Accounting, Omokoroa Accounting & Taxation Ltd, Tauranga, New Zealand

Business Accounting Tips

Tue, 30 Sep 2025 08:26:12 GMT

Business Accounting Tips

When it comes to managing your business finances, a few small habits can save you a lot of stress, money, and time. Here are some key tips accountants wish every client would follow.

1. Remember, GST Isn’t Your Money

It’s easy to forget, but GST collected on your sales belongs to the Government, not you. As soon as it hits your account, think of it as money you’re holding on their behalf. Our advice is to set up a dedicated GST account and transfer the amount straight across. In fact, you should do this for all income tax returns. That way, when GST and tax returns roll around (every 2 or 6 months, depending on your filing frequency, or the end of the financial year), you’re not scrambling to find the cash.

2. Don’t Rely on the $200 Receipt Rule

In 2023, the IRD raised the requirement threshold for keeping GST receipts from $50 to $200. This meant that businesses were no longer required to keep GST receipts under $200. However, businesses are required to keep records for Income Tax purposes for 7 years in the event they are audited. This includes both sales (invoices) and receipts (purchases). Our suggestion, to stay on the safe side, is to keep all your receipts. It’s better to be over-prepared than caught short.

3. Build a 10-Minute Morning Routine

Staying on top of your records doesn’t have to be overwhelming. At Ōmokoroa Accounting, Diane sets aside 10 – 15 minutes every morning to deal with receipts, invoices, and bank reconciliations, and updating Xero. This daily habit helps keep our records tidy and reduces the risk of mistakes. This will save you from the dreaded “shoebox or drawer full of receipts” at tax time, and may save you from losing an evening “catching up.”

These small steps can make all the difference. Not only will we, as your accountant, thank you, but it will also help you avoid unnecessary stress, penalties, and time wasted digging through old paperwork.

For personalised financial advice, get in touch . Our team is happy to help.

Haven’t Seen Your ACC Bill Yet? Here’s Why

Tue, 30 Sep 2025 08:19:58 GMT

Haven’t Seen Your ACC Bill Yet? Here’s Why

As an employee, you may have noticed that ACC levies are automatically deducted from your wages or salary. However, when you start a business, this becomes your responsibility. If you’re relatively new to business, you might be wondering how to obtain your ACC bill. It is usually sent via post or email.

ACC bills are sent in July or August for employers and September or October for individuals. However, clients are being caught out because they don’t realise they may need to update their details.

One client, a sole trader, had a bill that was several months overdue, because she had been expecting it to arrive in the post. A quick chat with us, and she realised:

She needed to set up a MyACC For Business account.
Because she’d always been an employee, she had never updated her address with ACC.
The bills were being sent to an old address and were therefore not reaching her.

Estimating Your ACC Bill

It’s important to know that part of your ACC bills is based on estimates. This means the ACC bill you receive may not always line up with the calculation in your accounting software.

This is because ACC predicts what your bill will be for the coming year, based on your income from the previous year. They are anticipating that your business will experience growth. Therefore, as your income grows, your ACC bill will also increase.

For this particular client, she had reduced her workload, so her income had reduced. However, her second ACC bill estimate was a lot higher than the first and therefore didn’t align with her accounting software. In this instance, ACC will either credit her account or issue a refund.

The key takeaway? Ensure you have set up a MyACC for Business account and that your details are correct online, so you’re not caught off guard when ACC calculates your levies.

Need clarity on ACC levies or income tax? Get in touch with our team for a friendly chat.

Do You Have Outstanding IRD Debt?

Sun, 28 Sep 2025 00:47:16 GMT

IRD Crackdown on Tax Debt

Lately, we’ve heard stories about IRD getting tough on people who owe tax. It’s no surprise. According to RNZ , Kiwi businesses now owe over $1.4 billion in unpaid GST and PAYE. The government is clearly applying pressure to get that money back.

However, what we are seeing and hearing from other accountants is that they are targeting small to medium businesses rather than large companies that owe millions. Perhaps this is because smaller debts seem more attainable to recover.

We’ve heard stories of IRD contacting employers directly to inform them that an employee has tax owing and taking money directly from people's bank accounts.

Managing Your Debt

If you have outstanding debt, we strongly advise you to address your debt before IRD gets in touch. In our experience, IRD is more helpful if we contact them first and explain the situation, rather than them having to follow up.

There are several options available for paying off debt:

Payment plans
Credit card
Online banking
Over the counter at your local bank

If you have overdue tax payments and find it difficult to put money aside each month to cover this cost when it’s due, we can help you set up a payment plan that allows you to pay IRD on a more regular basis.

We recommended preparing a budget each financial year so you can keep track of how your financials are tracking and put a plan in place that you can stick to.

If you are a bit behind in your tax payments, we can help with this, too. The worst thing you can do is bury your head in the sand and not address the issue.

Don’t Ignore Your Tax Debt!

Avoid the stress and potential penalties of unpaid taxes by addressing your debt head-on. We are here to provide advice, support, and practical solutions to help you navigate your financial obligations.

Contact Us

Reach out to us for assistance with setting up a payment plan or any other tax-related concerns. The worst thing you can do is ignore the problem. We can help you take control and find a way forward.

Call us at 07 548 2667 or email info@omokoroaaccounting.co.nz

ACC Updates

Mon, 16 Jun 2025 23:54:02 GMT

ACC Updates

CoverPlus Extra

From 1 April 2025, changes to regulations have altered how the Working Safer levy is calculated for CoverPlus Extra policyholders. Instead of basing it on earnings reported to Inland Revenue, the levy will now be calculated using the level of cover selected under CoverPlus Extra.

This update means all levies (including the Working Safer levy) will be calculated using the agreed cover amount and sent together in a single invoice.

During the transition, things may look a bit different for the 2025 year. But from April 2026 onward, policyholders can expect to receive just one annual invoice.

Business Levy Updates

Several changes are being introduced that could affect how your ACC invoice is calculated.

Effective from 1 April 2025, here are some of the key updates:

An increase in the average levy rate
Updates to the minimum and maximum levels of liable earnings
New levy classifications for businesses in the sports sector or those running home improvement stores
From 2026, interest will apply to all instalment plans
Businesses not part of the Experience Rating programme will no longer contribute toward those that are
The No Claims Discount will be phased out in 2026

You can read more about the ACC levy changes here , or just give us a call if you need clarification on how this affects you.

If you have questions about how any of this affects you or your business, get in touch .

NZ Budget 2025 Announcements

Mon, 16 Jun 2025 03:20:03 GMT

NZ Budget 2025 Announcements

Changes to KiwiSaver Contributions

The Government announced some changes to KiwiSaver as part of the 2025 Budget announcement.

What business owners need to be aware of is that the standard contribution rates for both employees and employers under KiwiSaver are set to increase gradually. From 1 April 2026, the default rate will rise from 3% to 3.5%, and then to 4% from 1 April 2028. These changes will be introduced in stages over three years to give everyone time to prepare.

The government's annual contribution will be reduced starting 1 July 2025. Instead of 50 cents for every dollar contributed, KiwiSaver members will receive 25 cents per dollar, up to a maximum of $260.72 each year. In addition, individuals earning over $180,000 annually will no longer be eligible for the government contribution.

These updates do not affect the current government contribution, which will still be paid out in July or August this year.

Employees who prefer to stick with the current 3% contribution will have the option to temporarily reduce their rate. Employers will continue to match this lower rate if an employee opts to stay at 3%, which may be helpful during times of financial pressure.

From 1 July 2025, the government contribution will be extended to include 16- and 17-year-olds, and from 1 April 2026, employers will also be required to match contributions for employees in this age group.

Investment Boost Tax Incentive

The 2025 Budget introduced a new tax incentive for businesses called Investment Boost , offering an additional deduction opportunity. From May, business's can deduct 20% of the cost of eligible new assets , and continue to claim standard depreciation on the remaining value.

To qualify, the assets must be:

New or new to New Zealand
Available for business use on
Depreciable for tax purposes

Eligible items include: new business assets, commercial and industrial buildings, improvements to depreciable property, primary sector land improvements, certain mineral and petroleum development assets, and mixed-use assets.

There’s no cap on the value of eligible investments. However, some assets do not qualify. Click here to read more and find out if your assets are eligible.

If you have any questions, get in touch with the team.

Growing Your Business

Mon, 16 Jun 2025 00:10:16 GMT

Growing Your Business

When we operate a business, there comes a point where we need to decide if we stay as we are and turn away new clients because we don’t have the capacity OR take steps to grow our business.

An advantage of staying small is that you may be able to keep under the GST threshold and therefore minimise your paperwork. Plus, you don’t have to stress about employing or contracting staff, which often comes with growth. However, when you remain small, you usually have to look for work because you need new or constant clients to fill the gaps when needed.

When you grow your business, there are also several advantages and challenges. With growth comes more profit. This could mean that your position in the company will evolve from doing the work to overseeing and managing those who do it. When your turnover hits the $60,000 threshold, you will need to register for GST and will therefore need to increase your prices. Growth also means you will likely need to employ staff or contractors. This in itself can add to your workload, as you will need to become familiar with employment law. You may also need to change your business structure, as the entity you operate under means bigger risk—especially if you employ people or take on contractors. There is an extra cost in changing your business structure.

It's a lot to consider. So, that’s why it might be time to book a consultation with Ōmokoroa Accounting as part of our Quarterly Reviews service.

If you’re a growing business, we can sit down with you to go over the pros and cons and decide what’s best for your business. Quarterly Reviews are a review of your financial performance, and budget, and an evaluation of your procedures and processes. Together, we can look for opportunities to streamline your operations and support your business growth. This would include setting clear targets and goals and tracking your business’s performance.

If you’re a business that’s experiencing rapid growth, then ask us about our Quarterly Review service. We’re here to help you navigate the next phase with confidence.

Provisional and Terminal Tax. What’s the Difference?

Sun, 04 May 2025 21:30:00 GMT

Provisional and Terminal Tax. What’s the Difference?

At the end of the financial year, we get a lot of questions about tax.

One of the most confusing tax types for our clients is Terminal Tax and Provisional Tax. It's important to remember these terms both refer to an Income Tax. However, one relates to the previous year and the other relates to the coming year.

Terminal Tax relates to the previous year. It is the final payment to the Inland Revenue (IRD) at the end of the financial year to ensure you have paid enough tax. It's worked out by comparing your income tax owed for the year with provisional tax already paid. If you have overpaid, you're a due a refund. If you have underpaid, you will need to pay the difference. The difference is called Terminal Tax. If your tax balance date is 31 March, then your terminal tax is due on 7 April.

Provisional Tax is income tax you pay in advance. Provisional tax is usually paid in installments throughout the year. This is designed to help avoid businesses paying a large lump sum at the end of the tax year. You are required to pay Provisional Tax if your tax payment was more than $5000 at the end of the previous tax year.

Important dates to remember for Provisional Tax payments:

28 August
15 January
7 May

For businesses that are GST registered and pay provisional tax 6-monthly, the payment dates are twice per year: 28 October and 7 May.

Making a Payment to the IRD

The IRD use 33 different account types. Using the correct code ensure you payment goes to the right account. The most common codes are:

DWT: Resident withholding tax payments on dividends. This code is only used by Companies that pay dividends to its shareholders.
EMP: Employer Deductions which includes the total deductions made by employers from their employees' wages.
FBT: Fringe Benefit Tax. This is used by Companies and is a tax paid for the personal use of business assets.
GST: Goods and Services Tax, used by businesses whose turnover is over $60k per annum.
INC: Income Tax. Terminal tax and Provisional tax are both Income Tax payments.
KSS: KiwiSaver Contributions. These are the contributions made by employees, self-employed people and contractors to their KiwiSaver Schemes.
PIE: Portfolio investment entity payments.
REB: Tax credits repayments e.g. donation tax credits.
RWT: Resident withholding tax. The most common place you will see these is the tax that banks deduct from your interest earned.

Need help making sense of your tax obligations? Contact us now - we're here to help!

Planning for financial year-end 2025

Thu, 06 Mar 2025 09:18:32 GMT

Planning for financial year-end 2025

As your accountant, we see it as our responsibility to ensure you remain compliant with the latest regulations, and up to date with any changes in tax legislation and advancements in accounting technology.

With that said, what are the key aspects you need to know to prepare for the financial year-end on 31 March?

Annual stock-take

If you carry inventory or stock, you will need to perform an annual stock-take by 31 March. The stock-take requires a count of all items. This includes stock ready for sale and raw materials. All stock needs to be valued at actual cost or realisable value if an item is damaged. Stocktaking is important because it is a good way to check and correct your financial numbers. Furthermore, you may be required to do a stocktake before submitting a tax return to IRD.

Debtors and creditors

If you have debtors or creditors, you need to let your accountant know about these for effective financial management and reporting. You should review your list of debtors and see if they are collectable, review your creditors, and follow up on any backorders or if you’re waiting on credits for a defect. To claim a tax deduction for a bad debt, it must be written off by the end of the financial year.

Reconcile cash floats

If you carry cash in your business, you should count cash floats on the last day of the financial year. This includes till floats, petty cash, and unbanked takings. This is so we can reconcile all payments to ensure they took place for accurate and complete records.

Review procedures and policies

The end of the financial year is a good time to review your policies and procedures in preparation for the new tax year. It's now time to start preparing and collating all the necessary financial information you need to provide to your accountant.

If you’re using accounting software to track and keep records of your cash, stock, debtors, and creditors, it should be easy to run off financial reports and double-check for accuracy. If you’re not using accounting software, get in touch with our staff to help you get started and discuss what system might be right for you. If you're thinking of changing to a new accounting software at the beginning of the tax year, now is a good time for a review.

Optimise your business's success and reach out for a personal consultation today! Get in touch.

Updated Accounting Standards for Tier 3 and Tier 4 charities

Wed, 05 Mar 2025 23:20:07 GMT

Updated Accounting Standards for Tier 3 and Tier 4 charities – how to prepare now

Registered charities must report to Charities Services using a tier system based on their annual expenses or operating payments from the past two years.

Financial reporting standards were introduced in 2015 to provide consistent, transparent information to the donating and taxpaying public. The reporting standards are based on a tier structure that reflects the size and complexity of the charity.

