The end of the financial year can be a stressful time. However, in the months prior you can prepare yourself and be organised. Use the following points as guidance to help yourself prepare for the end of the financial year.

  1. Write off any debts – it is important that you write off any bad debts from the 2020 financial year before the 31 st of March in order to claim a deduction for bad debts. So, check out your accounts receivables list and write off any receivables that are not recoverable, this way you won’t have to pay tax on income that you will not be receiving.
  2. Do any repairs you’ve been putting off – have you been putting off repairs on the rental property for a while now? Now is the time to get them done! Bringing the repairs into the 2020 financial year, you’ll be able to reduce your profits (as long as they are under $500 and do not require capitalisation) and pay less tax!
  3. Stock take – if you carry large amounts of stock you will most likely have obsolete items that need to be thrown out. Carry out a stocktake before 31 st March and write off any missing or obsolete stock in the 2020 financial year. This way you will start off with the correct amount in the 2021 financial year.
  4. Buying business assets, stock or consumables just prior to the year end to reduce tax – while yes it does work however, it may not be sensible to spend a dollar to save a few cents.
  5. Getting accounts done swiftly after the year end – So on that note, why don’t you send through all your correspondence through to us and we will take it from there!

Doing all this can seem a little overwhelming at times! So why not talk to us?

Call us for a free consultation  on (09)6001886!