What should I be thinking of ?
It’s almost two months to 31 December 2017 and while I believe it’s too early to talk of the ‘C’ word just yet, I am a huge fan of preparing for accounting year ends.
When we think of a December year end, when we include the holiday period (and the week just gone) there is actually only a little over six weeks left until you celebrate (hopefully) another successful year end.
In the coming six weeks there’s still plenty of time to get ahead. Don’t slow down just because it’s coming to a holiday season. Stay focused on your business goals to stay ahead of the competition.
THINK PENSION TOP-UP
Any amounts paid into your pension scheme should be done prior to the year end in order to get a corporation tax deduction for the amount. Talk to your financial advisor sooner rather than later if you plan on topping up your pension. Talk to your accountant about what is available cash resource-wise if unsure.
TAX FREE VOUCHERS FOR EMPLOYEES
You can give employees a small benefit of up to €500 in value, tax free, each year. It should NOT be in cash. Prior to 21 October 2015, the limit on small benefits was €250. Many companies like to use the small benefit in the form of vouchers at Christmas time and plan accordingly.
Full details on link from Revenue :
ISSUE INVOICES & CHASE CASH EARLY
Consider what jobs are in progress at the moment. What invoices can be raised as soon as possible? We all know how slow companies are to pay between the holiday season and January, therefore it’s good to issue your invoices as early as possible this month in order to allow your 30 days credit terms.
Chase cash early this month and next. Don’t leave it too late to make calls that may be necessary in order to prompt some payments. We are all aware of those who shout loudest getting looked after (even if it is a contravention of law and shouldn’t be the case!).
NEW YEAR AIM – GET YOUR ACCOUNTS DONE EARLY
Don’t leave reviewing your company accounts too far into 2018. Review your year-end accounts and monthly management accounts, (if available) as soon after a month end or year-end as possible.
Should anything have changed in a negative manner, it is key to making changes as you go. Keep on top of any changes in the accounts as it gives you clear indicators of what’s working month to month in your business.
If you have any questions, please feel free to contact wendy@williamsmerrigan.ie
