With the end of this financial year fast approaching, there are some things you can do to potentially save yourself money (ie tax)! Check out our top tips below to make sure you’re prepared!
1. Record Revenue in Advance
Have you invoiced for work pre 31 March that won’t be finished until after 31 March? If so, keep records that show this, so it can be treated as revenue in advance at year end – to reduce your tax bill.
2. Consider purchasing Fixed Assets in March
Planning to purchase any new assets in the new year? Consider purchasing them now before the end of March and you could claim one month’s depreciation in this financial year! But only do this if you were going to buy them anyway.
3. Clean up that Asset Register
What about those assets on your asset register that you no longer have or don’t use and have no potential use for any more? If it’s long gone, broken beyond repair, or so old, the technology has long been surpassed, write if off in March and take the tax deduction.
4. Write Off Debtors
Do you have debtors who owe you money? If you’ve tried to get them to pay and haven’t been successful, consider writing the debt off in March to reduce your current year tax bill. But only if you’re sure sure they’re never going to pay you. This must be done by 31 March in order to get the tax deduction.
5. Record Liabilities
Make sure that you are carefully recording all your creditors, the people who you owe money to. Recording these as accurately as possible can help reduce your tax bill.
6. Count Stock
Got more than $5,000 in stock? Counting your stock at 31 March could reduce your tax bill – but you need to have proof so keep a record! Note – if your turnover is less than $1.3m and your stock is less than $10,000, you can estimate your closing stock value.
7. Holiday pay, bonuses and other accruals
If you employ staff, then you may be able to claim a deduction for holiday pay and bonuses paid out within 63 days of balance date
About Pathfinder Solutions
Pathfinder Solutions advisory team members have either owned or managed businesses, or are investors themselves, so we know first-hand the challenges you face in your world.
Sure we’re Accountants, but the best solutions in business come from focusing on more than just the numbers. Our real-world business experience delivers just that.