Finance – Tidy up time

March is here already and it is time for us to start looking ahead to what needs to be done to fulfill the 2020 tax requirements.

For business owners, contractors and self-employed people, this is the time to start looking at tidying up your finances, where possible, and thinking about getting the information together for your accountant.

This includes looking at your debtors, following up on monies owing and deciding if there are any bad debts that will need to be written off.

Stocktaking is an important exercise that needs to be done at the end of March and the results given to your accountant. Make sure you note any assets purchased during the year and any assets disposed of or old during the year, along with any finance on new assets.

If you own rental properties, now is a good time to start getting together those expenses incurred over the past year. These can include but are not restricted to, rates, repairs and maintenance and travel expenses for property visits. If you have a property manager looking after your rental, you should expect to receive an end of year summary after March 31. If you have purchased or sold a rental property during the year it is important to make sure your accountant gets a copy of the sale and purchase agreement.

The 2020 financial year is when the new ring-fencing rules take effect. This means that excess deductions will no longer be allowed to be used against other income, but can be used against income from other rental properties if you have more than one.

For those using accounting software, it is important to ensure that this is up to date so that once April 1 comes around, the information is ready for your accountant.

If you are receiving interest and dividends, you need to ensure that your IRD number is updated with the details of any financial institutions that you have investments with  so that the correct information is passed on to the Inland Revenue Department.

If you are new to business or have new Trusts or rental properties and have not yet found an accountant, now is a good time to find someone to assist you in meeting your financial obligations so that you can stay on track with your filing requirements.