The lead-up to the end of the financial year can feel like a whirlwind, but by avoiding these common hurdles, you can keep your tax season on track and make it your smoothest yet.
Mistake #1 – Neglecting your home office details
If you’re claiming home office expenses, accuracy is key. You might have started the year tracking everything diligently, but it’s easy to let those habits slide. Now’s the time to catch up — don’t leave it until the last minute. Gather your utility bills, rates, phone plans, and other relevant expenses, and plug them into your home office expense schedule. Remember, if you are a company you need to physically make a payment to yourself before the claim can be deducted as an expense.
Mistake #2 – Forgetting asset invoices
Have you bought a new vehicle, tractor, or other equipment this year? Save those invoices! We need them to update your asset register and calculate accurate depreciation claims. Add the invoice into your Xero or MYOB or upload to our Portal.
Mistake #3 – Skipping your odometer reading
Do you use a vehicle for work? Record your odometer reading on 31 March to track your total business and personal kilometres for the year. This is especially crucial if you’ve driven more than 14,000km, where Inland Revenue’s Tier 2 rates apply.
Mistake #4 – Not flagging Xero/MYOB uploads with your accountant
If you upload invoices into Xero or MYOB, let us know. This simple step can streamline the process and help us keep our inbox manageable. Alternatively, make use of our Portal for uploading year end information.
Mistake #5 – Confusing deductible expenses
Food, drinks, travel — what’s deductible and what’s not? The rules vary depending on whether you’re self-employed, a shareholder, or trading as a company. Check out our guide on entertainment expenses to avoid surprises.
Mistake #6 – Not doing a stocktake at year end
Making time for a year end stocktake is very important. The following is IR’s expectation of records to be maintained:
stock records manual system - stock cards, regular inventories computer system - record all stock movements, link to POS (point of sale) if possible ;
regular stock-take forms
There are a variety of methods for valuing trading stock, talk to us about what is best for your industry and your business. The Cost Method includes all costs like purchase price, import duties, manufacturing costs, inwards freight cost and overheads.
Don't hesitate to contact us for any support at year end!
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