No matter what your balance date is, all businesses need to go through the same preparations for their EOFY. The more information you are able to provide, the less time it will take your accountant to get your accounts and tax returns prepared, and as the saying goes, “time is money” ..  The following simple steps will make both yours and your accountants life a lot easier at  EOFY.

Accounting Software:

Ensure that all of your coding is up to date and the bank account has been reconciled.  Also check that your accountant has the required access to your software to enable them to import the transactions seamlessly into their system.

If you are using systems such as Xero or Farm Focus, you have the ability to attach copies of invoices & remittances to each transaction within the program – this means all information is in one place. If you are unsure how to do this talk to your accountant.

DOCUMENTS THAT NEED TO BE PROVIDED

Completed & signed questionnaire – it is necessary for your accountant to have a completed and signed questionnaire on file to meet Inland Revenue compliance requirements so that they can act on your behalf.

Bank Statements and Loan Statements as at balance date – your accountant needs these to verify the balance of these accounts

Confirmation of Stock on Hand – whether it’s livestock or trading stock your accountant needs to know what stock you owned at balance date.  If your trading stock is in excess of $10,000 you need to do a full stock take.  If it is less than $10,000, you can provide an estimate of stock on hand.  If you own livestock, you should provide a detailed reconciliation of all livestock classes at EOFY

Investments (shares, term deposits, investment portfolios) – please provide all details of shares and investments at balance date and any transactions during the year, along with details of income received during the year.

Accounts Payable & Receivable – please ensure you provide details of any purchases made before balance date but paid after balance date, and sale proceeds received after balance date for sales made prior to balance date.

Wage Records – as your accountant will be reconciling the total you have paid in wages with records the IRD holds, please ensure you advise of any allowances/deductions included in any of your employees’ wages so that this can be taken into account when completing these reconciliations.

Other important items – there are a number of other items your accountant may ask for each  year, including invoices for  any capital expenditure, invoices for any repairs & maintenance expenditure costing more than $1,000, invoices for any legal fees paid and any documents for  legal transactions during the year (property purchases & sales, gifting, deeds of acknowledgement of debt etc).  If you ensure all the requested information is provided this will assist your accountant in providing your financial statements and tax returns in a timely & cost-efficient manner.

If you are feeling out-of-control, confused or stressed out, talk to us, this is what we are great at. We are here to help you.