Planning Archives - BDS Chartered Accountants

Continuous training and improvement can set your business apart from the competition, giving you new tools to take on challenges and attract talent and customers.

The Icehouse Leadership Development Programme

The Icehouse is one of New Zealand’s top providers of business training, and its Auckland-based Leadership Development Programme is aimed at professionals who want to become more effective leaders.

On the Icehouse course, you’ll learn and experience:

Techniques to improve leadership, communication and management skills.
A better understanding of the challenges of an owner-manager.
How to think strategically to grow your business.
A better fundamental understanding of business functions including marketing, finance, and operations.
How to execute a project to solve a tangible change in your business.
A strong network of other successful senior leaders, facilitators, and business experts.
A unique learning environment which combines practical learning and academic expertise.

Taking part in this course will connect you with a network of like-minded business owners and managers to share ideas. Another important aspect of the course is that it focuses on personal effectiveness and wellbeing.

Drawing on the experience of some of the country’s top leaders, it will teach you how to build resilience, develop your emotional intelligence, and take care of your own wellbeing. After all, you’re no use to your business if you’re burned out.

Lifesaving lessons: First Aid Compliance in the Workplace

Even if your business is office-based, learning first aid skills can be a lifesaver for someone in your team. If your company operates in a more dangerous field, all the more reason to learn first aid.

Hato Hone St John runs a First Aid Compliance in the Workplace course to help workplace first aiders, including:

First Aid Level One — a standard first aid course for the workplace that takes one day to complete and includes NZQA unit standards 6401, 6402.
First Aid Level Two — a 12-hour course that includes NZQA unit standards 6400, 6401, 6402.

Every workplace has different levels of risk. Consult WorkSafe’s requirements to understand the level of training you need.

With political changes and an economic slowdown to contend with, we’re in pretty unpredictable waters. Here are some tips on managing your team in times of uncertainty:

Support staff wellbeing

Talk to staff about wellbeing regularly and openly. Let your team know it’s okay to feel stress or anxiety.

Regularly remind your people where to find support, whether it’s through free counselling or mental health resources, or through company health plans.

Put wellbeing practices in place

Ask your team what could help their wellbeing and balance. Consider team activities, on-the-job skill sharing and learning, and charity events.

Be clear about cost-cutting

Change on the cards? Communicate openly and frequently, using information that is easy to understand, relevant, and factual. Don’t offer false hope or reassurances.

Let people know if there is nothing new to communicate or if you are still working out your plans. Consulting effectively with staff can reduce the stress of uncertainty as you look to make changes in your business.

Christmas lists aren’t just for kids and Santa Claus. Before summer arrives, tick off our small business Christmas checklist to ensure you’re in the best possible shape for the year ahead.

Plan cash flow

Make sure your business has enough funds on hand to pay suppliers over Christmas and January, remembering your tax obligations in the first month of the year.

Prepare your cash flow forecasts well in advance and consider holding off on big investments, renovations, and upgrades until well into 2024 if things are tight.

Try Christmas marketing

As we all know, people love to spend money at Christmas, so why not take advantage of the mood with a personalised Christmas promotional campaign? It’s not too late to send a marketing email to your customers thanking them for their business – and it can help build brand loyalty.

Review your website

Web traffic tends to spike over Christmas, so make sure your website is working well without any glitches before you clock off. E-commerce problems can be hard to fix while everyone is away, so ensure web and mobile sites are up to speed.

Check your inventory

Don’t guesstimate your inventory or leave things to chance over the summer; make sure your business has enough stock to meet customer demand. Check how much stock you used last Christmas for a guideline.

Sort out staffing schedules

Getting to Christmas and discovering no one is rostered to cover late December and early January is a nightmare scenario. Avoid that worst-case outcome by planning ahead with your staff. Ensure employees take turns to cover the most inconvenient times of the year to keep things fair.

Chase up invoices

Chasing up late payments is a pet hate for every business owner. If you have overdue payments in the run up to Christmas, chances are the situation will get even worse in the New Year. Make sure you get paid in full before the summer break.

