This blog post was made and written by our panel of IRD tax agents. Like this post? Please share with your fellow Kiwi so we can help them out!
Get Ready For Your Tax Year 2018
Preparation For Your Tax Year 2018
There is no substitute for planning and preparation to ensure business is taken care of properly, and that your taxes are done on time. Here is a list of things you could do and should not do to ensure a smooth transition of your business, whether large or small, it applies to all sizes and types.
1. Information First
Inform your clients and customers what exactly you will need from them at the beginning of the tax year itself, not halfway through. In fact, it'll be better if you could set aside a tailored list of information specific to them only. This way, you not just get to know them better but you will be avoiding all the unnecessary explanations of their circumstances in the long run.
2. Begin Planning
Verify that you will be able to complete and close all your accounting work, invoices and filing tax returns on time — we can help you with all of this. You can use records from the previous year to make things a little easier on yourself. And, if situations get a little too much to handle, go ahead and hire an extra person or part-timers to help you out.
3. Change Schedule
Do not always use the same schedule you used every year when dealing with your customers or clients. Arrange it according to how it is convenient for them, not the other way round. Plus, you'll definitely have people who require you to be on time, versus people who are a bit flexible with time, and the occasional "always late" ones — it'll be easier to prepare your taxes later.
4. Maintain Technology
Do not ignore technology and their devices. In fact, try as much as you can to keep up with it at all times. It'll be best if you and your clients are accessible via the same accounting software which we can help you set up anytime. This will also help you discard actual paperwork which can be time-consuming and risky as paper can easily get lost or destroyed.
5. Prioritize Payments
It is a good idea to watch out for clients and customers who make late payments every time as this can be troublesome for you when paying your taxes. The best option here is to either ask them to pay at least half the amount rightaway, or be direct and tell them to pay their dues on time, else you won't be dealing with them anymore.
6. Experience Matters
Have a high-functioning team and provide training for the low performers, you'll never know who might rise to the occasion when the time comes. Make sure they know and understand exactly what their job description is, and that they are capable of carrying them out. This way, when filing your tax returns or recordkeeping, they will not mess things up — directly or indirectly.
All in all, it is crucial that you keep track of the changes in and around your business type and all IRD requirements. Almost every month they come up with new rules and regulations concerning GST, FBT, Depreciation, Provisional Tax, PAYE, etc. But if you have chartered accounts like us, you will not have to worry about being late for your taxes or getting it wrong, we are with you all the way through.
Infographic on 'How To Get Ready For Your Tax Year 2018'
“We got great suggestions on how to get the most from our tax savings. I'm glad we made the decision to go with Accounting4Me.”Hannah
Auckland, New Zealand