End of Year Handbook. Prince. Page 1. Chartered Accountants

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1 Prince Chartered Accountants End of Year Handbook RSM Prince is committed to working with our clients to provide real value, true teamwork and innovative, practical solutions, and to exceed your expectations in everything we do. Above all, we are here to inspire you and to help you grow your business. Page 1

2 Your new financial year With the enthusiasm that a new financial year brings, RSM Prince looks forward to working with you to help you grow your business. The new financial year also provides a great opportunity to review the successes of the previous year, and to identify those areas needing improvement. This document is designed to capture all the information we need to assist you in this. To allow us to prepare your annual accounts efficiently and to the highest standards, please take the time to complete these checklists and return them to us. Once we have completed your historical annual accounts, we can work with you to identify growth opportunities for your future and make next year an even better year. The Partners and team RSM Prince Page 3 Business opportunities are like buses, there s always another one coming. ~ Richard Branson

3 End of year checklist To assist us in preparing your annual accounts, please supply the following; Bank Statements / Cash Book / Accounting Software Please provide us with your details using one of the following options: Option 1: Bank Statements and Cheque/Deposit Books For all accounts operated by the business Statements should cover the full period up to your balance date e.g. 1 April 2014 to 31 March 2015 For all business bank accounts please clearly mark the nature of all payments and deposits or supply cheque and deposit books Option 2: Cash Book Please supply a balanced and reconciled cash book with clear description of payments and receipts Also supply the last March bank statements showing the balance as at the balance date eg. 31 March 2015 Please provide the bank statements for business bank accounts not recorded in a cash book Option 3: Accounting software MYOB a copy of your back up with your username and password MYOB Accountant Link Transactions simply export and data. Instructions on how to do this are on our website MYOB Live products you will need to invite one of our team to be a user Quickbooks a copy of your backup with your username and password Xero you will need to invite one of our team members to be a user For all other accounting software applications please provide us with printouts, excel spreadsheets or PDF s of your detailed general ledger, bank reconciliations, debtors and creditors reports Business expenses paid from other sources (personal accounts or credit cards) Stock on hand Please provide a listing as at your balance date Work in progress Please provide a listing as at your balance date (GST excl/incl) (GST excl/incl) Page 4

4 Cash on hand Takings yet to be banked Petty cash float Till float End of year checklist Cash income during the year not banked Please supply a list of payments made from cash income for business expenditure (identifying nature of expense) for personal drawings and amount lodged in other bank accounts Total: Accounts receivable (debtors) List amounts owing to you at balance date (please attach separate list) Total: Accounts payable (creditors) Please list your creditors (people / companies you owe money to) at your balance date. These will generally be payable on the 20th of the following month (please attach separate list) Bad debts Total: To claim a deduction for bad debts you must physically write them off from your debtors ledger before year end. However, bad debts can only be written off after you have taken all reasonable steps to recover the money. Holiday pay Total: Any holiday pay accrued but not paid to employees by year end should be noted for inclusion in the financial accounts. Outstanding holiday pay Likely to be paid within the 63 days from balance date Page 5

5 End of year checklist Fixed assets Please provide invoices for all assets purchased during the year over $500 (excl GST). Also advise of any assets sold (and how much sold for) or written off. Relevant documents and hire purchase agreements should be attached. Home office expenditure Purchased: Sold: Written off: If you maintain an office at home, please complete the attached home office claim form or alternatively send us invoices, bank statements and loan statements relating to your home office. Mortgages/loans Please provide details of any mortgages/loans during the year, including mortgage/loan statements for the year. Income in advance Please provide details of any income in advance received. Insurance Please provide details of insurance expenses paid for the year, including invoices and policies. Repairs and maintenance Please provide details of major repairs and maintenance to business assets during the year. Interest and dividends Please provide statements detailing interest and dividends received. Rental income Please complete the attached rental income form. Overseas income Please provide details of all overseas income using our overseas income checklist. Page 6

