Bookkeeping Services

BANK RECONCILIATION

Bank reconciliation is the process of comparing your business’s accounting records with your bank statements to ensure they match. This essential task helps identify discrepancies, such as errors or unauthorised transactions, early on, thereby maintaining the accuracy of your financial data.

Performing bank reconciliations regularly is crucial for several reasons:

It helps detect fraud or unauthorised transactions promptly.
Ensures your financial statements are accurate for decision-making.
Improves cash flow management by providing an up-to-date picture of your available funds.
Keeps your business compliant with financial regulations.
A key aspect of effective reconciliation is matching bank transactions with the correct account codes in your chart of accounts. Proper coding ensures transactions are categorised accurately, facilitating accurate reporting and insights into financial performance.

Top Five Common Mistakes When Reconciling Bank Transactions

Failing to compare every transaction thoroughly – Overlooking small transactions can lead to errors accumulating over time.
Ignoring outstanding cheques or deposits – Not accounting for timing differences can cause mismatches.
Incorrectly coding transactions – Misclassifying transactions affects financial analysis.
Overlooking bank errors or discrepancies – Trusting the bank statement without verification can mask mistakes.
Waiting too long to reconcile – Delayed reconciliations make errors harder to detect and correct.

In Summary

Regular, accurate bank reconciliations, with attention to detail and proper coding, are vital for keeping your business’s financial health in check. Make it a routine, and your business will benefit from clearer financial insights and greater peace of mind.

ACCOUNTS PAYABLE

Accounts Payable (creditors) is an essential part of managing a business’s finances. It refers to the money a business owes to its suppliers or vendors for goods and services received but not yet paid for. Think of it as the business’s unpaid bills.

The main function of Accounts Payable is to keep track of these costs so the business pays its bills on time, maintains good relationships with suppliers, and stays financially healthy. Proper management of accounts payable ensures that the business avoids late payments and potential penalties.

Benefits of hiring a Bookkeeper for your Accounts Payable

Accurate Record-Keeping:
We ensure all bills are recorded correctly, reducing errors that could lead to financial issues.
Timely Payments:
They help manage payment deadlines, avoiding late fees and building trust with suppliers.
Financial Insights:
Proper Accounts Payable management provides clear insights into the company’s expenses, aiding in better financial decisions.
Time-Saving:
Outsourcing this task frees up the business owner’s time to focus on more productive tasks like growing the business.
Improved Cash Flow Management:
A bookkeeper can help monitor cash flow, ensuring enough funds are available for important expenses.

In Summary

Having us handle your Accounts Payable simplifies finances, saves time, helps build good relationships with suppliers and keep your business operating smoothly.

ACCOUNTS RECEIVABLE

Accounts Receivable (debtors) is the money owed to your business by customers for goods or services they’ve received but haven’t yet paid for. Think of it as an IOU from your clients. It’s a crucial part of your business’s financial health, representing the revenue you’ve earned but haven’t collected yet.

What Does Accounts Receivable Entail?

Managing Accounts Receivable involves a series of steps to ensure you get paid on time. First, you create and send invoices to customers after a sale. These invoices detail what was sold, the amount due, and the payment due date. Next, you track these invoices to monitor which ones are still outstanding and which ones have been paid. This tracking helps you know exactly how much money is coming into your business and when.

If a payment becomes past due, we also offer Debt Recovery which can be built into your bookkeeping package. We will follow up with the customer on your behalf to remind them about the unpaid invoice and collect the payment. This might involve sending reminder emails or making phone calls, but we take care of all of that for you.

How Morris & Cope Can Help

While it may seem straightforward, managing Accounts Receivable can become a major time commitment as your business grows. Engaging Morris & Cope to handle this function offers several key benefits:

Improved Cash Flow:
We ensure your invoices are sent promptly and accurately, and we follow up on late payments consistently. This organised approach helps you collect money faster, which improves your business’s cash flow.
Reduced Administrative Burden:
Managing invoices, tracking payments, and following up with customers can take a lot of time away from running your business. By outsourcing this task, you free yourself up to focus on core operations.
Better Customer Relationships:
We can also take care of the sometimes-awkward task of chasing payments. This can help you maintain positive relationships with your clients by keeping the Debt Recovery discussions professional and separate from your direct business interactions.
Accurate Financial Records:
A bookkeeper ensures your Accounts Receivable records are always up-to-date and accurate. This is essential for getting a clear picture of your business’s financial health and for tax preparation.

