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How to pay less tax as a business owner

While there may be no way to avoid taxes, understanding how to manage your tax affairs as a business owner will help keep payments to a bare minimum.After many years in public practice accounting, I regularly get asked by business owners how they can pay less to the Inland Revenue Department (IRD). Unfortunately, while there’s no simple magic answer, I do have a few tips.Some business owners take the most amazing risks to avoid paying anything to the IRD. But if you’re looking to avoid the s...

Approachable, patient and focused

Nick is a fantastic accountant. He is knowledgeable, helpful and gives great advice. He is professional and passionate about what he does. We’ve been with big accountancy firms in the past and treated as just a number. It’s been a far more positive and personal experience with Nick. He is approachable, patient and focused on our best interests. If you’re looking for a top accountant you won’t find anyone better! Tomomi Bowcock - Rural Pest Services...

How to avoid paying too much GST

Nobody likes paying more than they need to, and understanding how to control your GST payable as a business owner can save you money over the course of the financial year.Tax time is looming and many business operators are looking more closely at their accounts and wondering how to minimise, or streamline, the costs associated with EOFY.Read more here...

7 ways missing IRD returns and payments makes running a business ‘bad busy’

The challenges of running a business are often all-consuming, but if there’s one thing you can’t afford to let out of your sight, it’s taxes. Here’s why. Getting to grips with the admin commonly associated with the ‘back office’ side of a business isn’t for everyone. And that’s fair enough, too. Dealing with the myriad requirements and complexities of local (or in some cases, multiple) taxation law is probably the hardest part, and that’s why many small business owners and entr...

8 common ways to trigger an IRD audit

There are many things to avoid in business, and one of the most unpleasant is triggering an IRD audit. Here’s how it commonly happens. Having been involved in many tax investigations (on behalf of clients of course), I can confirm they are not very pleasant and can result in stress and serious financial difficulties, often leading to relationship breakups and bankruptcy. What is an IRD audit? According to the department, an Inland Revenue audit is an ‘examination of your financial ...

Business size categories in New Zealand: Definitions and why they matter

What does a “medium” business look like? Understanding how various organisations define business size categories is important for several reasons. New Zealand is a nation of small and micro businesses representing more than 97 percent of all firms. They account for 28 percent of employment and contribute over a quarter of New Zealand’s gross domestic product (GDP). New Zealand has a higher percentage of small and micro businesses than most other countries, noting that, unlike New Zealand, ...

5 more small business GST mistakes to avoid

Many small business owners are rightly concerned about making errors with Goods and Services Tax (GST), so here are some of the more common and costly to avoid. As I wrote in my last piece on this topic, if you expect your business to bring in revenue of over $60,000 over the financial year, then you should be registered for GST. But even once you’ve made the call, there’s plenty more you’ll need to know about how your business handles GST in order to get it right. Read more here....

Does New Zealand have a Capital Gains Tax on property?

A hallmark of NZ’s taxation system has long been the absence of a Capital Gains Tax on the sale of property, but is that strictly still the case?A new client of mine is upset about having to pay tax at 39 percent on the sale of a property, saying that when he immigrated here he was told NZ doesn’t have a Capital Gains Tax (CGT), such as you might find in Australia.Is he correct, does NZ have a CGT on property? In this article, I’ll explore the concept of taxation on the sale of properties,...

5 common mistakes small businesses make with GST

The Goods and Services Tax (GST) is a tricky tax to come to grips with for those who don’t deal with it on a day-to-day basis, so here are a few items to make certain you get right. As a financial advisor and accountant, there are a few errors I see frequently made by businesses when it comes to handling GST. From the outset, the one consideration small businesses and sole traders should have regarding whether or not to register for GST is a matter of their expected income. If you project inco...

NZ Budget 2021: An accountant’s take

The ‘Wellbeing Budget’ announced yesterday may have arrived in a pretty fancy looking folder, but the shine could be wearing off for small business owners.On Thursday, Finance Minister Grant Robertson alighted on the steps of Parliament brandishing a glossy looking folder embossed with a map of New Zealand.For small and medium businesses still struggling with border restrictions and high levels of uncertainty, what Robertson has dubbed the ‘Wellbeing Budget’ appears to overlook this econ...

Safeguarding your business against unexpected disruption

Crisis management seems to have become a core skill for the modern business owner — how prepared are you in the case of emergency?Whether it’s lockdowns, earthquakes or like a client of mine in Napier, NZ (the recent flooding), it matters not; business owners need to be prepared for the worst.What can you do to put yourself in a better position to survive an unexpected crisis?In order to provide the simplest view of your priorities and how to treat them, I’ve prepared a list of 10 crit...

Outstanding Performance & Professionality!

We would like to thank you again Nick for your outstanding performance, professionality and friendship. We have dealt with many Accountants over the years, but you will have to be the best we ever had! You have made everything so easy for us, right from the start and we would not hesitate to work with you again at any time. Unfortunately the world’s development lately forced us out of business and we / you had to close down the business. This was for us, thanks to you, a completely painless an...

10 things you must consider before buying a business

Before you come close to signing on the dotted line, there are 10 important factors to consider closely, writes accountant and business advisor Nick Roberts.Starting a business from scratch and going without income in the initial period can be a daunting prospect, so it’s tempting to buy a business instead.But before the excitement clouds your objectivity think carefully — the corporate world is littered with disastrous business acquisitions. So how can you avoid ending up the same way?T...