Get some rest

Christmas is an important time to get some well-earned rest, so schedule time to relax! A recent study found that New Zealand workers are more likely to suffer burnout than in any other country. Take the time to reset so you can walk into 2024 with the right mindset.

In the context of Christmas parties, gifts, and staff bonuses, various taxation rules come into play, namely the entertainment rules, PAYE, and FBT.

The entertainment rules place a 50% deductibility restriction on certain expenditures related to recreational events, such as Christmas parties or corporate hospitality. This limitation is grounded in the recognition that there is typically a private enjoyment aspect to such events. Both on-site and off-site consumption of food and drink can fall under the purview of the entertainment rules.

FBT (Fringe Benefit Tax) comes into play when non-cash benefits are provided to employees as part of their employment. While there is some overlap with the entertainment rules, the latter generally takes precedence over FBT, except in cases where the employee can choose when to enjoy the benefit or if the benefit is enjoyed outside New Zealand and not in the course of employment duties.

PAYE (Pay As You Earn) rules apply to monetary compensation provided to employees, covering bonuses, gratuities, and reimbursements for personal debts. The PAYE regime captures direct payments by employers for personal expenses incurred by employees.

Scenarios and Examples:

Christmas Event Costs:

Expenditures related to off-premises Christmas events, including venue hire, food, and drink, fall under the entertainment rules, allowing a 50% deduction. This also applies to incidental costs like glassware, waitstaff, and music.

Employee Vouchers:

If an employer gives vouchers for a restaurant meal as a gift, and the employee can choose when to use them, the cost of the voucher falls under FBT. However, reimbursing employees for meals would be subject to PAYE.

Gifts to Employees:

Most gifts, including gift baskets with food and drink, are subject to FBT as they can be enjoyed at the employee’s discretion. Some benefits subject to FBT may qualify for exemptions, such as the de minimis exemption.

Staff Cash Bonuses:

Cash bonuses paid to employees are taxable under PAYE, and they should be taxed at the ‘extra pay’ rate. These bonuses are considered payments made in connection with employment.

Company Vehicle for Personal Travel:

FBT arises when a company vehicle is available for personal use by an employee. If an employee pays for their petrol and provides evidence to the employer, these costs may be deducted from the taxable value of the fringe benefit, reducing the FBT payable.

Gifts to Clients and Customers:

Oddly, the entertainment regime is considered to apply not just to food and drink consumed at a function but to any provision of food and drink. Inland Revenue specifies that certain items in a gift basket may have different tax outcomes, with some being fully deductible and others only 50% deductible.

Still Confused?

In case of any confusion or questions, it is recommended to consult with usual advisor.

Accounting for Buying or Selling a Businesses

Buying or selling a business from an accounting perspective isn’t as straightforward as you may think. It is important to consider all aspects and ensure the details are correct from the beginning to avoid an unexpected tax bill once the transaction is complete.

In particular it is important to consider the following aspects:

Sale and purchase agreement

Ensure you have a legally binding contract to provide certainty regarding the transaction. A sale and purchase agreement sets out the terms and conditions for both parties to discuss, negotiate and sign. If this agreement is not completed and agreed upon, the transaction is not legally binding. The sale and purchase agreement will also determine how the transaction is treated for tax purposes.

GST

The GST treatment depends on the sale and purchase agreement and the GST status of each party. If both parties are GST registered, and land or a lease are part of the transaction, generally the transaction must be zero-rated (GST rate of 0%). If there is no land or lease involved, in order for the transaction to be zero-rated sale between two GST registered parties, the vendor needs to be selling all that is required to operate the business (eg, equipment, intellectual property, customers, suppliers etc) and the sale and purchase agreement must state that the transaction is a going concern. Getting the GST treatment wrong can be costly.

