It's that time of year again – time to tackle those annual accounts and ensure everything is in order. But fear not, we're here to guide you through the process with ease. Let's take a moment to go over some essential reminders so you can breeze through this year's financial wrap-up without any stress.
First up, let's talk debtors. Make sure you have invoiced all sales or work done by 31 March. If you're dealing with bad debts, it's crucial to write them off before March 31st to avoid complications in your sales figures for the year. Remember, you must have made reasonable efforts to recover the debt before doing so. Keep in mind that writing off a debt doesn't mean you can't continue to pursue it – keep chasing those owed funds!
Next, make sure to list any money owed by you at the end of the year (accounts payable or sundry creditors). This allows for accurate tax claims on expenditures. Also, remember that any invoicing for work completed in March but billed in April should be included in your accounts receivable for the past financial year.
When it comes to stock take, consider ways to streamline the process and minimise effort at balance date. Dispose of any obsolete stock before March 31st to claim a deduction.
Review your fixed asset schedule and identify any assets that have been scrapped – you may be eligible for a deduction on their remaining adjusted tax value.
For sales and purchases, evaluate significant transactions to determine the best timing for tax purposes. While some may consider timing purchases to save on taxes, it's essential to prioritise good business decisions over tax considerations.
Lastly, don't forget about work in progress. Projects underway should be valued as of March 31st, and costs incurred to date should be noted and reviewed accordingly.
As always, if you have any questions or need assistance, don't hesitate to reach out – we're here to help!