The agricultural industry places various demands on Farmers and the team @ Donald & Associates understand that keeping up-to-date with accounting, tax rules and regulations can be time-consuming. So here's a a tip:
If you plan to sell a significant amount of livestock around the time of your balance date, check with your Accountant first as there could be possible benefits in holding the sale until after your balance date. This would then defer the taxable income to the next financial year and the tax payable wouldn't be due for an additional 12 months.
Thanks for this @Renee-Auckram :)
I looked after the admin for a lamb trading business where all lambs were sold just before or on 30 June.
To ensure the correct number of stock on hand was recorded at balance date (handy for the accountant, and when budgeting), it was really important to make sure the correct sale date was attached to the income transactions.
We used Cashmanager, and even though we're well into the 2017 year, here's another tip to make sure those stock transactions are allocated to the correct financial year:
in the Transaction screen
and while importing bank transactions
Interesting! Thanks for the tip, definitely worth bearing that in mind if looking to sell around balance date.