Is your business ready for financial year end?
Financial year end is fast approaching. Here are 10 quick tips to help you get ready for financial year end:1) Bank Statements - Start collecting key account statements for the period 1 April 2023 to 31 March 2024. For example, bank statements, loan statements, hire purchase statements and store accounts. If you are using an accounting software system such as Xero or MYOB to record your transactions throughout the year, you may only need to collate statements that fall over the 31 March 20...
February 29, 2024Entertainment.... can I claim that?
With the silly season upon us, it's a good time to refresh on what entertainment costs are deductible for your business. If an entertainment cost is completely related to your business it can be 100% deductible. However, being "completely related" is not always easy to determine. Some entertainment costs do include a private element, in which case, this would make them only 50% deductible. So how do you decide? The IRD have listed some examples of 100% and 50% entertainment cos...
November 23, 2023Jess's Top 5 Software Systems to Help Run Your Small Business
With so many software systems available to help run your small business it can be challenging choosing the right ones for you. Here are my top 5!1) Xero - it's no surprise that I LOVE Xero! The online accounting software system makes invoicing, bank reconciliation, and GST preparation easy! And that's just to name a few things. I could go on for ages about the amazing features of Xero (perhaps another blog), but here are my favourite five features: Your bank transactions feed automa...
October 24, 2023Up the Wahs!
Just thought I would let you know of some instances where Warriors (or any other sporting event) can be deductible for Income Tax and GST in your business. Warriors games would fall under the entertainment rules for tax purposes and there are times they can be 50% deductible or 100% deductible. I've popped examples of both below:50% Deductible Warriors Expenses: Attending the Warriors with clients or potential clients as a networking event, including the cost of game tickets and food and drink e...
September 6, 2023How to make voluntary KiwiSaver payments
As a small business owner in New Zealand, your income may not always come in the form of regular PAYE payments. However, that doesn't mean you can't take advantage of KiwiSaver to help save for retirement or purchase your first home. You can make voluntary contributions and they are easy to setup – see three easy steps below!I already had a KiwiSaver account when I started my business, so for me it was as easy as setting up an automatic payment via my internet banking using my KiwiSaver ...
June 11, 2023Why not pay your income tax weekly?
Spreading out any large bill over a monthly or even weekly payment plan can be a lot easier on the cashflow. So why not do this with your income tax, instead of waiting for the standard Terminal Tax or Provisional Tax due dates?The tax dates don't change. So if you want to setup regular payment amounts - do it. As long as your income tax is paid off before the due dates, and you are either a one-off Terminal Tax payer (income tax of less than $5,000 of tax per year) OR a standa...
May 11, 2023Haven't received your Cost of Living Payment?
I've had a few questions regarding the Cost of Living Payment, with the first instalment (of three) released this week. If you haven't received the first payment, and think you are entitled, see the below for some of the common reasons I have come across so far: 1) Check your bank account is updated with the IRD. You can check via your MyIR login. If you have forgotten your User ID and/or password for your MyIR login (happens to the best of us), select "Forgot Password/User ID" you can do both. ...
August 8, 2022Got Sharesies? Don't forget your Tax-ies....
Online share investment platforms such as Sharesies, Stake and Hatch have made it easy to buy shares (or parts of them) for a no minimum starting amount. I've seen an increase in new share investors, thanks to the platforms, so thought it would be a timely reminder that share income may be subject to income tax. There are 2 main types of income that can be generated from shares: Dividends, and Capital Gains (or losses). Dividends are taxable income and need to be included in your income ...
December 30, 2021eInvoicing is here!
eInvoicing is a government initiative introduced to help speed up the processing and payment of invoices. The function allows you to directly exchange invoice data between two accounting software systems. For example, Xero (accounting software) users can create an invoice and select "send as an e-invoice" to directly send the invoice to another accounts payable software for approval. The other software system doesn't have to be Xero, just another system that has also...
November 30, 2021Keep on Top of Tax!
1) Run regular year-to-date profit and loss reports from your accounting system (eg Xero; MYOB) to help calculate your income tax. If you are not currently using an accounting system, consider getting one. 2) Use the IRD's Income Tax calculator to help estimate your income tax - Here's the link: https://www.ird.govt.nz/income... 3) Have you heard of AIM? - If you use an accounting system, such as Xero or MYOB, and your turnover is less than $5 million, you can pay your income tax throughout...
December 12, 2020Small Business Cashflow (Loan) Scheme - Updates
The Government recently announced some changes to the Small Business Cashflow (Loan) Scheme. Key changes: - The interest free period has increased from 1 year to 2 years.However, it is key to note the interest free period is only applicable if the loan is repaid within the 2 years. If repaid after this 2 year period interest will be charged at 3% from the start of the loan drawdown. - You now have until 31 December 2023 to apply for the loan (if you haven't already). - Restrictions on how the lo...
November 25, 2020Are you making the most out of your Xero file?
Xero (small business accounting software), is constantly upgrading (for the better) and it can be hard to keep up with all the new changes. If you have been using Xero for a while, it can also be easy to stick to what you know, and you may be missing out on key efficiencies the system can provide. Recent changes to Xero's starter package, has allowed some users to downgrade to this cheaper version (only $27.50+GST a month) - are you still on the correct plan? One of the services I pr...
October 30, 2020Low-value assets temporary threshold of $5,000
Did you know the low-value asset threshold has increased temporarily from $500 to $5,000? If you have purchased, or are planning to purchase any fixed assets between the dates 17 March 2020 and 16 March 2021, that are $5,000 or less, you can expense them in full in the period they were purchased. The threshold was increased by the Government to encourage businesses to invest during the Covid-outbreak, but is also a welcome tax break for small businesses From 17 March 2021, the threshold will be...
October 17, 2020Wage Subsidy Extension
The Government announced a further 2 week Wage Subsidy on the 17 August 2020. "Applications can be made from 1pm on 21 August 2020 to 3 September 2020. It is open to employers throughout New Zealand. Who can get it? New Zealand employers who have had, or expect to have, a revenue drop of at least 40% because of COVID-19, for a 14 day period between 12 August to 10 September, compared to a similar period last year can get it. The subsidy is so businesses can keep paying their employees." https://...
August 19, 2020Government support still available for businesses affected by COVID-19
"Government support is still available to businesses affected by COVID-19, ranging from low-interest loans to tax refunds. Find out what you qualify for and how to get it."https://www.business.govt.nz/news/covid-19-support-for-small-businesses/?fbclid=IwAR34j32Dmrp7fwZlekirJNdZa6psD44IR566RkkWv9BpP-krPSzyODN8j7g...
August 19, 2020From the IRD: Recent changes to support businesses during this time
From the IRD:"In the last few months, a number of changes have been made to help businesses during this time. For more detail on each of the below, talk with your tax agent, or visit www.ird.govt.nz.- The provisional tax threshold has increased from $2,500 to $5,000. This means, if you expect to have a tax bill of less than $5,000 this year, you don’t have to pay instalments through the year.- The small asset depreciation threshold has increased to $5,000 for the 2020/21 tax year. This me...
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