As the year draws to a close, you may find yourself juggling the tasks of wrapping up operations while preparing for the year ahead. To help ensure a solid start to 2025, here’s a list of key financial tasks to tick off before the break.
Chase up outstanding invoices
The holiday season can bring unexpected costs, so collect any outstanding invoices now to ensure a steady cash flow and spare yourself the hassle of chasing payments in the New Year.
Pay your taxes
The silly season can be hectic! Don’t let key tax dates slip by:
- PAYE is due for large employers on 5 and 20 December AND 15 and 20 January. It falls due for small employers on 20 December and 20 January. Remember, you’re a ‘large employer’ if your gross annual PAYE and ESCT total more than $500,000, and a ‘small employer’ if the amount is less.
- GST return and payment for November is due on 15 January. The return and payment for December is due on 28 January
- Provisional tax is due on 15 January if your business has a March balance date,
- FBT return and payment for the December quarter is due on 20 January
Pin your tax calendar somewhere where you won’t forget.
Review your budget for the New Year
A well-planned budget can help you start the New Year on solid financial footing, so take time to assess revenue streams, expected costs, and potential capital expenditures.
Set aside funds for January
A drop in customer spending after the holidays can mean poor cash flow in the New Year. Setting aside funds to help cover January’s expenses can prevent financial strain when business resumes.
Look ahead to 2025
Changes are on the horizon. Check to see if any of them impact your business and bottom line.
- The minimum wage increased to $23.15 in 2024. We expect it to increase again from 1 April 2025.
- The trustee tax rate rose to 39% for the 2024-25 income year. The Government also extended the individual marginal tax thresholds mid-2024 and these will apply for the 2025-26 income year.
- Legislation. The Government has flagged changes to the Employment Relations Act, the Holidays Act and the Companies Act. We’ll keep you posted
- Stricter environmental regulations are coming into effect next year, focusing on emissions and sustainable practices.
Contact us if you need help with managing your taxes or planning for your year-end accounts.
Disclaimer: This blog has been carefully prepared, but it has been written in general terms only. The blog should not be relied upon to provide specific information without also obtaining appropriate professional advice after detailed examination of your particular situation.