Tangible and intangible assets

Negotiations regarding the price allocated to tangible and intangible assets are vital as the outcome will ultimately impact income tax for both parties. Tangible assets are the physical items of the business (eg, fixed assets and stock), while intangible items are non-physical items that add value to the company (eg, intellectual property and goodwill). The vendor will typically try to allocate most of the purchase price to intangible assets to minimise depreciation recovery income, while the purchaser will try to allocate the purchase price to tangible assets to maximise the future depreciation deductions. These asset allocations are now constrained by the Purchase Price Allocation rules, so be sure to seek our advice on this aspect.

Legal fees and other associated costs

Legal fees and all costs directly associated with the purchase of a business are treated as non-deductible capital expenditure and are typically added to the purchase price of the business. If however the purchaser’s total legal fees for the year are under $10k, the purchaser can receive a tax deduction for the legal fees. On the other hand, legal fees incurred by the vendor in connection with the sale of the business will be non-deductible capital expenditure.

So you’ve created your company from nothing, put years of blood, sweat and tears into its success, and retirement is just around the corner. What do you do next? If you’re one of the lucky people who have an exit strategy, congratulations. If you’re unsure what will happen, it’s time to think about succession planning.

Succession can mean a number of things: handing over the reins to a new generation or having someone in the wings ready to buy you out. Either way, you need a plan.

Develop your succession plan

First, ask yourself these two questions:

What needs to be done to prepare your business for succession?
Do you have a set timetable for handing over the company?

When developing a succession plan, follow this four-step process.

Complete an analysis of financial and non-financial matters.
Conduct thorough due diligence of business risks.
Remove obstacles that might hinder succession planning.
Look at ways to enhance your company’s value, if you’re preparing for a sale.

Handing over to family?

You might be planning to hand over your business to a family member. But this
still requires careful planning.

A family succession plan recognises and accommodates the various needs, goals, and objectives of each family member. It should avoid creating ill-feeling and take everyone in the family into account. Compromises should be reached where necessary to ensure a smooth transition.

Ask us for our succession planning worksheet to gauge what different members of your family want from the succession process. This can help families work out how they feel, what different people want, what the business needs to thrive in the future, how much money and equity is changing hands, and who gets what.

The lowdown on selling up

You might presume that selling your company will be a golden ticket to a dream retirement, but making that dream a reality is far from straightforward.

With so many companies on the market, yours needs to stand out. Good businesses
will fetch a good price, while bad ones won’t.

Start by assessing the current position of your business. Perform internal due diligence and conduct financial and non-financial analysis.

Valuing the business with an independent party is another key part of succession planning. It’s common for there to be large gaps between an owner’s expectations and what the market is willing to pay. Do this early.

Also, reflect on what you can do to make your business more attractive to potential buyers. There are four key drivers of business value that need to be addressed: growth, profitability, efficiency and capacity, and risk management. Leave no stone unturned.

Succession is a journey

Developing, improving, and grooming your business is just the starting point in the succession planning process. Good advisers, including accountants and legal counsel, are also invaluable in helping you on your journey.

Get in touch to see how we can help shape your succession plan. Why not start today?

Would your business still thrive, or would it suffer a catastrophic failure if you suddenly stepped away?

It’s tough to remove yourself from the day-to-day operations when you’re passionate and busy. However sudden accidents, illnesses, or family emergencies can – and will – happen and you need to be able to step back knowing your systems are robust enough to cope.

For your business to work for you, you need to make yourself replaceable. Large corporations have plans in place to mitigate what’s known as ‘Key Man Risk’. But when you run a small entrepreneurial venture, who is the backup?

The more you can train and empower your team to perform the business’s essential daily functions without micromanagement, the closer you’ll be able to enjoy a lifestyle business.

Establish repeatable and scalable support infrastructure to run the daily operations and create a great team that you can lean on. Your staff need a common purpose – knowing why what they’re doing matters – as well as clear expectations around their roles. By creating a suitable work environment, where employees both individually and as a team are more efficient and likely to enjoy what they do, you’ll breathe easier knowing they have your back (and your business) in an emergency.

