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What we need from you
As the end of financial year is next month (31st March), there are a few things to plan, and a few things to collate for us.
Yes we love Xero, and if you've watched any free to air TV in recent weeks you would have seen the advert and about making end of year easy. Xero does. It saves you a few thousand dollars from the days we would manually enter all your bank statements into the accounting software.
But there are still some steps to take. Some to ensure you stay compliant with tax obligations, make informed financial decisions, and set yourself up for success in the new year. Some because we still need to verify what's in Xero is correct.
To make the process smooth and stress-free, here’s a checklist of the key documents and information we will need.
1. Stock Take (Inventory Count)
If your business sells physical products, performing a stock take is essential at the end of the financial year. An accurate count of your inventory helps determine the value of your closing stock, which affects your profit and tax calculations. Be sure to:
Count all stock on hand.
Identify obsolete or damaged inventory.
Reconcile discrepancies between physical stock and accounting records.
If you stock is under $10k you can estimate this value, but should still keep a record of what you have
2. Bank Statements
For all business accounts, credit cards, and any other financial accounts. These statements verify the balance in Xero is correct. A PDF is perfect, but not a csv because that could have been altered - so this is the statement your bank would have mailed out in the past.
3. Loan and Credit Statements
If you have business loans, mortgages, or credit facilities, provide statements showing outstanding balances and interest paid during the year. So we can correctly account for liabilities and potential deductions.
4. Accounts Receivable and Payable Reports
If you aren't managing these through Xero then we will need:
Accounts Receivable: A list of outstanding invoices owed to you at year-end.
Accounts Payable: A record of any unpaid bills your business owes to suppliers. Having accurate records of what you are owed and what you owe will help in preparing financial statements and managing cash flow.
5. Fixed Assets
Go through last years accounts and let us know any that are obselete. We should have picked up any new purchases from Xero but sometimes they sneak into purchases and we can't identify them. So be sure to review the list when you get your accounts.
We will also need copies of invoices for new asset purchases.
6. Tax Documents
Anything from Overseas. All NZ income IRD will already have. Also for you Aucklanders, did you get the NZET dividend?.
7. Any Significant Changes in Your Business
If you are planning anything major in your business, now is the time to discuss. There can be tax implications for changing shareholding for instance.
Final Thoughts
So you know we are going to ask for these things, getting them together and sending through before we start your annual accounts will speed up the end of year process. The less we have to put the job down and pick it up later, the quicker we get it done and less likely we need to revise fees upwards - because putting down, picking up, reduces efficiency.
Start early, keep accurate records throughout the year, and communicate with your accountant to make the most of their expertise. By following this checklist, you’ll set yourself up for a smooth transition into the new financial year.