End of Year Clean-Up
March is almost here and it’s time to get your ducks in a row. Take a look at our handy checklist below to get you on your way.
Assets
Check your low-cost assets - $5000 threshold was up to 16 Mar 2021 - From there threshold drops to $1000
Review the fixed assets schedule, any assets that were disposed of or scrapped should be recorded as disposed in Xero and loss on disposal calculated
If an asset sale is expected to result in depreciation recovery, consider deferring the sale until after 31 March
Review repairs and maintenance to ensure all assets are moved to the asset account if applicable
Ensure R&D costs have been expensed
Banks
Reconcile your bank accounts in your accounting system as of 31 March 2022
Count the cash on hand on 31 March 2022
Stock
Schedule a stocktake on 31 March 2022
Value closing stock at market selling value if this is lower than cost
Write-off any obsolete stock
If trading stock is less than $10,000, and turnover is less than $1.3m, you can use the opening stock value as the closing stock figure (even if this is nil)
Record work in progress at cost and write off anything non-recoverable
Debtors
Prepare debtors & creditors lists ( March invoices paid in April)
Tidy up any bad debts. Remove from the debtors’ ledger, and write off bad debts before the end of March. Keep the paperwork and claim the GST if on an accruals basis
Provisions
Keep a record of employment leave paid out between 1 April - 2 June as that portion of the provision is deductible
Repairs & Maintenance
Consider carrying out any repair work before year-end
A one-year warranty purchased with a fixed asset can be deducted as an expense rather than capitalised, providing the cost can be separately identified
Other Expenses
Gather all home office expense details.
Update your logbook and calculate the percentage of business use on the vehicle
Look Through Company
If you want your company to enter or exit the LTC regime, an election notice needs to be filed by 31 March 2022
Other items to note
Clear the suspense account before 31 March 2022
Complete your annual accounting questionnaire as accurately as possible
If you need any help, please give us a call!