Finally, it’s important to know what the business looks like without you. An exit strategy is often thought of as the way to end a business — which it can be — but in best practice, it’s a plan that moves a business toward long-term goals and allows a smooth transition to a new phase. That may involve re-imagining business direction or leadership, keeping financially sustainable, or pivoting for challenges.

A fully formed exit strategy takes all business stakeholders, finances and operations into account and details all actions necessary to sell or close. Strong plans recognise the true value of a business and provide a foundation for future goals and new directions.

Top Tips:

No one is irreplaceable – Challenge yourself to step away for a week. Which systems fall over? Which procedures get left hanging? Which duties get ignored? Go cold turkey as a test case for the time you may have to leave your business in the hands of others.
Embrace innovation – Get systems that are simple, streamlined, effective and can be used by multiple key team members. Make sure anyone can log in and see exactly what’s needed for what reason at any time.
Recognise the value you’re creating – A business that doesn’t rely on its owner is worth a lot more when the time comes to sell or pass the reins to someone else.

We’re all familiar with the phrase ‘time is money’ so why isn’t it tracked in the same careful way as our finances to maximise both? Remote working has brought with it a wave of disruption and time is a hot commodity. Here are four ways you can re-set and prioritise productivity.

#1 Get your team on the same page

Streamlining your online systems ensures everyone has access to the same information to avoid doubling up on work. Sites like Monday.com or Asana manage tasks and track progress with easy-to-read charts and tables.

#2 Appoint a chief time officer

Believe it or not, larger companies are making this a standalone role to improve efficiency. Smaller businesses could make it part of someone’s role or raise the issue in meetings, so it stays front of mind.

#3 Watch your waste

Take a moment to evaluate simple things like the steps taken to get from one place to another that may be sucking up time. Is the movement unnecessary and therefore unproductive? Are you using energy to shift stock when it could be stored in a smarter location? Could there even be creative ways to harness your employees’ talent rather than letting fresh ideas go to waste?

#4 Get some help

An effective boss can accomplish a huge amount, but nobody can do it all. Leaders are constantly forced to make trade-offs between extremely important priorities. Focusing on any one thing means neglecting something else, so task an assistant with keeping you on track, on time, and removing incidental tasks from your plate.

Make a list of seven key clients or customers to call for feedback.

Decide who is going to make the calls or split them between two staff members. Email in advance explaining how committed you are to improving your customer service and experience, that you value their constructive feedback, and would like to interview them via phone or Zoom. Each call should take 10-15 minutes and be focused on their experience with your business.

Prepare questions.

Don’t be afraid to have deep discussions with your clients – ask open-ended questions such as: “What do we do well? What do you like about working with us/using our service or product?” and “How do you think we could improve?” Take notes during the call or do a Zoom and record it.

Be open with your interviewees.

Reiterate that you’re having the conversation because you want to learn. Tell them that anything they can offer will
help your business so there’s no need to spare your feelings! Remember, any improvements you make to your business based on their feedback is a win for them too. Find the themes.

Once you have all the feedback in front of you, segment it by theme ie: customer service, processes, or marketing.

Engage your team.

Now it’s time to let your management team walk in your clients’ shoes. Schedule a meeting to discuss the feedback themes. Don’t make any decisions at this point, just let everyone digest and discuss.

Wait.

It’s easy to jump into action but everyone needs time to sit with the feedback. Organise a meeting a week later to look more closely to identify worthwhile changes, then make an action plan.

Embrace the gift of knowledge.

Most of the feedback will be positive and open you up to learning, growing, and tweaking your business for the better. It can be hard to hear constructive criticism but once you reflect on it, you’ll realise how powerful it is for change.

The new 39% marginal rate that applies to all employment income over $180,000 is now in force. Consider how the new rate will affect you and your business.

The 39% tax rate and…

Trusts?

From now on, you’ll need to disclose a lot more information to Inland Revenue in your annual trust tax returns. The additional information will provide the Government with information on how trusts are being used, particularly with the introduction of the new 39% tax rate. As part of their annual income tax return, trustees will now have to disclose:

Financial accounting information, including profit and loss statements and balance sheet items
Loans to related parties
Information on distributions and settlements made during the income year
Names and details of settlors from prior years
Names and details of each person who, under a trust deed, has the power to appoint/dismiss a trustee, to add/remove a beneficiary, or to amend the trust deed.