In 2023 the External Reporting Board (XRB) published updated accounting standards for Tier 3 and 4 registered charities.

If your charity’s financial year began on or after 1 April 2024 , the Tier 3 (NFP) and Tier 4 (NFP) Standards are now in effect and you should be using or preparing to use these.

What do you need to do?

1. Know what tier you are

There is specific information for Tier 3 and Tier 4 charities. You can check which tier your charity is here.

2. Know what has changed

The Statement of Service Performance, which is the non-financial portion of the Performance Report, has been simplified. Instead of reporting ‘outcomes’ and ‘outputs’, charities are now required to describe their main activities undertaken during the financial year and provide a numerical measurement as far as possible. Tier 3 charities are also required to describe what objectives the entity is seeking to achieve over the medium to long term (i.e. in the next 3 to 10 years).

The required categories of revenue and expenses in the financial statement portion of the Performance Report have also changed. The wording has been simplified and some categories have been split into more detailed groupings for additional clarity.

For example, funding from grants is now separated into more specific groupings, and the revenue category of ‘Donations, fundraising and other similar revenue/receipts’ has been renamed and no longer includes grant revenue.

The previous expense category of ‘Volunteer and employee related payments’ has now been split into two new categories separating employee costs from volunteer related costs.

Understanding the changes now will ensure you are organised at the end of your financial year in advance of the Annual Return and Performance Report filing date.

3. Be ready to report

To find out when your charity needs to use the updated standards see either Tier 3 or Tier 4 whichever is applicable to your charity. You have 6 months to file after your financial year (balance date) ends. If you are unsure of your charity’s balance date, you can find this by logging in to your charity’s online account .

4. Find more information

External Reporting Board | Tier 4
Ext e rnal Reporting Board | Tier 3 and What’s changed in the new Tier 3 Standard

For more information visit the Charities Services New Zealand.

Meet The Team: Ann Fairweather

Thu, 26 Sep 2024 12:30:00 GMT

Meet The Team: Ann Fairweather

Meet Ann. She is a Senior Accountant at Ōmokoroa Accounting.

After seven years of commuting into Tauranga for work, she decided it was time to ‘get off the road.’ She has been with Ōmokoroa Accounting for 18 months and loves now being able to walk to work,. It’s great having her as part of the team.

To contact Ann email office@omokoroaaccounting.co.nz .

Tell us about your background.

I am a member of CAANZ . I trained with KPMG many years ago. I have 10 years of experience as a chartered accountant. I spent the last 16 years working as the Group Accountant for a large retail and commercial property management company.

What do you enjoy most about your job?

I've always enjoyed numbers (I’m a bit of a nerd!) so accounting was an easy choice for me. There is a great team here at Ōmokoroa Accounting so it was easy to settle back into an accounting office. While we certainly get the job done, the office has a casual environment and it’s always nice to have clients drop in.

What are you most proud of?

I was the cluster accountant for Mount Maunganui schools when Tomorrow Schools was introduced (showing my age here!!). Producing the financial procedures, cashflows, and reports for the schools was an accomplishment I enjoyed, as I love helping people.

What’s the best piece of advice you would give someone considering accounting services?

Meet any prospective Accountant you are considering and make sure you feel comfortable. Qualifications speak for themselves but you want to be able to ask your advisor anything and feel you are listened to and not just a number.

Outside of work, what can you be found doing on the weekend?

I love walking around Ōmokoroa especially when there is a coffee somewhere along the way. I'm a foodie so I enjoy cooking, including baking cakes and decorating them for friends and family birthdays.

Tell us something about you, that people might be surprised to know.

I learnt to dive in my 20s and was a member of the Mount Dive Club for many years. The best dive I've had was a night dive on the Great Barrier Reef out of Townsville, Australia.

The Benefits of eInvoicing For Your Business

Thu, 26 Sep 2024 12:15:00 GMT

The Benefits of eInvoicing For Your Business

eInvoicing is the electronic exchange of invoice data between buyers' and suppliers' financial systems.

How it works

The supplier's financial system creates an invoice for the buyer.
The invoice data is transmitted through the eInvoicing network, where details such as the NZ Business Number (NZBN) are verified.
The invoice data is sent to the buyer's financial system, where it is matched with purchase details and prepared for payment.

Check out this video to learn how eInvoicing can help Kiwi businesses.

The Benefits For Your Business

We have started using eInvoicing at Ōmokoroa Accounting, through our Xero software and are finding it has simplified the process of adding supplier invoices. It can only be used between two accounting systems but it does make doing business smoother, faster, and safer. With less manual handling and processing, it has reduced admin, errors and delays. It has sped up processing and payments and improved business cash flow.

Some of New Zealand’s well-known businesses are now using eInvoicing, like Spark, Bunnings, Countdown, Westpac and Office Max. They’re seeing big changes — both in their internal efficiencies and for their partners and suppliers.

Here is a link to NZ businesses that are already registered to receive eInvoices. You will see that Ōmokoroa Accounting are included in this list.

Getting set up to send and receive eInvoices through your accounting software is only a few simple steps. Give us a call today if you need help with this.

The Perks of Tax Pooling

Fri, 20 Sep 2024 12:05:16 GMT

The Perks of Tax Pooling

Keeping a lump of cash aside to pay provisional tax on your Inland Revenue due dates can be challenging for any business, especially if you have cashflow issues. For some companies and sole traders, tax pooling is the perfect solution.

What’s tax pooling?

Being part of a tax pool provides more flexibility on when you pay provisional tax to Inland Revenue, rather than being tied to the IRD’s deadlines.

How It Works

IRD-approved intermediaries such as TMNZ or Tax Traders transfer money to Inland Revenue on your behalf. Once the pool has made the payment to IRD, it is considered “tax paid”.

All you have to do is keep up with your payments to the pool or purchase tax payments with a finance charge. Tax pools provide flexibility, allowing you to overpay when you have more money and provide breathing room when budgets are tight. Overpayers help other businesses in the pool that need more time to make their payments.

The pros of tax pooling

You’ll avoid IRD’s penalty charges and use of money interest (UOMI) charges for late payments as the pool will always make time-stamped payments for you.
If you haven’t paid enough tax to meet your provisional tax liability, tax pools typically charge lower interest rates for purchasing tax payments than those charged by IRD.
You can dip into your tax pool payments and use them as an emergency line of credit if you’re short on cash, as long as you top up the money later.
If you take money out of the pool, you’ll be charged a lower rate of interest than those charged by the banks.

In short, tax pools can give you more control over your provisional tax obligations. Talk to us today to see if tax pooling is the right fit for you.

For personalised advice on navigating your tax situation, contact us . Our team is here to help.

Meet The Team: Suzie Monk

Mon, 05 Aug 2024 02:09:58 GMT

Meet the Team: Suzie Monk

Meet Suzie. She is the Office Manager at Ōmokoroa Accounting. It’s her job to keep the office running smoothly, from welcoming and onboarding new clients to sorting through anti-money laundering documents, processing GST returns, and client queries. When she’s not working you can find her in the garden, out on the water, or exploring the cycling trails on her e-bike.

How long have you been working at Ōmokoroa Accounting?

I have been with Omokoroa Accounting for almost 3 years now. Previously, I worked at a design agency in the Mount, but I was a bit over the daily commute, so I looked for something closer to home. We are now settled in our new office at The Village and it’s a great hub of local businesses.

Tell us about your background.

I started to work with a finance company in Tauranga before moving to Fremantle. I then lived the dream in beautiful Vail, Colorado for several years, snowboarding daily in the winter and road-tripping in the summers. I spent some time in the UK, studying for my AAT qualification whilst working. That’s where I met my lovely English husband and had our first two children. I always joke that it was part of the dowry agreement that when I was ready to return to NZ, we would settle in Tauranga. Lucky for me, it happened. My brave mother-in-law, at 74, also emigrated with us (it was a package deal) and has had 21 years of loving life in Tauranga. We found our first NZ family home in Te Puna before moving to Omokoroa for more shed space in 2013.

What do you enjoy most about your job?

I love the team at OA. We have lots of laughs. I also enjoy the vast range of clients and the variety. No day is ever the same.

What accomplishment are you most proud of?

The practice has grown so much. I have put in place many new systems for a team environment and created checklists to create a smooth workflow.

What’s the best piece of advice you would give a client considering accounting services?

Talk to your accountant about your accounting needs. What can you do to keep your records accurate and put practices into place? Find out what they need from you annually as this helps the accountant at year end and will help keep your costs down.

To contact Suzie email info@omokoroaaccounting.co.nz .

Outside of work, what can you be found doing?

I enjoy playing tennis and I’m a keen gardener. I live on a lifestyle property with native bush and avocado trees, and a home orchard and garden, so, this keeps me busy. My family loves water activities so we enjoy paddle boarding and boating in summer and mountain biking all year round, especially in Taupo. Hubby and I recently got Ebikes, so that opens up a whole other level of exploring. My husband has a few classic cars, so when he can extract himself from the workshop, we venture out and are looking forward to a few roadies this summer in our caravan.

Tell us something about you, that people might be surprised to know.

I’ve had a large variety of jobs. In Vail, I shovelled snow off roofs and decorated huge Christmas trees on a hoist with thousands of tiny white lights, and for one client I removed labels on any item in the house and was responsible for cleaning up fingerprints. I also worked for a very wealthy family who flew into Vail to ski for three weeks per year. They had a full-time housekeeper and groundsman and two full-time interior decorators who flew worldwide to ‘maintain’ their homes – certainly an eye-opener for the poor traveller!

Estate Planning: Have You Got a Plan?

Mon, 05 Aug 2024 01:26:29 GMT

Estate Planning: Have you Got a Plan?

As per the words of Benjamin Franklin “…in this world nothing is certain but death and taxes”.

While contemplating our mortality is never pleasant, it's crucial to address estate planning to ensure our wishes are met and our loved ones are taken care of. Proper preparation can provide peace of mind and clarity for the future.

Ōmokoroa Accounting has experienced the loss of a few clients over the years, and from a tax agent’s perspective, your family will need to inform us if this happens.

In the event of your death, we will need to be provided with a copy of your Will, which shows who the Executors are and a copy of the Death Certificate.

The Essential ‘Just in Case’ Document

Recently, the team at Ōmokoroa Accounting attended a webinar on estate planning, and the key takeaway was the importance of having a Will and a detailed list of all assets, contact details, and policy account numbers available.

After all, what would happen to your bank accounts, assets, or business if something were to happen to you?

Would your family members know your login details for your computer?

Diane has prepared a document for family members when she travels. She calls this her ‘Just in Case List’ and says it should include all relevant details your executor needs to know, such as your accountant/tax agent's details and computer logins.

This is so that if something happens, her executor can efficiently manage her affairs and handle any necessary tasks without delay or confusion.

Remember: If you should pass away your accountant will need to know so that final accounts and tax returns can be filed, and all accounts closed with the IRD.

At Ōmokoroa Accounting, we're here to guide you through these important steps. Contact us today if you have any questions and to secure your peace of mind.

Navigating the Current Economic Climate: Survey Results

Fri, 02 Aug 2024 01:48:16 GMT

Navigating the Current Economic Climate: Survey Results

In June, we asked you to complete a survey to help us better understand how you feel about your business in the current economy. The survey results shed light on some of the primary concerns facing business owners right now. According to our survey, the key issues facing our survey respondents right now are:

Regulatory Changes: Many businesses are finding it difficult to keep up with evolving regulations.
Customer Demand: Fluctuations or a lack of customer demand causing uncertainty.

The survey revealed that several business owners have had to make major adjustments to their operations to stay afloat, with some considering selling their businesses but felt the market conditions were not favourable. Others were considering deregistering from GST to reduce their tax burden or were focused on maintaining their operations and expanding their product or service. In May, respondents felt the government tax relief was not enough to address broader financial challenges.

Tips for Alleviating Financial Stress

How can you lessen the challenges of cash flow management, so it doesn’t end up taking a physical and emotional toll in the current economy? Here are our top tips for alleviating financial stress.

#1. Have a written budget.

Make sure you have a detailed budget or cash flow forecast, something that is easy to follow and review each month to make sure you are on track. Most business owners know how much their expenses are each month in their heads but don’t keep track of actual costs against what was forecast.

#2. Know your reserves.

Know what reserves you have available if they are needed. For example, do you have an overdraft in place should you need it? Do you have a good relationship with your bank should you need extra financing? Do you have surplus funds in your bank accounts? Do you have assets that could be sold if not needed to release some cash? Are you carrying too much stock? Unexpected expenses can occur suddenly. Ensuring you have reserves available can be your business’s financial insurance policy.

#3. Review your pricing.

Review your pricing, and how much you are charging your customers. Are you charging enough? Increasing your price annually by small amounts to align with inflation is better for your customer than a large price hike when you realise you are no longer meeting your margins.

#4. Review your expenses.

Have you considered the increased cost of living, the rising cost of buying goods, the increased cost of labour, higher import costs, etc? Review your expenses. Can you negotiate a better deal?

#5. Address your debt.

Taking on debt can be part of running a business, however, failing to meet your repayments or accumulating debt can lead to the unfortunate possibility of business closure. Address your debt if you have any. Make sure you have an agreed payment plan in place that you can afford.

A good accountant is more than just a bookkeeper, we can help you develop a business plan, provide advice on how to grow your business and or where you can tighten your belt.

Thanks to everyone who filled in our survey. Your insights help to keep us informed about the needs of businesses in the current economy. If you are feeling overwhelmed, get in touch.

July Tax Changes: What You Need to Know

Thu, 01 Aug 2024 01:08:35 GMT

July Tax Changes: What You Need to Know

The 2024 New Zealand Budget focused on spending cuts and tax relief for middle-and-lower income working families. Amid concerns about the cost of living and job security, these measures aim to boost disposable income leading to more consumer spending.

As a result, the Inland Revenue introduced a few tax changes this July.

Income Tax

Changes to the income tax thresholds took effect on July 31. These changes aim to increase personal income, extend the independent earner tax credit, and increase the in-work and family tax credit.