In Summary

At Morris & Cope we are experts in financial processes and can implement systems to streamline your Accounts Receivable process, and can identify potential issues early on, and provide valuable insights into your company’s financial performance.

PAYROLL

Payroll is more than just paying your employees; it’s a critical business function that ensures your team is paid accurately and on time while also keeping your business compliant with legal requirements. Essentially, payroll involves calculating and wages and withholding taxes, and managing employee benefits. It’s a fundamental part of running a business, no matter the size.

What Does Payroll Entail?

Processing payroll involves a series of detailed steps. First, you’ll need to calculate gross pay for each employee, which is their total earnings before any deductions. This includes their regular wages, overtime, bonuses, or commissions. Next, you must deduct various amounts from this gross pay. These deductions typically tax, Kiwisaver and child support. After all deductions are made, you’re left with the employee’s net pay, which is the amount they’ll actually receive.

Finally, you must file PAYE Returns with Inland Revenue, detailing the wages paid and taxes withheld and pay the PAYE. This is a crucial step to ensure your business remains in good standing.

Why partner with Morris & Cope to Manage your Payroll?

While it’s possible to try and handle payroll yourself, hiring us to perform this function offers significant advantages.

Saves Time and Reduces Stress:
Payroll can be a time-consuming and complex task. By outsourcing it, you free up valuable time to focus on growing your business. It also removes the stress of keeping up with ever-changing tax laws and deadlines.
Ensures Accuracy and Compliance:
Payroll errors can lead to unhappy employees and, more seriously, costly penalties from the government. We are experts in tax laws and regulations, ensuring your calculations are accurate and your filings are submitted on time. This helps you avoid fines and audits.
Maintains Confidentiality:
We also manage sensitive employee data, such as salaries and personal information, with the utmost discretion. This helps to maintain privacy within your business.
Provides a Clear Financial Picture:
To facilitate financial continuity, we integrate your payroll data directly into your financial records and reports, providing a complete and accurate view of your business’s finances. This is essential for effective budgeting, Cashflow Forecasting and strategic decision-making.

In Summary

By entrusting your payroll to Morris & Cope, you can ensure your employees are paid correctly and on time, all while keeping your business compliant and your finances in order. This lets you get back to doing what you do best: running your business.

GST RETURNS

Goods and Services Tax (GST) is a 15% consumption tax on most goods and services in New Zealand. A GST return is a report filed with Inland Revenue (IR) that details the GST you’ve collected from sales (called “output GST”) and the GST you’ve paid on your business expenses (called “input GST”). The difference between these two figures determines whether you need to pay the IR or if you’ll receive a refund.

IRD Requirements for GST Registration

In New Zealand, the Inland Revenue (IR) requires you to register for GST once your business’s annual turnover from taxable activities exceeds or is expected to exceed NZ$60,000 in any 12-month period. You can, however, choose to register voluntarily even if your turnover is below this threshold. Doing so can be beneficial, particularly if you have significant GST-related expenses, as you can claim back the GST you’ve paid.

When you register, you must also decide on a filing frequency, which is typically monthly, two-monthly, or six-monthly, depending on your business’s annual turnover. The most common filing period for small businesses is every two months. You also need to choose an accounting basis, with the payments basis (cash) being a popular option for businesses with a turnover under NZ$2 million.

Why Accurate and Timely Filing Matters

The money you collect as GST from your customers is not revenue for your business; instead, you are collecting it on behalf of the IR. This is a crucial distinction, this isn’t your money. The IR needs your GST returns submitted accurately and on time to ensure fairness in the tax system. GST is a crucial source of government revenue, funding public services like healthcare, education, social security and welfare.

By filing your return, you’re reporting how much GST you owe the IR or how much they owe you (if you’ve paid more GST on your expenses than you’ve collected from your customers). This process keeps a transparent and traceable record of your tax obligations and helps the IR maintain the integrity of New Zealand’s tax system.

The Consequences of Non-Compliance

Missing deadlines or making errors can lead to serious consequences. The IR imposes penalties for both late filing and late payment. These penalties can quickly add up, negatively impacting your business’s cash flow and bottom line.

