The measure of success is not whether you have a tough problem to deal with, but whether it's the same problem you had last year. (John Foster Dulles)
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.