Introduction Running a survey or conducting market research is a great way to find out what customers and prospective customers want. By gathering some useable data, you can tailor your products and services to your clients’ needs. It’s also a great way to monitor the marketplace and find out how you are perceived. …
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Motor Vehicle Deductions
For motor vehicles acquired on or after 1 April 2011 Introduction There are a number of different treatments in operation to obtain income tax deductions for motor vehicle expenses. It will depend on the type of business entity that operates the vehicle. This guide explains the fundamental rules surrounding motor vehicles and income…
Sales Guide
Introduction Sales is the process you enter into once a customer engages you. For example, once they enter your showroom or reception, or call or email an enquiry. The sales process can involve everything from simple retail selling, merchandising and cross-selling, to complex quotes and proposals and cold-calling. Contents This guide contains…
Software Applications in Small Business
Introduction One of the most important things for a small business is to have the right software in place. Buying software is no longer as simple as it used to be. As well as the standard option of simply purchasing a computer with the software pre-loaded, there are also many other software types available.…
Market Research Survey Planning
Introduction For a market research survey to be truly effective you will need to plan exactly what information you need and how you’re going to get it. Contents This guide contains the following topics: Planning your questions Writing your questions Choosing question types Question sequence Collection & Communication Analysing survey data …
Loyalty & Reward Systems
Overview Introduction Loyalty and rewards systems are a very real part of customer service in a modern business. Depending on the type of business you conduct, you may use one, or a combination of systems. Contents This guide contains the following topics: What is a loyalty system? Types of systems and rewards …
Managing Queries & Complaints
Introduction Queries and complaints are a reality in any business. A well handled query is a great step toward increasing business, just as a well handled complaint can prevent you from losing business. It costs five times as much to gain a new client as it does to retain an existing one. Professionalism and…
Legislative Requirements
Introduction Trading entities need to be aware of legislative environment, which imposes restrictions both on them in their individual capacities and on the entities they represent when promoting goods and services. Fair Trading Act The Fair Trading Act aims to ensure that the market for selling is an informed one. The Act…
Legal Remedies For Debt
Introduction The last resort for pursuing stubborn debtors is the legal system. It can be costly, time consuming and frustrating. And it takes you away from what you really want to be doing in your business. It’s much better to have a rigorous in-house debtor management system which still manages to preserve the customer…
Trial and Probation
Introduction Think about whether you wish to include provisions for a trial or probation period in the employment agreement for this position. The Employment Relations Act 2000 contains provisions for both ‘trial’ and ‘probationary’ periods for new employees. It is important that the employer and employee are clear about what provision applies to them.…
Insurances
Introduction While insurance requirements vary greatly from one business to another, the following is a guide to the most common types. Commercial Building Covers full replacement value including loss of rental income for 12-24 months minimum and landlord liability. Material Damage Covers the assets of your business such as buildings, stock, plant…
Planning Session
Preparation In advance of the session, try to gather the following data, where possible and appropriate: Industry research. You don’t need to be an expert, you simply need to show that you have an interest in what is happening in their business. This demonstrates your enthusiasm for their business and genuine care for them…
Induction
Introduction The purpose of good induction is so that the new employee starts to see how things work in the firm and where they fit in, meaning they are integrated well into your team. Sometimes firms make the mistake of not inducting new employees. In these instances, the employee may be left to their own…
Directors meetings — Facilitation
Introduction Our typical SME business clients can be largely unaware of the responsibilities and therefore risks of being a Company Director. In addition, these clients rarely receive any form of formal training in these areas and can be ignorant of the benefits of conducting effective monthly board meetings. Add to that the fact that many…
Interviewing
Introduction Interviews are best regarded as mutual exchanges of information rather than inquisitions. Remember that you are selling your firm to the potential employee as much as they are selling themselves to you. You need to find out whether the person would make a good addition to your team. They want to find out whether…
Sole Trader
Introduction There is nothing to stop you commencing business in your own name, e.g. John J Smith. The sole trader category is a suitable entity for small-scale business operations employing the personal talents of the proprietor. The owner of the business is personally liable for the debts of the business and all of the owner’s…
