Blog

The 2020 end of financial year has passed without the “normal” panic for planning as it has been superseded by the lock down.

However, there are still tasks that need to happen in some shape or form so here we go:

Stock on Hand – although there has been no guidance around what a lock down stock take should be, we still need to be able to show that we have attempted to comply. So a refresher of what a stock take should be:

• You need to document the list of stock if you don’t have a computerised stock system. A best estimate of stock will need to be done this year due to the inability to do a proper stock take.
• The values to use for the stock is the lower of cost or market value (excl GST) and this is done on a line by line basis for stock items.

If you can reasonably estimate that your stock on hand is below $10,000 (excl GST) at 31 March, you do not need to do a stock take. However, we recommend doing one anyway as best practice and at least to prove that it was under the $10,000 threshold.

Work in Progress – the same rules applies for Work in Progress, that is where you have jobs in progress where expenses have been incurred but you haven’t invoiced you client as at 31 March. You will need to make a list of the jobs and then the costs incurred on each one that are yet to be invoiced to your customer. The value you use is the cost to you (excl GST) and remember to include labour if you are a tradie.

Wage Subsidy Received – we will require details of the number of employees that you have applied for the wage subsidy for, being either more than 20 hours or less than 20 hours. So make a note of that now.

Vehicle Contribution – if you trade as a company and you have vehicles in the company, we will be needing to the do the Annual Vehicle Contribution in the month of April, back dating to 31 March. As this has GST implications, please do not file your GST return until you have heard from us. We will advise you of the details of the contribution and if you are a Xero user, we will be doing the accounting entry in Xero for you. If you are wanting to file your GST return and haven’t heard from us, please contact Julie (julie@bizfitness.co.nz) and we can prioritise it.

Other Documents – remember to put aside or download the bank statement for the end of month, loan statements for the full financial year, interest received certificates (called RWT Certificates), dividend certificates and investment reports as we will all need those. Also donation receipts, collect those up and scan them into a folder on your computer.

Annual Checklists – yes we understand that these are painful to complete but we are legally required to have one completed for each tax return that we complete. So we will need these completed in full to ensure that we capture all the information required to minimise your tax. On this, our preference is that the paperwork is emailed into us rather than dropped into us. We will again be scheduling the work so Anne will email out the checklists along with the due date that we would require the information in.

myIR – if you haven’t got a myIR account, we would recommend that you get one as soon as possible. Click here to go to the IRD website and then click register in the top right hand corner.

Congratulations on making it the end of another financial year. Although the next few months remain uncertain, please be assured that we are here to assist in any way we can.