Top 8 Year-End Tips for Businesses

3 02

The end of the financial year can be a stressful time for many businesses, but with careful planning and attention to detail, you can make it a smooth and efficient process. Here are the top 8 tips to get ready for year-end.

1. Speak to your advisor

Now is the time to finalise goals for the 2023/2024 financial year. Speaking to your McLaren Guise advisor about goals, budgeting and forecasting is a great way to get a plan in place for the year ahead.

2. Factor in the Minimum Wage Increase

The minimum wage is going up on 1 April 2023. Make sure you allow extra time to implement these changes to your payroll system during the changeover.

3. Review your fixed asset register

Ensure assets sold, stolen, scrapped, or destroyed are removed from the asset register and loss on disposal calculated. If an asset sale is expected to result in a depreciation recovery, consider deferring the sale until after 31 March 2023.

4. Value Closing Stock at Market Selling Value

If the market selling value is lower than cost, value closing stock at market selling value. Carry out a stocktake on 31 March to ensure an accurate closing stock figure.

5. Write off any Obsolete Stock

If there is obsolete stock, write it off. If trading stock is less than $10,000, and turnover is less than $1.3m, you can use the opening stock value as the closing stock figure (even if this is nil).

6. Keep a Record of Employment Provisions Paid Out

Keep a record of employment provisions paid out between 1 April and 2 June as that portion of the provision is deductible in the 31 March financial year. This includes holiday pay and bonuses.

7. Review Shareholder Matters

Consider paying a dividend or shareholder salary if there is an overdrawn shareholder current account. Check the company has sufficient imputation credits; consider bringing forward a tax payment if necessary.

8. Income Tax

The third instalment of 2023 provisional tax is due 7 May 2023, based on actual results to 31 March.

By following these top 8 tips, you can maximise your tax deductions and minimise your tax bill while ensuring that you are ready for the year ahead. Remember, if you need any assistance, please contact your McLaren Guise advisor.