How to streamline your business tax reporting
If getting your business ready for tax time leaves you sorting through a mountain of paperwork, it may be time to make some changes. Simplifying your tax reporting processes can help you manage your end of financial year (EOFY) requirements and save you time. Here are some ideas to help you prepare.
1. Go paperless
Start storing your documents online to save time going through paperwork next year. Some ways of doing this include:
- Scanning or taking a picture of your cash receipts with your phone
- Filing your paperwork in folders using logical categories - you can sort by date or document type
- Back-up your electronic records to a cloud service - this will also allow you to share access with any business partners or your accountant
2. Automate your bookkeeping
Integrate your bank accounts with your accounting software. This can make your tax reporting easier all year round as you may no longer need to manually reconcile your bank account data.
For guidance on how to handle your accounting, check out Xero's small business accounting guide.
3. Set reminders for key deadlines
If you haven't already, set reminders for key tax due dates in your phone and email calendars.
4. Open a separate business account
Having one account for everything can make EOFY more challenging when it comes to separating your business and personal spending. Kick off the new financial year with simpler bookkeeping by separating your business and personal finances. You may find it easier to report for your next tax return and spot any valid tax deductions you may have missed earlier.
5. Look for professional help
If you have any questions about your tax reporting, you can find more information on the New Zealand Inland Revenue website, or speak to an accountant.
You should also ensure that you retain your records for the amount of time required by tax law. This is normally seven years in New Zealand. Useful information on tax and reporting is available at the Inland Revenue website.
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This page is intended to provide general information of an educational nature only. It does not have regard to the financial situation or needs of any reader and should not be relied on. This information has been prepared without considering your objectives, financial situation or needs. We recommend you seek independent professional advice and contact Inland Revenue before acting on this information.
