Year end accounting checklist

 

Every year we send out questionnaires for clients to check they've got everything ready. This creates a lot of information and can be quite tedious. Fortunately we don't require information which is already in their accounting system. However it is important, so here is a brief summary of some of the most common items you need to consider. For the same of simplicity we've assumed you have a 31 March balance date. There are other issues - we've only listed those relevant to most SME clients. Also these are just indicative - some require more consideration so you can't use this as a comprehensive check list.

Brief year end accounting check-list

 

Bad debts - these must be both bad AND physically written off before 31 March.

 

Stock - valuation at lower of cost or market value. Obsolete stock must be disposed of before 31 March.

 

Losses continuity - shareholder must be 49% continuous (66% continuity is required for imputation credits).

 

Entertainment - if non-deductible expenditure (usually 50%) has not been identified at the time of the transaction, a cumulative adjustment must be made for GST as well as tax-deductible expenses.

 

Fixed assets - review the fixed asset register.

 

FIF's - information is required including market value at year end.

 

Prepayments - exemptions mean that these can be claimed in many situations. However the rules differ according to the type of expense.

 

RWT on dividends - must be paid by 20 April.

 

Shareholder salaries - take extra care that salaries reflect contributions to the company.

 

Bonuses - these must be paid within 63 days of the year-end if they are to be claimed in the relevant year.

 

Contact us

Email results@businessacademy.nz

 

Skype PhilANZ

 

Phone 04 920 0911

 

P.O. Box 30-545, Lower Hutt 5040

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