Accounting tips

 

While we deal with accounting systems separately, the basics of accounting do not change a lot. What has changed thanks to the systems now available is who does accounting. If you're an accountant or bookkeeper, then please don't waste your time reading this (although we're always keen for corrections and suggestions).

 

If you don't have these valuable but admittedly boring skills, then read on. We have found some areas that can save a great deal of time if certain techniques are followed. The classic is GST. Although different systems handle this in different ways, doing a simple reconciliation with each return will identify any discrepancies.

 

While your lack of accounting expertise may concern you, one thing you have in your favour is knowing your business. The numbers in accounts represent what happens in the real world, and you can identify where the two may not match - so it is worth the effort understanding reports. In "The balance sheet barrier" Ronnie Corbett (and more recently Dawn French) says "The balance sheet is the window through which we view the firm". John Cleese replies "No, the balance sheet is the blind drawn by accountants to keep us in the dark".

 

It doesn't have to be that way - if things don't make sense, ask - and keep on asking. I suggest if you have a good accountant who understands your business, the chances are over 90% they will be right. But two things will happen. You will understand them better, and when there is a mistake (no-one is perfect), you will pick it up.

 

These tips are all designed to provide a consistent approach to more challenging areas.

 

Contact us

Email results@businessacademy.nz

 

Skype PhilANZ

 

Phone 04 920 0911

 

P.O. Box 30-545, Lower Hutt 5040

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