FBT?

A new Fringe Benefit Tax (FBT) rate of 63.93% will apply for all-inclusive pay above $129,681 and the single rate and pooling of non-attributed fringe benefit calculations. The 42.86% rate for non-attributed benefits will no longer apply. Talk to us about your current FBT profile and we can review it together.

RWT and RLWT?

If you earn interest, this will be taxed at 39% (RWT) from 1 October 2021. If you’re selling property covered by the bright-line test, Residential land withholding tax: (RLWT) will increase from 1 April 2021 to 39% (except where the vendor is a company).

Beneficiary income from a trust?
If you receive beneficiary income from a trust let us know if you’d like to know more about your tax position.

Property or shares?

If you are looking to purchase assets such as property or shares, or already have such investments, it would be prudent to assess your overall investment strategy so that it meets your commercial and personal goals, including your tax profile.

Such investments are able to be held in companies or a trust, which have tax rates of 28% and 33% respectively, however on distribution to individuals in most cases the individual’s tax rate will effectively be applied.

A strong note of caution – the main reason for any restructuring of your investments should not be due to any perceived tax benefits arising out of the restructure. Any restructuring should be focused on achieving key objectives such as successful commercial, risk, succession, and asset protection outcomes. Talk to us and we
can review and assist you with planning to meet your objectives.

Superannuation contribution tax?

Time to check whether you have employees whose Employer Superannuation Contribution Tax (ESCT) and Retirement Savings Contribution Tax (RSCT) rate threshold exceeds $216,000. The tax rate for these has risen to 39% (as of 1 April 2021).

Additional employment income?

The tax change applies to all employment income over $180,000 a year, including bonuses, back pay, redundancy, and retirement payments. As an employer, take account of when additional remuneration to employees may affect their tax obligations and make sure tax is deducted correctly.

Did you know customer retention is faster and, on average, costs up to seven times less than customer acquisition? If you’re looking to improve your bottom line by turning your current customers into lifetime customers, here’s the best way to communicate with them.

Communicate kindly
Customer service is key, whether it’s in-person, on the phone, or via email, it’s what everyone remembers. Mistakes and delays are inevitable in business, but people are happier to ride those waves with you if you communicate in a kind and friendly manner. It’s not the mistakes that lose clients, it’s the lack of communication around it. If you’re not responsive, they think you don’t care. If they think you don’t care, they are more likely to look for a new company.

Communicate early
Put yourself in your client’s shoes – if something doesn’t turn up on time, you’re left wondering, right? Communicate early if there is going to be a delay or problem they need to be aware of. People are really understanding if you say something early, rather than leave it until later when it affects their day negatively. Plus, speaking up early about a problem or issue will build trust.

Communicate when necessary
You often hear ‘regular communication is best’, but what if you’ve got nothing to say? Concentrate on creating great e-newsletter content so they’re more likely to welcome the next one. Sending irrelevant, untimely, or lacklustre messages won’t improve your relationship. Understand when people need your services and communicate to them then. Trying to pressure them through too many emails or calls won’t end well.

Communicate cleverly
If your potential client or customer has requested a quote, you know they’re going to read that email so throw in something small at the bottom of it that communicates your message. Or how about putting a joke or inspired one-liner underneath your email signature to brighten someone’s day?

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 a distracting time-waster. Set aside two times during the day for your messages. It takes discipline, but productivity will soar. If you’re worried about appearing inefficient, set up an auto-response to let people know you’ll be in touch with them within ‘X’ number of hours.
Congratulate yourself for small daily wins. Focusing on what you’ve accomplished rather than what’s left to do will trigger a productive, positive mindset.
Talk to us. The hours you spend sorting (and stressing about) tax and cash flow every month could be put to much better use!