6 End of year checklist Motor vehicle Is your logbook current? A log book must be completed for 3 consecutive months and will last 3 years. Please indicate the portion of expenses to be allocated as private. Legal expenses Please provide invoices for all legal fees incurred during the year Lease/hire purchase commitments Total: % Please provide details of any new lease/hire purchase agreements in place at balance date, including premise lease. Payments to contractors and/or subcontractors Please provide details of payments made to contractors and subcontractors (if any). Exceptional items Did you have income or expenses in relation to exceptional (one-off) items? If so, please provide details of these transactions. Changes to business structure and/or ownership Please let us know if you are planning changes in ownership or structure of your business to ensure this does not have an adverse effect on you/your business. Please note, this checklist and all the attachments can be downloaded from our website at Page 7

7 Home office claim form To establish whether you need to complete this form, please answer the following questions; 1. Is the home mortgaged? Yes / No 2. Is information readily available? Yes / No If the answers to the above questions are no, you can agree to not include a claim for home office expenses. Please speak to your accountant directly to discuss this in further detail. Claim information 1. Electricity / Gas (GST excl/incl) 2. Insurance Home (GST excl/incl) Contents: (GST excl/incl) Total: (GST excl/incl) 3. Mortgage interest (GST excl/incl) 4. Rates: Land (GST excl/incl) Water (GST excl/incl) Total: (GST excl/incl) 5. Repairs and maintenance (external only), please list: (GST excl/incl) (GST excl/incl) (GST excl/incl) (GST excl/incl) 6. Rent (if applicable) (GST excl/incl) Total: (GST excl/incl) Claim. % Apportionment calculation Garage House Area used for business purposes m2 m2 Total area m2 m2 Apportionment for business purposes % Page 8

8 Rental income Please complete this form if you have received any rental income during your financial year. Address of rental property: Period rented: From / / to / / If rented for part of the year, please state the reason Total rent received: Rental expenses For new properties Mortgage interest paid Date purchased / / Repairs and maintenance Cost of property Rates Insurance Cost of chattels Stationery Stove Ground maintenance Drapes Management fees Floor covering Capital improvements Dishwasher Other (specify) Lawn mower Fireplace Other Vehicle expenses (inspection) (please specify) Km s from home No of trips / annum Government valuation (if applicable) Building Land Total For new rental properties, please supply; Solicitors settlement statements Copy of rates demand Copy of insurance account Copy of government valuation Page 9

9 Taxation income Please provide copies of the following information; Full details of your spouse s income Interest and dividends - Provide full details of source and amount received. Dividend, interest and bonus issue advice slips are required to show interest withholding tax paid on your behalf and imputation tax credits available to you. Please note we require dividend and interest advice slips for joint investments also. Look Through Company (LTC) (refer to page 10) Other income - Please attach a schedule with full details. Include rent, partnership, trusts or estates, overseas income and any other income received. Donations - Please attach receipts for donations to schools, churches and charitable organisations. Note the minimum allowable donation is $5.00. Income protection insurance - If you have income protection insurance, please attach a letter from the insurance company confirming the annual premium Family Support - To enable us to ascertain whether you are eligible for family support, please complete the section below; Detail names and birthdates of all children for whom you or your spouse provide care. If your child left school during the year, please advise the date of leaving school. Name of child Date of birth Date left school / / / / / / / / / / / / / / / / Have you married, separated or otherwise changed your family circumstances during the year? Yes / No Have you paid or received maintenance to/from any person during the year? Yes / No Were you a full time wage/salary earner during the year? (20 hours per week for single parent; 30 hours per week for joint spouses) Yes / No If so, for how many weeks of the year? Page 10

