As your accountant, we see it as our responsibility to ensure you remain compliant with the latest regulations, and up to date with any changes in tax legislation and advancements in accounting technology. So, with that said, as we enter 2024, what are the key aspects you need to know to prepare for the financial year-end on 31 March?   

Annual stock-take 

If you carry inventory or stock, you will need to perform an annual stock-take by 31 March. The stock-take requires a count of all items. This includes stock ready for sale and raw materials. All stock needs to be valued at actual cost or realisable value if an item is damaged. Stocktaking is important because it is a good way to check and correct your financial numbers. Furthermore, you may be required to do a stocktake before submitting a tax return to IRD.   

Debtors and creditors 

If you have debtors or creditors, you need to let your accountant know about these for effective financial management and reporting. You should review your list of debtors and see if they are collectable, review your creditors, and follow up on any backorders or if you’re waiting on credits for a defect. To claim a tax deduction for a bad debt, it must be written off by the end of the financial year.   

Reconcile cash floats 

If you carry cash in your business, you should count cash floats on the last day of the financial year. This includes till floats, petty cash, and unbanked takings. This is so we can reconcile all payments to ensure they took place for accurate and complete records.   

Review procedures and policies 

January is a good time of year to review your policies and procedures in preparation for the end of the financial year and the start of the new tax year. It is a good time to start preparing and collating all the necessary financial information you need to provide to your accountant.   

If you’re using accounting software to track and keep records of your cash, stock, debtors, and creditors, it should be easy to run off financial reports and double-check for accuracy. If you’re not using accounting software, get in touch with our staff to help you get started and discuss what system might be right for you. If you're thinking of changing to a new accounting software at the beginning of the tax year, now is a good time for a review.   

Optimise your business's success and reach out for a personal consultation today! Get in touch.