If March is your balance date, the end of the financial year is only weeks away. We will share three tips with you on how to prepare for the end of financial year in this week’s blog.
Writing off bad debts
Time to review your debtors’ ledger. Are there any bad debts you can write off before the end of the year? Remember, you are only able to take a tax deduction, if a bad debt is actually written of prior to the balance date.
Repairs and maintenance work
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.
Purchase of consumables
Check if 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
- Fencing materials
Or similar 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. If you intend to purchase large quantities, contact us to discuss what these limits are.
