YEAR END QUESTIONNAIRES 2011

We have reviewed our client information sheets and you will notice quite a few changes (and quite a few more pages …), the additional information requested is as required by the New Zealand Institute of Chartered Accountants – our professional body.

While we are sorry that we have bogged you down with all these extra forms, we would like to note that if you fill in the questionnaire as comprehensively as possible, and provide us with all of the information requested, it will reduce the amount of time required to prepare your accounts and thereby it WILL keep your accountancy bills down. We would also note that until these forms are completed we will NOT be able to start your job.

Please download, print and complete the relevant questionnaires, collate with your records to be delivered to Graceteam, thank-you.

Below are some comments to assist you when getting your records together.

Computer Reports / Bank Statements / Cashbook
For those with computerised reporting systems, provide either disk (or pen drive) backup or a full trial balance and general ledger report. The general ledger should agree to the bank reconciliation, Accounts Payable and Receivable listings. Manual cashbooks should be added, analysed and reconciled.

If you do not keep a computerised system or cashbook, we will need all of your cheque butts and deposit books in addition to the bank statements.

GST Returns
If you are registered for GST, collect all your GST Returns for the year, together with the workings you prepared for them. This assists us in locating any deviations from cashbook figures.

Wages
You need to provide the wages book and copies of the monthly wages schedules sent to the IRD.

Stock On Hand / Work In Progress
The value of stock in most cases is the lower of the cost or realisable value. For non-standard stock types, review with us for the correct method of valuation.

Accounts Receivable / Debtors
You will need to prepare a list of all the people who owe your business money as at 31 March.  Consider not only trade debtors, but deposits you have made on items such as power which are still owed to you at 31 March. To be legally deductible, bad debts must be written off debtors records in the year they are claimed. This means that you need to examine your debtors listing and decide if any debts are not recoverable (which you have already made efforts to recover) before 31 March.

Accounts Payable / Creditors
You also need a list of all the people who the business owes money to as at 31 March, including the total amount of any debts being repaid over an extended period (remember to include PAYE due on 20 April and FBT due 31 May).

Home Office Expenses
If you have an office at home note all household expenses such as rent, power, phone, rates, mortgage interest etc so that the business-related portion of these can be claimed (to calculate this, work out the office area as related to the total area of the house).

Assets & Liabilities
Note any assets which have been purchased during the year and the payment method used.
If you have any other assets or liabilities on your Balance Sheet or if any further assets or liabilities have arisen during the year, note any movements in these and provide explanations.

Loans And Hire Purchase
If you have taken out any loans or hire purchases, please supply us the original agreements and statements to assist us in correctly accounting for them. For bank loans an annual notice from your bank should also be provided.

Income From Other Sources
If you have worked for wages or salaries during the year a summary of earnings is sent to us from the IRD. So we can verify the details are correct please list who you have been employed by during the year and the earnings received.

Interest
You will need to provide details of investment amounts and resident withholding tax certificates for interest.

Dividends
If you have had any dividend earnings during the year you will need to provide details of these.

Personal Tax Rebate
The claim for rebates for donations, school fees or childcare paid during the year can be made provided you have paid, or are liable to pay, tax during the year.

Family Details
You may be entitled to receive a Family Support Tax Credit if you have children under 18 living with you.  Please provide details of the children and their dates of birth. Please advise if you received any family assistance from IRD.  Also advise if you received/paid maintenance to/from ex partners.

Here are a few steps to ensure that you give your accountant all the information they need...

REVIEW YOUR DEBTORS
To be deductible, bad debts need to be written off before the end of the financial year, and to write off the debt you must have taken reasonable steps to attempt to recover the amount owing.
Review your debtors and physically write off any bad debts before you close off your accounts receivable ledger for the 31 March 2009. However none of the above actions prevent you from continuing to try to collect the debt.

DON’T FORGET STOCK TAKE
Many businesses carry some form of stock or work in progress, so a stock take on March 31 2009 will be necessary. Your stock and work and progress figures need to be supported by appropriate documentation.
Where services are involved, a summary of time records of work in progress should be provided. Please note that some industries have special provisions and you should contact your advisor if you think this may apply to you.
To claim a deduction for obsoletes or slow moving stock, it should be disposed of before March 31. Taxpayers with turnover of less than $1.3 million can use the value of their opening stock as the value of closing stock, providing their closing stock is reasonably estimated to be worth less than $5,000 (this is to increase in future years to $10,000).

HOLIDAY PAY/BONUSES
Keep a record of all staff holidays taken within 63 of your balance date as any holidays paid within these 63 days are a deductable expense. For March 31 balance dates, the 63 days takes it through to June 2 2009.
If staff bonuses are to be deductible in the current year the amount and commitment must be decided before balance date and paid within 63 days of balance date.

FIXED ASSETS
Review your fixed asset schedule. Are there any fixed assets that have been scrapped? You could claim a deduction for their remaining adjusted tax value. You no longer have to apply to the IRD to write off these assets, so long as you or an associate do not intend to use them for a business purpose in the future; disposal would cost more than they were worth; and they are not buildings depreciated by the pooling method.

SALES AND PURCHASES
Examine significant intended sales and purchases to see which side of the balance date they should be made, that is assessable/deductible this year or the next.

EXPENSES PAID IN ADVANCE
A number of items paid in advance are tax deductible in the year they are paid – for example stationery, magazine subscriptions, postage, courier tickets and road user charges. There is no ceiling on the cost of these being claimed but prepaid advertising does have a ceiling of $12,000 and it must be within six months of balance date. The same applies to prepaid travel.

QUALIFYING COMPANIES
Elections for existing companies to enter the Qualifying Company and/or Loss Attributing Qualifying Company regime for 2009 year must be in place by March 31. Similarly, the paperwork which follows any decision to exit these regimes for the 2009 year must also be with the IRD by March 31.
If your company has had a change in shareholding, the shareholders may need to re-elect within 63 days of the shareholder change in order to stay in the regime.
If you have incorporated a company during 2008-09 year, elections apply from the beginning of the first income year, provided the IRD receives the election form within the time required to file the company’s first tax return.

RECORD KEEPING
You should aim to tidy up any loose ends in your accounting system before year end. Remember to place all the important documentation such as sale and purchase agreements, loan statements, interest and dividend certificates in a safe place as you receive them – your annual folder is a great place.
Devise a record keeping system that works for you but prevents vital information being lost or misplaced.

ANNUAL ACCOUNTING
Review and complete any questionnaire your advisor may send you. If these are carefully filled out and completed it helps to make the advisors job easier and more efficient when they prepare your annual accounts. The less time spent on your annual accounts means your accountancy bill is less.