Happy New Year + Xero Files!
With the new financial year literally just around the corner, there are the usual pieces of information that we need as ‘bean counters’ at 31 March for standard balance date businesses.
This year end we are encouraging our clients to use Xero Files for uploading these important documents.
Files for Xero is another game changer with Xero and again will improve the efficiencies with preparing year end financial statements and tax returns for us at Cloud Accountants and you.
We recommend setting up a ‘Cloud Accts’ folder and start to put the necessary docs into this folder. These would include:
- Confirmation of bank and credit cards balances at 31 March
- RWT interest certificates
- ACC invoices
- Fixed asset invoices
- Legal fee invoices
- Stock takes
- Loan documents, statements
- Hire purchase documents, statements
- Home office details
- Wages details if you do not use an online system
For all you need to know check these links to the Xero blog:
Bad debts to be written off, review of Accounts Receivable
Before March 31, you need to review your Accounts Receivable and determine whether any of your invoices outstanding are recoverable or not.
If they are old and you have made every step to recover these, you must write them off as a bad debt expense before the end of this financial year.
For guidance there is some help from Xero here – http://help.xero.com/nz/#Q_BadDebts Of course please contact the Cloud Accountants team for guidance.
If you hold stock in your business, it is important to prepare a stock take on 31 March. If you do not use a stock system (that ideally links to your Xero organisation!) we can process this stock take for you in your year end financial statements.
We have a few changes coming at Cloud Accountants which we will be communicating with you soon, including an introduction to our favourite add ons to Xero that we and our clients are using and loving!
Happy New Financial Year!