Last minute tips for end of financial year
The financial year finishes on the 31st of March and can be a stressful time for many business owners. Scott Gardiner has some tips to help you get through it.
The financial year for New Zealand businesses finishes on the 31st of March and can be a stressful time for many business owners according to MYOB. Research has shown that many owners will be pulling all-nighters and missing out on time with friends and family in order to complete their compliance obligations.
MYOB national sales manager and chartered accountant Scott Gardiner says that it is easy for small business owners to leave their end of financial year obligations to the last minute.
“Often SMEs become so focussed on day-to-day operations of running a business that some of the less exciting aspects, such as bookkeeping, can get pushed aside – creating more pressure in the reporting season,” he says.
“While early preparation is best, it is still not too late for business owners to get their accounts in order.
“There’s a few things that all businesses can do to make sure they’ve got everything in order and are ready to start the new financial year on the front foot.”
1. Discuss taking advantage of deductions, write-offs and rebates with your accountant and review your assets register to write off worthless stock, plant and equipment.
2. Give your accountant or bookkeeper a complete copy of all your financial files – or give them access to your cloud files to they can do the work for you.
3. Give your payroll reports a final once-over. Although you don't need to provide a summary to your employees, it's a good idea to give them Earning Certificates as these can be used to check information provided by the Inland Revenue.
4. Finalise end of year adjustments with your accountant or bookkeeper and once changes have been updated, lock all accounts relating to that year so that data remains accurate. This will help ensure an easy transition into the new financial year.
5. Create a separate copy of your accounts and back it up – it’s better to be safe than sorry. It’s also always a good idea to print key reports like P&L, Balance sheet and general ledger listing for the financial year and store them securely.
6. Finally, reflect on your business plan and make sure you’re on the right path. It’s a good chance to consider how your business can benefit from cloud accounting solutions that will make the next end of financial year easier to manage.
Business owners can visit www.myob.co.nz/eofy for more hints and tips.
March 22, 2016