1. Get your GST and income tax returns filed quicker and easier. Avoid penalties for incorrect returns and underpaid taxes. If everything is recorded and up to date you can calculate everything faster and more accurately.

2. Reduce your tax bill so you can claim business expenses against your income. If you get audited your astonishingly good record keeping will support your expense claims.
 
3. Your accountant can do your books quicker and keep costs lower. If your records are up to date and in good order your accounting costs will be much lower. Less time spent preparing your accounts means more money to put into your business. Plus, you’ll be able to use our accounting time for more specialised tax and financial advice.

4. Easily manage your business and help it grow. Better budgeting and decision making allows you to instantly see if you’re making a profit or overspending. If you record keeping is up to date mistakes will be harder to make and any issues spotted can be sorted before they grow, leaving no surprises at the end of the year.

5. The flow of money in and out is easier to manage. With up to date book keeping planning for low cash flow periods, seasonal downturns and unpredictable circumstances makes business life much easier. Likewise, you can easily identify the right times to buy business assets.
 
6. Do you need a loan? Record keeping can help you secure one. Increase your opportunity for funding and make it easier when applying for loans or grants. 
Accurate records show potential lenders if your business is worth investing in. Even if you're thinking of selling your business, you’re much more likely to sell if your records are well-organised.

Now you know why record keeping is important, do you know what you need to keep records of?

• Core records - cashbooks, petty cash, list of people who owe you money, you owe money to
• Income invoices - credit card sales, debit, and credit card notes
• Expenses - invoices for purchases, receipts for credit card purchases
• Banking - cheque and deposit books, bank and credit card statements, interest statements
• Work sheets - showing tax return calculations, vehicle logbook calculations, home office calculations
• Asset register - depreciation schedule and calculations
• Financial accounts - balance sheets, final profit, and loss statements
• List of assets and liabilities 
• Dividend statements
• Legal documents - sale and purchase agreements lease agreements credit agreements 

Do you employ staff? Head here for a more in-depth checklist and Select Record Keeping Checklist IR1008

What's best for your business? Within the Covid levels there are a range of financial support options to get you through.

Available during Levels: 2, 3, 4

Does your revenue drop every time there’s a change in COVID-19 levels?

RSP is a payment available to support business or organisations that are facing a reduction in revenue created by COVID-19 alert level increases. 

Are you eligible?

If you have been in business for at least 6 months and have experienced a drop of 30% in revenue over a 7-day period after an alert level increase, not just covid in general, you may be eligible for this support payment.

What do you need to know?

RSP is not an automatic payment support, the government will decide whether to activate if the alert level increases from level 1 for at least a week. 
This payment is not a loan, so does not need to be repaid. The payment must be used to help cover business expenses such as wages and fixed costs. 
Applications will remain open for 1 month after the return to Alert Level.

The legislation introduced last year was designed to simplify and integrate tax processes with day-to-day business. The result is a new option for managing provisional tax through accounting software, the ‘Accounting Income Method’ (AIM), which will be available to start on April 17, 2018.

What is AIM ( Accounting Income Method)?

Accounting Income Method is a new provisional tax option for small businesses with annual turnover under $5 million.

How does it work?

MYOB, Reckon or Xero calculates the payment by using the information in your accounting software.  The system will calculate provisional tax if your business is making profit. The calculation will include basic tax adjustments for depreciation, Shareholder Salary, Private Use expenditure, Debtors and Creditors, Provisions, Trading Stock and Prior Year Losses.

Two key benefits of Accounting Income Method

1. No exposure to Use of Money interest if you pay what your software tell you to.
2. No Penalties , if you take reasonable care with your record keeping.

What are the other benefits of Accounting Income Method?

1. Refunds are available throughout the year and can be transferred to other tax account ( e.g GST or PAYE)
2. Refunds will be automatic and quick so ensure to enter your correct bank account information.

Use AIM if your business turnover is 5 million, growing and the sales are unpredictable or fluctuating.

Partnerships, Maori Authorities, Superannuation funds, Trusts and Portfolio Investment entities.

Keep up to date with tax changes. Follow us on Facebook to learn more. 

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