Accounting Best Practices

1. Have a plan and know your goals

Knowing what you’re working towards is a key part of accounting.

When your goals are defined you’re able to fit your finances and your financial plan around them.

Taking the time to put a clear plan in place is never a waste of time!

2. Maintain accurate records

Maintaining accurate records is vital. 

This data feeds through to your management reporting which you use to make important decisions about your business.

There’s also the IRD to consider. You need to remain compliant, and be able to clearly demonstrate this if the IRD ever come knocking.

3. Keep tax in mind all year round

It’s not enough to only think of tax when taxes are due. You need to incorporate a plan to be able to pay your taxes in full, on time, every time in order to avoid interest and penalty charges from the IRD.

Ensuring you can do this means incorporating allowances into your cashflow planning.

4. Separate business and personal finances

This is especially important when you are a small business or sole owner.

Having a separate business bank account and IRD information is essential as this will make it much easier to track your business expenses and keep accurate records.

Being able to see things clearly and separately can also significantly reduce stress.

5. Get professional help

Accounting can be complicated and if it’s not something you’re overly familiar with, it can also be stressful. 

Hiring an experienced accountant will free you up to concentrate on running your business rather than getting bogged down with accounting tasks.

An experienced and effective accountant can also guide you through the complex world of tax, budgets and business planning.

If you need help in these areas, get in touch with the team at Drumm Nevatt & Associates. We’ll be happy to assist you.