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 choose from. Top picks include Simon Sinek and Brene Brown.
Lewis Howes School of Greatness: Downloaded over 4 million times a month, hear interviews with world-class game changers in entrepreneurship, health, athletics, mindset, and relationships.
The Bite-Size BizRoom: 15-minute podcasts with business advice you can easily action to grow your business.
The Mike Dillard Podcast: Captivating interviews with inspiring leaders to help you fulfill your potential.
The Happiness Lab: Surprising and inspiring stories based on the latest scientific research that will change the way you think about happiness.
Building a Storybrand: Donald Miller has helped thousands of businesses grow by getting them to clarify their marketing messages.
How I Built This: Guy Raz dives into the stories behind some of the world’s best-known companies. Hear about innovators, entrepreneurs and idealists — and the movements they built.
The Mindset Mentor: 10-20 minute podcasts designed to give small business owners a motivational boost.
Goal Digger: A live workshop-style podcast to help business people redefine success, chase bolder dreams and tackle their biggest goals.
RISE is a series of bold conversations with business powerhouses and personal development leaders that offers real-life valuable takeaways.

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 an invention. It can be a new product or process, the material it is made from, or how something is made.
A trade mark protects your name, logo or brand. It can be a word, phrase, number, symbol, logo, colour, label, shape, or even a sound or smell, provided the mark can be represented graphically.

What are the benefits of a patent?

It gives you a legal right to stop others from making, using, or selling something you have invented.
Your invention is protected in New Zealand for up to 20 years.

** Applying for a patent? Be careful about revealing details of your invention to other people before you have filed your application: doing this may cause your application to be declined.

What are the benefits of a trade mark?

Trade mark registration is the easiest and most effective way to stop others from using your trade mark (or one similar to it).

Details of trade mark registrations are publicly available on a searchable database so competitors considering adopting a mark like yours will be put off.
You have the exclusive right to use the trade mark throughout New Zealand to promote the goods and/or services it covers for up to 10 years.
You can use the ® symbol with the trade mark.
You can sell or assign the trade mark to another person or business, or license its use to other parties.
It enhances the value of your business, ie: if you plan on selling your business, buyers will be interested in your IP assets.

** Before you do anything, check to see if a trade mark or logo like yours is already on the NZ Register, at www.iponz.govt.nz.
** If you need protection in other countries as well as New Zealand, talk to an IP lawyer. They do extensive searches of brand names across all relevant categories, advise on similar companies and can tell you whether your application is likely to be accepted.

Are you looking to take your business to the next level?

Introduce new revenue streams?

Dig deeper into the science or technology …

Cash flow is essential at this time of year, so if chasing late payments makes you feel uncomfortable, outsource those phone calls …

On average, Kiwi women earn 9.2% less than men

While the gender pay gap is smaller than a decade ago, a collection of top New Zealand business people are working hard to reduce it further. CEOs and Chairs from companies such as IBM, Saatchi and Saatchi, PwC and Vector have joined Champions for Change. Together, they’re advocating for greater inclusion and diversity within their own organisation, sector, and the wider public arena. Why? Because creating gender balanced workplaces is not only the right thing to do, it’s the smart thing to do.

What are the business benefits of closing the pay gap?

Good for your bottom line. Research shows the most gender-diverse companies are 21% more likely to experience above-average profitability.
Good for your brand. People will be attracted to buy from you and work for you, if you’re committed to equal pay and a diverse and inclusive workplace.
Great for brain power. A gender balance ensures multiple perspectives, which sparks creativity and innovation.
Great for sales. A diverse workforce better represents your customers, which means you’ll communicate with them more effectively.

So, does your business have a gender pay gap?

Look at your people data: how many men and women work for you? Are there more men at senior levels or in roles that lead to senior positions? What’s the difference in pay between all men and all women? Once you know where your problems lie, you can start fixing them.