Placing an Ad
Introduction Once you have drafted the position description, you can draft your advertisement. Using colour can be very effective and will make your advertisement stand out from others. Writing your advertisement The following are some tips for writing your ad: Keep it short and sweet, don’t put the full job description in the advert,…
Dismissal Guidelines
Introduction To dismiss someone, employers must have a significant reason for the dismissal and also dismiss the worker using a fair and proper process. Even if you have a good reason for dismissing someone, if you do not follow the correct procedures, you may be found to have unjustifiably dismissed that employee. The employee may…
Skills Testing
Planning During the planning and preparation phase of your recruitment exercise, when you undertake a position analysis and identify the skills required to do the job, consider whether you will want to use skills testing at some stage of the recruitment process. Where it’s relevant to the position, we recommend that you carry out skills…
Companies
What is a Company? A company is a legal entity that is separate from the people who own it (the shareholders). Every company is registered at the New Zealand Companies Office. This is a business unit within the Ministry of Economic Development. Certain information regarding such things as ownership of a company is available to…
Client databases
Introduction A robust and detailed client database is an important tool for any business. There are many types of databases that a business may use depending on the type of business and the computer applications available. Contents This guide contains the following topics: Database basics Types of database What to record Maintenance…
Business Valuations
There is no topic about which greater differences of informed opinion may exist than the value of a business or shares in a private company. The value of a business is naturally influenced by the willingness of a vendor to sell and a purchaser to buy. It is usually assumed that fair value is a…
Business Systemisation
Introduction Good systems are key in the successful day-to-day operation of businesses. Having robust systems in place makes it easier for a business to expand or set up multiple locations. It also makes it easier for a business owner to work on, rather than in, their business. Contents This guide contains the…
Business Structures
Introduction Small businesses can be operated by the utilisation of a number of different entities. This guide contains the following topics: Sole Trader Partnership Family Trust Company If you intend to start a small business, discuss it with your chartered accountant and solicitor before business operations commence, prior to signing any contracts. It is…
Business appraisals preparation
Systematic Approach to a Business Appraisal 1. Assess What You Are Buying Goodwill Plant & Equipment Fixtures & Fittings Stock and Work in Progress Debtors Franchise Rights Training Licenses Liabilities Other Assets Business Structure 2. Financial Assessment Historical Accounts (3 years) Analysis of Significant Expenses Ratio Analysis Review Income Components Look Behind the…
Building an Employment Agreement
Legal status and requirements Under the Employment Relations Act (ERA) you must supply a written agreement to your new employee and they must sign it to indicate acceptance of your terms and conditions of employment. Until it is signed, it remains a draft Employment Agreement. The employer signs it before sending it out with a…
Branding & Promotions
Introduction Your branding and promotional efforts make up a large part of your marketing and are important to get right. This guide focuses on the subject of branding and promotional efforts which promote your business in general. Specific parts of your promotions such as advertising and direct marketing will be dealt with in further guides,…
Behavioural profiling
Introduction Behavioural profiling is a valuable tool, which has transformed individuals as well as businesses worldwide. It is a tool used to identify behavioural style by measuring attributes or qualities of a person and aspects of his or her personality. It can be used in many contexts, both in the workplace and elsewhere. Behavioural profiling…
Advertising
Introduction Advertising is the way you let the general public know about your business and your events. As well as general advertising to promote your business, it is highly likely you will need specialised advertising to let people know about specials, sales and events. Advertising is your call to action. Contents This guide contains…
ACC levies
Introduction ACC provides personal injury cover for all New Zealand citizens, residents and temporary visitors to New Zealand. ACC uses a risk-based classification system where business activities are grouped so the costs of work injuries are fairly distributed among similar businesses. ACC sets levies for each group by comparing costs of previous claims with total…
Writing a business plan
Why write a business plan? Writing the plan helps you think about what you are doing: The plan sets out your strategy and action plan over the next one to three years, or sometimes longer. As part of the process you set concrete objectives and plan how you will achieve them. Writing the plan helps…
What can I claim?
