For small businesses and sole traders in New Zealand, efficient receipt and expense tracking is vital yet often challenging. This guide provides practical tips and solutions to help New Zealand businesses streamline their receipt and expense management.
1. Use Digital Solutions
Instead of keeping physical receipts, take photos and store them in a cloud-based folder organised by date or category. Digital receipts are accepted by New Zealand’s IRD, simplifying record-keeping.
2. Establish Clear Categories for Expenses
Create clear categories for your business expenses (e.g., travel, office supplies, utilities) and stick to them. This will make it easier to classify expenses when it’s time to file taxes or create financial reports.
3. Regularly Reconcile Bank Statements
Set a regular schedule (e.g., weekly or monthly) to compare your bank transactions against your expense records. This helps ensure no expenses are missed, and any discrepancies can be caught early.
4. Track Cash Expenses Diligently
If your business deals with cash transactions, make it a habit to record them immediately. Keep a notebook or use a note-taking app to jot down every cash transaction, so you don’t forget later.
5. Automate Where Possible
Consider automating expense tracking. Set up automatic categorisation for recurring expenses like rent, utilities, or subscriptions. This reduces manual input and ensures consistent tracking.
6. Set Aside Time for Expense Management
Allocate a set time each week or month to review and update your expense records. Regular maintenance prevents backlog and helps keep your finances organised.
7. Keep Personal and Business Expenses Separate
For sole traders, it can be easy to mix personal and business expenses. Open a dedicated business bank account to keep them separate, which simplifies tracking and reporting.
8. Retain All Receipts for At Least Seven Years
New Zealand’s IRD requires businesses to retain receipts for seven years. Be sure to store digital or physical copies in an organised manner to avoid issues during audits or when filing taxes.
The content in this blog is intended to provide general insights and should not be regarded as professional advice. Each business situation is unique, and we recommend consulting with a professional for specific guidance.
At Black Arrow Business Studio, we specialise in accounting and consulting services designed to support your business’s growth and success. Feel free to contact us for expert advice and customised solutions.
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