Prepare For Tax Time (& Keep Your Accountant Happy)

It is nearly that time of year again where accountants need to complete a set of accounts to keep the IRD happy. Banks are also increasingly asking for more financial information so if you have debt or are considering lending, you need to ensure this process is as fast as possible so that your accounts do not become the bottleneck in these discussions.

Below is some important information for you to get ready for the year end process.

You normally receive a ‘Questionnaire’. These will be specific to your business and request information that will help your accountant complete your accounts. There will also be some general questions too that we need to ask as accountants.

Answer everything as thoroughly as you can. 

Here are some things to start thinking about (that your accountant will most likely request).

- Confirmation of bank and loan balances at 31 March 2021. [Perhaps you could take a screenshot as at 31 March so that we can ensure Xero / your accounting system matches up with the bank]

- Did you buy Assets during the year - do you have copies of receipts? [Accountants need these to have on file should the IRD request them - compile those]

- Do any of your invoices need to be written off as your customer/client is no longer going to pay you? [This brings your revenue down and your profit too, impacting final tax]

- Where there any unusual purchases or sales during the year you need to run past your accountant that you haven’t already?

- Have you completed your annual home office calculation? We have included a link below for you to make a copy of the spreadsheet clients use. [This allows you to claim some home office costs and brings your profit down, decreasing final tax]

- Do you have stock? Complete your year end stock take [This tracks the total stock left on hand to better account for your purchases]

-Remember Provisional Tax installment 3 is on the 7th of May

- The low value asset threshold changes from $5k to $1k on the 16th of March so get asset purchases in before then [Listen to further details in Podcast below].

We know this stuff is boring for you, sometimes it is for us accountants too but it is still important and important we do it right so if your accountant seems to niggle you for the information, it's because we want to get it out of the way for you so that you can carry on running your business - not running from the IRD.

As always, any questions, sing out. 

We hope that helps,

Luke & Phil

Home Office Work Sheet

https://drive.google.com/file/d/0B4dISa15v3-WREdSeFhCaHBxU3lWVnU1SFRQcTdiWmpJYksw/view?usp=sharing

(Click File - Make a copy OR Download).

Podcast on Year End + Low Value Assets + Minimum Wage increase

https://open.spotify.com/episode/7eEpcweQgtTAfmQAbR6X3F?si=yBt9VwfmQ-S1aMQFT30CBQ