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BUSINESS TIPS

From our many years of collective experience assisting and advising farmers with their business accounting we are able to come up with some hot tips, which we hope will be useful for everyone, no matter how big or small your rural business.

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Cash Manager Rural Tips and Tricks

Closing Livestock Tallies

Before submitting your financial year end questionnaire please check that your Livestock Year End Tally is correct.

From the Transaction screen click on Reports – Accountants Livestock Rec.

Livestock tallies do matter so please be careful that the stock transactions (sales and purchases) have been coded correctly and that tallies have been recorded.  Check that your Year End Tally agrees to what you have on your farm at balance date. If you want to brush up on your livestock reconciliation skills, then refer to our previous article here.

Don’t close off your 2019 financial year just yet

Please hold off from closing your 2019 Financial year in Cash Manager Rural until we have completed your financials.  This is to ensure that transactions can still be edited for coding corrections or to include accounts payable and receivable.

Dwelling expenses claim

Have you updated your farm dwelling expenses claim?  We have noticed a few clients are still using the old rules.  There is no longer the ability to claim a straight 25% on your dwelling costs.  From 1st April 2017 the rules were changed by the IRD and your allowable claim depends on whether you are a Type 1 or a Type 2 farm.  If you are unsure what your dwelling claim should be, please refer to our previous article here.

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Decreases to ACC levies for farming

The 2017 ACC levies for farmers have decreased, with levies down between 6-9% on the 2016 levies.

These decreases have come about from the government passing on savings generated from improved ACC financial management. The average work levy paid by employers and self-employed people has reduced from 80 cents to 72 cents per $100 of liable earnings; a reduction of 10%. ACC levies for dairy farmers have decreased by 9%, while sheep and beef farmers have seen their levies decrease by 6%. Deer farmers have seen the biggest decrease, with their levies dropping by 17%. The ACC levies are used to fully fund the cost of the ACC scheme. ACC covers payouts to those injured for loss of earnings, medical costs, managing at home costs after injury and for the cost of administration of the scheme.

In calculating ACC premiums, industries have differing premium rates based on ACC’s assessment of risk, cost and frequency of injury within the industry. The higher the industry’s risk, costs or number of injuries, the higher the ACC premiums.

It is worth reviewing your ACC industry classification on a regular basis to check that it is still

appropriate to your business activity. There may have been changes to your business industry, role in the business, a shift to part-time hours, or a passive role (retirement or raising children). All of these will affect yourACC position.

If you need help, check out our ACC sorted service.

Cashmanager Rural – End of financial year checklist

End of financial year checklist

When the new financial year is under way, you should start thinking about getting the financial information for the previous year ready for us to use for preparing your financial returns.

If you haven’t already done so, invite us to log into your Cashmanager RURAL online database.
We can then access reports such as the Accountants Annual and Accountants Livestock Rec and determine what information we need from you.

We will supply you with an end of year questionnaire to complete and some of the questions can be easily answered if the information in your Cashmanager RURAL database is correct.

Things you can check

1. Is your transaction list up to date?
Make sure all transactions have been entered up to the last day of your financial year.

2. Have you reconciled all bank statements relating to the financial year?
Nothing should be left unreconciled except for transactions dated in the new year.

3. Check for unreconciled transactions
From the Transactions screen, click on the Filter button, tick the Unreconciled box and click OK.

If transactions appear that are dated in the year you are balancing, they may be duplicate or un-presented transactions.
They need to be either deleted or reversed.

To correct any unreconciled transactions from the previous year, have a look at How to correct a duplicate transaction.

4. Have you entered all accounts payable and receivable?
In Cashmanager, these are transactions that are recorded in the first month(s) of the new financial year.

The items have a transaction date that matches the bank and are allocated to the financial year they belong to.

For example, you receive an invoice from your fuel supplier dated in June (2017 year) and you pay it in July (2018 year). You need to show that though the transaction was paid in July, it relates to the 2017 financial year.

5. Check the consistency of coding
Make sure that you use the same codes for the same types of transactions.

Click on Reports – Analysis by Code. Check that the transactions make sense for the code they are allocated to.

If a transaction needs re-coding make a note of the transaction date, the GST inclusive amount and its code.
Locate the transaction, edit it and change the code.

6. View the Accountants Annual Report
Make sure that it is balanced.

7. Is your Livestock Year End Tally correct?

From the Transaction screen click on Reports – Accountants Livestock Rec.
Livestock tallies do matter so be careful that the stock transactions (sales and purchases) have been coded correctly and that tallies have been recorded.

8. Run a Springclean
From the opening screen, click on Tools – Springclean.
If there are errors, try and fix them.

If you have any queries, please do not hesitate to contact our team.

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