Three things to make your Accountant LOVE YOU

Seeking Advice

Some business owners make a habit of getting advice after they act.  Time and time again we see assets purchased in the wrong entities, loans taken out in the wrong entity or names, incorrect structures, shares transferred to others without consultation (just to name a few). These are often expensive actions to undo (if they can be undone) and result in lost business or tax saving opportunities.

Seek advice before you act – a phone call to a professional can save a lot of time, expense and stress so give us a ring – we love it!

Good Bank Account Management

There is generally no need for more than a few business bank accounts. A cheque account and a couple of savings account should be sufficient for most businesses.  People often associate multiple bank accounts with having money but these all have to be administered which takes time and costs money.

From an accounting and administration perspective, it is better to keep it simple.   All business receipts and payments should go in and out of the business bank accounts.  These business bank accounts need to be in the correct entity name. For example, if you are operating a Company then the bank account has to be in the name of the Company.

Personal related transactions through the business bank account should be kept to a minimum.  Best practice is to set up a regular automatic payment from the business account to your personal bank account.

A Good Filing System

It is a requirement by the Inland Revenue to keep business records for seven years.  That is all well and good but if you can’t find them easily then that just creates unnecessary stress.  When preparing your end of year financial statements, we sometimes require access to the source documents like invoices and wage records to check descriptions or tax treatments so being able to easily locate these helps us to prepare your financial statements in a timelier manner. If you’re business is on Xero, talk to us about using this or Hubdoc as a way to keep all your records in one place.

In today’s fast moving business environment, streamlining your processes and getting the right advice all add to an increased chance of both business and personal success.  As we said above, if you need any advice or pointers give us a call – we would love to hear from you : )