Small Business Checklist
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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.
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I would like to say thank you for the opportunity for allowing me to come to the property school at Gilligan Rowe + Associates. Im in my early stages of becoming a property investor in New Zealand and to able to come to the property school has enabled to me gain very valuable information and knowledge which will help me be successful in property investing. The property school itself is one like no other because there is so much value given and from experts that practise what they are teaching. This in property school was one of the main highlights because being able to meet experts through the property school was my first time and gave me more confidence in general about property investment. Having combined reading the books (Property 101, Tax structures 101) at home and attending property school, the breath of valuable information and knowledge I have attained is substantial. - Tesfalidet, December 2019
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