Furthermore, accurate record-keeping is a legal requirement. IR requires businesses to keep detailed records of all GST transactions, including invoices and receipts, for at least seven years. This is to ensure accountability and to support any claims or calculations you make in your returns.

Being proactive with your GST obligations setting reminders, maintaining good records, and using reliable accounting software is the best way to avoid unnecessary stress and financial penalties, ensuring your business remains compliant and healthy.

Top 5 Common GST Return Mistakes

Claiming GST on Personal Expenses:
A common error is claiming GST on items used for private use, like personal groceries, rent for a residential home, or mixed-use assets (e.g., a car used for both business and personal travel) without correctly apportioning the business-related GST.
Poor Record-Keeping:
Not keeping proper records, such as tax invoices, receipts, and bank statements, makes it impossible to justify your claims to IR if they ask for proof. IR requires you to keep records for at least seven years.
Claiming GST on Exempt Supplies:
Incorrectly claiming GST on exempt supplies such as loan repayments, interest, bank fees, fines and penalties. This results in over-claiming GST, which could lead to penalties.
Claiming GST on Purchases from Non-GST Registered Suppliers:
You can only claim GST on purchases from suppliers who are themselves GST-registered. If the supplier’s invoice doesn’t show a GST number or a GST breakdown, you can’t claim it. There is an exception to this rule for second-hand goods.
Missing or Incorrect GST on Sales:
This includes not charging GST on taxable sales or incorrectly zero-rating or exempting supplies. This under declares your GST collected, leading to a tax shortfall and penalties.

The Morris & Cope Advantage:

Your Secret Weapon!

Partnering with us to manage your GST returns is one of the smartest decisions you can make for your business. We specialise in GST returns and our expertise ensures that your records are immaculate, your returns are filed accurately, and you meet every deadline.

By outsourcing this crucial task to us, you gain:

Peace of Mind:
You can stop worrying about deadlines, penalties, and audits. We handle the entire process, giving you confidence that your tax obligations are met.
Time and Focus:
Free up your valuable time to concentrate on what you do best: running and growing your business. No more late nights trying to make sense of spreadsheets and invoices.
Accuracy and Compliance:
We are experts in tax regulations and accounting software and ensure your returns are correct, helping you avoid costly mistakes and penalties. We also ensure you claim all eligible GST credits, potentially boosting your cash flow.
Better Financial Insights:
With a well organized, accurate and up-to-date financial system, it is easy for us to provide you with clear reports and insights into your business’s performance, helping you make better decisions.

Your business is an asset and engaging us to do your GST Returns isn’t just another expense; it’s an investment in that asset and a strategic move to safeguard your business’s financial health and ensure long-term success.

Bookkeepers vs. Accountants: A Cost-Effective Approach

While an accountant can also handle your GST returns, a bookkeeper is often the more cost-effective choice for this specific task. The core function of a bookkeeper is to manage the day-to-day financial transactions of a business, which includes processing and filing GST returns. Accountants, on the other hand, are highly qualified professionals who focus on broader financial strategy, such as preparing annual financial statements and income tax returns.

Because of their higher-level expertise, accountants typically charge a higher hourly rate than bookkeepers. By using a bookkeeper for your regular GST filings, you’re leveraging their specialised skills at a more affordable price. It’s a smart business decision to delegate tasks based on who is best suited for them.

Save your accountant’s time and your money for the more complex, strategic work they excel at, like year end tax planning and financial forecasting. This approach ensures you get the right level of expertise for each financial task without overspending.

MONTHLY REPORTING

Imagine flying a plane without a dashboard. You’d have no idea how fast you’re going, your altitude, how much fuel you have, or whether you are even on the right course. In the business world, monthly financial reports are your dashboard.

For SME’s (small to medium-sized enterprises), monthly reporting is the practice of compiling and reviewing key financial data at the end of each month. It’s a structured way to take the pulse of your business and check its vitals, moving beyond just knowing how much is in your bank account to truly understanding your financial performance.

This practice is crucial because it provides timely insights into your cash flow, profitability, and overall financial health. By consistently reviewing these reports, business owners can spot trends, identify potential issues, and make informed decisions to steer their business in the right direction.

