The end of the financial year can be a stressful time, especially if you don’t use the months prior to prepare and get organised. Below are some points from our team to think about when preparing for the end of the financial year.
|Write off any bad debts
To claim a deduction for a bad debt in this current year tax year it must actually be written off before the 31 March 2020. So now is the time to review your Accounts Receivables list and write off any that are not recoverable, this way you do not pay tax on income that you will not be receiving.
|Do any repairs you’ve been putting off
Been putting off painting the rental property for a few years or repairing machinery? Now is the time to do them. If you can bring these repairs into the 2020 financial year, you’ll be able to reduce your profits (as long as the repairs are under $500 and do not require capitalising) and pay less tax.
Any business, from retailers to tradies, carrying large amounts of stock will likely have obsolete items that needs to be thrown out.If you carry out a stock take before 31 March you’ll be able to write off this missing/obsolete stock in the 2020 financial year and also have a correct and up to date figure of what your stock levels are.
|Buying business assets, stock or consumables just prior to the year end to reduce tax
This is a very frequently asked question for us – so we have written a blog on this which you can find here.
The very short answer is, yes, it can reduce your tax bill but it may not be sensible to spend a dollar to save 28 cents.
|Getting your Accounts done swiftly after the year end
Whilst we’re on the topic of the year end, why don’t you hop into your Beany account and upload all your 2020 information whilst it’s top of mind and sending it our way sooner rather than later. Upload, and press “Send to your Accountant”Just imagine how good it feels when it’s off your desk and onto ours….
Email email@example.com or call us 0800 755 333 if you want to chat about any of the above,
The Beany Team