Personal Income Tax Thresholds

Independent Earner Tax Credit

In the 2024 budget, the Government stated, “Increasing PIT [personal income thresholds] thresholds reduces income tax for people receiving over $14,000 of income per annum. The current thresholds have been the same since 2010… As wages have grown over time, people have paid more of their incomes in tax. Increasing the income tax thresholds goes some way towards addressing this.”

Brightline Rule

July 1 saw the introduction of a new Brightline Rule for residential properties.

The Bright-line Test applies to any residential property where if it is sold within a set period (the bright-line period) any profit will be taxable.

Under the previous government, this was 5 - 10 years. However, as of July 1, this has been reduced to 2 years.

This also applies to residential properties purchased and sold overseas by a New Zealand tax resident.

FamilyBoost

FamilyBoost is a new childcare payment made available to help with the rising cost of early childhood education. Households can be reimbursed up to $75 per week after 20 Hours Free and MSD Childcare Subsidy has come out, meaning eligible families could receive a boost of $975 every three months.

You could be eligible if you incur a cost from a licensed ECE provider and your household earns under $180,000 p.a. The table below shows the maximum weekly rebate based on income.

KiwiSaver

KiwiSaver contributions are optional for parents receiving paid parental leave. However, from July 1 if you choose to have KiwiSaver deducted from your parental leave entitlements, the IRD will also make an employer contribution of 3%.

If you still receive an income from your employer while on paid parental leave, they will continue to make KiwiSaver deductions from your income and compulsory employer contributions.

Paid Parental Leave

From 1 July parental rates have increased.

Eligible employees and self-employed parents will see their maximum weekly rate rise from $712.17 to $754.87 gross.

For self-employed parents, the minimum parental leave payment will increase from $227 to $231.50 gross per week, reflecting the minimum wage increase effective from April 1.

For personalised advice on navigating these changes and optimising your tax situation, contact us . Our team is here to help.

FAQs for Small Business Owners: Insights & Advice

Wed, 29 May 2024 01:36:36 GMT

Navigating Tax and Business: Common Questions Answered

We frequently encounter tax and accounting queries posed by small business owners, sole traders, and budding entrepreneurs. In this article, we’ll delve into some of the recent questions we've had from business owners, to offer insight for others who might be navigating similar situations.

Below are some actual scenarios discussed with business owners.

1. Tax and IRD

“I’m currently in my third year of business and struggling to understand why IRD do things the way they do. In the first year, I took drawings as my only source of income. I will be paying terminal tax on those drawings this year. In year two, I switched over to PAYE, so I have been paying taxes as I go. Throughout the year, I have been receiving notifications from MyIR to say that I have provisional-tax due based on my first year drawings. IRD know that I am now using PAYE as they see my monthly payments linked to my IRD number. My accountant tells me it will all be sorted, once we file the upcoming tax return. Why can’t they adjust their system so once they see someone is on PAYE they remove the provisional tax due?”

Our answer: You should be paying tax on the amount of profit you make, not the amount of drawings you have taken out of the business. These figures will only be the same if you always work out your profit before you take any funds and even then they probably won’t be the same.

When you file your second-year tax return, if you have been paying yourself wages, then there shouldn’t be much, if any, tax to pay (again, this depends on your profit). So, if the provisional tax calculation was overestimated, you shouldn’t have to pay any.

IRD’s system is just software. It automatically produces reminders and letters based on the information it holds. It would pay to get your tax return filed as soon as possible. Until you start filing an individual tax return, IRD doesn’t know what your earnings are each year.

2. Paying tax as a business and employee

“I’m a full-time employee and planning to start a small sole-trader side hustle. Would I be charged a higher income tax on my full income (i.e., employment + business income) at a 33% tax rate, or do I pay tax on my sole-trade income separately?”

Our answer: Your total income is added together to determine your tax bracket, but as you will have already paid tax on your wages via PAYE it will just be the sole-trader additional income that will be taxed when you file your tax return. The different types of income are recorded differently in mYIR (Inland Revenue), but it is all added together for the tax calculation. You will need to let the IRD know you’re earning a self-employed income.

For example, if your gross wages equals $48K and your self-employed income equals another $20K, you will only pay tax on the $20K, but you will be taxed at 30% because your gross income has moved up into the 30% tax bracket.

3. Paying tax on profit

“I run a small business, sole-trader, I am not GST registered. I spent a lot of money getting it started, and a lot of money on ongoing costs. So, while I make a profit on each item I sell, my expenses still outweigh my sales. I often spend my personal money on things for the business (because it’s not generating a steady income yet, but I still need to purchase inventory), does that count as funds introduced and does that count as business income? If my business has not made a profit by the end of the tax year, do I still need to pay any tax?”

Our answer: In answer to the first question, no you do not need to pay tax if your business does not make a profit. Tax is only paid on profits made. Secondly, ‘funds introduced’ is the correct term to use, and no, funds introduced is not considered income. You are just loaning the business money that you will take back out again at some point in drawings. Think of these entries as a loan to the business.

4. Don’t get caught out at tax time.

“I’ve just started a business. Should I be keeping funds aside for tax?”

Our answer: Yes. Make sure you set aside money regularly for tax in a separate bank account. Roughly 20% to start with to cover your tax bill. You should also consider hiring an accountant because our knowledge can often save you time and money and ensure you always file your tax return on time to avoid late penalties.

5. Selling a Vehicle

“Just a question regarding the tax ramifications when selling a vehicle. The car was brought into the business three years ago at $17k. Current book value is $10k. Market value around $15k. If we sell it at market value there will obviously be tax to pay. Can we sell it to a shareholder for $1 and consider it a loss?”

Our answer: Absolutely not. You have to sell it at market value. You should pay tax on the lower of the profit or the depreciation claimed. So, in this example, you will pay tax on the $5K.

6. New to business

“I’m new to business and don’t have an accountant. I’ve trialed some self-accounting apps like Hnry, Xero and MYOB. I’m still unsure which one to use. How do you file taxes? Also, do you claim back 100% of your business purchases or just the tax paid?”

Our answer: Our advice would be to talk to an accountant or tax agent.

If you’re new to running a business or have questions about starting a business, cash flow, tax or GST, get in touch with the team today . We can help!

Understanding Tax for Sole Traders

Tue, 28 May 2024 00:57:59 GMT

Understanding Tax for Sole Traders

When you first become self-employed it is so easy not to think about things like tax, GST and ACC. You’ve likely never had to consider these things before as an employee because it was always done for you, but it’s important to ensure you’re putting money aside when you start receiving a self-employed income.

One of the most common questions we encounter when a new business owner is just getting started is ‘How much should I be putting aside?’

Currently, the different tax bands and rates are, earnings up to $14,000 are taxed at 10.5%, earnings between $14,000 and $48,000 are taxed at 17.5%, earnings between $48,000 and $70,000 are taxed at 30%, earnings between $70,000 and $180,000 are taxed at 33% and anything over $180,000 is taxed at 39%.

Make sure you set aside money regularly for tax in a separate bank account. Roughly, 20% to start with to cover your tax bill. Accounting software can help you keep track of what is owed and what payments are coming up. You should consider hiring an accountant because our knowledge can often save you time and money, and we’ll ensure you always file your tax return on time to avoid late penalties.

Curious about how other sole traders manage tax? We answered some common questions in our latest blog. Check it out for more valuable insight.

Start Saving for Your Taxes

It’s important to understand that you need to start saving for your taxes from the day you start to receive an income. It may be a while before you have to pay tax, but it will come along sooner than you think, and it can be quite a shock if you are not ready for that day.

Between 80% and 90% of businesses fail in their first year, and one of the main reasons for this is poor cash flow management.

Recognise your skills, and if you lack the knowledge and expertise to ensure you will pay your tax on time, then it’s important to outsource this to an accountant and seek help.

Profit and Provisional Tax

You may have heard you only pay tax if your business makes a profit. This means that you pay tax on the profit you make on your income each year, which is income minus expenses.

Some expenses that come out of your income — such as drawings (money you take out of your bank account instead of a wage) and loan payments — are not included in your profit calculation. So, your bank balance is not always an indication of whether you have made a profit.

Provisional Tax is a tax you start paying once your tax bill exceeds $5,000.00 in the previous financial year. Provisional tax helps you manage your income tax throughout the year. So, instead of paying a lump sum at the end of the year, you pay it in instalments during the year.

Start Planning for Your Taxes Today!

Don’t let tax catch you off guard. If you’re self-employed, it’s vital to start saving for your taxes from the moment you receive your first income. Regularly setting aside funds and leveraging professional accounting support can safeguard your business from financial pitfalls.

Click here to find out how we can help and take control of your financial future now!

Do you provide short-stay or visitor accommodation?

Sun, 24 Mar 2024 22:21:34 GMT

D o you provide short-stay or visitor accommodation?

From 1 April, new GST rules apply to people who use websites or apps to provide short-stay or visitor accommodation. This includes sites and apps such as AirBnB, Bookabach and Holiday Houses.

If you are an accommodation host, make sure you are aware of how the changes affect you.

Find out more

Audit Shield Insurance

Thu, 21 Mar 2024 01:41:55 GMT

Audit Shield Insurance

Audit Shield provides an insurance solution, underwritten by Lloyd’s that covers the professional fees if you need to respond to an official review activity of returns lodged with IR or other New Zealand government revenue authorities. This includes GST reviews, risk reviews, and more. The scope is wide and includes phone calls.

What is the cost to you (the client)?

The cost to you (the client) is based on the partner charge-out rate and the client’s turnover of their family group. As an example, a business with a turnover of less than $500,000 annually would pay $272 annually, including GST which would provide you with $12k of fee cover.

Audit Shield Insurance could give you peace of mind (especially for larger clients) that you have coverage in place in the event of a review or audit.

If you’ve got questions or are interested in adding Audit Shield Insurance to your portfolio, feel free to get in touch.

How to Optimise Efficiency with your Accountant

Wed, 20 Mar 2024 00:48:07 GMT

How to Optimise Efficiency with your Accountant

In today's business landscape, leveraging accounting software has become indispensable for efficient financial management. Accounting Software, like Xero, is a brilliant tool and makes the job of keeping and producing records and financials so much easier. But sometimes even the most adept clients can encounter challenges when using it.

In this article, we look at some of the common challenges we encounter with businesses when navigating the use of Xero and provide constructive guidance on how to enhance proficiency. Plus, we share a couple of additional tips to make working with us easier.

Ensure you match the supplier/outgoing payments to the documents correctly when creating a new transaction for payments. Otherwise, this can create a duplicate.
Ensure you reconcile bank statements correctly. Often clients think that once they have coded a transaction this is all that is needed. But if a regular bank reconciliation is carried out, this would highlight any errors when they arise, making it easier to correct.
Check the details behind the GST Return Report before you file the return. By checking the report, you can correct any errors before filing it with IRD.
Be careful not to create duplicate contacts. Contacts are a good way of recording transactions for a particular customer/supplier and allow you to track what you are spending with a supplier or how much income you are receiving from a customer.

Save Time and Cost with these Tips

Complete the Business Questionnaire in full

To help save time and cost for you, each year we ask you to complete a business questionnaire, so we have a checklist of all the paperwork/records we need to check whilst preparing the year end accounts. It is helpful if you complete the questionnaire in full, so we have all the information we require. Otherwise, we will need to contact you before we can start any work, which can sometimes involve numerous emails and conversations, and mean additional charges to you for our time and services.

Answer all questions asked in full

If we have contacted you with a question about your accounting, please ensure you answer the question in full. If we receive a response that is unclear and requires further clarification, we will contact you again.

At Ōmokoroa Accounting we strive to continually improve our communication processes and adapt to each client. We want to make the financial year-end process as easy as possible for both you and us to save time and money. It is a team effort for us, so if you have any feedback on the above, please feel free to get in touch .

Meet the team: Erica Eddowes

Mon, 04 Mar 2024 00:12:06 GMT

Meet the team: Erica Eddowes

Meet Erica. She is an Assistant Accountant at Ōmokoroa Accounting and has been a valuable member of our team for over two years. Her role involves preparing financial reports and tax returns for our numerous clients. When she’s not working, she can be found being a “mum taxi”, playing tennis, or pursuing her “new passion” for art.

1. What was your background/experience before joining Ōmokoroa Accounting?

I’ve been working at Omokoroa Accounting and in this position for two and a half years. I decided to re-study and complete my Bachelor of Business – Major in Accounting degree in 2021. However, I trained in hotel management and initially worked as a reservations and as a front office manager in large hotels in Wellington. I travelled and worked in London for over 15 years working in numerous creative and corporate environments from Warner Bros., to research and data analytics at KPMG. Returning to New Zealand in 2013 with our twin toddlers we found our way to the lovely Te Puna/Ōmokoroa area.

2. What do you enjoy most about your job?

I enjoy the variety of industries our clients work in (we live in a very talented community). I enjoy having a job that uses the knowledge I gained from my accounting degree and past job experience, but allows me to continue learning. I’m also very lucky to work with a great group of intelligent and fun (accountants aren’t boring!) people!

3. What accomplishment are you most proud of?

Presenting in front of a room full of over 50 International senior KPMG partners at a conference in Frankfurt was something I was very nervous about, but I was really pleased that I managed to not fall flat on my face and also retain their interest! I’m also proud that I successfully obtained my accounting degree later in life whilst managing an orchard, young children, and COVID-19 interruptions.

4. What’s the best piece of advice you would give a client considering accounting services?

Using an accountant means you can have more time to focus on your business and what you do well. However, it is still important to ensure your record-keeping is tidy and as error-free as possible. For example, Xero is a great tool, but it still requires accurate input to be financially and strategically beneficial. Ask a question before you try to do something in software that you are not sure about - it will save time and money in the long run!

5. Outside of work, what are some of your interests and hobbies?

When I’m not a taxi service around Tauranga for kids' activities, I really enjoy playing tennis. I’m not at all arty but I’ve just agreed to join an (informal) art club – I’m sure there will be wine?!

6. What’s something that most people might not know about you?

I’ve done two bungee jumps and mountain biked down ‘Death Road’ in Bolivia known as the world’s most dangerous road – and I’m still scared of heights!!

