End of Year Checklist

For most businesses, 31 March 2022 is the end of the financial year. Have you got your records in order?

The nine most important things to have in place by 31 March are:

1. Bank
   Run a bank reconciliation report for each bank account and ensure all transactions are
   reconciled.
2. Suspense account code
   Review your suspense account and code transactions to the correct account.
3. Bad debts
   Consider whether any amounts owed to you by debtors cannot be realistically recovered
   at 31 March. Keep all evidence showing the steps you took to try and recover them. Compile
   a list of these debts so they can be claimed as a tax deduction. Ensure all bad debts are
   written off before closing your debtor’s ledger at 31 March 2022.
4. Inventory / Stock / Work in Progress
   At 31 March 2022 you will need to do a stocktake.
5. Interest Payments
   If the business has paid more than $5,000 in interest to someone other than a bank, you
   maybe be required to withhold resident withholding tax.
6. Higher Income
   If your income is significantly higher this year compared to the previous year, please
   consider making an additional voluntary provisional tax payment.
7. Assets no longer used in the business
   Review the business asset depreciation schedule to determine business assets that are no
   longer in use. An asset market valuation at 31 March may be required to establish a disposal
   value.
8. Asset purchases and sales
   Consider purchasing assets on or just before 31 March so one month’s depreciation can be
   claimed.
9. Shareholder Current Accounts
   If these accounts have debit balances, please consider declaring a year-end dividend or
   shareholder bonus.