Prepare for EOFY (End Of Financial Year)

Prepare for EOFY (End Of Financial Year)

31 March is the end of the New Zealand financial year (or tax year).

It is very often referred to as EOFY in the accounting space. We're accountants, we can't help it with a few acronyms and time savers lol.

Here's a very brief but handy guide on what to do in the lead up to and shortly after 31 March:

BEFORE 31 MARCH

• Chase your debtors for payment as soon as possible

• Write off the no hopers as bad debts

• Make business expenses now (but not fixed assets over $1,000)

• Sell down your stock

• Do a stocktake on or very near 31 March

• Input all invoices and bills in Xero dated up to and including 31 March

• Check you have receipts for all personal donations over $5

AFTER 31 MARCH

• Reconcile Xero up to 31 March

• Screenshot or PDF print your business bank balances as at 31 March

• Request income cover tax certificates from your insurer

• Request annual summary from property management

• Request annual loan summary from bank (unless it is already loaded in Xero)

• Compile 'home office' information (see article here)

Some of these may not apply to you, or if you're not sure what we're talking about - ask us!

Having everything that you can sorted from the above lists will make the handover of information for completing your tax returns a dream.