5 things A Business owner Should Do Before Financial Year- End.
1.Calculate Payable Advance Tax-
Advance tax is payment of Income Tax on ‘Pay As You Earn’ ruled by Government. It Calculates the estimated income by all source of the organization, calculation of estimated Income Tax Liability and instalments as per due dates of income Tax Act / Rules. A Business holder should calculate his estimated taxable income as accurate as possible, calculate the tax liability and deduct the Tax Deducted at Source (TDS) to arrive at the total advance tax payable and pay the same before Financial Year ends. It is necessary that the advance tax paid should get credited to the account of central govt.
2.Manage Physical Inventory-
Take a physical inventory of Materials, Finished Good, Stores & Spares, Loose Tools.
Here are Some Points To be Noted While Managing Of Physical Inventory:
- Reduce backorders.
- Reduce monetary amounts that are invested in inventory.
- Increase on-time deliveries.
A cycle count is the item-based method of counting inventory. In cycle counts you select Various Kind of Goods through out the year.
3.Find Out Capital Gains-
Capital gains are the profits Arise by the sale of capital assets.
The 2 types of capital gains are long-term and short-term.
Long-term capital assets are those Assets which can be held for 36 months or more and the increase on selling. it is termed as long-term capital gains.
while short-term assets are held for a shorter duration of Months, if Any asset that is sold within 3 years of purchasing. the increase on selling the same is termed as short-term capital gain.
Capital gains arise when you sell capital asset for an amount that is more than You Bought at. Capital assets are any investments such as mutual funds, stocks or land, house etc. An increase in the value of any of these when you sell them is termed as capital gain.
4.Manage professional Income & Expenses-
In respect of professions following cash system of accounting, business expenses are allowed to be deducted only if they are actually paid on or before 31st March which is the date of Fiscal Year. Hence, it is mandatory to make payments of all business expenses related to the period up to 31st March of the year or before that date.
5. He should Prepare Professional Receipts –
cash systems of accounting, deposit all professional receipts in bank account before The financial Year Ends, without delaying it into the next financial year. The payer must have deducted TDS on the same and will file TDS Return by showing the amount paid to you along with analogous TDS.
- Calculate GST Turnover-
Businesses which are not Filed under the GST registration limit of Rs.20 lakh for the services, and Rs.40 lakhs for goods, should maintain their turnover. The total turnover up to Financial Year end, is to be calculated for the purpose of regulating the important aspects such as applicability of GST Registration, Eligibility of opting Composition Scheme limit (which is 1.5crore rupees p.a.), and Applicability of Filing of specific returns.