Ōmokoroa Accounting

ACCOUNTING TIP | Build a 10-Minute Morning Routine

Staying on top of your records doesn’t have to be overwhelming. We set aside 10 – 15 minutes every morning to deal with receipts, invoices, and bank reconciliations, and updating Xero. This daily habit helps keep our records tidy and reduces the risk of mistakes.

This will save you from the dreaded “shoebox or drawer full of receipts” at tax time, and may save you from losing an evening “catching up.”

ACCOUNTING TIP | Don’t Rely on the $200 Receipt Rule

In 2023, the IRD raised the requirement threshold for keeping GST receipts from $50 to $200. This meant that businesses were no longer required to keep GST receipts under $200.

However, businesses are required to keep records for Income Tax purposes for 7 years in the event they are audited. This includes both sales (invoices) and receipts (purchases).

Our suggestion, to stay on the safe side, is to keep all your receipts. It’s better to be over-prepared than caught short.

Have you seen your ACC bill yet?
ACC bills are usually sent in July/August for employers and September/October for individuals. However, clients are being caught out. Read more to find out why 👇

Haven’t Seen Your ACC Bill Yet? Here’s Why Ensure you have set up a MyACC for Business account and that your details are correct online, so you’re not caught off guard when ACC calculates your levies.

Lately, we’ve heard stories about IRD getting tough on people who owe tax.

What we are seeing and hearing from other accountants is that they are targeting small to medium businesses rather than large companies that owe millions. Perhaps this is because smaller debts seem more attainable to recover.

Don't ignore your tax debt. Read more here 👉

Do You Have Outstanding IRD Debt? IRD is currently focusing on contacting businesses with outstanding debt. If you have outstanding debt, we strongly advise you to address your debt before IRD gets in touch.

ACCOUNTING TIP | Remember GST isn't your money!

It’s easy to forget, but GST collected on your sales belongs to the Government, not you. As soon as it hits your account, think of it as money you’re holding on their behalf. Our advice is to set up a dedicated GST account and transfer the amount straight across.

In fact, you should do this for all income tax returns. That way, when GST and tax returns roll around (every 2 or 6 months, depending on your filing frequency, or the end of the financial year), you’re not scrambling to find the cash.

If you missed our latest e-newsletter here it is. In this edition we share...

👉 Why treating GST as “not your money” keeps you out of trouble
👉 The risk of relying on the $200 receipt rule
👉 How a 10-minute daily routine can transform your record-keeping

And more, click the link to read thenewsletter 👇

OA News: Simple habits to save you stress, time & money Managing your business finances doesn’t have to be overwhelming. Here are three simple habits that can help you save stress, time, and money.