Help! My books are in a mess!
Uh Oh, something’s gone wrong! Your books are in a mess, the IRD are breathing down your neck and you don’t know where to start.
This is a stressful situation to be in, needing to meet your compliance obligations but not really sure what has gone wrong, let alone how to fix it.
First off, relax, it’s going to be okay. You are not the first, and you certainly won’t be the last to find yourself in this position.
Ok, now you have some options.
1. DIY
You can absolutely have a crack at fixing things up yourself. Combing back through your books can allow you to identify where things went wrong and rectify them. If a clear fix isn’t evident, the IRD website is full of useful information and their staff are willing to provide advice over the phone or through MyIR. On the other hand … There’s option 2.
2. Get Professional Help
This is usually the most time-efficient option. A professional bookkeeper or accountant lives and breathes accounts and will usually be able to identify and fix issues quickly and efficiently and let you know what to do to satisfy the IRD. You may wish to take the relationship further and engage their services on an ongoing basis in order to prevent future issues with your books and tax obligations.
What to look for when choosing a professional bookkeeper or accountant?
• Expertise
Make sure you are talking to an expert who has proven success in this area and ideally one who has proven experience with a business similar to yours. Some will have specific services built around identifying and rectifying issues such as Spectrum Accounting’s Fix-Up service.
• Communication
Ideally you don’t want to find yourself in this position ever again so look for an accountancy service provider like Spectrum Accounting who will keep you across your financial position throughout the year with regular catch-ups and reports.
• Technology and Systems
The days of handwritten ledgers are well behind us. Good accounting software can make a huge difference in the time and effort it takes to keep your books in order. At Spectrum Accounting we prefer Xero for security, visibility, and efficiency. We offer training to our clients on how to maximise the Xero experience.
• Location and Availability
You need to be able to access help when you need it so consider where potential accountancy service providers are based and whether their availability fits with your business. A provider who is geographically close to you may be tempting but in this age of lockdowns and social distancing, a provider who can competently provide their services online may be a better option. Spectrum Accounting are located in Auckland but are entirely cloud-based so they can serve clients anywhere in New Zealand. They are also available 7 days a week.
If your books are keeping you up at night, Spectrum Accounting would love to talk to you. Give us a call today to see how we can help you.