It’s that time of year again when we need to consider all the important tasks leading up to your balance date and gather necessary information. In the coming weeks, we will remind you of what needs your attention.
Today, we recommend that you review your debtors’ ledger to assess any bad debts. Consider how old these debts are, what actions have been taken to recover them, and whether they are recoverable. Deciding to write off a bad debt before balance date means you won’t pay tax on an amount you may never recover. If you do write off a debtor as bad and later recover a portion or all of it, the income tax will be addressed in the year you receive the payment.
If you carry stock, have you scheduled your end-of-year stocktake? Remember that March 31st falls on a Monday this year.
When was the last time you reviewed your asset register? Are all the assets still operational? Are there any that are no longer needed?
The three tasks above are just a few of many for the coming weeks. Stay tuned for more updates.
