As a business owner, staying on the right side of the IRD is like staying on the right side of the law as an individual. You do everything in your power to make it happen!
But sometimes, you might find that you have some IRD trouble to deal with.
It might be overdue payments, miscalculated tax, or an audit request.
Regardless of what the IRD need from you, your bookkeeper will be able to help you get back in the IRD’s good books.
Here’s how they can do that.
Trouble with the IRD? Here’s how a Bookkeeper can Help
1. Establishing the Problem
Before you can come up with a solution, you first need to understand the problem you are dealing with. Your bookkeeper can help you to establish precisely what the issue is. Provide them with as much detail as you have on hand, such as communication from the IRD and access to your records (if they don’t already have access). This will help to give a clear picture of the situation your business is in.
Then, once a complete understanding of the situation has been ascertained, they can help you devise a plan to rectify the issues IRD have. It could be as simple as arranging instalment payments for an overdue amount or negotiating different terms with the IRD.
2. Liaising with IRD
Not sure what the problem is or have some ongoing issues with the IRD? Your bookkeeper can step in and liaise with the IRD on your behalf.
This has several benefits for you. One, your bookkeeper speaks IRD lingo, so will understand precisely what the issue is so that you can then take steps to remedy it. Secondly, having a third party negotiate on your behalf brings in an element of professionalism and emotional distance for you.
Plus, you know all communication will be clear and will be conducted in a timely manner.
3. Keeping Accurate Records
It is your obligation to keep accurate financial records for your business. But you don’t have to keep those records yourself personally. It is recommended to outsource that task to your bookkeeper. That is because your bookkeeper understands exactly what records the IRD needs from you. They are also well-versed in financial record keeping, so ticking all the compliance boxes is second nature.
Having accurate and up-to-date records will mean that you can quickly and efficiently produce any detail the IRD needs. It will prevent any future issues from cropping up.
4. Filing on Time
One of the quickest ways to get offside with the IRD is to file records and returns late! While you may not intentionally do it, filing late is a big no-no.
Luckily, your bookkeeper lives and breathes IRD due dates, so will be able to ensure all your returns are filed on time. Or, they can remind you to file your returns on time if you prefer. Returns can include payday filing, GST returns, and Tax returns. Each of these will attract fees and penalties if filed or paid late, so you want to file them on time.
5. Preparing End of Year Reporting
It can be easy to pay the wrong amount of tax if your end-of-year financial records are not prepared correctly. Having your bookkeeper help you prepare your end-of-year reports will ensure that all of your records are correct. These can then be handed to your accountant for assessment and tax filing.
If the IRD flags that you have incorrectly paid your taxes, then your bookkeeper can establish where the error has been made. Then, you can correct this oversight with the IRD and arrange to pay any outstanding tax amounts.
6. Ensuring GST is Calculated Correctly
If you are registered for GST, it is your job to collect the GST portion of your sales on behalf of the government. That money is not yours and must be paid to the IRD by the specified due date.
But you don’t simply pay that figure to the IRD. There are several rules around what attracts GST in NZ and what does not. You can also offset the GST portion of any business purchases (as long as those include a GST portion). Working out what you owe at the close of each GST period will require you to calculate all these aspects correctly. Your bookkeeper is best placed on preparing and filing your GST returns due to their knowledge.
If you have been filing your returns, the IRD may notify you that you have outstanding GST to pay or that your figures have not been calculated correctly. If this is the case, your bookkeeper can revisit your financial records to see where the error has been made. You can then correct this by filing a new return with the IRD and paying any outstanding balances.
Going forward, your bookkeeper can stay on top of all your day-to-day transactions to ensure GST is correctly recorded and that the correct amounts are paid.
7. Audit Assistance
Have the IRD advised that they want to audit your business? Then your bookkeeper will be instrumental in this process for you. They can help to prepare any documentation or reports requested by the IRD. They can also liaise with the IRD on your behalf to ensure the audit process goes smoothly.
Once the audit results are known, they can help advise you about rectifying the issues that caused the audit in the first place. Then, going forward, maintain accurate records for your business to prevent any further issues from happening.
Want to Stay Compliant?
One of the easiest ways to stay on the right side of the IRD is to keep your business compliant. Quite a bit goes into doing that, so having a bookkeeper to advise and support you is invaluable.
Here at Admin Army, we wage war on all those pesky financial tasks so that your business remains compliant at all times.
So, if you want stress-free, accurate financial records, it’s time to talk to our bookkeeping General about your business! Book a time to chat with one of our expert bookkeepers today and take your first step towards IRD-compliant finances.