The curtain has officially fallen on the 2024 financial year. As we bid farewell, it’s time to wrap up our accounts and take stock of our financial performance.
If you haven’t done so already, it’s important to ensure that your financial records are up-to-date and accurate. Reflect on the past year, take note of all your achievements, and identify any tasks that were left incomplete as at 31 March 2024.
As a sole trader or business owner, this period can be demanding, but by ensuring you have everything in order, you can reduce some of the stress associated with year-end accounts. To help you navigate this process, here are some key steps you should have taken to streamline your processes and get organized as we closed the year:
- Finalised all invoices (including any work in progress)
- Followed up on all outstanding customer balances
- Written off bad debts, if necessary
- Reviewed all outstanding bills
- Scrutinised your expenses (especially if you have a home office)
- Accounted for asset movements – whether you purchased or disposed of any assets
- Checked and confirmed your inventory
We’ve included a couple of articles below that you might find interesting. Click on the links below the articles to deep dive and reach out if you have any questions.
Amidst the hustle, don’t forget about your well-being. Taking a break, whether it’s grabbing a coffee or enjoying a 30-minute walk, can be a valuable way to step away from your work environment and alleviate stress. Remember, your well-being is paramount.
Returning the bright-line test to 2 years
Bright-line property rules are changing from 1st of July 2024. If you sell after 1st of July 2024, the bright-line period will be two years. To find out the rules if you sold prior to 1st of July, click through to read more.
https://www.coastalaccounting.co.nz/returning-the-bright-line-test-to-2-years/
GST changes for short-term stays
Check if you’re a homestay, short-term rental, or long-term rental. From 1st April 2024: GST-registered treat services as zero-rated. Not registered? New flat-rate scheme applies and your registered marketplace collects 15% GST.
https://www.coastalaccounting.co.nz/short-term-homestay-accommodation-changes/
Update on Interest Limitation Rules
01 April 2022 to 31 March 2023 75%
01 April 2023 to 31 March 2024 50%
01 April 2024 to 31 March 2025 80%
01 April 2025 to 31 March 2026 100%
For property purchased after 27 March 2021, the interest can be claimed from 01 April 2024 at 80%. All rentals will have the same rules in the 2024/2025-year at 80% with the expectation of new builds.
Interest deductions previously denied under the rules will remain denied, therefore we cannot claim any denied interest from previous years.
Please contact us if you’d like us to talk through your individual situation.