Deciding to close your business is a significant step - both financially and personally. Beyond the emotional aspects, there are important legal, financial, and tax responsibilities that must be carefully managed. When done properly, closing a business helps you meet your obligations, avoid penalties, and maintain a clear financial record. As your accountants and business advisors, we’re often the ones helping to manage this process and communicate with relevant parties on your behalf. Below is a step-by-step outline of what’s involved, and who is typically responsible at each stage: 1. Make the Decision with Confidence: Responsibility: Business owner(s) / directors Key Actions: Review your financial position, assess timing, and seek professional advice. It’s important to work closely with your trusted business advisor (that’s us!) so we can help you understand the financial, legal, and tax implications. Together, we’ll explore your options, forecast potential outcomes, and ensure your decision is well-informed and considered. 2. Notify Stakeholders Early: Responsibility: Business owner(s) / management Key Actions: Notify employees, banks, suppliers, landlords, and clients as early as possible. Ensuring staff entitlements are handled correctly and contracts are managed fairly will help prevent complications later. 3. Settle Debts and Manage Liabilities: Responsibility: Business owner(s) and accountant Key Actions: Make sure you pay creditors, chase up any outstanding invoices, and think about any personal guarantees you’ve given. Clearing these up protects both your business and your personal reputation. 4. Dispose of Assets: Responsibility: Business owner(s) with accountant guidance Key Actions: Selling, transferring, or writing off assets (such as inventory, equipment, or property) can have tax consequences. We’ll advise you on the best approach to minimise tax exposure and maximise value. 5. Prepare Final Financial Statements: Responsibility: Accountant / finance team Key Actions: We’ll prepare your final set of accounts to reconcile all transactions, calculate any taxes owing, and ensure everything is accurate and complete. 6. Lodge Final Tax Returns: Responsibility: Accountant / tax agent Key Actions: This includes submitting final income tax, GST, PAYE, and any other required filings. With our support, you can be confident all obligations are met and penalties avoided. 7. Deregister the Business: Responsibility: Business owner(s) with accountant support Key Actions : We’ll guide you through cancelling business registrations, GST, licences, and permits. This is the official step to legally close the business. 8. Retain Records Safely: Responsibility: Business owner(s) Key Actions: Keep financial records for the legally required period (usually seven years) in case of future tax or legal queries. Common Pitfalls to Avoid: Rushing the process without professional guidance Overlooking asset disposal or tax implications Failing to notify all stakeholders Missing lodgment or deregistration requirements We're Here to Help: Closing a business can feel overwhelming, but with careful planning and professional support, it can be managed smoothly and confidently. Our team is here to guide you through every step, ensuring your closure is compliant, clear, and well-managed.

Great news! Xero’s fixed asset section just got an upgrade! You’ll now enjoy a cleaner, more accessible, and responsive interface - making it easier than ever to manage your assets. All the familiar features are still there, and you can now attach files directly to your fixed asset records for improved documentation and tracking. How to Attach a File: Navigate to Fixed Assets: In the Xero accounting menu, select "Fixed assets". Open Asset Details: Click on the asset number to view the asset details. Attach Files: Click the "Attach files" button located on the right hand side of the page. Upload or Drag and Drop: You can either click "Upload files" to select a file from your device or simply drag and drop a file into the upload area. Attachments could be a copy of the bill or a photo of the asset. Save Changes: Click "Save as draft" or "Register" to save the changes. Extra tip: You can also attach files to assets that have already been registered - making it even easier to keep your records accurate and up to date.