Just how useful is the NZ Temporary Tax Loss Carry-Back Scheme?

It has its detractors, but is the Government’s tax loss carry-back scheme helping struggling NZ business owners?One of the responses to COVID-19 from the Government was a new temporary tax loss carry-back scheme.Some cynical commentators felt that the tax part of the SME Relief Package (of which the loss carry-back scheme was part) was more about political spin than providing real help to small businesses, so just how useful is the loss carry-back?The scheme enables businesses making a loss (w...

7 Key Considerations for Taking a Business Online

From figuring out what you do to goalsetting – here are your top priorities to help you hit the ground running. Starting and running a successful small business can be the most amazing opportunity to gain independence and build wealth, yet it can be very risky because of the high percentage of startups that fail. So if you’re an aspiring entrepreneur with a burning desire to break free of your wage slave bonds and achieve fame and untold riches, what should you be thinking about well before ...

Claiming Private Expenditure Despite the IRD!

Are you a business owner trading via a limited company? Did you know that you can legitimately claim for private goods and services paid for by your company? Yes you can, and it doesn’t matter what you claim - flights, a hotel bill, a present for your kids (or yourself), a new outfit - they’ll all OK. One small catch, the amount you spend cannot exceed $300 per quarter per owner - the exemption is not deducted first. Do bear in mind that  the threshold is $300 per quarter per employee o...

How to Exit Your Business

I meet many business owners who haven’t given a lot of thought to what their longer term plans are. Often they are continually bogged down in the daily routine and don’t take the time out to plan for the future. When I ask ‘what do you want to be doing in 5 to 10 year time’ often the answer is that they want to have exited their business, or at least be in the process of exiting. This quickly leads into discussions around what they think their business is worth, what they�...

Free Money - Come & Get it - If You Can! Research & Development Tax Credits

I’m bound to upset someone with this picture - pale, stale and male - but such is life!  Is it only old white boffin-like old guys that carry out research and development these days? No, most certainly not, there’s more around than you might think, and the New Zealand government is trying to encourage us to do more research and development by giving away yet more of our money. It’s surprising they have any left to give away! The incentive scheme for R&D has been around for some while ...

Fatal Mistakes to New Business Survival

In 37 years of advising new business owners the biggest single mistake that I keep seeing is to start a new business without having enough working capital to see them through to when the business is better established. The best form of working capital is cash in the bank. Borrowings can be OK (especially from family) but these are best kept in reserve. Five other mistakes are also often fatal. Break-Even Point. Unfortunately very few business owners know what their break-even point is. So simple...

Business Planning - Where is Your Business Now?

In order to get your business to where you want it to be you must first determine where it is now, as otherwise, you won’t know how much work you have to do to improve and nor can you set goals or action strategies, because firstly, the goals have to be realistic in achievability, (in other words, there is no point in setting a goal that is a bridge too far), and secondly, the action strategies you adopt should address the specific problems in your business you need to resolve. Here are some o...

Twelve Ways a Company Director can get a Criminal Record

Most people would think of tax as a way a director could end up in jail or with a criminal prosecution but in fact, there are another eleven ways a director could get a criminal record: Acts without a resource consent when one is required or does not comply with an enforcement order, abatement notice or water shortage directive;Pollutes, unlawfully disposes of trade waste or leaks, spills or releases harmful substances; or engages in misleading, deceptive or unconscionable conduct;Makes false re...

It's So Easy To Change Accountants These Days

It's a myth that it is difficult to change accountants these days. People think that it's too much hassle, it costs too much, you can't get the necessary information from your old accountant and your new accountant wouldn't know anything about your business or personal finances. Well, the good news is that it is no longer necessary to put up with mediocre service or rip-off fees. Changing accountants these days is easy because: 1. Your old accountant is obligated to supply any necessary informa...

10 Things to Do Before the Tax Year End

What should we be doing as business owners before our Balance Dates or tax year-end, depending on what type of business we are in? There's no point in paying any more tax than necessary. If you have trading stock (unless it’s clearly not going to exceed $10,000 in value) do a stock-take. Even if you have a perpetual inventory system on your accounting software you still need to check it’s accurate. Make sure you identify and write-off any unsaleable items or stock worth l...

Local Bookkeeper Exposes Rip-Off Accountancy Fees!

𝗜 𝗰𝗵𝗮𝘁𝘁𝗲𝗱 𝘄𝗶𝘁𝗵 𝗮 𝗹𝗼𝗰𝗮𝗹 𝗯𝗼𝗼𝗸𝗸𝗲𝗲𝗽𝗲𝗿 the other day who has loads of business clients. When it’s time to prepare the clients annual financials, to save her clients money and time, she prepares a year-end pack with all necessary supporting information (which is virtually the same for each client) and sends this off to the various accountants, wherever they may be. Despite the fact that the year-end information pack ...

Nick is fantastic to work with

Nick is fantastic to work with! His service, advice and free business classes are second to none. We really valued his input and direction in our early years of business. You won't regret partnering your business with Nick! Ang Low - Pick n Stick Designs...