Hey there, we’ve outlined all the key things you need to be aware of as we head towards the end of the financial year. If you have any questions about any of this information, please feel free to contact us.
End of year checklist:
It’s that time of year again – most of your financial information is in Xero, however some clients like to fill out our annual checklist to ensure they have collected everything for us! Please contact us if you would like to receive a checklist.
If you keep stock, the best time to do a stock take is on or as close to the 31st March as you can. Once you’ve done your stock take, send us what you’ve recorded so we can account for your stock.
R&D loss tax credit
Start-up companies are able to cash-out their tax losses arising from eligible research and development (R&D) expenditure, and avoid carrying the losses through to the next income year. The credit can only be for:
- eligible R&D business expenditure
- up to 28% of your tax losses from R&D activity
- companies that are tax residents in New Zealand
- dates on or after 1 April 2015.
The rules around R&D expenditure are detailed and eligible R&D expenditure will require approval from Inland Revenue. So if you’re looking to claim under these rules, you will need to start looking at this sooner rather than later, and keeping records of such expenditure as it occurs.
Minimum wage Increase
The minimum wage is increasing on April 1st. The wage is going up to $21.20 an hour (it is currently $20, so that’s an increase of $1.20). Make sure that if you have any employees earning $20 an hour that you increase their wage on April 1st. There are also changes to the ACC earners premium as the rate is increasing from 1.39% to 1.43%
Tidy up your Xero:
Give your Xero ledger some attention before the end of the month, this means reconciling and reviewing your accounts receivable and accounts payable. Are there any bills you’ve already paid? Or any invoices you’ve already received payment for? If you have any questions about what you need to do, please contact your accountant.
Do you need your accounts by a certain date? If so, please let your accountant know as soon as possible so they can do their best to meet any deadlines you may have.
Put a budget in place:
This is the best time of year to asses your business, decide on goals for the future, and set up your budget for the financial year ahead. Creating a budget is something you’ll need to work through with your accountant, get in touch with them to discuss the best plan of action for you.
Book your meeting:
Once we’ve received all requested information and have in due course processed your accounts, get in touch with your accountant to book in a meeting. Remember, if you’re on one of our Sidekick packages your yearly meetings are included in your package, so be sure to contact us when you’re ready to book in, we’d love to help you.
We’d also like to take this opportunity to thank you for working with us, we look forward to continuing to build our relationship with you and your business. Let’s make this financial year the best one yet!