The Three Key Monthly Financial Reports for Your Business Dashboard

These are the essential monthly reports every business owner should be reviewing:

1. Profit and Loss Statement (Statement of Financial Performance)

Just like an Altimeter in an aircraft lets the pilot know how high he is flying. Your P&L ‘business altimeter’ precisely indicates your current financial altitude (profitability), guiding strategic decisions and maintaining a safe height to avoid any financial obstacles on your flight path.

What it contains:
This report (often called the P&L) is a summary of your business’s revenue, and expenses over a specific period. It shows whether your business made a profit or a loss for the month. You’ll see your total sales, followed by the “cost of goods sold” (COGS), which gives you your gross profit. Below that are your operating expenses (e.g., rent, wages, marketing), which are deducted to reveal your net profit or loss.

How to use it:
The P&L is your primary tool for measuring profitability. By comparing this month’s statement to previous months, you can identify trends in your sales and expenses. Are your sales growing? Are your costs increasing? For example, if your marketing expenses went up but sales didn’t, you might need to re-evaluate your marketing strategy. This report helps you answer the fundamental question: “Is my business making money?”

2. The Balance Sheet (Statement of Financial Position)

This is like your GPS navigation system, it lets you know exactly where you are at that moment in time and if whether you’re on course or not.

What it contains:
The Balance Sheet provides a snapshot of your business’s financial position at a specific point in time (e.g. the end of the month).
It is based on the fundamental accounting equation: Assets = Liabilities + Equity.

Assets are what your business owns (e.g., cash, accounts receivable, inventory, equipment).
Liabilities are what your business owes to others (e.g., Loans, accounts payable, credit and card debt).
Equity is the amount of money invested in the business by its owners.

How to use it:
This report gives you a clear picture of your business’s solvency and liquidity. You can see how much cash you have, how much you are owed, and how much you owe. For example, if your accounts receivable (money owed to you by customers) is growing faster than your cash, it could indicate a cash flow problem. This report helps you assess the financial strength of your business and its ability to pay its bills.

3. The Cash Flow Statement:

This is like your air speed indicator, it lets you know if you’re flying fast enough to create lift. Too slow and you could stall, just like with your business, if you don’t have enough revenue coming into your business fast enough to cover your liabilities, your business cashflow can stall.

What it contains:
This report tracks the movement of cash in and out of your business over the month. It’s different from the P&L, which can show a profit even if cash hasn’t been received. The Cash Flow Statement is divided into three sections:

Operating Activities: Cash from day-to-day business operations.
Investing Activities: Cash used for or generated from investing in assets (e.g., buying or selling equipment).
Financing Activities: Cash from funding sources (e.g., getting a loan or repaying a debt).

How to use it:
This is arguably the most critical report of the three. It’s like the voice in the cockpit that shouts “STALL! STALL!” if your air speed drops too low. It tells you exactly where your cash is coming from and where it’s going. A profitable business can still fail if it runs out of cash i.e. flies too slow. By analysing this report, you can identify if cash is being tied up in inventory or if delays in customer payments are causing a squeeze. It’s your early warning system for a cash crisis, allowing you to seize opportunities like making a timely purchase or planning for a busy season.

The Bookkeeper Advantage:

This is like flying with an experienced Co-Pilot by your side!

While these reports are vital, for many business owners, compiling and interpreting them can be a daunting and time consuming task. This is where our monthly reporting services become invaluable. When you engage Morris & Cope to manage your monthly reporting, you gain more than just a set of numbers.

We will ensure your financial data is accurate, timely, and presented in a way you can easily understand. We not only produce these reports for you, but also help you interpret the story they tell about your business. With our expertise, you can confidently make decisions based on real data, identify potential pitfalls before they become major problems, and proactively pursue opportunities for growth, knowing your financial house is in order.

This is an investment that transforms your financial information from a confusing chore into a powerful tool for success.

CASHFLOW FORECASTING

Imagine your business is an airplane. You’re the pilot, navigating through the complex and ever-changing sky of the market. Now, imagine trying to fly that plane at night or through a storm without a radar. You’d be flying blind, completely unaware of
the mountains, weather conditions, or other aircraft ahead. This is exactly what it feels like for a business owner without a cashflow forecast.

