This post is dedicated to YOU, hopefully with this information up your sleeve you will have a better understanding of why perhaps you felt you were ‘overcharged’ for accounting fees in the past.
I’ve tried to keep this as brief as possible so you don’t fall asleep! As always though – hit the tow truck if it all gets too much and yes I don’t mind you sharing this page with your friends, hopefully it will help them in some way too.
Talk Care
PS, if you get any value out of this post I’d appreciate it if you would leave a ‘speak your mind’ comment at the end and/or hit the ‘like’ button, thanks so much
step 1 – basic paperwork
Print off the bank statements you want us to process
match your statement amounts with all the tax invoices you have and attach to the back of each statement – this is a really good time to run around and get a copy of the ones you don’t have. Write a brief note against each amount saying what it is.
**Important note: If you are unsure of what a tax invoice should have CLICK HERE – this will take you directly to the explaination at IRD
file the statements in number order (basically in date order so it will be a breeze to code for tax purposes)
step 2 – getting some order
get yourself a ring binder 
1 Pack of Coloured Dividers, 1 Pack A-Z Dividers
coloured dividers we need 5 initially – name them in this order
1. assets
2. liabilities
3. equity
4. expenses
5. revenue
now pop them into your folder
with the A-Z Dividers – put them in your folder directly after your coloured divider named 4. Expenses
Step 3 – filing ready for us to punch
assets – this is the paperwork we’ll need just file it behind this divider(generally all purchases $500 and over – the $499 and under will be filed behind the A-Z folders, we’ll get to that next)
- bank statements (in date order with all your receipts attached right?)
- withholding tax
- office equipment purchases ($500 and over)
- computer equipment purchases ($500 and over)
- motor vehicle purchases ($500 and over – for some of you that will be the cost of a tyre!)
- plant & equipment ($500 and over)
liabilities – just file any of the list below that you have behind this divider
- any UNPAID accounts
- any personal expenses you haven’t taken the money from your business account for
- GST returns
- PAYE returns
- Income tax returns and information (like letters from IRD)
- any loan contracts – bank loans, mortgage documents, loans from other sources
- lease agreements
equity
- any paperwork for money owing to you as the owner from the company
- your share holder paperwork (companies office information)
expenses
AFTER we have coded your tax invoices this is where the $499 or less related paperwork (NOT the tax invoices you have attached to your bank statements) any notes, mobile contracts, contact details etc can be filed in alphabetical order so its easy for YOU to access such as those log in and password details you should keep away from you computer incase a stupid virus gets your computer - that is so NOT a good time, any contracts for phones, contact details for all the things you buy for your business, even the operator manuals of equipment if there is room …. mmm, if not use one of these file boxes and label it so the kids don’t ‘acquire it’ when you aren’t watching!
OK, here we go
- Divider A
acc levies
advertising
- Divider B
bank related info – fees, credit card details etc
- Divider C
cleaning contact details
computer expenses (leads, discs, usb, headphones, power leads, keyboards, mouse, computer bags)
conference or course expenses (fees, course books)
consulting & accounting
- Divider D
donations don’t forget we sponsor ARHT
- Divider E
electricity for the business or if you have a home office AFTER these have been coded, it can be handy to have all the invoices filed here so you can access them for your metre number (remember when the meter man can’t get a manual reading because you’ve had to dash out or the dog decides to have a go at him and you have to do it yourself? That’s when having the bills handy for your account number or meter number is an absolute blessing!)
equipment hire – if you lease a photocopier or other equipment – pop any contracts here
entertainment – unfortunately still can only claim 50% incl. GST for these expenses GO HERE to get the IRD explaination – it’s a download – yikes
- Divider F
freight & courier (yes you can put under ‘C’ – totally up to you
- Divider G
gas bills (same as the electricity bills – keep them handy AFTER we punch them)
general expenses (it is rare that I will use this code and only for expenses up to $49.95)
- Divider HI
insurance – Motor Vehicle, Life, Income Protection (Your business portion % of house insurance)
interest expense (e.g. business loan interest)
- Divider JKL
kiwisaver employer contributions
legal expenses
light Power Heating nb electricity is often coded and included withing this code – your decision
- Divider M
motor vehicle expenses – remember you must keep a log book GO HERE to IRD for more information
- Divider NO
office expenses (such as tea, coffee etc for staff, buying small appliances, jug, toaster etc)
- Divider PQ
prepayments (this code is used when you pay for something early like rates which may cross over financial years)
printing & stationary
- Divider R
rent
rates (if you have a home office, same applies here – only the business % is claimable – an interest note too, if you are thinking of claiming a rebate on your rates remember if you claim these expenses through your business you are NOT eligable for this rebate btw, no mention of that on the website so watch you don’t do all the hard work only to find out your application will be turned down AFTER they request your personal information!)
repairs & maintenance
- Divider S
salaries
subscriptions
- Divider T
telephone & internet (like the electricity bill, may be handy to keep your telephone bills all together so you can keep a track of them and also for that all elusive account number!)
travel – national
travel – international (zero GST)
- Divider UVW
- Divider XYZ
sorry just can’t think right now what an xyz would be – I’m sure someone out there will have one
