March 31st signals the end of the financial year for many - here are some areas to focus on

Bad debts

Review what your customers owe you.  It is best to write off any bad debts prior to your balance date so that you get the claim in this financial year.

 
Stock

Cull your stock. If some of it is only fit for the tip then get rid of it. Remember, stock has to be valued at its cost, including the cost of getting it into your shop, warehouse etc. You may use market value, if it is lower than cost, instead of cost for an item, but you will need to keep evidence to show where you could have bought the item at the lower price.

Fixed assets

Review your fixed asset list for any scrapped items. You’ll find a copy of your fixed asset schedule in your last year’s financial statements.  Give us the list of the scrapped items along with the rest of your paperwork for this year’s financial statements.

Motor vehicle

If you are going to make a claim for use of your vehicle for business on a kilometre rate basis, remember to read your odometer at the end of the day on balance date.

Vehicle logbook

If you need to keep a vehicle logbook, this needs to be for a continuous typical three months of vehicle running. A new recording needs to be made once every three years (or more often if there is a major change – more than 20%) in the proportion of business and private running.

As always, feel free to get in touch with the team at Russell Turner to discuss your situation ahead of year-end.