A Cashflow Forecast is your business’s radar system. It gives you the ability to see what your business finances will look like in the future, providing a clear view of any potential financial obstacles and opportunities that lay ahead.

How Your Financial Radar Works

Just as a radar system scans the skies for hazards, a cashflow forecast scans your financial horizon by tracking the movement of money. It takes into account:

Your Starting Position:
How much cash you have in the bank right now.
Incoming Flights:
All the money you expect to receive from sales, loans, or investments.
Outbound Traffic:
All the money you expect to spend on things like rent, salaries, and supplies.

By combining this information, your forecast calculates your projected cash balance for the coming weeks or months. This is your financial radar screen, showing you where you’re headed and what’s coming up on your flight path.

The Benefits of Having a Financial Radar

Flying with a radar system allows a pilot to anticipate and avoid danger. Similarly, a cashflow forecast gives you the time and information to make critical adjustments before small financial issues turn into big problems.

Spotting Turbulence Early:
Your forecast can alert you to upcoming periods of slow or low cashflow, much like a radar warns of a storm ahead. This gives you time to prepare by securing a loan or delaying a large purchase, preventing a potential cash crunch.
Navigating Expansion:
Thinking about a major investment like new equipment or a new location? Your forecast helps you see if you have the financial “fuel” to make the journey, ensuring a smooth take-off and landing.
Avoiding Collisions:
It helps you manage your obligations, like paying suppliers or making loan payments, so you don’t “collide” with a late fee or a damaged business relationship.

Why a Pilot Needs a Co-Pilot

While you can try to operate the radar yourself, a professional bookkeeper acts as your co-pilot, expertly managing this essential function. They ensure the data is accurate, the projections are sound, and you get clear, actionable insights. This frees you up to focus on flying the plane—that is, running and growing your business—with confidence, knowing your financial radar is being meticulously monitored.

In short, a cashflow forecast gives you the ability to see what your business finances will look like in the future. It transforms the risky, unpredictable journey of flying blind into a confident, well-navigated flight.

XERO SETUP & TRAINING

Are you a business owner struggling to get the most out of your accounting software? You’re not alone. Many businesses use accounting platforms like Xero for their bookkeeping and accounts administration, but few have the time or expertise to fully utilise all the powerful features available. That’s where Morris and Cope comes in.

We are not your average bookkeepers; we are Xero Certified Advisors and ICNZB Certified Bookkeepers. This means we have undergone rigorous training and assessments to demonstrate a deep understanding of bookkeeping principles and the Xero platform. Our expertise ensures that we are well-qualified to help you with every aspect of your Xero journey.

Seamless Xero Setup and Migration

If you’re new to Xero, we can handle the entire setup process for you, ensuring it is configured for maximum ease and efficiency. This includes everything from setting up your dashboard to creating custom reports tailored to your specific business needs. We’ll make sure you have the tools to get the most accurate and insightful information from your accounts from day one.

Already using a different accounting software? No problem. Morris and Cope can manage the entire migration process for you. We will seamlessly transfer your data to a new Xero account, ensuring a smooth transition without any loss of critical financial information.

Personalized Training for Maximum Efficiency

Once your Xero account is set up, our services don’t stop there. We can provide comprehensive training to empower you and your team to use the software effectively. We understand that every business is unique, which is why we offer personalised training sessions.

For clients located within a 100km radius, we can provide one-on-one, on-site training. This hands-on approach allows us to address your specific questions and needs in person. If you’re located further away, don’t worry—our training can be easily and conveniently conducted virtually at a time that works for you.

At Morris and Cope, our goal is to help you gain a clear picture of your finances while freeing you up to focus on what you do best: running and growing your business. Let us help you unlock the full potential of Xero and take the hassle out of your accounts administration.

YEAR END PREPARATION

For many business owners, the term ‘Year-End Preparation’ can sound intimidating, but it’s a crucial process that ensures your business’s financial health and compliance. In simple terms, it’s the final cleanup of your financial records before the end of the financial year, getting everything ready for (IR) Inland Revenue.