What you need to know about upcoming tax changes

Tue, 27 Feb 2024 23:57:22 GMT

Upcoming tax changes: What you need to know

As a new financial year approaches, it’s important to stay on top of the tax regulations and keep abreast of any impending changes that might affect you and your businesses. Staying informed ensures effective tax planning and compliance. Diane Gill attends regular webinars and meetings to ensure she is up to date with the latest tax changes that could affect you. Here are some highlights from a recent webinar you may need to know.

#1. Proposed new tax rate for Trusts.

The Inland Revenue has released information about increasing the trustee income tax rate from 33% to 39% in April 2024. Although this change is currently still in Bill form, it is predicted it will be law by the end of March.

In the NZ Herald , business editor Jenee Tibshraeny explains that Finance Minister Nicola Willis wants to exempt some trusts from paying the increased tax rate. She has hinted at modifying the bill. So, watch this space.

#2. Taxation for Uber and Airbnb

There has been further discussion around taxation rules for the Platform Economy which covers businesses like Uber and Airbnb. Early this year, Airbnb asked the finance minister for more time to ensure GST is paid on all stays through its platform. However, Nicola Willis has said the Government has no plans to defer the date. This means that Uber ride-share services and Airbnb will need to ensure GST is levied on all New Zealand services booked via their websites as of April 1st. This also applies to hosts and drivers who fall under the $60,000 annual revenue threshold for businesses that don’t need to register for GST.

Last year, National did promise to scrap the rule but has now decided to proceed with it. For more information or to discuss the impact on your business please get in touch.

#3. Gifts not treated as Assessable (taxable) income.

Generally speaking, gifts are not usually subject to income tax. A ‘gift’ refers to an amount of money gifted to a benefactor that the payer receives no financial benefit from in return, for example, a koha. However, there are some circumstances where a gift may be liable for income tax. For example, the gift was related to employment, such as gifting a vehicle to the recipient whereby the vehicle is used in an income-earning activity.

There has been some discussion regarding situations where gifts are not treated as Assessable (taxable) Income. The main example of this was when strangers made gifts to people badly affected by Cyclone Gabrielle. As always, each scenario can be different, so it is best to seek advice if you have this situation.

Need financial advice? Get in touch.

Tax exemptions you may have missed

Sat, 24 Feb 2024 23:24:05 GMT

Tax exemptions you may have missed

Last April, new Fringe Benefits Tax (FBT) rules came into effect that could be relevant to your business and employees.

Here’s a summary of the three new exemptions that may have gone under your radar:

1. Employer-subsidised public transport (mainly for the purpose of travelling between home and work).

2. The provision of self-powered (bicycles) or low-powered vehicles (such as scooters) for work-home travel.

3. Employer contributions toward ‘vehicle-share services’ used for travelling between home and work.

What does this mean for you?

For all three exemptions, employees will need to use their benefit mainly for the purpose of travelling between home and work.

A reasonable amount of private use will be allowed (for example, taking a bike to the supermarket).

Exemptions won’t be granted for self-powered or low-powered vehicles not suited to commuting (for example, high-end racing bikes).

The FBT exemption applies at the time the benefit is provided, so if an employee changes that travel habits at a later date, employers and employees won’t be penalised.

What it means for your FBT returns

The FBT exemptions will give your business more options as you consider the remuneration and benefit packages. For example, you could offer employees a generous bike-to-work scheme, taking advantage of the new rules.

They’re worth exploring as they could help your business achieve sustainability and environmental goals and entice your staff back to the office.

If you make benefits available to employees, you should be mindful of these exemptions when processing FBT returns.

If you’re in doubt about FBT exemptions, please talk to us.

Policy changes that could affect you and your business

Thu, 22 Feb 2024 23:19:54 GMT

Policy changes that could affect you and your business

National outlined some headline changes it wanted to make within its first 100 days in power. Here are some major changes businesses should look out for.

1. The reintroduction of the 90-day employment trial period

The National-led government has extended the availability of 90-day employment trial periods for all businesses. This reverses the changes under the Employment Relations Amendment Act made in 2018, which scrapped the 90-day trials for businesses with more than 20 employees.

2. Clean car discount and ‘ute tax’ to end

The clean car discount, under which people could claim back up to $8,625 for an electric or hybrid vehicle, will disappear for all vehicles registered after 31 December 2023. The levy on higher emissions vehicles, such as utes, has also been scrapped.

3. Fair Pay Agreements cancelled

The government has also repealed the Fair Pay Agreements Bill, which was introduced to give workers in certain industries powers to negotiate minimum employment terms.

Collective agreements can still be negotiated by unions through collective bargaining, however, with the repeal of the Fair Pay Agreements Bill, any person or organisation that obtained personal information for the purpose of Fair Pay Agreement bargaining must now dispose of that information in live with the Privacy Act 2020.

4. Bright-line test for property investors reduced

National is expected to reduce the bright-line test for property investors from 10 years to 2 years, returning the law to its 2015 setting from 1 July 2024. New builds will not be exempt from the two-year bright-line.

As part of the coalition government negotiations, National’s proposed restrictions on foreign persons acquiring residential properties for more than $2m in New Zealand and the proposed 15% ‘foreign buyer tax’ on such purchases have been cancelled. The expected increase in demand for residential property due to this proposed change will no longer occur. Tax deductions for depreciation on commercial and industrial (non-residential) buildings will be removed from the 2024-25 income year.

4. Fuel Tax changes

National wants to cancel planned fuel tax increases that would have added a further 12 cents to the litre.

5. Rural regulations to go

National and Act have committed to reducing regulation and red tape in the farming sector. What that looks like we are still to find out.

Need financial advice? Get in touch.

Online Security Basics for your Business

Wed, 21 Feb 2024 03:20:04 GMT

Want to upskill your cyber security skills so that you know how to keep your data, networks, customer information and reputation secure?

Join CERT NZ’s interactive webinar on cyber security to learn about:

· the basics of online security

· common online threats

· practical steps you can take now.

When: 10:30am, Tuesday, 27 February

Minimum wage increases 1 April 2024

Wed, 21 Feb 2024 03:14:10 GMT

As a business owner or manager, you need to be ready for the minimum wage rates increase from 1 April 2024.

Adult starting wage will go up from $22.70 to $23.15 an hour.
Starting-out and training minimum wage will go up from $18.16 to $18.52 an hour.

How strategic financial accounting helped boost business growth.

Tue, 30 Jan 2024 09:45:51 GMT

How strategic financial accounting helped boost business growth.

Karen Murphy, from the Ōmokoroa Barber Shop, has been in business for over 20 years. She has owned three barbershops and worked with two accountants prior to contracting our accounting services. In this article, we explore how Ōmokoroa Accounting contributed to the Omokoroa Barbershop's business journey, navigating challenges, and facilitating transformative phases.

The Challenge

When Karen came to us, she was mainly dealing with cash and recorded all her transactions in a book and on spreadsheets. It was a time-consuming process, often involving weeks of painful paperwork at financial year-end.

She had already worked with two previous accountants. Her first accountant was a good accountant, however, he was older and spreadsheets were his generation. He had since retired. Karen’s second accountant relationship was not working, so she decided to shift to us.

Ten years later, we have navigated some pivotal challenges alongside Karen and her business, including COVID-19, paying GST, implementing Xero, and setting up EFTPOS. Our approach has always been to provide a proactive accounting service, that doesn’t just tick the bookkeeping boxes but provides her with positive support and financial advice.

Our Approach

Paying GST

A pivotal moment in Karen’s small business journey was when she began earning over the $60,000 threshold and was required to pay GST. Karen says, “The business grew, and I was earning more. The other two accountants never had a reason to push it forward. They just did the books at year-end, and that was it. Diane could see what was coming. I really wasn’t prepared for GST, but she literally held my hand through it all.”

When Karen started paying GST, she had to factor this into her prices. This meant passing the price increase on to her customers.

“You know what it’s like. You put your prices up, and everyone holla’s at you.” In response, we reminded Karen that it was a positive thing that she was now paying GST because it meant her business was growing.

We often recommend to our clients to charge GST right from the outset of setting up their business, especially if you’re a business-to-customer (B2C) business. This is so that when you start earning over $60,000, you don’t have to upset your customers with a price increase or absorb this cost yourself (which means you’re now making less of a profit).

However, remember that once you register for GST (even if it’s voluntary and you’re earning under the $60,000 threshold) the money is no longer yours. We suggest having a separate bank account for GST, and when you get paid, transfer that money into that account to ensure you don’t get caught out at tax time.

Making business easier with EFTPOS

Traditionally, barbershops have always taken cash payments. However, we suggested that Karen move to an EFTPOS payment system which she says, “She’s never been more thankful”. Karen used to send her clients to the supermarket to get cash out, however, she no longer faces this issue.

EFTPOS can make for better cash flow, faster accounting and transactions, and more potential, happier customers. These days, not everyone carries cash. Providing a ‘cash only’ service can be a barrier to clients using your service.

Navigating COVID-19

COVID-19 was challenging for many small businesses. For Karen, she faced the particular challenge that her lease was running out and she, therefore, had to make the decision of whether she would like to continue her barbershop business. Customers weren’t coming in the door, and she had to manage the needs of her staff.

Karen says, “It was a nightmare! Over COVID my barbershop was in a slump. Diane was the one who kept me going. She pointed me in the right direction.”

Karen credits Diane with always providing supportive advice. “There are times when you’re in business you get yourself in a downward spiral,” she says, “But she’s always there, she’ll pick me up, and I just continue on ‘head down, ass up’ and keep going.”

During this time, we provided many of our clients with practical strategic planning and financial advice, including where to get business funding support. However, beyond the numbers, we acted as a stabilising force during a challenging period, by providing reassurance and helping them to stay focused on their long-term goals during times of uncertainty.

Implementing Xero

Before Xero, Karen always did her accounting on a spreadsheet. “I used to have my little book with a pen and paper and write it all down. Diane got me onto Xero.”

Her first accountant was a good accountant, but he was older, and spreadsheets were his generation. Xero helps automate tasks that take up a lot of time, from reconciling bank transactions to sending invoice reminders. It also makes it easier for your accountant to process your year-end financials and run profit and loss reports so we can provide you with clear financial advice for your long-term goals.

Thanks to Karen Murphy from Ōmokoroa Barbershop , who allowed us to share her journey with us for this case study. Karen has been a client of Ōmokoroa Accounting for 10 years.

Are you ready to grow your business? Partner with Ōmokoroa Accounting for proactive accounting strategies and support. Contact us today!

December 2023 Customer Survey Results

Mon, 29 Jan 2024 09:03:55 GMT

December 2023 Customer Survey Results

Thank you for your feedback

We had a fantastic response to our December customer feedback survey. We’d like to thank all our clients who took the time to respond by providing us with constructive feedback, and ways we can continue to improve and grow our service.

Everyone who filled in our customer survey went into the draw to win a Christmas hamper. Congratulations to John Molesworth and his wife Glynis (pictured with Diane) who were the winners of the hamper. The hamper was purchased from our local supermarket, Fresh Choice.

Overall, respondents said they were satisfied with the service they were receiving from Ōmokoroa Accounting. Respondents said that they felt well-informed about their financial situation, and that we charged fairly for our services.

We would also like to acknowledge the constructive feedback we received from the survey. We are looking at ways to address any issues raised with our team and, if we haven’t already, will respond to you individually and personally. Constructive feedback gives us a benchmark for the improvement of our services. So, we thank you for your honesty.

Thanks again to everyone who took the time to respond!

Recent Law Changes

Mon, 22 Jan 2024 21:49:43 GMT

There have been a couple of recent law changes that could affect small business owners like you.

Merry Christmas to you!

Mon, 18 Dec 2023 22:38:02 GMT

Merry Christmas to all of our clients.

Wishing everyone a very Merry Christmas!!

We would like to thank all of our lovely clients and wish you all a safe and Happy New Year for 2024.

Our office is closed on Thursday 21st March and reopens Monday 8th January 2024 at 9am.

From Diane, Erica, Suzie and Ann,

the Omokoroa Accounting Team.

Public Holidays and shift work, what to know

Tue, 28 Nov 2023 20:48:28 GMT

It can be difficult to work out public holiday entitlements for employees who work shifts or are on-call.

Find information to help you understand employer obligations about this on Employment NZ website

Employees working shifts or on call

Get your buyers' NZBN so you can send them eInvoices

Mon, 20 Nov 2023 20:38:51 GMT

Get your buyers' NZBN so you can send them eInvoices

Confirming your buyers’ New Zealand Business Number (NZBN) is essential for eInvoicing.

It’s the unique identifier that ensures eInvoices reach your customers.

Learn more

Omokoroa Accounting at The Village

Mon, 06 Nov 2023 03:26:09 GMT

Ōmokoroa Accounting at The Village

We have moved to our new office at 97 Hamurana Road, at The Village – Omokoroa. The move went well, and we are well-settled in our new workspace. The office is still a work in progress with regard to our window signage and office furniture, but we are up and running and look forward to welcoming you into our new office space.

We are glad to have this done before the Christmas break when our office will be closed for two weeks. If you haven’t popped in yet, please come by and say hello and grab one of our free pens.

How will a National-led Government affect you?

Mon, 06 Nov 2023 01:41:54 GMT

How will a National-led Government affect you?

As news headlines announce that NZ First’s, Winston Peter’s is heading to Wellington for coalition talks, we still don’t know yet how the new National-led government will be formed. But we do know that National has pledged to make some major changes to tax. They’re calling it the ‘Back Pocket Boost’ with a focus on helping “the middle” get ahead. Here’s how some of the changes could affect you.

Tax relief for the middle

National’s plan includes several tax cuts, which aim to boost New Zealander’s after-tax income. The Back Pocket Boost tax-relief plan effectively increases the after-tax pay you take home, by adjusting income-tax brackets to compensate for inflation. This diagram featured on RNZ shows National’s income tax bracket adjustments.