10 Look through Company As you may be aware the ability for owners in look-through company (LTC s) to deduct their losses is dependent on having a sufficient owner s basis. In order to complete this calculation to ensure that you are able to deduct your losses, please provide the following information; Loan details You may have to contact your loan provider for this information Loan 1 Loan 2 Loan account number Loan balance Name of guarantor/s % of guarantor/s % % Property details Are there any additional property/ies securing the debt for the company, eg family home? Please provide details Property 1 Property 2 Physical address Market value (rateable value if no current valuation) Debt details Are there any debts secured over the additional property/ies that are ranked higher than the guarantees over the company debt? Yes / No If the answer to the above question is yes, please list the details of debt below Loan 1 Loan 2 Loan balance As at 31 March Names of guarantors (who are the loans secured by) % of guarantors % % (jointly secured 50/50 or other %) If you have more than 2 items for each question, please attach a seperate schedule listing all loans, properties and debts. Page 11

11 Overseas income To assist us in preparing your end of year accounts, please indicate the forms of overseas income you have received during the financial year. Please contact us to discuss any overseas income or investments if you are not sure whether these need to be included in the accounts/tax returns. Please note, a separate checklist should be completed for each member of a family. Client name: Salaries from overseas companies Interest from overseas bank accounts For foreign exchange movements, please indicate whether you are a cash basis holder or whether accrual rules apply. To be a cash basis holder you must; Have total holdings of all financial arrangements less than NZ$1,000,000; or Income and expenditure under all financial arrangements does not exceed NZ$100,000 Shareholding in foreign companies / unit trusts (including closely held companies) Shareholding of less than 10% list of shares at 1 April 2014 and 31 March 2015 investment purchases / sold during the year and cost of purchases / disposals market values 1 April 2014 and 31 March 2015 dividends received Shareholding of more than 10% details of capital structure of the company and shareholding, including distinction in classes of shares (if any) number of shares and class held details of the number of shares and class(es) held by relatives, related trusts and companies copy of the balance sheet and profit and loss account (including notes) for the year end falling in the tax year details of shareholdings or investments held by each company, its subsidiaries, other companies, public listed companies etc details of foreign taxes paid / payable Page 12

12 Overseas income Income from rental properties situated outside New Zealand (including details of any loans obtained in New Zealand or overseas in relation to these properties). Share trading income from outside New Zealand Details of any taxes paid / payable outside New Zealand Details of any trusts settled outside New Zealand during the year and / or gifts or interest free loans made to trusts outside New Zealand Distributions (capital or beneficiary income) from trusts outside New Zealand Details of overseas superannuation funds interest held and whether they are employment related or not Details of any funds received or transferred from overseas superannuation funds Details of life insurance policies owned Business income from outside New Zealand Royalty / knowhow income I confirm that all overseas income has been included in my New Zealand Income Tax Return. I have reviewed the above list and I am satisfied that no overseas income has been omitted. Signature: Date: / / Page 13

13 Other information If you have any other comments/notes relevant to your end of year that you think we may need to be aware of, please use these two pages to list them. Page 14

14 Other information Page 15

15 Plan Planning for the future is a fundamental building block for business success. RSM Prince planning services will help you to understand where you want to go and how you are going to get there. Manage While planning provides the basis for business success, managing and measuring are equally important to ensure the sustainable growth of your business. RSM Prince has the expertise to help you implement appropriate systems to define key performance indicators. Grow At RSM Prince we believe that growth means more than increased sales, profits and cash flows. We will help you to focus on longer term sustainable growth initiatives which address your business and wider social and environmental needs. Protect Whilst you are planning, managing and growing your business there is an essential fourth element RSM Prince can help you with - protection. We re here to help you grow your business and then to protect it, through a variety of services. For further information please contact: AUCKLAND Ford Building, 86 Highbrook Drive, East Tamaki, Auckland 2013 PO Box , Highbrook, Auckland 2161 T: +64 (0) F: +64 (0) AUCKLAND NORTH Unit C3, 17 Corinthian Drive, Albany, Auckland 0632 PO Box , Albany, Auckland 0752 T: +64 (0) F: +64 (0) TOP FLIGHT COMPUTER SERVICES Office GO7a, Zone 23, 23 Edwin Street, Mt Eden, Auckland PO Box 29176, Greenwoods Corner, Auckland 1347 T: +64 (0) F: +64 (0) Page 16 RSM Prince is an independent member firm of RSM International, an affiliation of independent accounting and consulting firms.