Think of it as preparing a detailed report card for your business’s financial performance over the past year. This process can be broken down into two distinct stages:

Stage 1: The Preparation

At Morris & Cope we are expertly positioned to handle the preparation stage of your Year End Accounts. Throughout the financial year, we meticulously gather, document, and organise all essential financial information, including invoices, receipts, bank statements, and expenses. Our process involves the precise recording, coding, and reconciliation of every transaction, ensuring all accounts are accurate and categorised correctly. We structure this prepared information neatly and professionally in the exact format required by your accountant. This comprehensive organisation and understanding of accountants needs streamlines their work and allows us to serve as the primary, knowledgeable contact for any additional queries, freeing you up to focus on your core business operations.

Stage 2: The Calculation and Production

This is where your accountant takes over. They’ll use the meticulously prepared information from your bookkeeper to perform the specialist work. This includes calculating your tax liabilities, producing your annual financial statements, and preparing and filing your tax returns with Inland Revenue. In New Zealand, this work almost always requires a qualified accountant due to the complex nature of tax law and financial reporting standards.

Why Choose Us for Your Year-End Preparation?

Partnering with Morris & Cope for the preparation stage offers several key benefits for you as a business owner:

Cost-Effective:
Our hourly rates are generally lower than those of an accountants. By using a us for the time-consuming data organisation, you’re not paying your accountant’s higher rate for basic administrative tasks, which can lead to significant cost savings.
Time-Saving: As your dedicated bookkeeper we already have a complete understanding of your day-to-day financial transactions and keep all your documentation readily available. This means we can quickly answer any queries your accountant has, saving you from being chased for receipts or bank statements.
Best Person for the Job:
We are the most knowledgeable experts to handle the nitty-gritty details of your financial records. Our ongoing work throughout the year makes us the ideal contact person for your accountant, guaranteeing they receive everything they need precisely when they need it to complete your annual accounts and tax return with minimal fuss.

Why Accountants Love It Too

Accountants appreciate a client who use Morris & Cope as their dedicated bookkeeper. It allows them to focus on what they do best: the high-level, specialist work of tax planning and financial reporting. When they receive a clean, organized set of books from us, they can jump straight into the analysis and compliance part of the job. It’s a win-win situation: you save money and time, and your accountant can work more efficiently. By using us for the preparation, you’re not paying an accountant’s premium rate for a task that can be done more affordably. It just makes good business sense!

DEBT RECOVERY

It’s a common story for business owners. You’ve delivered a great product or service, but when it’s time to get paid, the money just isn’t coming in. Chasing down late payments can be incredibly stressful and awkward, especially when you value the relationship you have with your clients. You might feel like you’re nagging them, and having those difficult conversations can be so uncomfortable that you put them off, hoping the payment will just arrive. Before you know it, too much time has passed, and your chance to recover the money is gone.

This is where Morris & Cope’s Debt Recovery service can help.

The Power of a Third Party

One of the biggest challenges with debt recovery is the emotional toll it takes. When you, the business owner, are the one making the calls, it can strain the professional relationship you’ve worked so hard to build up with your client. That’s why having a degree of separation between you and the person chasing the debt is so effective.

By having Morris & Cope handle your debt recovery, you get to stay on good terms with your clients. The focus shifts from a personal request from you to a professional communication from your bookkeeper, who is simply managing the finances on your behalf. This small shift in psychology can make a huge difference in how the client perceives the request, making them more likely to respond positively.

Proactive and Professional Debt Recovery

At Morris & Cope, we’re already on top of your Accounts Receivable. We have our finger on the pulse of your outstanding invoices, which puts us in the perfect position to act quickly and efficiently. We can promptly send out payment reminders and follow up with professional phone calls to chase down those late payments.

We know that most people simply need a friendly reminder. If further contact is needed, we will adjust the frequency and tone to ensure we get the best results for you.

You will always have full visibility of your debtors and our progress. We provide a monthly or weekly ‘Aged Receivables’ report that lists all outstanding accounts and details the actions we have taken to recover the debt.

Improve Cash Flow and Focus on Your Business

By letting Morris & Cope handle the stress of debt recovery, you free up your valuable time and energy to focus on what you do best—running and growing your business. Our service will result in improved and smoother cash flow, ensuring you have the income you need to meet your liabilities and take advantage of new opportunities.

Stop putting off those difficult conversations! Let us help you recover what you’re owed and get your cash flow back on track.