BLOG: What shape are your end-of-year accounts in?

Kirsten Hawke

The end of the financial year can be either stressful or a seamless part of what you do.
Ideally, your end-of-year accounts will confirm what you think your business has been doing for the past 12 months.

BLOG: What shape are your end-of-year accounts in?

Be a good scout to avoid end-of-year migraine

Being prepared is the key to avoiding end-of-year financial drama and stress.

1. Collect documents
First, make sure you have all the documents your BUSINESS buddy needs, such as PAYE statements, bank statements showing interest earned, dividend statements for shares, and receipts for expenses.
We send all clients a digital checklist to encourage paperless offices.
Remember those receipts for charitable donations.
2. Write offs
Look at writing off old debts. Scrap redundant or worthless assets, so you get a deduction on your books.
3. Review statement of accounts
Print out profit and loss, balance sheet and general ledger listing reports and store them safely.
Have a final look at your payroll reports. You don't have to give summaries to your staff, but if you give them earning certificates, they can be used to check IRD information.
4. Check vehicles
Note odometer readings on vehicles and ensure logbooks noting business and personal use, mileage and costs etc. are in order.
5. Stock clearance
Dispose of obsolete stock by the year end or write it down to its net realisable value.
6. Dividends
Talk to us on any planned dividend payments, as managing imputation credits will be important.

Get your BUSINESS buddy to work with you on reviewing your business plan and updating it for next year – and to review your accounting software. For most businesses we recommend Xero.

We’ll probably adjust your reports or accounts. Once we’re done, lock all accounts relating to the financial year – and keep them secure.


Kirsten Hawke