Accounting time looms for farmers
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 firstname.lastname@example.org