Getting your books ready
For a lot of tradies, the Christmas and summer break is a chance to slow down and spend time with whānau and friends after a busy year.
It's also when you probably had good intentions to get your tax and GST up to date before the end of the financial year.
Then you're straight back into the day-to-day work, and before you know it, the end of the financial year is just around the corner.
Receipts still need to be entered, invoices haven't all gone out, and you start worrying that you won't have everything ready in time for your accountant.
This time of year doesn't need to be stressful, even if you feel behind. If your admin has been kept reasonably up to date during the year, it becomes more about tidying things up than late nights trying to sort it all out.
And if you're not on top of it, here are some key things tradie business owners should have sorted out by 31 March.
1. All your jobs have been invoiced
Before the financial year wraps up, make sure every job you've finished has actually been invoiced.
That means:
All completed jobs have been invoiced.
You've followed up on any unpaid invoices.
There aren't quotes sitting there that should have been turned into invoices.
If the work is done but the invoice hasn't gone out, that's money you haven't been paid for.
Top tip: Setting aside just 20 minutes at the end of each month to check your invoicing makes this much easier when March comes around.
2. Your receipts and expenses are entered
By the end of March, you need to make sure that all your business expenses have been entered into your system.
That includes things like:
Materials for jobs
Tools and equipment
Fuel and vehicle costs
Payments to subcontractors
If receipts are sitting in the glovebox of your Ute or in a pile at home, it's time to deal with them.
When everything has been entered properly, your accountant won't need to come back to you asking for extra bits and pieces.
Top tip: Take a photo of your receipts as you go. If you're using Xero, you can upload them directly into the system.
3. Your GST is sorted
If you're GST registered, it's important to know where you stand with your latest GST return. Has it been filed, and there's nothing outstanding?
Before 31 March, check:
Your most recent GST return has been submitted
There aren't any overdue notices from Inland Revenue
You understand whether a payment is due or a refund is coming.
Late returns or missed payments can result in penalties and interest charged by Inland Revenue.
If you're not quite sure, log in and check your myIR account or speak to your bookkeeper before 31 March.
4. Everything is ready to hand to your accountant
By the end of March, you want everything ready to pass on without it turning into a bigger job than it needs to be.
That means your invoices have been sent, your expenses have been entered, and your GST has been dealt with.
Nothing is half-finished or sitting in a pile waiting to be sorted.
When it's organised, the end of the financial year becomes an easy handover instead of a time of year you dread.
Most business owners would agree that the end of the financial year can bring added pressure, and tradies are no different.
Businesses that head into the end of the financial year without stress are usually the ones that have kept on top of the basics each month.
If that hasn't been the case for you this year, there's support available.
Ready to get your bookkeeping sorted?
Shadow Administration helps tradies just like you to stay on top of their bookkeeping, so March isn't a mad rush to pull everything together for their accountant.
