If you run a business, it is important that your relationship with Inland Revenue (IRD) is a good one. Here are some ways from New Zealand’s premier accounting professionals Tauranga-based Tutbury & Associates for making your relationship with Inland Revenue is a happy one.
Keeping accurate records is one of the best ways to have a good relationship with Inland Revenue. When you are in the nitty gritting of running your business, it can be easy to let paperwork go.
“By having an efficient system for record keeping and staying on top of things, it can make everything so much easier when it comes to filing your GST and tax returns,” says Kelly Tutbury, Accountant and Managing Director at Tutbury & Associates Limited.
Packages and apps are fantastic for logging and tracking your income and expenses – and they are tax deductible. If you don’t have a lot of transactions in your business, you can use a simple spreadsheet. Keep hard-copy records attached to your GST return for that period.
A common mistake that people make is not keeping your records for long enough. You must keep everything for at least seven years. “That way if Inland Revenue asks to see them, you’ll have all the information at hand,” comments Kelly. Additionally if you are audited and you don’t have any proof of things you’ve claimed, you can face big penalties or legal action.
The records you may need to keep include:
- Wage books.
- Petty cash.
- Banking records.
- Vehicle logbooks.
- Asset registers and depreciation schedules.
About Tutbury & Associates Limited:
Tutbury & Associates Limited has worked hard to build their reputation of excellent customer service by working interactively with their clients and making sure that their clients get value for money. They are ideal for ideal for trades people, or anyone who wants to grow their business.
Contact Tutbury & Associates Limited:
Phone: 07 576 2194
Address: 23 Myres Street Tauranga