Four smart ways to address the pay gap

Lead from the top: Everything you say, do, measure, and prioritise impacts your business’s culture. Treat gender diversity as a business priority. Help build a respectful, accepting workplace where everyone feels safe and supported.
Make a plan to make a difference: Carry out a pay equity audit, set yourself a target, then put aside money to review and address the issues. Look at all levels of your business, from the way you advertise jobs to professional development opportunities.
Be aware of bias: Around 80% of the gender pay gap is driven by hard-to–measure factors, including bias, which often creep in when making recruitment, performance and pay decisions. Make decisions based on transparent, performance-related criteria, have group sign off, and use gender-neutral language in job descriptions.
Get flexible: Tap into a bigger talent pool by showing you support employees on, and returning from parental leave. Consider ways people can work from home, condensed hours, flexi-time and job share.

‘For me, unconscious bias is the main challenge – addressing it starts with looking in the mirror and realising that you have it whether you are aware of it or not.’
Simon Mackenzie, CEO of Vector.

Get familiar with the flexible work legislation and take ideas from the Flexible Tool Kit.
Take a good look at your business metrics and cash flow and if things aren’t looking as flash as you’d like, or expected, give your accountant a call for advice.
Check out the Headspace app for short, easy meditations on the go.
If you’re committed to gender equality and creating a positive work culture, show the world by becoming accredited with New Zealand’s Gender Tick™.
Thinking of rewarding employees for a year of work? If vouchers or gift baskets aren’t your thing, consider saying thank you in the form of time off or flexible hours.
Get inspired by leading business people at Champions for Change.

Gen Z (born after 1995) are tech-savvy, entrepreneurial, out-of-the-box thinkers – people you want on your team. Here are …

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Why apprenticeships work so well

With New Zealand’s construction industry going ballistic, a lot of construction companies …

While sorting your end of year tax paperwork sounds about as fun as spilling coffee on your keyboard, once it is done, it’s done – and now’s the time.

With not long until year end, we encourage you to spend a few minutes this week reading our top tax tips plus the latest changes you need to be aware of in 2019.

Fill your drawers: Can you stock up on stationery, postage and courier bags before 31 March? Claim now and save.
Staff expenses: If you owe employees holiday pay, bonuses, long service leave or redundancy payments, you can claim for these now – as long as they are paid within 63 days of the balance date
Can you fix it? If you’ve got any significant maintenance or repairs on the cards, do it before year end and save on tax.
Turn fun into savings: Do you know which entertainment expenses you can claim 100% of? It’s worth finding out – ask us if you need clarification.
Look at your fixed assets: Do you have any you’re no longer using or don’t plan to use in the future? If so, you may be able to write off the book value.
While you’re at it, check your stock: Look at your stock as well, especially obsolete stock. There may be an opportunity to write some of this off as well – check with us on what could be done in this area.
Income boost: Earnt a lot more this year? Consider making a voluntary provisional tax payment.
Logging car use? Remember to jot down your odometer reading at year end and if you’ve kept a logbook of business and personal use, mileage and costs, good work!
Home office: It’s also a good time to review what home office expenses may be available for deduction, especially your home office. We can help with calculating this.
Saving time saves money! Accountants are required to ask for information to comply with AML – DIA obligations plus the IRD may ask you, via your accountant, for extra information in relation to your EOY tax. Having your identification and tax documents collated and correct saves your accountant time, which saves you money, so get started this week.

Payday filing

We have mentioned this in the past, but don’t forget payday filing for employers is compulsory from 1 April 2019. Please contact us if you need any help with complying with the new process and rules.

No more cheques for IRD

Do you send post-dated cheques for tax payments? It’s time to go digital!

From now on you’ll need to use online banking to make future-dated payments as the IRD no longer accepts post-dated cheques. Plus, if you’re one to put your tax payments in the Inland Revenue’s dropboxes, you’ll now have to head to an IRD office reception area during office hours to do so.

Writing off bad debt? Get your ducks in a row

If you’re expecting a tax break from writing off bad debt, you may also expect to hear from the IRD asking you to prove the debt is, in fact, bad. A new ruling means the IRD could request evidence of any steps you took to recover the debt (before writing it off) and proof there is no reasonable likelihood the debt will be paid. So, get your paperwork in order!