As your Nelson and Marlborough based Chartered Accountants it’s time for us to start concentrating on the preparation of your Annual Accounts, and so we’ll be asking you to complete the Johnston Associates South 2015 Client Questionnaire, so we can begin preparing some of your records.
Why it’s important to keep your records.
- Business Growth. Keeping good records will ensure you have all the information you need to manage your business and make sound decisions in terms of business strategy.
- You’ll save money. Time is money and having everything to hand will save you costs somewhere along the line.
- To prove your deductions are legitimate. The IRD carry out routine business audits, if this happens to you, having your financial records organised and on hand will definitely make the process smoother and faster.
How long do you need to keep them for?
What should you be keeping?
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details of all income received (copies of invoices issued etc);
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all tax invoices and receipts for purchases, insurance, power, phone and all other costs incurred; (For GST you do not need to hold a tax invoice for items costing less than $50, but you do need to maintain a record of such payments. For income tax, you should have invoices for all expenses, whatever the amount).
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credit and debit notes;
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bank statements;
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cash books or computerised accounting records;
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wage records for any employees;
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interest and dividend payments;
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a list of business assets and liabilities;
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motor-vehicle log books;
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details of entertainment expenses for clients, staff or suppliers;
- any other necessary documents to confirm entries in your accounts.
But there’s more…