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It feels like the 2018 calendar year has only just begun, yet the beginning of the 2019 financial year almost upon us - where have those three months gone?

Depending on your level of preparedness, the approach of 31 March could be a time of high stress or just another date in your business calendar which you take into your stride.

To help you fall into the latter category, we've compiled a short checklist of items within your business which you should review and action now, to help close off your 2018 financial year in tip top shape.

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Get your books in shape

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Debtors

Review your debtors' ledger and write off any bad debts before the end of the year. You are only able to take a tax deduction for a bad debt if it is actually written off prior to balance date.

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Fixed assets

Review your fixed asset register to see if there are any assets that you no longer have. Write off all assets which you no longer own, assets which are obsolete and have no market value, and assets which are broken and have been scrapped.

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Trading stock

Have a look at your trading stock. There are two options for valuing trading stock - the lower of cost, or market selling value. If you think that there are items you won't be able to sell and recover the purchase cost on, have these revalued before balance date.

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Vehicle expenses

If your vehicle expense claim is based on a kilometre rate, remember to note down your vehicle odometer reading on balance date and total kilometres travelled during the year. If you pay employee vehicle reimbursements during the year on a kilometre rate note down the total kilometres each employee has been reimbursed. If you use a logbook for a three month representative period, check when it was last kept. A new logbook must be kept at least once every three years or when your business usage changes by 20% or more.


The following items are also worth noting. First you will need to consider whether you have the cash flow resources available, and then whether incurring the expense in the current financial year is more advantageous than leaving them until next year. This can be a bit of a gamble and requires some crystal-ball gazing. If you are expecting higher income in the following year, it may be better to leave these to be claimed then.

 

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Repairs and maintenance

Consider whether to bring forward any repairs and maintenance due on your assets so it is done before balance date. We suggest you discuss this with us before completing any major work, to determine whether the cost will be deductible.

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Purchases of consumables

Consider whether there are any consumables that you will need in the following year that can be purchased prior to balance date. Items such as advertising, stationery, fertilizer and fencing materials can be claimed in the year of purchase even if they are not used before balance date. There are specific limits to the amount on some of these consumables, so if you intend to spend large amounts contact us first to discuss what these limits are.

We hope you have found this timely reminder helpful and, as always, please feel free to contact us if you require assistance.

If you are an EBP client we will be sending out your 2018 annual accounts checklist on your balance date, or alternatively you can download one from our website:

Businesses and farmers:
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Use this checklist
Individuals and rental property owners:
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Use this checklist
Own livestock? Use these to submit your opening numbers:
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Sheep, dairy and beef cattle

Deer, horses, pigs or goats