Several key elements of the National Government’s economic plan include:

As NZ Superannuation payments are linked to average after-tax wages, NZ Super is expected to increase by $680 a year, or $26 per fortnight.
The Independent Earner Tax Credit will be extended. At present, it gives people earning between $24,000 and $48,000 a year an extra $10 per week as a tax credit.
National plan to cancel fuel tax hikes, which could eventually save 12 cents per litre of petrol.
National’s Back Pocket Boost indicates it will increase tax credits for Working for Families, with the in-work tax credit increasing from $72.50 to $97.50 a week.
National is planning to scrap the 20 hours of free ECE for two-year-olds and will replace this with a Family Boost Tax Credit. This is said to provide families with a childcare tax rebate of up to $75 per week on the cost of childcare, which reduces for higher incomes.
National will scrap the clean car rebate at the end of 2023. Instead, they plan to redirect all future Emissions Trading Scheme revenues to tax cuts, saying they would fund climate policy from the general Budget allowance.

Brightline test

National plans to roll back the bright-line test to 2 years. The bright-line test is a rule that dictates when a property is sold if it will be subject to a capital gains tax. At present, the bright-line test currently sits at 10 years for most properties. It is not clear just yet when this would take place.

Interest deductibility on properties

At present, if you purchased a property after March 27, 2021, you can’t claim any interest on your property when calculating your tax. However, National have said they will gradually reinstate the 100% interest deductibility. This will happen in increments over the next three years.

ACT and NZ First have their own policies on tax, so this will likely mean further negotiations on tax changes.

It is important for you to stay informed about the issues, and how these changes made by the government can affect your financial situation. Here’s some tips:

Review your financial situation. This will help you understand how any changes to the tax policy might affect you or your business.
Talk to your accountant. We can provide you with advice to help minimise the impact of these changes.
Stay informed. There are a range of resources available to help you stay informed about the potential impact of these changes on you or your business.

Need financial advice? Get in touch.

KiwiSaver for the self-employed

Fri, 03 Nov 2023 03:17:59 GMT

KiwiSaver for the self-employed

If you’re self-employed it can be easy to forget about your KiwiSaver contributions. KiwiSaver is a voluntary savings and investment scheme that helps you save for your retirement. When you are employed, you usually don’t have to think about your KiwiSaver as it is automatically deducted from your wages. However, when you’re self-employed you need to be the one to make the contributions.

Is it still worth contributing?

When you’re self-employed you no longer get some of the benefits that employed people receive, such as holiday pay and sick leave. This also includes your employer's contribution to your KiwiSaver. This may leave you wondering if it’s still worth contributing to. But if you continue to contribute to your KiwiSaver, you are still eligible for the government contribution.

If you contribute at least $1042.86 by June 30 each year, the government will contribute $521.43. It’s easy to carry on contributing. We recommend you set up automatic payment through your online banking and make regular contributions to your KiwiSaver. Either $100 per month or $25 per week is sufficient to ensure that you receive the “free” government contribution each year.

Something worth considering is that, for people aged 65 or over, in most situations, the government will stop contributing by this age. So, we recommend a discussion with your financial advisor at this point, as you may want to move your funds to a more accessible account.

Need financial advice? Give us a call, we can help.

Is a trust still worthwhile given the recent legislation changes?

Fri, 03 Nov 2023 03:06:50 GMT

Is a trust still worthwhile given the recent legislation changes?

In January 2021, there was a complete overhaul of the NZ Trust Law. This replaced the Trustee Act 1956. Since then, one of the most common questions we have been asked by our clients is, ‘Is it still worth having a trust given the recent changes to the Trust Law?’

The recent changes in legislation have made the management of tax and compliance for a family trust more rigorous to ensure the financials are properly managed. We always recommend that you seek thorough legal advice from an experienced lawyer before making any decisions about your trust.

Given the recent changes, it is understandable that many of our clients are asking ‘Is it worth it?’

Our answer to this is, why did you set up the trust in the first place? Have your circumstances changed, and is it, therefore, still relevant? For example, let’s say you owned a small business as a builder, and you set up your trust to protect your family home asset from potential claims, creditors, or failure of a business venture. However, you’ve since retired. Do you still need your family home in a trust?

Given the obligations required now under the NZ Trust Law; the duties and responsibilities of the Trustees, and the time and cost involved in meeting these obligations, it may no longer be worthwhile.

Trusts are mainly used for asset protection so you may wish for a family trust to own your family home or the majority shares in your company. This keeps your personal and trust assets separate and ensures your trust assets are better protected against claims by creditors.

Is it still worth having your rental investments owned by a trust? It is quite common for rental properties to be held in a trust, but due to the IRD’s recent residential rental income rules e.g. ringfencing, bright-line and interest deductibility, is it still worth it? Family trusts serve the purpose of safeguarding your assets, to ensure the ongoing benefit for your family members even after our lifetime. Once your asset is placed in a family trust and a gifting programme has been carried out, you relinquish legal ownership of it, and the asset becomes the property of the trust managed by the trustees.

Family trusts can be complex and time-consuming to administer. It costs money to set them up and there are generally ongoing legal and accounting fees. There is also a cost to ceasing a trust. There are many factors to consider, and each individual situation is different. That’s why we highly recommend you talk to your lawyer and accountant before making any decisions.

At Ōmokoroa Accounting we understand the practicalities of trusts. With our experience, we can assist you with the financial reporting requirements according to the Trust Law and IRD disclosure requirements. Contact the team to find out more.

The importance of cybersecurity

Wed, 01 Nov 2023 03:13:16 GMT

The importance of cybersecurity

For accounting firms, the risk of cybersecurity is becoming more frequent. Recently, the team from Ōmokoroa Accounting had cybersecurity training, and with a 13% increase in cyber-attacks from 2021 to 2022, and 2023 anticipated to also be high, there is never a bad time to take a look at your own cybersecurity.

A couple of important takeaways from our training:

The website https://haveibeenpwned.com/ is a useful resource for checking if your email address has been compromised. We have started doing this on a weekly basis.
The use of multi-factor authentication (MFA) is now a must. MFA can enhance your organization's security by requiring your users to identify themselves with more than just a username and password.
A great tip is to start using passphrases as passwords, instead of single words. This is because they are made up of more random words, making them longer and harder to guess, but easier to remember. As opposed to a password like ‘Geni0us123’ which is easier to crack, but more difficult to remember.

Ōmokoroa Accounting is dedicated to staying up to date with the latest industry regulations and technologies. Contact us today and stay ahead of the curve.

MAKE THE INTERNET WORK FOR YOU

Wed, 25 Oct 2023 00:59:35 GMT

Make the internet work for you.

Ready to take your business to the next level? Explore Digital Boost’s resources to supercharge your marketing, perfect your website, and craft the perfect business plan.

Plug into expert advice, bite-sized learning, and master skills like time-saving productivity tools and business insights.

Explore Digital Boost

The pros and cons of transferring assets to your business

Sat, 30 Sep 2023 03:04:01 GMT

The pros and cons of transferring assets to your business

As a sole trader or small business owner you may decide to use your personal assets, i.e., computer or vehicle, to meet your business equipment needs. If you use a personal asset for business use, you may decide to ‘give’ it to the business. Selling your personal assets to your business in New Zealand can have both advantages and disadvantages. Here are some pros and cons:

Pros

#1. Tax deductions

Using your personal assets for your business may help reduce your tax bill. Some advantages of doing this would be that you can claim depreciation on those assets each year as a business expense. Furthermore, if you are GST registered you will be able to claim the GST as a second-hand goods purchase.

#2. Save costs

Using your personal assets for your business, such as cars, office furniture, and computers, can free up cash that you may have otherwise spent on acquiring equipment and assets.

#3. Ease

Converting your personal assets into business assets as a sole trader or small business is simple. You just need to start using them for business use. However, if you continue to use your assets for personal use, you need to keep a record of how much time you’re using that asset for business purposes.

Cons

#1. Insurance

When converting personal assets to business assets, it is worthwhile checking to see if they will still be covered under your homeowner insurance policy. If not, you’ll want to make sure they are covered under your business insurance.

#2. Selling the business

If you stop trading and decide to sell the business, you will need to make the decision whether you sell the personal assets with the business or sell the items back to yourself at market value.

#3. The right tools

While selling your personal assets to the business might save costs initially, you’ll need to ensure the equipment is up to the task. For example, if you work in graphic design or digital marketing, you may need a more powerful computer and larger disk space to cope with the workload.

#4. Using personal money

When you’re first starting out, you may use your personal money to help fund the business. But remember that your personal money is also an asset. To simplify your accounting, you should try and keep your business and personal finances separate. By mixing personal and company funds, you can make your financial accounting more complex.

Before proceeding with a transfer of personal assets to your business, it’s best to consult with a qualified accountant or tax advisor. The team at Ōmokoroa Accounting possess the knowledge and expertise that can help you navigate this potentially complex financial situation and can provide tailored advice unique to your situation .

Have a chat with the team today!

Case Study: Shane Adams Family Trust

Fri, 29 Sep 2023 02:20:33 GMT

Case Study: Shane Adams Family Trust

Shane Adams approached Ōmokoroa Accounting in March 2022 because he needed help with his financial statements for his family trust, and wanted a more personal, local service.

The background

The client, Shane Adams, approached Ōmokoroa Accounting for help with his financial statements for his family trust. In January 2021, the Inland Revenue updated the legislation for the Trust Act. As a result, this made keeping financial statements for a family trust more rigorous in terms of tax and compliance. The legislation changes have resulted in more onerous requirements on trustees to ensure family trusts are professionally managed and accounts are in order.

Previously, the client had been using “town accountants” and big accounting firms. He felt he was getting lost in their admin and processes, he was always talking to a different person, and they lacked personal knowledge of his account. He approached Ōmokoroa Accounting because he wanted a more personal, convenient, and local service. Somewhere he could just pop in.

Shane says, “I didn’t necessarily need a local accountant, but I certainly wanted one.”

Changing accountants

The team at Ōmokoroa Accounting took over Shane’s family trust financials in March 2022.

We provided a responsive service, where Shane felt he could just email, ring, or pop in if he had questions, and aimed to explain the process in a clear and straightforward way. We offered an efficient onboarding service for the client without the large set-up costs of the bigger firms. Furthermore, because of the Anti-Money Laundering Act, we were required to contact the other trustees to confirm they were genuine participants in the trust, which included Shane’s brother and lawyer. This was arranged by Zoom video call for an easy and efficient service.

The result

As a result, Shane now feels he has a local accountant that he can trust, someone he can get to know personally, and someone who provides the right advice accordingly. He says “It is a big plus to be able to see someone person to person. It is good value, local, and professional.”

He has noticed an increase in responsiveness and feels assured that when he calls, we know exactly who he is, and where his file is, and can find the required information straight away, providing a far more efficient service.

In his experience, he had felt that many accountants use unnecessary jargon. Therefore, we have aimed to provide a service where information is explained clearly and in a relatively straightforward way.

At Ōmokoroa Accounting we understand the practicalities of trusts. We have 15 years of experience working with family trusts and understand the financial reporting of tax law and IRD requirements. Need help making sure everything is documented properly? Get in touch!

Reporting requirements for Trusts

Wed, 27 Sep 2023 02:27:49 GMT

Reporting requirements for Trusts

In January 2021, there was a complete overhaul of the NZ Trust Law. This replaced the Trustee Act 1956. The changes included:

Description of the key features of a trust to help people understand their rights and obligations;
Mandatory and default trustee duties;
Requirements for managing trustee information, including basic trust information for beneficiaries;
Allowing trustees to manage and invest property in appropriate ways;
Options to remove appointed trustees without having to go to court;
And cost-effective establishment of administration of trusts.

Part of this overhaul included an outline of core documents that need to be kept for each tax year. This included a record of assets, liabilities, income, and expenses. Under the Act, these are the key documents trustees must keep a record of for their financial statements. There should be one trustee responsible for keeping track of these records.

These financial statements summarise the trust's financial position and make it easy to identify its assets and liabilities without going through years of documentation.

We are coming across a lot of trusts that have never kept financial statements. However, if the trustees have access to the trust deeds and resolutions, including gifting certificates, we can aid you in generating financial statements for this year.

By keeping up-to-date, accurate financial records you can ensure trustees fulfill tax obligations and be accountable to beneficiaries. It also helps trustees with the annual financial review and trustee meeting each year.

Check out this website for useful information on recent scams.

Sun, 24 Sep 2023 21:08:40 GMT

USEFUL SCAM INFORMATION WEBSITE

Check out this website for useful information on recent scams.

https://www.scam-detector.com/

Investing your own money in your business

Sun, 24 Sep 2023 02:51:51 GMT

Investing your own money in your business

When you first start a business, you may need a cash injection to kick things off. This often comes in the form of your own money if you need to purchase stock, invest in a website, or buy tools and resources before your business can get started.

This initial investment is called ‘working capital’ and is the funds needed to pay your way until you start to receive and generate business income. This initial capital usually comes from two main sources: investing your own personal funds or borrowing money from family or a bank.

It’s important to keep good records of the money you invest, so you can pay yourself back when the business starts to generate income. When you first start the business, the drawings you take usually replace your wages. If you were previously employed, the amount you draw out will depend on two things:

How much do you need to survive each week?
How much money is in the business bank account?

We usually recommend taking the minimum of drawings to start with, so that you have a buffer sitting in your bank account to allow for ongoing costs. i.e., A monthly website subscription.

When you contribute funds from your personal account to your business account or withdraw from the business, you record these entries in a ‘Current Account’. A current account is how you keep a record of the money you put in or withdraw from the business and allows you to see how much the business owes you at any time.

When a business receives introduced capital, the value is entered into the current account, and the business now owes the current account owner that amount of capital. The drawings you withdraw from the business are not subject to taxation; it's a retrieval of your initial investment, like repaying a loan.

Starting a new business? Do you need financial advice? Give us a call, we can help.

WHAT'S THE DIFFERENCE BETWEEN EMPLOYEES AND CONTRACTORS?

Thu, 31 Aug 2023 11:08:31 GMT

What’s the difference between employees and contractors?

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 in the Employment Court or Employment Relations Authority, for example, the Employment Relations Act 2000 requires a consideration of the ‘real nature of the relationship’. Common law tests assist in determining what that is. They include:

the control test, ie how much control the hirer has over the worker
the integration (or organisation) test, ie whether the worker is independent or instead an integral part of the business organisation of the person who engaged them
the economic reality (or fundamental) test, ie is the worker performing services as a person in business on their own account?

