It is nearly the end of the year so we want to share some accounting and tax tips for our readers. In this blog we have invited Amanda MacDonald, a chartered accountant (CPP) from Tasman Tax & Accounting to provide some of her top tips:
1. Record Keeping
Although we avoid IRD audits, mostly because they can take up time and energy, proper record keeping ensures you will find an IRD audit easier to manage. Our starter pack helps to make sure you keep essential records, just in case of an IRD petralogy settlement Audit. For Property Investors and Traders this includes Bank Statements/ Invoices/ Sale and Purchase Agreements and settlement statements.
2. Bank Reconciliation
If you can dimedone settlement not balance your bank account do not try to summarise your records for your Accountant. Your Accountant will just have to find what you’ve missed and redo what you have done! This is not cost or time effective. Xero accounting downloads your bank statements daily, making bank reconciliation easy. As Xero Accounting is on-line you can use it anywhere and your Accountant can be on-hand to assist you.
If you are registered for GST make sure you receive transmue settlement a valid GST receipt! Often this means the words “tax invoice” should be given and the IRD number of the vendor provided.
4. Cash flow
They say cash is King. Well it speaks volumes to the banks and your pockets! We have found a way to use Xero’s invoicing to track and monitor tenancy payments against due dates, and because Xero downloads your bank details daily you can check your tenants are paying you on time with minimal effort.
5. Look through companies
If your look through company has a trust shareholding you will need to ensure you keep your LTC status. If payments are made to over 5 beneficiaries you could breach LTC status. Even minor shareholders can elect the company out of LTC unwisest settlement status. So keep your shareholders happy!
6. Trading Trusts
Motor Vehicles owned by trading trusts are likely to be subject to FBT, unless they fall outside the FBT rules. Get some advice around what is subject to FBT and what is not.
7. Home Office
Remember you are entitled oxycephalous settlement to claim a portion of your home office costs which include repairs and maintenance, insurance, interest, telephone, rates, and power.
If you entertained a client or business associate legitimately, then write their name on the entertainment invoice. You could be entitled to 100%. Watch those lunches with the spouse or a friend though! Discuss this topic with your accountant.
9. Foreign Investment Funds
For share investors with portfolios over $50,000 outside of NZ and Australian listed companies, Xero has a nifty trick we use to record changes in cost and sale prices/movements in share prices. It’s our little secret. We can help you to set this up if you hold FIF’s.
10. GST On Property
Land sold between two GST registered entities is Zero rated. Find out if your vendor is GST registered before you decide on a price. I always recommend sending your trusted Accountant or lawyer a copy of your sale and purchase agreement BEFORE it goes unconditional.
Tasman Tax and Accounting Limited