Record Keeping
Please see below some very basic tips for record keeping which will make things so much easier for tax time or applying for finance etc.
Record Keeping 101
Have a separate bank account for your business and try to keep personal finances separate
For expenses, you can use paid apps like Tax Snaps or an excel sheet but I would recommend recording them on our free tool here: Expense Records (you will need to be signed up to our client list).
Keep a logbook for vehicle usage. For Rideshare or taxi drivers, you can record KM in Logmate app or NZTA Logbook. For food delivery drivers, you can record them in an excel sheet, a notebook or best would be to record at our free tool here: Mileage Records
Keep all receipts and invoices (all records must be kept for seven years – can be electronic)
If you have staff make sure you are aware of all PAYE filing requirements and record keeping
If you have cash sales make sure they are banked into your business account
If you take money from the business for personal use, clearly mark on bank transfer – "personal drawings"
If you put money into the business clearly mark as “personal funds introduced”
You will need some kind of manual or electronic accounting system. Try and stay paperless and make sure you have a back-up or info is stored on the cloud.
You can also add the client portal as a webapp/shortcut on your phone. Instructions are available here: Phone Shortcut
FAQ for 31 March 2024 Taxes
We believe we have one of the simplest tax return processes. But here are a few frequently asked questions popping up this year:
1. Where can I find my Uber Tax Summary?
Answer: Login to Uber App, and go to Account > Tax Info > Tax Summaries > 2023 Annual Tax Summary > Download
If it's not yet available, you can still do your taxes now. You can add up your Uber (or other platform) income manually or if you have a lot of transactions you can download/export a csv/excel file from your internet banking and filter by income type.
2. How do I track my mileage?
If you love small tax bills make sure you track your KM driven. We will need the total KM driven during the year (business and personal) plus what percentage is business related (the number on your Uber tax summary only includes while on trips - but you can also claim driving to pick up, driving home etc).
If you use Logmate then simply change the settings so you are required to enter the odometer at the start and end of each shift. (you don’t need to record each individual trip). Logmate now offers free yearly mileage reports :)
For delivery drivers there are other apps such as Drivers note or you can do a manual spreadsheet or notebook. IRD Logbook example
Note: IRD also allows a logbook to be kept for three months every three years to work out business percentage. But this is not valid if there is a change in usage of 20% or more. See IRD rules here and an old style logbook example. IRD Logbook Info
3. How do I track expenses during the year?
Answer: Expensive accounting software is not the best options for Uber drivers etc.
We recommend simply opening or using a separate bank account and debit card. Try to only use that card for business expenses and then you will be able to export all of those transactions at year end as described above. If you do use a personal card or cash at times you will still be able to double check our extensive list of common driving expenses to make sure you haven’t missed anything.
To keep a copy of receipts we recommend Taxsnaps (only $5 p/m) or the free expense recorder in our client portal.
4. How can I save for tax and avoid a nasty surprise at year end?
Answer: All you need to do is put aside 10-15% of what you receive each week into a separate bank account. We don’t believe in paying IRD early so why not keep it aside and earn interest on it.
Due to the many tax deductions available to drivers your tax bill may even be lower than that so you will have money left over 😊
We report all income and expense figures within the rules but also hate large tax bills so rest assured you will not pay more than you need to 😊