These tests, which can involve many considerations, and the law that has developed in the employment jurisdiction, also assist Inland Revenue when it's investigating the status of a worker.

Key payment differences

When paying employees, businesses should deduct PAYE, ACC, Student Loan Repayments, Child Support, and KiwiSaver/Superannuation.

Inland Revenue takes a tough stance on employers who ignore their PAYE obligations by treating employees as contractors. Companies that breach the rules can be prosecuted and fined.

The bottom line:

As an employer, you need to keep good records and be clear on your obligations concerning the taxation of your workers' earnings.

Uber court case

Last October, four New Zealand Uber drivers won a landmark case against the ridesharing app, which recognised them as employees, not contractors.

The decision enables these workers to claim rights and protections as Uber employees.

The ruling has broader implications for Kiwi businesses and how staff are categorised.

Employment status entitles workers to minimum employment rights under New Zealand law, including the minimum wage, leave entitlements, and access to union membership and collective bargaining.

While the ruling was only made for the four drivers, legal experts believe the case could lead to more action against businesses over employment status. Uber has been granted the right to appeal the Employment Court decision.

Your business should be clear on who is an employee and who is a contractor to avoid issues down the line. Discuss your contractor agreements with your advisers if you’re unsure.

RECORD KEEPING! WHAT SHOULD YOU BE KEEPING?

Thu, 31 Aug 2023 10:56:36 GMT

Record keeping. What should you be keeping?

Whether you’ve got them stored in a shoebox, paper file, on the hard drive of your computer, or in an electronic accounting system; as a business owner, you need to be keeping hold of your tax records.

You are required by the Inland Revenue to maintain records for a minimum of 7 years in case of an audit. It's important to keep track of various documents, such as:

Invoices
Receipts
Wage books
Petty cash records
Banking statements
Vehicle logbooks
Asset registers and depreciation schedules
Email communications related to business activities, especially those involving travel expenses.

Remember to retain duplicates of any materials you submit to the Inland Revenue. If you're registered for GST, ensure you have tax invoices for your expenditures to facilitate GST claims.

Need help understanding your obligations? Get in touch with the team at Ōmokoroa Accounting.

COVID-19 LEAVE SUPPORT SCHEME IS ENDING

Mon, 28 Aug 2023 01:01:05 GMT

COVID-19 LEAVE SUPPORT SCHEME ENDING

Now that isolation requirements have been removed for people testing positive for COVID-19, the COVID-19 Leave Support Scheme will end.

You can still apply if your employee was in self-isolation before 13 August.

Find out about COVID-19 Leave Support Scheme

HOW TO ENSURE YOUR CLIENTS PAY ON TIME

Sun, 27 Aug 2023 10:43:45 GMT

How to ensure your clients pay on time

One of the most frustrating challenges when running a business can be dealing with clients who don’t pay. In this article, we discuss some of the steps you can take to ensure you get paid on time.

Setting clear payment instructions

Establishing clear payment instructions from the outset and ensuring you’re on the same page regarding due dates, payment methods, etc., can help reduce confusion and provide clients with clear information about payment.

By providing written quotes, you can avoid potential disputes over costs and charges, as well as expectations around the scope of work provided. Written quotes also serve as a reference point, preventing your clients from questioning your charges later. Include clear payment instructions on every invoice, such as your payment method, account details, and due date. If it’s a big job, get a deposit before work begins, and continue to get progress payments throughout to ensure a continuous cash flow throughout the project’s duration.

Issue statements regularly and follow up

Send regular statements so clients can keep track of their balance. Invoice immediately as soon as a job is completed, so they’re not lumped with a larger invoice later down the track. If it is a new client, and you’re not sure if they have received your invoice, follow up with a friendly phone call.

Check your bank account regularly to monitor who has paid and make sure you keep your accounting software up to date to ensure accurate financial accounts. Send polite reminders. If an invoice is not paid on time, send an email straight away. This helps maintain professionalism while gently prompting clients to pay.

Offer payment plans

If an invoice remains unpaid, follow up with a phone call and speak directly to the client to identify any potential issues and clarify when you might receive payment. If a client is having financial issues, a payment plan can be a helpful way to guarantee you get paid. Ensure you come to an agreement on the amount the customer can afford to pay and specify a time period, as part of the payment plan. Furthermore, allow regular clients to make payments upfront.

Need financial advice that can help your business grow? We are here to help with every step of your business journey. Get in touch.

STARTING A NEW BUSINESS? READ THIS FIRST!

Thu, 24 Aug 2023 10:52:14 GMT

Starting a new business? Read this first!

If you’re new to running a business, you’re probably figuring out there’s a lot more to it than just doing the work. So, whenever we meet a new client, we like to go over some of the top things you need to consider when you’re first starting out. Back in June, we took a look at tax, GST, ACC, and record keeping . This month we look at student loans, expenses, and software.

#1. Student Loan payments.

If you’re self-employed you’re still expected to make student loan repayments. When you’re in paid employment your student loan repayments are automatically deducted from your salary or wages, however, if you earn an income other than a salary or wage, you’ll need to make your own student loan repayments. The amount you pay will depend on your adjusted net income, which is any income you earn minus any expenses.

#2. Business expenses.

Businesses get taxed on their income minus expenses, so, whether you are running a business, or working as a contractor, you need to keep a record of your income and expenses. At the end of the financial year there may be extra expenses that you haven’t accounted for during the year. Claiming expenses reduces your income and lowers the amount of tax you need to pay. Types of business expenses you can claim include:

Asset depreciation: Businesses claim depreciation on asset purchases over $1000 as an expense.
Capital expenses: i.e., Computers, vehicles, machinery
Revenue expenses: i.e., Items used in the day-to-day running of the business, such as power, rent, and stationery.
Entertainment expenses: i.e., Food and drink provided for a Board meeting.
Environmental expenses: i.e., Testing, construction, acquisition of land.
Home office expenses (see no. #3).
Meal expenses: i.e., Business lunch
Mixed-use assets: i.e., Home office
Vehicle expenses (see no. #4)

It’s best to double-check the IRD website or with your accountant so you understand the types of costs that count as a business expense. Many expense claims come with certain conditions, for example, for a business lunch, you can only claim 50%.

#3. Home-office expenses.

If you’re running your business out of your home, you can claim a portion of your household expenses. Household expenses include things like rates, insurance, power, heating, mortgage interest, rent, even hand soap, light bulbs, and toilet paper. There are two ways to calculate home-office expenses, and this is often where our clients run into the most confusion.

Claim based on home office size.

If part of your home is used for the business, then you need to consider the floor area. For example, if your home is 100m2 and your office is 10m2, then you can claim 10% of your home office expenses and income-earning activities.

Claim based on total hours worked.

Let’s say you don’t have a specific area of your house you use for work, for example, you may work from your kitchen table. You should be recording the times that you’re working over a four-week period and calculate a percentage by dividing the number of hours you work by the number of hours in a week, i.e., 20 hours worked divided by 168 hours in a week, multiplied by 100 equals 11.90. This means you could claim for 12% of your expenses.

Telephone and internet costs.

If you use your home or landline as part of the business, you can claim 50% of the rental of the telephone. However, if you have a separate phone for business, you can claim 100% of the cost. If you use your internet for both business and personal use, you can claim a portion of this based on either of the above options for calculation.

N.B., If you’re GST registered, your business expense claims will not include GST. However, if you’re not registered for GST your expense claims will include GST.

Important! Remember, you need to keep invoices and records for any expenses you claim for 7 years.

#4. Use of privately owned vehicle.

If you use a vehicle for the sole purpose of business use, then you can claim the full running costs of that vehicle. However, if you have a vehicle that is used for both business and personal use, then there are three ways to calculate the business expense.

Keeping a logbook: You can keep a logbook to monitor how much you actually use the vehicle for business, and use the IRD kilometre rates to calculate the cost and depreciation of your vehicle.
Claiming 25% of the vehicle’s running cost: If you choose not to use a logbook, the claim will be limited to 25% of the vehicle running costs.
Actual costs: You can keep track of the actual running costs of the vehicle and claim these as an expense. Using this option you will still need to calculate the % of business use.

#5. Manual record keeping vs. software.

All organisations have to keep a copy of certain records, whether that be electronically or in hard copy. It’s important to keep these records up-to-date and accurate so it’s easier to keep track of your business’s income and expenses. We often recommend the use of accounting software to our clients, because it can save you time, increase accuracy, streamline your financials, and make it easier for your accountant to analyse your end-of-year accounts. If you pay your accountant an hourly rate, it's a no-brainer to make their job quicker and easier, and for a starting rate of just $30 a month for software like Xero or MYOB, think of all the time you’ll save on manual data entry.

Got questions, or feeling overwhelmed? Don’t let those niggly financial tasks cause you any more stress. At Ōmokoroa Accounting we are here to help.

DIANE'S ROLE WITH THE CENTRE TRUST

Sun, 30 Jul 2023 22:10:37 GMT

Diane's role with The Centre Trust

The Ōmokoroa Centre Trust, otherwise known as ‘The Centre’ or ‘The Community Op-Shop,’ is a small community op-shop that sells donated second-hand goods and gift items from local craftspeople. All profits go back to the community. This year alone they have donated over a hundred thousand dollars to 35 different community groups, including the Red Cross Disaster Relief.

For the past eight years, Diane has dedicated her time to volunteering with The Ōmokoroa Centre Trust. This article provides insight into her significant role at The Centre.

What is your role with The Centre?

I am on the Board of Trustees and have the responsibility of managing the finances. This includes keeping accounting records, managing the bank accounts and payments, preparing the annual financial statements, and filing the annual tax returns with the Charities Office.

Why/how did you get involved?

I was approached by Rachel Millard back in March 2015, when the original trustee who set up the charity in the first instance resigned.

What skills/experience do you have that make you right for this role?

My accounting knowledge and experience of acting as a treasurer for different community groups, and my love for the Ōmokoroa community.

 How is The Centre different now from you when you first got involved? 

Very different, especially in regard to record keeping. We now have a Management Committee who share the day-to-day responsibilities of managing The Centre, rather than a Centre Manager. This seems to work better. Plus, we have moved to an Eftpos system.  

What are you most proud of from your involvement in this organisation?  

I take great pride, along with the other trustees and all the volunteers, in how much money we actually put back into the community. We have distributed over $450K back into the community since 2015. I just love the morning tea that we host each year, that allows us to meet each group that has benefited from a donation from the Trust, and they tell us how the funds have helped their organisation.

Need affordable, quality financial management and advice for your not-for-profit? We can help.  

5 TIPS FOR ALLEVIATING FINANCIAL STRESS

Sat, 29 Jul 2023 21:39:47 GMT

5 tips for alleviating financial stress.

According to recent research , nearly 50% of small business owners and 60% of sole traders aren’t paying themselves just so they can keep their business running. According to Xero New Zealand Country Manager “When small business owners have cashflow issues one of the first things to go is their own pay.”

This research states that approximately 80% of business owners reported feeling stressed, 70% said they felt anxious, 60% were having trouble sleeping, and 47% reported losing time with friends and family over the past 12 months.

How can you lessen the challenges of cash flow management, so it doesn’t end up taking a physical and emotional toll? Here are our top tips for alleviating financial stress.

#1. Have a written budget.

Make sure you have a detailed budget or cash flow forecast, something that is easy to follow and review each month to make sure you are on track. A comprehensive budget can provide valuable insights into your business's financials, while a well-prepared forecast enables you to anticipate the company's financial trajectory and monitor its progress toward meeting its financial goals. Most business owners know how much their expenses are each month in their heads but don’t keep track of actual costs against what was forecast.

#2. Know your reserves.

#3. Review your pricing.

#4. Review your expenses.

Have you considered the increased cost of living, the rising cost of buying goods, the increased cost of labour, higher import costs, etc? Review your expenses. Can you negotiate a better deal?

#5. Address your debt.

A good accountant is more than just a bookkeeper, we can help you develop a business plan, provide advice on how to grow your business and take care of those niggly financial tasks that take up your precious time. At Ōmokoroa Accounting we are here to help with every step of your business journey. If you are feeling overwhelmed, get in touch .

NEW TAX RULE FOR NZ TRUSTS

Wed, 26 Jul 2023 11:46:00 GMT

New tax rules for NZ Trusts

Filing a tax return for a trust just got a whole lot more complicated. IRD now require some trusts to provide additional information in their annual tax return, which consequently, involves additional time and reporting.

This does not apply to all trusts. For example, an estate is not a trust and is not required to comply with the new reporting requirements.

So, what are the additional reporting requirements? IRD now require some trusts to provide more detailed information about their financial situation and the people involved. These requirements apply to tax returns for the year 2021-2022 and later income years.

To find out if your trust has been affected and read about the changes click here .

At Ōmokoroa Accounting we understand the practicalities of trusts. Our experience enables us to assist you with the financial reporting requirements according to the Trust Law which was revised in early 2021 and with the new IRD disclosure requirements. Want to know more? Get in touch with the team.

ACC | WHY YOU SHOULD BE ON COVER PLUS EXTRA.

Mon, 24 Jul 2023 11:37:30 GMT

ACC | Why you should be on Cover Plus Extra.

Most people in business do not realise that there is a choice of cover when it comes to ACC levies.

Cover Plus

Cover Plus is the default cover offered by ACC that you will initially be set up on once you file your first income tax return. It provides cover if you or your employees have an accident at work, and weekly compensation if you or your staff are injured and cannot work.

If you employ staff, you’re automatically covered under Workplace Cover when you become an employer. The amount you pay will be based on your gross wages amount. Workplace Cover provides subsidised medical care for employee-related injuries, and up to 80% of your employee’s salary is covered while they can’t work.

If you’re self-employed, you’ll automatically be placed on Cover Plus. If you have an accident at work and can’t work, ACC will pay up to 80% of your taxable income from your most recently completed financial year and will help cover the cost of your treatment and rehabilitation.

