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Paul's Post
24 March 2016
"Vision is not enough; it must be combined with venture. It is not enough to stare up the steps; we must step up the stairs." Václav Havel
The new financial year is on our doorstep
Year End Checklist
For many of us, 31 March 2016 is the end of our tax year. This list is a summary of common matters that you may need to address. Please speak to us if you have any queries.
Trading stock:
Stock takes are required unless your stock is less than $10,000 and your turnover is less than $1.3m
Fixed asset review: Review the fixed asset schedule from last year & identify any assets that are missing or have been broken or disposed of.
Bad debts:
Bad debts must be written off before 31 March to be claimed. Make sure you have clear evidence of steps taken to write off. Accounting entries must also be made before 31 March.
Tax payments: Review your profit and ensure sufficient provisional tax has been paid. An extra payment can be made to reduce use of money interest accumulating at 9.21%.
Holiday pay and bonuses: Employee benefits, like holiday pay and bonuses, owing at 31 March can be claimed if paid by 2 June (63 days). Bonuses must be incurred before 31 March to be claimable.
Extension of time arrangements: 31 March 2016 is the last day for 2015 tax returns to be filed under extension of time arrangements ("EOTs"). If your 2015 return is not filed in time you risk losing your EOT & may incur a late filing penalty which could be between $50 and $500. 31 March 2017 is the last day for 2016 tax returns to be filed under extension of time arrangements ("EOTs").
Fringe benefit tax:
31 May is the due date for filing and paying FBT for the 4th quarter of the year and furnishing annual FBT returns.
Trusts and trust distributions: For distributions to be classed as beneficiary income they must be made during the income year or within 6 months of balance date if the trust deed allows it. Appropriate trustee resolutions must be completed within this timeframe for the distribution to be effective
Year End Questionnaires
To complete your annual accounting and tax work you will be required to provide us with your signed year end questionnaires. Our initial handover meeting is a valuable time to ensure your records are complete and for us to be acquainted with any changes in your business and investment.
Our 2016 Year End Questionnaires have now been posted onto our website - www.enoka.co.nz/client_tools/annual_questionnaires. All clients should print these off now. Familarise yourself with the content you will be required to compile. Sign where indicated.
2016 Balance Date Business Questionnaire – to be completed by all businesses including rental property companies and owners.
2016 Personal Income tax Return Questionnaire – to be completed by all individuals for whom we prepare a tax return
2016 Investment Properties Annual Checklist – to be completed by all individuals, companies, or trusts who own a rental property (Complete one checklist for each property).
9 Steps to help minimise accounting costs
1. Provide all the information in the first instance.
2. Summarise and reconcile as much as possible
3. Explain any unusual events at your initial meeting
4. Ask yourself the question "can I attend to this without contacting PECA" i.e. sometimes you may contact us to fax copies of documents, which you may already have in your possession. E.g. Tax Returns
5. Discuss with us areas that can be improved or work that you can do to present the job better.
6. Use our support staff for the minor things and use the partner only for the important things.
7. Provide missing information quickly.
8. Do most of the running around yourself e.g. calling banks / solicitors, collecting statements etc.
9. Use email and our website to ask for answers to questions.
Minimum wage going up