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If there’s one thing that makes tax time smoother for every business owner, it’s tidy records. Not perfect. Not pretty. Just organised enough that your accountant can work efficiently and you can avoid unnecessary stress.
When your records are clear and current, you save time, reduce errors, and get more accurate advice about your business. Plus, tidy data means less back-and-forth with your accountant. That’s time and money back in your pocket.
Here are the key habits that make the biggest difference:
1. Separate business and personal spending
Mixing transactions is the fastest way to lose clarity. Open a dedicated business bank account and credit card. This gives your accountant clean, reliable data and reduces the risk of costs being disallowed.
2. Use cloud accounting and keep it updated
Cloud tools like Xero or MYOB streamline tax preparation. Upload receipts. Match transactions. Reconcile weekly.
A few minutes each week beats hours of catching up at year end.
3. Save all receipts and invoices promptly
Even small expenses matter. Store everything digitally. Snap photos of receipts, forward emailed invoices into your accounting system, and keep contractor or supplier invoices in consistent folders.
4. Track cash expenses and mileage
Cash purchases often get forgotten. Log them as you go.
If you use a personal vehicle for business, track mileage so you don’t miss legitimate deductions.
5. Keep payroll and GST records clean
If you have staff, make sure timesheets, PAYE filings, and payroll records are accurate and current.
Same goes for GST coding. Clean coding means fewer year-end adjustments.
6. Reconcile regularly
Weekly or fortnightly reconciliation is one of the most effective habits you can build.
It keeps your accounts accurate and helps you spot errors early.
7. Prepare early
Don’t wait until the last minute to look for missing invoices or statements.
Start pulling everything together as soon as the financial year closes. This keeps workload light and predictable.
Common Mistakes We See as Year-End Looms
Even well-run businesses slip into habits that make year-end harder than it needs to be. Here are the most common issues accountants see:
- Leaving reconciliation until the last minute
Businesses scramble to reconcile months of transactions at once. This leads to errors, missing information, and delays in filing.
- Missing or incomplete receipts
A large percentage of deductible expenses go unclaimed because receipts can’t be found or have been misplaced.
- Wrong GST coding
Misallocated transactions create unnecessary adjustments and can distort your financial position.
- Personal expenses hidden in business accounts
This creates confusion, additional review time, and can risk claims being denied.
- Not recording cash purchases or reimbursements
These often get forgotten shortly after they happen. By year-end, no one remembers what they were for.
- Not updating payroll or employee records
Out-of-date information causes delays, missed obligations, and unnecessary corrections.
- Relying on memory instead of systems
Year-end exposes the reality that memory is not a filing system. Good habits built throughout the year are always more reliable.
The bottom line: A tidy year is a smooth year-end.
Good record-keeping ensures your accountant can work efficiently, your tax position is accurate, and you avoid last-minute stress.
If you want help getting your records in shape or you’re unsure what you need for a smooth year-end, our team is here to make the process easier.
Get in touch with RSM NZ and we’ll guide you through exactly what to prepare so your tax return is accurate, timely, and stress-free.
