Happy New Year + Systems Overview
With the new financial year upon us, there are the usual pieces of information that we need at 31 March for standard balance date businesses. Please see further details below.
The end of a financial year/start of a new one is the perfect time to review the systems that you use in your business! We are massive fans at Cloud Accountants of using technology to not only create efficiencies in your businesses, but to provide the necessary tools for you to grow your businesses. Now is the time to review your existing technologies/systems to make sure that you are keeping up to date with any changes. Please make contact with us and we can assist.
We are encouraging and educating all of our clients to use Xero Files for uploading these important documents as a starting point. Please check out the functionality if you haven’t done so already.
Files for Xero will improve the efficiencies with preparing year end financial statements and tax returns for us at Cloud Accountants and your business.
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, review of fixed asset schedule
- Legal fee invoices
- Stock takes
- Loan documents, statements
- Hire purchase documents, statements
- Payroll details
- Home office details
- Wages details if you do not use an online system
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 – 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.
Happy New Financial Year!