Tax End of Financial Year: Checklist for 31 March
Tax End of Year is fast approaching. Here are a few things to check off to make sure you’re prepared before 31 March hits.
1. Invoicing
The obvious major consideration with year-end is to ensure you get all your invoices for completed work sorted on time – both receivable and payable.
2. Year-End Profit Line and Taxable Income
Understanding your business’s cash flow and how your balance sheet works will help you approach year-end strategically.
The ins and outs of Assets & Liabilities and Profit & Loss are not always well-understood, which means a lot of small business owners aren’t approaching their tax obligations as effectively as they could.
I’ve had several clients lately asking whether before or after year-end is best for certain business purchases to be made – and the answer is that it largely depends on the type and value of the purchase.
One simple example is that any single item purchased under $500 is a cost of doing business/an expense – while anything over $500 is an asset. (Depreciation will apply and will hit your profit and loss, affecting your overall taxable income, but the purchase price of the asset won’t).
In short, it’s a good idea to discuss your spending plans (and how these impact your taxable income) with your accountant, particularly in the lead-up to year-end.
3. Staffing
If you are giving out bonuses, this affects profit and loss. This may also be a good time to think about your annual staff performance reviews, look at cash flow and forecast for salary increases.
4. Provisional Tax
Provisional Tax that might have been missed in the instalment periods should be paid up by the 31 March, or you could be liable for interest for use of money.
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After 31 March, you still have some time to prepare all your documentation for final filing. More on that here.
Want more information on preparing for 31 March in the meantime, or getting a head start on forecasting and planning for your next year?
Just give us a call or send us a query.