Understanding your Financial Statements
You may be used to thinking of financial statements purely in terms of your annual tax return but for success in business they need to be much more than that. As a business owner/operator, it is essential that you understand your financial position. Understanding the...
Provisional tax – for business owners
As a new business owner, it's important you understand the provisional tax system as it affects your business. In your first year of business, you can receive a significant tax deferral. Your first year's tax bill is, in some cases, not payable until 7 April the...
Plain English guide to cashflow
Why is cashflow so central to good financial management? Here's our plain english guide. What is cashflow? Cashflow refers to the movement of money into and out of your business over a specific period. In the most basic terms, cashflow is the process of cash moving...
GST apportionment and adjustment
GST apportionment has been around for a long time, but it has changed over the years. You can claim input tax deductions on purchases of goods and services you use to make taxable supplies. Where assets are used both to make taxable supplies and for private use, you...
How to apply for a business loan
Need some extra cash to take your business to the next level, but daunted by the loan process? You're not alone. There's a lot of paperwork and number-crunching involved. Before you get started, remember that banks wants your application to succeed as the interest you...
What’s the difference between employees and contractors? And why does it matter.
Does your business use both employees and contractors? It’s important to distinguish between them as they are paid and taxed differently. Despite what you may call the individual concerned, that description is not definitive. If the status of the worker is questioned...
Five tech tools to digitise your farm
Apps and digital tools aren’t just for desk workers. There are plenty out there to help streamline your farming processes, saving you time and money. Xero: when you’re out and about on the farm, it’s helpful to manage accounts on the move. Xero enables you to invoice...
How humour can increase your bottom line
You want to be taken seriously as a business, right? But did you know that many customers and consumers actually want you to give them a laugh as well? 91% of people globally prefer brands to be funny, but 95% of business leaders fear using humour in consumer...
Which business expenses can you claim against tax?
Incurring expenses is an unavoidable fact of running a business. But which expenses can you claim tax deductions against and which don’t meet the tax-free criteria? Here’s our lowdown on which expenses you can claim against tax. Which business expenses can you claim...
Withdrawing a job offer – What are the rules in NZ?
What happens if, after you offer a person a job something comes to light that makes you change your mind? Whether that is the result of reference checking or changes within the company that mean you can’t take anyone new on. Can you just get in touch and say, “Sorry,...
Motor vehicle deduction rules for partnerships and sole traders
Partnerships and sole traders can use Inland Revenue’s motor vehicle deduction rules to claim income tax deductions for motor vehicle expenses for vehicles used to help earn income for the business. If the vehicle is not used exclusively for the business, you are not...
Provisional tax – for business owners
As a new business owner, it's important you understand the provisional tax system as it affects your business. In your first year of business, you can receive a significant tax deferral. Your first year's tax bill is, in some cases, not payable until 7 April the...
Is your Airbnb income taxable?
Are you renting accommodation from your home, through Airbnb or some other way? For tax purposes, short-stay or holiday accommodation is different from accommodation provided to tenants, boarders or care home residents, or student or emergency accommodation. A short...
The true cost of a new employee
When you’re calculating pay rises, it’s important to think about more than just how much you can afford. You also need to consider the true cost of replacing that employee. Low pay rises can be unexpectedly expensive It’s surprisingly common for businesses to offer...
Managing farm debt
If you’re feeling uncertain about your next year of farming, you’re not alone. Farmer confidence is low, with more than 11% of respondents to a Federated Farmers survey expecting profit to drop over the next year. Whatever your position, it’s always beneficial to talk...
Pricing and Profit
Price setting is complex, just as important as market awareness, product development and advertising. You could do all these things excellently and then undo it all on the price. Pricing is one of four specific factors which determine your profit and it’s one that you...
Which employee gifts are tax exempt?
Whether it’s for reaching a sales target, a birthday, Christmas or just to say thanks, sometimes you want to buy gifts for your employees. Although it’s a nice gesture, as a business owner it can be unexpectedly complex to provide staff perks. Perks like subsidised...
Provisional tax: What you need to know
If you are an employee, your employer sorts out PAYE on your behalf. But when you’re self-employed, you need to pay your own income tax. For example, if you earned $100,000 from your business, the income tax on that income would be just under $24,000. This can be a...
3 cloud accounting tips to save your business time and money
Keeping on top of your accounts is a big part of running a successful and profitable business. But you don’t want to spend ALL your time dealing with accounting tasks, especially when that time could be spent building customer relationships, or developing new products...
2023: Tax concessions and provisional tax changes
Although the worst of the pandemic has passed, Inland Revenue has maintained several tax breaks originally introduced because of Covid to continue to help businesses. In addition, changes to provisional tax may also ease your tax obligations. If you can’t pay your tax...
What lenders want to know about your business
While getting a business loan from a bank can be painful (with reams of red tape to wade through), it’s not impossible. Here’s what banks are looking for. Motivation: Why are you in business, and what is your vision for the future? You should be able to explain this...