The nine most important things to have in place by 31 March are:
- Bank
Run a bank reconciliation report for each bank account and ensure all transactions are reconciled. - Suspense account code
Review your suspense account and code transactions to the correct account. - Bad debts
Consider whether any amounts owed to you by debtors cannot be realistically recovered at 31 March. Keep all evidence showing the steps you took to try and recover them. Compile a list of these debts so they can be claimed as a tax deduction. Ensure all bad debts are written off before closing your debtor’s ledger at 31 March 2022. - Inventory / Stock / Work in Progress
At 31 March 2022 you will need to do a stocktake. - Interest Payments
If the business has paid more than $5,000 in interest to someone other than a bank, you maybe be required to withhold resident withholding tax. - Higher Income
If your income is significantly higher this year compared to the previous year, please consider making an additional voluntary provisional tax payment. - Assets no longer used in the business
Review the business asset depreciation schedule to determine business assets that are no longer in use. An asset market valuation at 31 March may be required to establish a disposal value. - Asset purchases and sales
Consider purchasing assets on or just before 31 March so one month’s depreciation can be claimed. - Shareholder Current Accounts
If these accounts have debit balances, please consider declaring a year-end dividend or shareholder bonus.
Please contact your Kendons Advisor if you have questions about any of these.