Ac­count­ing time looms for farm­ers

Matamata Chronicle - - Rural Delivery - By CARISSA TOL­LEY

For most farm­ers the end of the fi­nan­cial year is fast ap­proach­ing.

The fol­low­ing are some points to con­sider be­fore May 31, 2015:

Fixed as­sets – ob­tain your fixed as­sets sched­ule from your ac­coun­tant, and re­view and record any as­sets that can be writ­ten off if they have be­come ob­so­lete or are no longer used.

This will en­sure your as­sets reg­is­ter is up to date.

Any as­sets writ­ten off will cre­ate an ex­pense against tax­able in­come.

Feed sup­ple­ments on hand – your un­used feed sup­ple­ments at May 31 need to be con­sid­ered. If the sup­ple­ments cost you more than $58,000 they need to be claimed in the fol­low­ing year. This is be­cause the feed has not been used, there­fore the ex­pen­di­ture has not been in­curred in de­riv­ing in­come in the cur­rent year.

Re­pairs and main­te­nance – if you are plan­ning to carry out any main­te­nance or re­pairs around the farm you may con­sider com­plet­ing th­ese be­fore May 31 to claim them as an ex­pense in the cur­rent year.

Bad debtors – if you have any debtors from whom you do not ex­pect to re­ceive pay­ment the debts should be writ­ten off. Th­ese bad debts will be claimed as a de­duc­tion to re­duce in­come.

Em­ployee costs – any em­ployee costs such as hol­i­day pay, ac­crued wages and bonuses that will be paid out in the 63 days af­ter May 31 can be claimed as an ex­pense in the cur­rent fi­nan­cial year.

Dona­tions re­bate – for dona­tions you have made dur­ing the fi­nan­cial year you can claim 33 per cent of the to­tal dona­tions or 33 per cent of your tax­able in­come, whichever is the lesser amount. Com­pa­nies that have a tax­able loss will not be able to claim any dona­tions as ex­penses.

Live­stock num­bers – record the live­stock you have on hand at May 31 to en­sure cor­rect num­bers are val­ued as closing stock in your fi­nan­cial state­ments.

Re­view­ing th­ese points may save money.

En­sur­ing your in­for­ma­tion is cur­rent and ac­cu­rate will help you to make more timely de­ci­sions about the fu­ture of your busi­ness.

- Carissa Tol­ley is an as­so­ciate of Coop­erAitken Ltd Ac­coun­tants in Mata­mata, Mor­rinsville and Thames 07 902 2874 or email carissa@coop­

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