Cover Plus Extra

This is an optional cover product that allows you to choose how much of your income you want covered if you have an accident and can’t work. It’s especially suited to:

People who may have a fluctuating income (either yearly or seasonally), because you’ll know exactly how much ACC weekly compensation you will receive if you have an accident and can’t work.
Those who want to choose how much is covered. For example, if you’re self-employed and the main breadwinner for your family, could your family survive on just 80% of your income if you were unable to work especially if your previous years income was lower than average?
And if you’re newly self-employed and have no earning history, this can give you assurances about how much will be covered.

We highly recommend our clients consider upgrading to the Cover Plus Extra policy, because it can give you peace of mind. Your invoices will be predictable and calculated based on an agreed amount, and you’ll know exactly how much you’ll receive from your weekly compensation if you should have an accident. All-in-all it is a better policy of cover.

With the Cover Plus Extra policy it is very important that you pay your ACC invoices on time and never miss an instalment because, if you don’t, your policy could be automatically cancelled. ACC advised that even if you are on a monthly payment plan and you have paid five instalments and missed the sixth instalment, they will cancel your policy, you will receive a full refund, but you will be left with no cover and will need to reapply. You have 30 days to pay once you’ve received your invoice.

Read more about your ACC cover options here.

Need help understanding your tax, GST, and ACC obligations? Get in touch with the team at Ōmokoroa Accounting, we can help.

SET UP A PAYMENT PLAN TO TACKLE GST DEBT

Mon, 10 Jul 2023 02:18:37 GMT

Set up a payment plan to tackle GST debt

Paying tax in one lump sum isn't always easy. Instead you can set up an instalment arrangement to spread your bill over smaller weekly or fortnightly repayments. There is no fee to set this up, and you won’t be charged penalties and interest.

You can set up an instalment arrangement in myIR under the Payment section. Simply head to myIR, click on ‘I want to…’ then ‘Payments’.

Apply for instalment arrangement

Growing the right skills for New Zealand businesses

Tue, 27 Jun 2023 04:00:51 GMT

Growing the right skills for New Zealand businesses

Have you heard about the changes to the vocational education and training system?

There’s a stronger focus on delivering the skills that businesses need in the workplace, now and in the future, and providing more support and flexibility to employees who want to learn.

The Tertiary Education Commission has created videos explaining what’s changed and why it’s important for you.

Watch videos

SHOULD YOU BE USING ACCOUNTING SOFTWARE?

Mon, 26 Jun 2023 00:25:33 GMT

Should you be using accounting software?

All organisations have to keep a copy of certain records, whether that be electronically or in hard copy. It’s important to keep these records up-to-date and accurate so it’s easier to keep track of your business’s income and expenses, and it is a requirement by Inland Revenue that you keep a copy of your records for 7 years.

Using accounting software can save you time, increase accuracy, and streamline your financials. So, should you make the move to accounting software? Here are some of the benefits of going electronic.

Save time

Electronic accounting software can help reduce the time you spend on manual data entry by automatically handling time-consuming activities. Accounting software makes tasks like invoicing your customers, recording payments, and following up on overdue payments much faster and easier. Plus, it can instantly generate key financial reports, which is quicker for both you and your accountant.

Less chance of missing something

You need to keep a record of your banking. These days, you can save time and bypass a lot of manual data entry by linking your business systems with your electronic accounting software making reconciling transactions, reporting, and keeping a record of your income and expenses more efficient. There’s also less chance of missing something because the system captures all transactions for you.

Promotes accuracy

Accurate and reliable data can help improve your business decision-making processes and should be an essential part of your business strategy. Electronic accounting software removes the need for manually updating multiple cells on multiple spreadsheets, making changes to your records more accurate, easier and faster. This helps keep your data free from errors and provides you with the most accurate information so you can make better decisions for your business, improve your customer experience, reduce operating costs, and drive sales.

Easier for your accountant to analyse your end-of-year accounts

While accounting software can improve efficiency, automate your invoicing, and simplify your record keeping, it won’t do your bookkeeping and file your tax returns. Therefore, accounting software should work in partnership with your accountant, so they can do a better job of helping you do business. Accounting software can make it easier for your accountant to analyse your accounts, and provide expert advice tailored to your business.

Streamlines tax filing

Using standardized financial statements and accurate data makes it easier for your accountant to file your GST and tax returns at the end of the financial year. Accounting software can keep a record of your income and track taxable and non-taxable items, making it easier to produce a report when it comes to tax time.

Thinking of going electronic, but not sure what the best option is for your business? Give us a call, for a chat. Ōmokoroa Accounting are partners with both Xero and MYOB which are the two main accounting software businesses commonly use, but we also have experience working with other software programmes, such as Infusion and SAM.

5 THINGS TO THINK ABOUT WHEN STARTING A BUSINESS IN NEW ZEALAND

Mon, 26 Jun 2023 00:08:01 GMT

5 things to think about when starting a business in New Zealand

If you’re thinking about starting a business in New Zealand, there are several things to consider when it comes to your financials. For many, the business’s bookkeeping and accounting are often an afterthought, and many new business owners find accounting overwhelming.

When the team at Ōmokoroa Accounting first meet with a new business owner, we run through a list 10 important factors you need to consider when starting your business. Below are the first 5 on our list, but there are plenty more that pop up once you get started.

#1. ACC

All businesses pay ACC levies to cover the cost of work-related injuries. ACC levies fund injury claims in New Zealand, and as a business owner, you’ll pay an ACC work levy for your business and employees every year. If you’re self-employed, you’ll need to pay an ACC levy too, and you’ll usually receive your first invoice after your first year of trading. At Omokoroa Accounting our team can help you understand your ACC obligations, so, if you’ve got questions? Please ask.

#2. GST

GST (Goods and Service Tax) is added to the price of most products and services in New Zealand. If you’re GST registered, you have to charge GST on any service you provide or any good you sell and you claim back the GST on goods or services you buy for your business. New Zealand businesses are not required to be GST registered until their turnover goes over $60,000 in a year. However, we will sometimes, depending upon which industry you are operating in, recommend that you register for GST when you first start your business, otherwise, you’ll either end up needing to hand that cost over to your customers when you go over the threshold — which can be a bit of a shock — or you as the business owner will need to suck up the cost. When it comes to GST it’s important to remember, once you’re registered, the GST you collect is not your money. Put it aside in a separate bank account, so you don’t get caught out at tax time.

#3. Income Tax and Provisional Tax

Most businesses or organisations will need to file an income tax return . It’s important to save and plan for your taxes. We suggest setting aside a percentage each time a customer pays an invoice, to ensure you have the money when it comes to tax time and to avoid late payment fees. Depending on your type of structure there are different tax rates , and generally, most businesses file their tax return by the March 31 each year. If you’re tax bill is more $5,000 in any tax year, then you will need to start paying Provisional Tax. Paying Provisional Tax means you pay tax up front for the following tax year which helps you manage your tax, by paying it in instalments.

#4. Entity Structure

The way you set up your business has different legal and financial obligations, and can affect how your business grows, what happens if you want to sell, how you pay tax, if you want to set up internationally, etc. Getting advice from a lawyer or accountant who has experience in your industry is a good place to start before you make any decisions. An experienced accountant can help you set up a structure that is best suited to your long-term goals. Otherwise, you might find yourself needing to change your business structure in the future.

#5. Record Keeping

Did you know that legally you must keep a record of your income and expenses for 7 years? It’s important to keep complete and accurate records of your income and expenses, banking records, wages, GST etc. Good records can help you minimise loss, meet legal obligations, manage cash, track expenses, and meet your tax requirements. Speak to us for advice on a good record-keeping system that will make your life easier.

A good accountant is more than just a bookkeeper, we can help you develop a business plan, provide advice on how to grow your business, and take care of those niggly financial tasks that take up your precious time. At Ōmokoroa Accounting we are here to help you every step of your business journey and make your life easier, so you can concentrate on what you love doing — running your business. If you’re feeling overwhelmed with your accounting, feel free to get in touch .

7-DAY PAYMENT PROCESSING FOR BANKS

Mon, 29 May 2023 03:53:11 GMT

7-Day Payment Processing for Banks

Banks have now started to process transactions 365 days of the year including weekends and public holidays.

7-day payment processing for banks

EINVOICING IS GAINING MOMENTUM IN NZ

reena@omokoroaaccounting.co.nz (Reena Lal) — Mon, 08 May 2023 23:58:49 GMT

E-INVOICING IS GAINING MOMENTUM IN NZ

Every month hundreds of businesses are registering to receive eInvoices.

eInvoicing is the digital exchange of invoice information directly between buyers’ and suppliers’ financial systems, even if these systems are different. It’s more accurate and secure than sending PDF invoices over email and can help your business get paid faster.

Each month the updated list of eInvoicing registered businesses is published on the eInvoicing website. Your trading partners will be looking for you – are you on the list?

Check the list

GET READY FOR LESS SINGLE-USE PLASTIC

Mon, 08 May 2023 04:53:10 GMT

Get ready for less single-use plastic

From 1 July, the next step in phasing out single-use and hard-to-recycle plastic begins. That means:

· single-use plastic produce bags, plates, bowls, and cutlery will be banned

· the sale of single-use plastic straws will be restricted

· a transition to compostable plastic produce labels by 2025 begins.

Find out how to prepare now, including how to tell if your plastic items are designed for single-use.

Changes for single-use plastic

LEARN MORE ABOUT EMPLOYMENT RIGHTS

Mon, 08 May 2023 04:48:27 GMT

Learn more about employment rights

Do you want to know more about your employment rights and obligations? Check out our interactive online learning modules with quizzes to help you learn more about the key employment laws that affect you. We have modules for employers or employees. It’s free!

Employment NZ Learning Modules

TAX TOOLBOX FOR TRADIES

Wed, 22 Mar 2023 20:48:59 GMT

Tax Toolbox for Tradies

If you’re a tradie, or someone who helps a tradie keep on top of their books, check out Inland Revenue’s tax toolbox.

The toolbox will show you:

what expenses you can claim and how to keep good records
what you need to do to stay on top of your income tax and GST
what your obligations are if you’re an employer

Find out more

LOOK AFTER YOUR WELLBEING

Wed, 08 Mar 2023 22:54:22 GMT

LOOK AFTER YOUR WELLBEING

If you’re feeling overwhelmed by the recent weather events, support is available to help you navigate the challenges ahead.

First Steps offers confidential one-on-one wellbeing support especially for businesses impacted by the flooding and Cyclone Gabrielle.

Find out more

CYCLONE & FLOODING RECOVERY SUPPORT ANNOUNCED

Tue, 28 Feb 2023 21:38:48 GMT

Cyclone and flooding recovery support announced.

If your business is in a place where a local State of Emergency has been declared, and you have been affected by Cyclone Gabrielle or January flooding, you may be eligible for support to help you recover.

Grants of up to $40,000 are to help you:

keep operating
maintain cashflow

Find out more

THE MINIMUM WAGE IS INCREASING - IS YOUR BUSINESS READY??

Wed, 22 Feb 2023 22:53:16 GMT

THE MINIMUM WAGE IS INCREASING - IS YOUR BUSINESS READY??

Minimum wage rates will increase on Saturday, 1 April 2023.

The adult minimum wage will go up from $21.20 to $22.70 per hour.
The starting-out and training minimum wage will go up from $16.96 to $18.16 per hour.

If you’re a business owner or manager and you’ve not yet talked to your accountant, payroll provider or your finance/HR teams, now is the time. It’s also an opportunity to check that your employment records, processes and systems are current.

FIND OUT MORE

HOW TO KEEP OPERATING DURING AN EMERGENCY

Wed, 22 Feb 2023 20:59:15 GMT

HOW TO KEEP OPERATING DURING AN EMERGENCY

When you can't run your business at your usual premises, there are ways of working that will help you to continue operating. Digital Boost has short videos to help you, including:

· setting up automatic replies

· how to run backups

· working together remotely

e-signatures for signing documents.

Watch now

TAX IF YOU'VE BEEN AFFECTED BY WEATHER

Wed, 22 Feb 2023 03:24:08 GMT

TAX IF YOU'VE BEEN AFFECTED BY WEATHER

If you’ve been affected by the extreme weather, you don’t need to contact IR right now. If you let them know when you reasonably can, there are ways they can help, including things like removing penalties and interest, getting you set up to pay in instalments, and helping if you are in financial hardship.

Contacting IR

IR is prioritising contacts from those affected by the floods and cyclone. If you need to talk to them:

• Send IR a message in myIR using the word ‘flood’ in the subject line: myIR login

• Call its dedicated phoneline: 0800 473 566

• Go to one of their front of house offices: IR customer sites

You can also get in contact with a tax agent for professional advice.

Find out more

LOOK AFTER YOUR WELLBEING

Wed, 22 Feb 2023 03:17:11 GMT

LOOK AFTER YOUR WELL-BEING

It takes resilience to run a small business, especially when a disaster has happened.

If you or your employees are feeling overwhelmed or anxious, help is available.

Find out more

KEEP YOUR BUSINESS RUNNING SMOOTHLY

info@accounting-services.co.nz (Suzie Monk) — Sun, 18 Dec 2022 21:08:51 GMT

Keep your business running smoothly

For many small businesses the holiday season is their busiest time of the year. Sign up today for free handy tips from Digital Boost on how to keep your business running smoothly over the holidays.

GET SET FOR A GREAT SUMMER

info@accounting-services.co.nz (Suzie Monk) — Wed, 14 Dec 2022 02:50:13 GMT

Get set for a great summer

To help you make the most of your business over summer here is some useful information and advice on:

· hiring summer staff

· learning new digital skills

· holiday pay and public holidays

wellbeing care this summer.

MERRY CHRISTMAS TO YOU!!

info@accounting-services.co.nz (Suzie Monk) — Tue, 13 Dec 2022 22:45:06 GMT

MERRY CHRISTMAS TO YOU!!

STRONG ONLINE PRESENCE IS GOOD FOR BUSINESS.

info@accounting-services.co.nz (Suzie Monk) — Tue, 29 Nov 2022 20:41:55 GMT

As a business owner it's important to have the right digital tools and know how to use them. Being digitally capable can make your business more profitable.

