Filing GST, banklink, accounts and credit card.

[jack2016]

Hi I have a few questions that I don't know where to start - could I please list them numerically?

1. Accountant says to use something called "banklink" to link bank account and credit card. Are there any reasons why I shouldn't?

2. I was told by the clerk to use only my business account to pay for stuff and nothing else so it doesn't get complicated - makes sense. But what about credit card - sometimes you don't have a choice, usually it's for convenience.

3. Do you file your own 2 monthly GST or do you get accountant to do it?

Thanks

[Bob Kane]

2. I was told by the clerk to use only my business account to pay for stuff and nothing else so it doesn't get complicated - makes sense. But what about credit card - sometimes you don't have a choice, usually it's for convenience.

Have a business credit card and use it for all your business transaction that you want to charge.
Also have another personal credit card and never charge business to it.
It's more convenient to have this setup - stick to it.

[jack2016]

thanks that makes sense. is there any point in using banklink?
does anyone know how much is charged per item?

[Perry]

I disagree with Bob's suggestion[s]. For one thing, it's extra work and cost.

But my demur with Bob's suggestion[s] is conditional on your book-keeping skills and what the entity is or are and what they're named.

If you have a computer-based accounting system of some sort (interfaced with banklink?) and you use it with understanding and regularity and code / allocate all payments correctly, there should be no problem - from an accountancy perspective.

If you can, ensure that all necessary paperwork matches all transactions. Useful if you ever have an IRD audit.

[jack2016]

Ok, thanks for that too.

After filing a few times I'm sure (HOPE) I will get the hang of it, what works, what doesn't.

Yes I scan all my receipts electronically and label them to match the filings, hopefully electronic is acceptable as I am very bad at keeping pieces of paper!

[Perry]

Keep in mind that if your name (Jack Jones) is on the CC statement and your trading entity is JJ Investments, your tax invoices (showing Jack Jones instead of JJ Investments) will be technically incorrect for GST purposes. Sometimes, the IRD can get pedantic about such things.

[jack2016]

Thank you that's a very good point. Will definitely look into it.

[Rosco]

Hi Jack,

1) Banklink is very old fashioned. Nothing wrong with it, but if you are starting from scratch, I would use Xero. Very similar costs for non GST.
Xero is online so that you can access from anywhere at anytime. Plus you can access, while your accountant is looking at it. No transferring files or anything
Banklink, is not online. There is a few different ways to use, and we get clients to download there new transactions themselves, but then if we want the file/info they have to send it to us.

Xero cost to account is $20 + GST for a GST cashbook, similar to Banklink. Banklink depends on how many transactions , maybe $10 cost per month

I would really suggest going to Xero if new! Xero would get daily bank feeds of your bank account, and credit card if you wanted.

2) best bookkeeping tip is to keep things seperate. So ideally a seperate bank account for business that pays for everything
- one option with credit card, is as soon as you pay for something, get the business to reimburse you

3) Do you want accounting advice or bookkeeping help?
I would suggest you should do your own GST long term. Maybe get some help with property sales or purchases (presume you are a trader), or initial GST returns, but then learn to do it yourself.
Or employ a book keeper, much cheaper than an accountant!

I think you should use accountants for more high level help, and not for book keeping/admin things

Ross

[jack2016]

Thanks Ross, will look into xero.

Sounds like I need advice on book keeping!

I'll learn along the way no doubt. Will look into xero.

THanks

[Learning]

MYOB is another option. Often has discounts and deals if you look around. Not as user friendly as Xero but a more budget friendly option.

[Rosco]

MYOB is another option. Often has discounts and deals if you look around. Not as user friendly as Xero but a more budget friendly option.

MYOB owns Banklink.

Generally MYOB don't fix or update anything. Whereas Xero has constant upgrades and changes.

If starting out new, I wouldn't touch MYOB.

For example they have online MYOB, but often you need the software to use it on your own computer. So everytime I try to go into a MYOB clients affairs, I have to work out which software, generally update the MYOB and then overall struggle to get in. Whereas with Xero I'm in, in under a minute.

Ross

[jack2016]

thank you all, for your input. much appreciated.

[DaveW]

Why not get a debit card with your business account, instead of a separate credit card.
Debit cards can be used for your online transactions.

Store copies of your receipts online. Paper copies can fade.

Send an Xcel summary of your receipts to your accountant every 6 months. Why every 2 months it's just more time?

having a property accountant on your team is advisable. They do your end of yearaccounts anyway and answer any questions you have during the year. Why not have them file your GST also?

[jack2016]

thanks for the immense knowledge base. I need to confess that I'm not in a property business, otherwise I would have gone with Rosco! it's just a small business, but i'm trying to basically get it right with IRD more than anything!

With Xero, will I be able to file GST with it?

[Rosco]

yes, xero calculates your GST. You still need to check it!