Throughout the year, you should:
- Keep track of your income
- Keep track of all the expenses you incur in relation to generating your income
- Have a copy of important documents such as bank statements, loan summary, rental statement, RWT certificate and donation certificate
- If you make large purchases such as a property or motor vehicle, always keep a copy of the sale and purchase document and the loan documents (if you borrowed)
If you are using accounting software such as Xero to keep track of your bank reconciliation, make sure you code your transactions to the right chart of accounts codes such as:
- Sales – For money you received from customers
- Interest received – Money received from term deposit
- Purchases – For purchases of direct materials in relation to sales
- Rental income – Money received from rentals
- Repairs and maintenance – For expenses such as tools, lightbulbs
- Capital introduced – Money you invested from your personal savings during the year
- Drawings – Money you withdrew for your personal used or expenses
- Loan – If you borrowed money from the bank
What we need to know
As your accountants, all we need to know is what are the taxable income and expenses you incur during the financial year (normally 1 April to 31 March).
Let us know if there have been any major changes to your financial situation during the year. For example, if you have had any additional loans or repaid any loans or advances, please let us know.
We would also like to know if you have invested in something new or have sold some shares.
How to be ready
Being ready means that you have reconciled all your business bank transactions and you have the following documentation:
General:
- Closing bank statements as at 31 March
- Loan summary up to 31 March
- Closing credit card statements showing balance as at 31 March
- Sales and purchase document (if applicable)
- Portfolio summary (if applicable)
If you run a business:
- Closing stock (if applicable)
- Work in progress (if applicable)
- Creditor list as at 31 March
- Debtor list as at 31 March
- List of additional assets purchased or disposed
If you own rental properties:
- Rental statement summary for the year
- Settlement statement and sale and purchase document if you sell or purchase new properties
- Home office expenses for the year
If you managed trusts:
- Trust gifting documentation (if any during the year)
- Amendment of trust deed (if there have been any changes during the year)
For personal tax return:
- Dividend statement
- Donation certificate
- Overseas tax paid (if any)
- Any other source of income
When you are ready…
If you are using an online accounting system, just give us the green light that your accounts are ready for us to review and if you are not quite ‘online’ yet, please give us the backup of your accounting software reconciled up to 31 March.
If you are not using any accounting system, please provide us with details of your income and expenses during the year along with the supporting documents.
If you are running a business, make sure your creditors and debtors are up to date as at 31 March. Please review your creditors and debtors list and advise us if there are any bad debts to be written off. During the year, if there have been any assets that you have disposed of, please let us know.
Still much confuse?
Get in touch! Oxford Edge’s team of experts can guide you through the process of how to prepare for your annual accounts and returns.
