Systems that can help at tax time

There are numerous accounting software options available. To find one that fits your needs, you may want to try a free trial or ask for recommendations.

Such systems can assist you with the following:

• invoicing
• payroll and payday filing
• provisional tax payment through AIM
• tax management
• record-keeping
• GST.

It’s important to do some research and trial any accounting software options you’re considering. Many paid packages offer a free trial, so take advantage of that before making a decision. Don’t choose based solely on cost, as the right software properly set up can save you much more time than the monthly fees cost.

If you don’t feel confident using the software, consider paying someone to help you get set up and train you.

Accounting software can assist you in filing your GST, provisional tax, and employment information (payday filing) directly to Inland Revenue. Alternatively, you can use Inland Revenue’s myIR service to file your employment information (payday filing) and pay your GST online.

myIR — Inland Revenue

Payday filing — Inland Revenue

Lots of small business owners find that manual spreadsheets are effective for keeping track of their cashbooks and other records.

Inland Revenue provides cashbook templates that can assist you in getting started:

• Record books — Inland Revenue

Finding a reliable tax agent, bookkeeper, or accountant can be extremely beneficial in reducing the burden and expense of your accounting, tax, and payroll responsibilities. With their expertise and experience, they may be able to save you enough money to offset their fees, and some of the costs may also be tax-deductible.

If you don’t want to use their services regularly, you could consider engaging them for specific tasks, such as setting up your systems or completing your first tax return.

To find a trustworthy professional, ask your acquaintances for recommendations.

You don’t have to hire a chartered accountant as there are several small bookkeeping specialists who can provide the services you need at a lower cost.

No matter which system you use, it’s important to keep track of the money coming in and going out of your business. Here are some tips:

• Code your receipts as you receive them so you know what each one was for.
• Regularly balance your accounts to avoid having to tackle a huge task at the end of each month.
• Process expense claims on a regular basis.
• Send out invoices promptly and politely follow up with a reminder if the due date has passed.
• Keep records of each customer or client, including invoices sent, payments received, and copies of any agreements or contracts.
• Keep track of general expenses such as rent, rates, and bills for power, phone, and internet.
• Track your business development expenses.

Establish a well-organised filing system, with distinct folders for:

• Every customer or client, comprising of invoices sent, payments received, and copies of any agreements or contracts.
• General expenses like rent, rates, and bills for power, phone, and internet.
• Business development expenses.

Ensure that your timesheets are up-to-date if your business bills customers for the time spent on a job or project. If your business buys and sells products, maintain sales data as you go.