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Income Tax Checklist For Small Businesses

Income Tax Checklist For Small Businesses

31 March 2018

If your balance date was 31 st March, that’s another financial year done and dusted. What does a small business need to do now? Our easy to follow checklist will help you prepare for tax season and beyond.

Wrap up and review

Close out your accounting process for the year and review the results against your plan. Preparing for the future sometimes takes a little looking back at lessons learned in the past. Review your provisional tax position with your accountant as soon as possible because 7th May is often the final instalment for the year.

Collate and compile

Hopefully, you’ve been keeping solid and constant records throughout the year so that you can easily bring all that info together and have in front of you all you need to know to prepare your financial statements and tax returns. If you are unsure of what to record or need a recommendation for useful tech to help you with record keeping then get in touch – we are here to make the process easy!

Know what you’ve got and what you need

A physical stock take is very beneficial as stock value can have an impact on your taxable profit position. This needs to be completed as at March 31st so if you’ve missed it this year, make sure you do it soon and definitely put it on the calendar for next. It’s worth doing regular stocktakes to give you a good idea of what you have on hand, to manage your margins, your cash flow, and to ensure your management reporting is accurate. If you’re writing off stock, there are lots of choices as to how you go about this (get in touch with us and we can talk you through your best options), just ensure you have the records to prove what you have done.

Get rid of any assets that are no longer in use and have no potential future use, or would be more expensive to keep than ditch. Do it now because it could be written off as a deduction.

Check repairs and maintenance

Make sure you have invoices for any repairs and maintenance over $500, your accountant will need to review these to make sure deductions claimed are fair and reasonable. IRD has been paying extra attention to deductions in this area in recent years so make sure yours are within the guidelines.

Write-off bad debts

If you have old debts that are unlikely to get paid, consider writing them off before the end of the tax year to make them tax-deductible at the very least.

Don’t forget your team

If bonuses are involved, consider making the payments within 63 days (before June 2nd). This means the amounts are deductible in this most recent financial year.


Have some fun before you get stuck into another great financial year.

Prepare for a new year

With an accurate and up-to-date view of where your business is at, now’s an ideal time to put in some fresh thinking to get you ready for an even better new financial year. Things to review include:

  • Business plan - have you mapped out what you need to do to win in the year ahead?

  • Budget - review your predicted income and outgoings for the year ahead and enter it into your accounting software so you can measure progress. Speaking of which…

  • Accounting software - is it delivering what you need it to? Now is a good time for a refresh, update or perhaps something new to help achieve your goals.

  • Business structure – is it still the best option for your business after a year’s growth or change?

  • Transfer pricing documentation - review to ensure any overseas subsidiaries or investments are compliant and up to date.

Turn to a pro

Tax is a dynamic and complex beast so if you feel overwhelmed by it, that’s understandable. We specialise in providing accurate and efficient accounting and taxation services using innovative methods and technology that ultimately aims to drive your business towards an ideal and better future.

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