Blog

Jul 09

Bookkeeping Codes Explained

Posted by Kirsten Hawke at Saturday, July 09, 2011

Although this is a general list for New Zealand Businesses, please consult your financial adviser for any additional codes.

Balance Sheet Items

Assets (generally all purchases $500 and over)

  • Bank statements
  • Withholding tax
  • Prepayments (this code is used when you pay for something early like rates which may cross over financial years)
  • Office equipment purchases ($500 and over)
  • Computer equipment purchases ($500 and over)
  • Motor vehicle purchases ($500 and over – for some of you that will be the cost of a tyre!)
  • Plant & equipment ($500 and over)

Liabilities (any UNPAID bills - accounts payable)

  • any personal expenses you haven’t taken the money from your business account for (home office expenses)
  • GST return copies
  • PAYE returns copies
  • Income tax returns and information (like letters from IRD)
  • any loan contracts – bank loans, mortgage documents, loans from other sources
  • lease/rental agreements
  • Equity (money you owe or owe to/from the company)

Profit & Loss items

Sales

  • all your income/revenue from sales of goods or services

Expenses

  • acc levies
  • advertising and promotion
  • bank fees, charges
  • cleaning
  • computer expenses under $500 (leads, discs, usb, headphones, power leads, keyboards, mouse, computer bags)
  • conference or course expenses (fees, course books)
  • consulting & accounting
  • donations 
  • electricity
  • equipment hire
  • entertainment – unfortunately still can only claim 50% incl. GST for these expenses GO HERE to get the IRD
  • freight & courier (yes you can put under ‘C’ – totally up to you)
  • gas bills (same as the electricity bills – keep them handy AFTER we punch them)
  • general expenses (it is rare that I will use this code and only for expenses up to $49.95)
  • home office expenses (if you choose to bulk these together) – check IRD for what you can claim
  • insurance – Motor Vehicle, Life, Income Protection (Your business portion % of house insurance)
  • interest expense (e.g. business loan interest)
  • kiwisaver employer contributions
  • legal expenses
  • light Power Heating nb electricity is often coded and included with this code – your decision
  • motor vehicle expenses – remember you must keep a log book GO HERE to IRD for more information
  • office expenses (such as tea, coffee etc for staff, buying small appliances, jug, toaster etc)
  • printing & stationary
  • purchases (products you buy to sell)
  • rent
  • rates (if you have a home office, only the business % is claimable – an interest note too, if you are thinking of claiming a rebate on your rates )
  • repairs & maintenance
  • salaries
  • staff expenses
  • staff training
  • subscriptions
  • subcontractors
  • telephone & internet (like the electricity bill, may be handy to keep your telephone bills all together so you can keep a track of them and also for that all elusive account number!)
  • travel – national
  • travel – international (zero GST)

NO GST

  • bank fees
  • depreciation
  • donations
  • drawings
  • interest expenses
  • interest income
  • international travel
  • loans
  • salaries, wages, Kiwisaver, paye, gst