information for; home office expenses, motor vehicle expenses and company dividends (if any have been declared during the year).

A reminder that minimum wage is going up on 1 April 2024, so please be sure to also factor that into any budgets for the 2024 financial year. The adult minimum wage will go up from $22.70 to $23.15 per hour, and the starting-out and training minimum wage will go up from $18.16 to $18.52 per hour. Make sure you allow extra time to implement these changes to your payroll system during the changeover.

The end of the financial year isn’t most people’s cup of tea; there’s a lot to remember and it’s another item added to your already overfilled plate.

Once you have your end-of-year taxes complete, then it’s time to focus on your strategy for the year ahead and work towards those new goals you have set. Our business advisory team are ready to connect with you to assist you through the process of bringing those numbers on paper to life.

Learn more about Lifetime Accounting and Business Advisory Services

If you aren't sure on where to start when preparing for the upcoming tax period, please reach out to Hope Etienne at 027 608 6526 or Hope.Etienne@lifetime.co.nz to arrange a chat with one of our team to point you in the right direction.

Disclaimer: This article has been prepared for the purpose of providing general information, without taking into consideration any particular person's objectives, financial situation or needs. Any opinions contained in it are held by the author as at the report date and are subject to change without notice.