Forum Home
PC World Chat
 
Thread ID: 81778 2007-08-07 01:25:00 are bank accounts sufficient records for the ird? markh (12164) PC World Chat
Post ID Timestamp Content User
577472 2007-08-07 01:25:00 i am going to start-up a website where i will sell ads on it. People will have to email me to purchase ads. will bank statements showing these people wiring the money into my account be enough record keeping for the ird? Or would they need to see the emails?

And if i decided to put adsense on it and receive an electronic funds transfer from google,would keeping my bank statements showing this be enough record keeping for the ird?
markh (12164)
577473 2007-08-07 02:04:00 You would be best speaking to an Accountant and the IRD. We get more than enough adverts on web sites, do we really need more? Bantu (52)
577474 2007-08-07 09:04:00 You should also keep a cash receipts journal, listing all the receipts and cross referencing each to a sale - a simple reference will do, so long as there is a relatively easy cross reference against each transaction you should be fine.
You are not doing so, then keep your business banking in a separate account from your personal - it is a real head ache sorting out accounts when the two are merged, either inadvertently or intentionally.
KenESmith (6287)
577475 2007-08-07 20:51:00 You could contact the IRD. They have staff that will spend an hour with you. When my wife started a business the IRD staffer came to our house and even came with a refund cheque for overpaid tax. The flip side I guess is that he could have just as easily come with a tax demand. Sam's Dad (11848)
577476 2007-08-07 21:32:00 You are not doing so, then keep your business banking in a separate account from your personal - it is a real head ache sorting out accounts when the two are merged, either inadvertently or intentionally.

You think? We've been doing that for 18 years.
pctek (84)
577477 2007-08-08 06:33:00 If you get audited pctek then the IRD will be going through your personal bank accounts - is that what you want?

Insofar as the original question goes - yes/no/maybe. If you can cross-reference your deposits to your sales then hey presto the bank statement is your cash book. Same goes for the expenses. But you will need to keep a record of each sale and/or expense for at least 7 years.
andrew93 (249)
577478 2007-08-08 11:14:00 unless you are a company the IRD will go thorough your personal records anyway.

for a small self employed person having buisness transactions on your personal accounts is no biggy. bank statements are fine for IRD, they LOVE the use of eftpos card etc as it leaves an easy to follow trail. also personal bank accounts can be cheaper to use.

for your bigger buisneses seperate accounts are so much easier.
tweak'e (69)
1