March 2024 - Inside this issue

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March Year End Procedures

There are a number of items that have to reviewed and resolved prior to 31 March when you are running your own business. Two crucial items to address include:

Stock takes; and
Bad debts

If you hold stock in your business, it is very important that you perform a physical stock take prior to 31 March and ensure that your closing stock numbers are correct. We will need this number in order to complete your annual financial statements.

Bad debts are only tax deductible if they are written off prior to 31 March. Therefore, you must review all your outstanding debtor balances. If someone has owed you this money for over 90 days, is it likely that they will pay you? If not, it may be worth writing off the debt in your accounts to ensure that you are not liable to pay tax on this income.

We recommend you review your bad debt as advise us before 31 March 2024, so we are able to process any bad debt write-offs before balance day.

We have a handy Small Business Checklist that will guide you through what needs to be done for your business.

‍Download your Small Business Checklist here

Xero Bank Feeds

There may be a delay for certain bank feeds over the Easter weekend until the 3rd April 2024.

With it being the end of the Financial Year and Easter break, it may cause some disruption to the feeds. However, it should all be up and running and all the feeds should have come through by Wednesday 3rd April.

New Rules for Rentals

The new Government has restored the mortgage interest deductibility for rental properties. This will be introduced in two stages.

1. For the year ended 31 March 2025, a deduction of 80% of interest paid in relation to residential rentals will be available. This will apply to both pre- and post-27 March 2021 lending. Any property that would have had 100% deductibility under the previous rules (e.g. new builds) will continue to have this for the year ended 31 March 2025 under the new rules.
2. For the year ended 31 March 2026, a full interest deduction will be available.

For the year ended 31 March 2024, no interest deduction is permitted for post-2021 lending to acquire residential property, with a limit of 50% deductibility on pre-2021 lending (with some limited exceptions).

The Government has also introduced a two-year bright line for residential properties purchased from 1 July 2024 onwards. Generally, this means any residential rental property that is the subject of a binding contract for sale, entered on or after 1 July 2024 will not have any capital gains taxed if the property was held for more than two years.

Important Tax Dates

The Tael 2024 Tax Calendars are available to download from our website here or you can collect one from the office.

Upcoming Tax Dates:

8 April 2024 – 2023 Terminal Tax is due for payment to the IRD.

7 May 2024 – The 3rd Instalment of 2024 Provisional Tax is due for payment to the IRD.

‍If you have any questions or concerns for us, please don’t hesitate to get in touch with us.

From

THE TAEL SOLUTIONS TEAM

ASWEFA has been benefiting from the outstanding service Tael Solutions has provided for a number of years. During these years ASWEFA has changed names, expanded from one company holding to 6 company holdings as we have franchised and developed 3 new sites and franchises. We not only contract Tael for monthly and annual account processing but they also manage our Trust accounts and IRD requirements. As well as this we hold quarterly financial meetings to have them assist us to explore and set financial goals and address areas of increased costings or potential sales opportunities to ensure we run at maximum capacity. These meetings involve looking at everything from staff capacity and future requirements to site/machinery/technical requirements to ensure we are future proofing our business as much as possible. They know our business well and can make observations with a fresh set of eyes that always provoke new thoughts and ideas. We are privileged to provide this reference and recommend Tael for any business big or small – but in particular if you are wanting to grow as they have become an integral part of our business and contributed to our success.

Treena Myers - ASWEFA Regional Office - Forklift training providers

I moved our law firm’s accountancy and business advisory work to TAEL Solutions over a year ago now and I have been consistently impressed with its energy, focus, and command over every aspect of how the business side of our practice operates and augmenting a better run, more efficient business. I highly recommend TAEL solutions to those looking to improve their business financial performance.

I moved our law firm’s accountancy and business advisory work to TAEL Solutions over a year ago now and I have been consistently impressed with its energy, focus, and command over every aspect of how the business side of our practice operates and augmenting a better run, more efficient business. I highly recommend TEAL solutions to those looking to improve their business financial performance.

Doug Cowan - Cowan Law

I wish I had found the team at Tael earlier! As a small business owner with minimal experience and understanding of Accounting and Bookkeeping, I've learnt a valuable lesson: 'surround yourself with the right people' The contrast between Tael Solutions and my previous firm couldn't be greater. They understand my business and provide the insight, recommendations and guidance that I so desperately needed. The team at Tael are a pleasure to deal with and I am confident that I'm in good hands.

Mike Covich - LocoMedia Limited

TAEL Solutions Ltd have been processing our accounts for two years now. For the first year they completed and prepared the annual accounts prior to auditing and for the second year we moved to full monthly accounts and looking after all tax issues, right through to Board Reports and preparation for auditing. As a Not for Profit organisation we especially appreciate the advice we get in regards to our responsibilities in our reporting for Community Services (Department of Internal Affairs) and our major grant providers. We are a small team and prefer to put our efforts into the provision of support services to our “kids” and their families. I would recommend Natasha and the team at TAEL Solutions to any SME or NFP requiring accounting services and professional support to help grow their business and to ensure that good accounting and governance practices are provided.

Keith Mackenzie - Chief Executive, Kidney Kids NZ

More Testimonials

March 2024 - Inside this issue

See Also