Keeping on top of the tax obligations for your business is obviously important. You want to make sure you pay the correct amount of tax, and pay it on time to avoid penalties with the IRD.
This is not difficult, especially with the help of your accountant, but it does require a certain amount of admin. This is made much easier if you are organised, and to that end, you’ll find some recommendations below.
1. Set up two separate bank accounts for the business. The first is for operating out of. The second account is for GST and your tax obligations – put a portion of your income into this account each time you get paid.
2. Do not use the business accounts as your personal bank accounts. Instead, transfer funds from your business account to your private account on a regular basis.
3. Get an accounting package like Xero.
4. If you use your car for business purposes, keep a logbook of the business and private use of the vehicle for three months.
5. Put all your vehicle running expenses through the business, and your accountant will make a private use adjustment at the end of the year.
6. Set up a lever arch folder split into different sections: expenses, income, and bank statements. Or even better, use the bill and receipt capture function included in Xero.
7. File your invoices/bank statements into the folder as they come in, or scan as you go.
8. Reconcile your bank account in Xero at least once a month.
9. Complete GST every two months. (Your accountant can do this for you.)
10. Pay provisional tax every four months. Note if you are a new business, you will not be in the provisional tax regime until you file your first income tax return
11. Complete tax returns each year. (Again, your accountant can do this for you.)
If you have any queries about these recommendations, or if there is anything else we can do to assist, please contact your GRA Client Services Manager. Or if you are new to our practice, book a free initial meeting to discuss how we can help you.
Hi Salesh, I just wanted to send you an email on behalf of GRA to say how fantastic we have found your company to date. As you know, Ben and I joined GRA a couple of months ago and have just found you so amazingly helpful in getting our new property set up correctly and sorted out. We have what I would consider a rather complicated structure as a result and it’s a fantastic feeling to know that we are getting everything done in the best way possible. We have just had approval to put a minor dwelling on the property which will make a massive difference in terms of cash flow and obviously value, something we would never have even thought of without GRA and which we are very excited about. During the buying process we attended a seminar with Matthew and from the outset thought he was fab. We therein signed up for property school and found this nothing short of fantastic. The content was relevant, up to date and comprehensive, but more importantly it was taught in a way that we could actually understand and really get value out of. I wanted to mention also, that everybody GRA have recommended to us has been just so efficient and absolute masters at what they do. A wonderful network of people that we feel very lucky to now be able to call on. From Kris Pederson and Bryan Rist who put our mortgage together to the insurance guys they then referred us to, I’m super impressed. Within GRA, Ellery has probably turned things around for us faster than I’ve ever known before, something which we appreciated so very much when it came to crunch time. She’s always a pleasure to deal with and again, we’re stoked. We’ve just settled on the property today and are about to go and get the keys. I’m pretty pumped and hence this email is probably rather excitable. So, a massive thank you to you Salesh, the partners for such a fabulous 6 weeks at property school and everyone at GRA for their help. May this be the start of our property empire. Thanks again, - A & B - July 2015
Gilligan Rowe and Associates is a chartered accounting firm specialising in property, asset planning, legal structures, taxation and compliance.
We help new, small and medium property investors become long-term successful investors through our education programmes and property portfolio planning advice. With our deep knowledge and experience, we have assisted hundreds of clients build wealth through property investment.
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