The Inland Revenue Department collects tax in accordance with several Acts including:- Income Tax Act GST Act It also collects and distributes Child Support. Sometimes you can “make a claim”, which is acceptable for one Act but not for another. e.g. The GST incurred in setting up a company can be claimed, but the cost…
Your Annual Accounts
The notes below have been prepared to assist you to minimise the cost of our work. Due to the complex nature of tax law and the penalties for mistakes, this firm will only accept responsibility for tax advice supplied by its principals. Business questionnaire Please ensure this is completed and signed. If you have…
Trusts
What is a trust? Many centuries ago an adventurer was travelling to a distant land. He said to a friend, “Here is my money, use it to look after my family while I am away”. The adventurer (Settlor) had created a family trust. The friend had become a trustee. The family were the beneficiaries. When…
The numbers don't lie
At a recent presentation the speaker commented that “the numbers don’t lie!” That statement certainly got my attention. But is it true? While numbers themselves may not lie, they can certainly mislead – intentionally or unintentionally. A businessman once introduced himself by stating that in his previous business he had increased annual revenue by 250%…
Annual Stock Valuation - Small Businesses
Definitions A “small business” for tax purposes is one (combined with its associated persons) which has a turnover of less than $3 million per year. Associated person rules apply. This means, for example, a person having an interest in two companies must add the turnovers to see whether the total is still less than $3million.…
Annual Stock Valuation - Big Businesses
References Figures in brackets refer to the section in the Income Tax Act. Definitions: A “big business” for tax purposes is one or an associated group with a turnover of more than $3 million per year. Associated person rules apply. This means, for example, a person having an interest in two companies must add…
Residential Rental Property
Before you start Structures There are four options. Sole ownership Partnership Company Trust The following options apply to married or de facto couples: Sole Ownership It could be desirable for the partner who has the higher income to own the property if the project is expected to make losses. In this way, the advantage…
PAYE
These notes assume you have only a few employees. When PAYE deductions exceed $100,000 per year ($500,000 from 1 April 2009) the rules change. Who is an employee? If someone comes to you and says they are self employed, even if they are registered for GST, you must still check to see if you…
Home Office
Where a business is operated from home there is the ability to claim as a tax deduction the expenses which relate to the proportion of the home used for business purposes. For example, if a bedroom is set aside as an office for your 4Life business and the area of this room is 10% of…
A brief guide to GST
GST returns are a fertile area for mistakes. To flesh out your knowledge, refer to IRD publication IR 375. When the term “goods” is used in this information sheet, read “Goods and/or services”. GST Speak It is important to get used to the terminology. Mistakes arise from misunderstandings when people use their own words.…
Things to consider when buying a business
Income How much is the total income to owners, including any company profit? Ask for five years’ accounts Have these accounts been prepared by a qualified accountant? If not, how do you know how the figures have been put together? If not supplied, insist on having the balance sheets. They provide a wealth of information…
Asking your bank for a loan
If you require finance for your business look at the problem from the bank manager’s point of view. If you were in his/her shoes you would want the following. The borrower Information about the borrower including management skills and experience in the industry. This is no time for modesty. You are trying to persuade…
Entertainment Expenses
To help determine whether expenditure is 50% deductible or 100% deductible, look for a reasonable amount of personal benefit from the entertainment. If this exists, it is likely the expense will fall into the 50% group. Entertainment is not deductible at all unless it is incurred for business purposes. Keeping the evidence IRD expects…
Advertising
Writing the advertisement Advertising is only one of many ways to market your business. It is probably the most expensive and often the least effective. You do not need to advertise to make your business grow. The Body Shop is said to have never advertised. Advertising ranges from the newspaper, magazines, television and radio to…
87 Ways To Cut Down Your Taxes
Disclaimer This document is provided only on the basis of being an aid to understanding tax and levy issues. BDS Chartered Accountants Ltd do not undertake or guarantee this material is a complete solution to all or any issues encountered by the purchaser. Users of this material are expected to seek professional advice before acting…
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Four top time-saving tips
Not enough time in the day to get everything done? Try these tips to keep calm and increase productivity. Having a huge to-do list can lead to task paralysis. Not everything is your #1 priority. Put three things on your list to hone your focus, and do those first. Checking emails every 10-minutes? It’s…
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Rental losses ring-fenced from 1 April 2019
The new law on ring-fencing rental losses is now in force, which means: In most cases ring-fenced deductions will be carried forward and can only be used against residential rental or sale of property income in future years. Property investors will, in most cases, no longer be able to reduce their tax liability by offsetting…
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10 inspirational podcasts for business owners
Spend a bit of time commuting or travelling for work? Podcasts are the new radio. Here are 10 free series that will educate and entertain whether you’re going long distance on a sales trip or stuck in city traffic. Find them on the author’s website, Spotify or iTunes. TED Talks are super popular and there are thousands to…
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Protection with patents and trade marks
If you’ve got a new invention, are launching a brand or marketing a new stream of business, it’s important to consider whether you need a patent or trade mark. Both take at least six months to process in New Zealand, so the sooner you do your homework, the better. A patent is granted for…