March 7, 2018
The end of the financial year is quickly approaching. Don’t panic, we’re here to help you.
About now is that time of year when hundreds of business owners frantically pack a year’s worth of receipts into a box ready to drop into their accountant’s office. Most are also thinking that next year they’ll be more organised! If this is you, read on…
What information does your accountant need to complete your Financial Statements and Taxation Returns?
Operating a haphazard filing system usually results in a phone call from your accountant. Possibly asking for additional bank statements, maybe even asking for paperwork that relates to the correct tax year. This isn’t time efficient for your accountant and can prove costly for you.
If you are THAT business owner, we’re here to help you. To make things easier for you, we’ve broken down into a few simple steps what it is that your accountant will need from you to produce your Financial Statements and to prepare your Tax Return.
What’s more, we’ve created a handy set Absolute Accounting Filing Tabs of which you can download, print and use to sort and file your receipts and statements, which makes our job that much easier at year end.
For all of our clients, we’ll be mailing you a copy of the filing tabs along with your year-end checklist and a link to our calendar, so you can book an appointment to come in and drop off your financial records.
- Your bank statements for ALL your business accounts and for the WHOLE financial year. You probably have one main account, but if you have any extra accounts, you’ll need to send in statements for these as well. Include any cheque books if you still use these.
- Your loan statements. The bank is sometimes unhelpful and only sends out calendar year statements, but your accountant will need to know the closing balance as at your year-end date. The interest suffered is a tax-deductible expense, so even if getting the balance is fiddly, it’s worth doing.
- If you have a business credit card, then your accountant will need these statements too. If it’s a personal card that you occasionally pay for business expenses on, spend time highlighting these.
- Details of any finance agreements taken out during the year. If you’ve got a new hire purchase, you must let your accountant know. The interest on the repayments is a tax-deductible expense and the asset may need to be added to your asset register.
- All your payroll records for the year (unless your accountant runs your payroll, of course). You’ll need a print-out of each month’s pay run, so they can reconcile the payments made to employees.
- All of your sales income. Your accountant needs all of your sales invoices for the year (regardless of whether they have been paid or not).
- All of your purchase invoices and expenses receipts for the period. If your accountant doesn’t have these, then they may need to make assumptions, and/or some expenses could be missed out altogether which will impact your tax bill.
- Petty cash receipts and the petty cash balance at the year end. Your accountant will need to reconcile your cash so this vital.
- Stock value as at 31 March. Stocktakes are never fun but it’s essential you tell us what your stock was worth on 31 March.
- All vehicle log books and mileage records. Keep in mind that business mileage is not driving to work every day; instead it’s travelling to courses and your accountants, things that are directly related to the running of your business.
Tax return records
- If you have any employment income (aside from your business income), you need to provide your accountant with the details.
- Resident Withholding Tax Certificate. This important letter should be arriving in your mailbox sometime soon so don’t throw it away! It’ll show the total Interest earned, from the bank, and the tax deducted.
- Details of any private superannuation payments made.
- Details of all bank interest received during the year. This is one item on your tax return which IRD already knows, so don’t “forget” your savings account.
- Details of any dividends received during the year. Everything needs to be included.
- Rental income. Your accountant will need to see your property management expenses, also your mortgage interest.
- Any other income received during the year. This could range from any self-employment that you may have or a chargeable gain. Maybe you sold a rental property or some shares? Either way, your accountant will need these details.
We hope you find the handy set of Absolute Accounting Filing Tabs useful. Remember to download, print and use them to sort and file your receipts and statements. They’re not only helping you, they’re making our job easier too!