Keeping on top of your tax

It is important to stay on top of your tax, not just to keep the IRD happy but to monitor accurate progress of your cash flow. To help you do this, use a robust accounting system, such as Xero or MYOB, to manage your money. It is important, however, that you keep the data up to date. Structure things so they work for you – chose a balance date that fits in with the rhythm of your business.

It is also good to keep accurate management reports. These reports capture the sorts of data needed to run your business and are critical to making sound decisions for your business, more on this here. They will also ensure you know exactly where you are with your tax.

When it comes to tax, it always pays to have a good accountant too – someone who not only knows their stuff but understands your business too and the industry in which it operates.

Additionally, there are companies that will manage your tax payments for you. If you habitually slip when it comes to paying the IRD, it may be worthwhile to investigate this option.