WHEN BUSINESS IS LOOKING, ARE YOU DETAILS ALL THERE?

info@accounting-services.co.nz (Suzie Monk) — Tue, 15 Nov 2022 21:41:54 GMT

When business is looking, are your details all there? Keep your data updated!

Your NZBN data is valuable so it's important to always keep it up-to-date and available to the public. The more visible you make your business information, the easier it is for other businesses to connect with you.

See how

Webinar: How to support your wellbeing this summer

info@accounting-services.co.nz (Suzie Monk) — Wed, 02 Nov 2022 21:38:46 GMT

IRD Webinar: How to support your wellbeing this summer

For some Kiwi businesses, the summer holiday season can be an unpredictable and stressful time of year.

Join us as the IRD team-up with Xero for a webinar with wellbeing pioneer, Dr Elizabeth Berryman , about simple and effective ways to positively support your wellbeing during the holiday period – whether you’re run off your feet or not busy at all.

When: 17 November at 11.am | Where: Zoom | Cost: free

KEEPING GST RECORDS IS ABOUT TO GET EASIER.

Wed, 26 Oct 2022 21:45:18 GMT

Keeping GST records is about to get easier. Rules for tax invoices are changing on 1 April 2023.

Rules for tax invoices are changing on 1 April 2023 (ird.govt.nz)

TAKE YOUR CYBER SECURITY TO THE NEXT LEVEL

info@accounting-services.co.nz (Suzie Monk) — Thu, 15 Sep 2022 04:19:30 GMT

Take your Cyber Security to the next level

Cyber Smart Week is back from 10-16 October. Becoming a Cyber Smart Week partner provides you with practical resources to help your staff and customers take their Cyber Security to the next level. Signup is free and only takes two minutes.

ONE-OFF NATIONAL PUBLIC HOLIDAY

info@accounting-services.co.nz (Suzie Monk) — Wed, 14 Sep 2022 03:51:28 GMT

One-off National Public Holiday

To mark the passing of Her Majesty Queen Elizabeth II, the Government has announced a one-off national public holiday, to take place on Monday 26 September 2022.

Shops may open on this day but are subject to the normal Public Holiday requirements under the Holidays Act will apply.

See what this means for your business.

More information

ARE YOU OPERATING AT A LOSS?

info@accounting-services.co.nz (Suzie Monk) — Tue, 06 Sep 2022 23:48:11 GMT

Are you operating at a loss?

Running a business is hard work and there are times when you may run at a loss. There's no need to panic but it's a good idea to have an action plan on what to do if this happens.

Here's what to do

EXPLORE YOUR BEST FUNDING OPTIONS:

info@accounting-services.co.nz (Suzie Monk) — Fri, 02 Sep 2022 04:03:12 GMT

Explore your best funding options:

As a sole trader or small business owner there may be times when you need a cash injection to get your business moving forward. There are pros and cons for each type of funding so it's a good idea to check out which funding options might work best for you. See below for more information.

More information

YOUR NZBN IS MORE THAN A NUMBER

info@accounting-services.co.nz (Suzie Monk) — Wed, 31 Aug 2022 00:35:55 GMT

YOUR NZBN IS MORE THAN A NUMBER

There's a free tool that can help self-employed Kiwis make their business more visible and make doing business faster and easier - and many sole traders already have it. It's your NZBN. Watch the short video to see how New Zealand's biggest business register could work for you.

Unlocking your NZBN

KEEP YOUR WORKPLACE POSITIVE & HEALTHY

info@accounting-services.co.nz (Suzie Monk) — Mon, 29 Aug 2022 01:02:30 GMT

KEEP YOUR WORKPLACE POSITIVE & HEALTHY

Keeping your team safe and healthy is important for your business. If your employees feel you care about their wellbeing, they will usually be more productive, happier, and less stressed. If employees feel stressed it can:

· cause burnout

· result in employees resigning

· affect productivity.

Find out what you can do to build a positive and healthy workplace.

Learn more

EASY GUIDE TO HOLIDAYS AND LEAVE

info@accounting-services.co.nz (Suzie Monk) — Fri, 26 Aug 2022 02:19:59 GMT

EASY GUIDE TO HOLIDAYS AND LEAVE

There may be times when your business is short-staffed because of sickness or other leave. We have guidance on how to deal with different types of leave or to understand what your obligations are as an employer.

Check it out

HOW TO FORECAST BUSINESS CASH FLOW

info@accounting-services.co.nz (Suzie Monk) — Thu, 25 Aug 2022 01:36:38 GMT

How to forecast business cash flow

It is always a good idea to know what your cashflow looks like. Our Cash Flow Forecaster tool can help you spot any red flags that might affect your revenue and give you time to do something about it.

Cash Flow Forecaster

COMPULSORY KIWISAVER CONTRIBUTIONS & THE MINIMUM WAGE

info@accounting-services.co.nz (Suzie Monk) — Wed, 10 Aug 2022 02:15:31 GMT

Compulsory KiwiSaver contributions and the minimum wage:

If a remuneration package includes the employer’s compulsory KiwiSaver contribution, the employee must be paid at least the minimum wage plus the compulsory contribution.

An employer’s compulsory KiwiSaver contribution must never be deducted from the employee’s salary or wages. If this occurs, it is unlawful – and the employer may be liable to penalties.

Find out more about the Minimum wage

Find out more about Deductions

HOW TO REDUCE YOUR BUSINESS RISK

info@accounting-services.co.nz (Suzie Monk) — Fri, 29 Jul 2022 01:11:49 GMT

How to reduce your business risk

Reduce your overall business risk when customers can't pay what they owe you by registering details of the customer's debt on the Personal Property Securities Register (PPSR).

STAYING WELL THIS WINTER

info@accounting-services.co.nz (Suzie Monk) — Mon, 18 Jul 2022 02:35:20 GMT

Staying Well this Winter

To protect you and your staff from winter illnesses and COVID-19 consider following these infection prevention measures:

· Stay home when unwell and test if showing COVID-19 symptoms

· Wear masks at your workplace when around other people

· Encourage hand washing

· Recommend physical distancing.

The more layers of protection you put in place the harder it will be for infections to spread. Click below for more in-depth advice.

How to stay well

GOVERNMENT EXPANDS FREE ACCESS TO RAT TEST KITS

info@accounting-services.co.nz (Suzie Monk) — Thu, 14 Jul 2022 22:01:43 GMT

GOVERNMENT EXPANDS FREE ACCESS TO RAT TEST KITS

The government is expanding access to free rapid antigen tests (RAT) kits. This is in response to the recent rise in COVID-19 cases. It’s a good opportunity to encourage your staff to request and collect a supply of test kits.

You don’t need COVID-19 symptoms to get free test kits
Test kits can be picked up from testing centres, local pharmacies, current community providers, including marae.

Request a free RAT kit

NEED A BUSINESS MENTOR?

info@accounting-services.co.nz (Suzie Monk) — Wed, 06 Jul 2022 01:31:44 GMT

NEED A BUSINESS MENTOR?

Business Mentors NZ has gone virtual. There are over 1,700 business mentors around New Zealand who can help you and your business succeed. As a busy business owner, you can access a Virtual Mentor from anywhere, whenever it works for you. See how they can help you.
Get help

HOW'S YOUR WEBSITE MEASURING UP?

info@accounting-services.co.nz (Suzie Monk) — Mon, 04 Jul 2022 01:58:58 GMT

HOW'S YOUR WEBSITE MEASURING UP?

Digital Boost's Checkable Tool will help make the most of your online presence by checking your website, security, and e-commerce all for free.

Learn more

NEW eINVOICING UPDATES

info@accounting-services.co.nz (Suzie Monk) — Tue, 07 Jun 2022 23:18:02 GMT

NEW eINVOICING UPDATES

If you're looking for a faster, safer and easier way to send your invoices, consider starting eInvoicing.

Check out the new 'how to' videos and other new resources to get you started.

More details

WORK VISA ACCREDITATION

info@accounting-services.co.nz (Suzie Monk) — Thu, 02 Jun 2022 03:59:43 GMT

WORK VISA ACCREDITATION

Employers wanting to hire migrants on the Accredited Employer Work Visa can now apply for accreditation using the Immigration Online system. See how these updates could affect your hiring processes.

See new process

MAKING YOUR ONLINE ASSETS MORE SECURE

info@accounting-services.co.nz (Suzie Monk) — Tue, 31 May 2022 21:57:08 GMT

MAKING YOUR ONLINE ASSETS MORE SECURE

Nearly two-thirds of incidents reported to CERT NZ could have been prevented if two-factor authentication (2FA) was in place.

Now might be the right time to make your digital assets more secure. You can do this in two easy steps:

· Creating a long and strong password.

Turning on 2FA in your account settings.

Two steps to make your business more cyber secure? Too easy! | CERT NZ

DONT MISS OUT ON THE GOVERNMENT CONTRIBUTION TO YOUR KIWISAVER

info@accounting-services.co.nz (Suzie Monk) — Thu, 12 May 2022 04:52:45 GMT

DONT MISS OUT ON THE GOVERNMENT CONTRIBUTION TO YOUR KIWISAVER

Did you know that every year, the New Zealand Government contributes 50 cents for every dollar you put into your KiwiSaver account, up to a maximum of $521.43. Every dollar you contribute will make a difference.

To get the maximum Government contribution, you need to contribute at least $1,042.86 between 1 July 21 and 30 June 22. You’ve still got some time left to top up your KiwiSaver Scheme account if needed so you can receive this free $521.43. You can make a voluntary additional contribution to reach $1,042.86 as long as it is made by 30 June - remember to allow for processing time.

Eligibility criteria apply to the Government contribution.

See the link to the IRD website for more information.

Getting the KiwiSaver government contribution (ird.govt.nz)

NEW DATES FOR 2022 FIELDAYS

info@accounting-services.co.nz (Suzie Monk) — Thu, 12 May 2022 04:31:32 GMT

NEW DATES FOR 2022 FIELDAYS

Just in case you missed it…

2022 FIELDAYS has shifted this year from June to Wednesday, November 30 to Saturday, December 3, 2022!

Save the date and get ready to enjoy the best of what Aotearoa’s primary sector has to offer.

IRD - KEY DATES FOR PLANNING AHEAD

info@accounting-services.co.nz (Suzie Monk) — Tue, 10 May 2022 23:58:36 GMT

IRD - KEY DATES FOR PLANNING AHEAD

There are key dates on IRD website you can use to plan ahead to help you meet your obligations.

Key dates (ird.govt.nz)

PRIVACY WEEK - ALL YOU NEED TO KNOW

info@accounting-services.co.nz (Suzie Monk) — Tue, 10 May 2022 22:23:36 GMT

PRIVACY WEEK - ALL YOU NEED TO KNOW

Kiwi business are required to safeguard their data, especially information about their customers. Learn about the easy-to-use tools and resources available to you to ensure you and your businesses are kept safe from online data security breaches.

Learn more here

HOW E-INVOICING CAN HELP YOUR BUSINESS

info@accounting-services.co.nz (Suzie Monk) — Thu, 28 Apr 2022 01:35:17 GMT

How eInvoicing can help your business

eInvoicing means no PDFs, no paper, no scanning and no emails. It can:

enable faster payments and improve cash flow
reduce processing time
improve accuracy and security

See the benefits

IMPORTANT CHANGES TO THE COVID-19 PROTECTION FRAMEWORK

info@accounting-services.co.nz (Suzie Monk) — Wed, 23 Mar 2022 02:25:18 GMT

IMPORTANT CHANGES TO THE COVID-19 PROTECTION FRAMEWORK

The Government has announced major changes to the COVID-19 Protection Framework, including changes to My Vaccine Pass requirements and other vaccine mandates. For the latest information please click on the link below.

Changes to the traffic light system | Unite against COVID-19 (covid19.govt.nz)

THE MINIMUM WAGE IS GOING UP ON 1ST APRIL 2022

info@accounting-services.co.nz (Suzie Monk) — Fri, 18 Mar 2022 00:24:09 GMT

THE MINIMUM WAGE IS GOING UP ON 1ST APRIL 2022

The minimum wage is increasing by $1.20 on 1 April 2022.

Find the new rates, what you'll need to do if you have staff on minimum wages and how to work-out the updated cost of your employees.

Minimum wage latest

LAW CHANGES ROUND UP

info@accounting-services.co.nz (Suzie Monk) — Tue, 01 Mar 2022 21:01:42 GMT

LAW CHANGES ROUND UP:

From investment property changes to consumer credit updates, we've gathered recent law changes into one place. Check out this summary to see what applies to your business.

NEW FINANCIAL SUPPORT FOR BUSINESSES

info@accounting-services.co.nz (Suzie Monk) — Fri, 25 Feb 2022 00:25:24 GMT

NEW FINANCIAL SUPPORT FOR BUSINESSES

A new targeted COVID-19 Support Payment has been announced for businesses struggling with revenue during the Omicron outbreak. See more details and eligibility criteria.

More details

HAVE YOUR SAY ON THE NEW ZEALAND INCOME INSURANCE SCHEME

info@accounting-services.co.nz (Suzie Monk) — Tue, 15 Feb 2022 20:23:21 GMT

The Government, Business New Zealand and the New Zealand Council of Trade Unions are proposing a new way of better protecting workers and the economy: a New Zealand Income Insurance Scheme.

It will support workers with 80 percent of their income for up to seven months if they lose their job through no fault of their own. Under the proposed scheme, people will have the time and financial security to find a good job that matches their skills, needs and aspirations, or retrain for a new career.

FIND OUT MORE

IS YOUR BUSINESS READY FOR OMICRON?

info@accounting-services.co.nz (Suzie Monk) — Thu, 20 Jan 2022 21:52:40 GMT

Is your business ready for Omicron?

Get your business prepared for Omicron in the community by reducing the risk of COVID-19 infections in your workplace and planning for potential staff shortages and supply chain issues.

Managing the impact of COVID-19 cases at your business — business.govt.nz

MERRY CHRISTMAS EVERYBODY!

info@accounting-services.co.nz (Suzie Monk) — Tue, 21 Dec 2021 22:32:38 GMT

NEW COVID-19 PROTECTION FRAMEWORK GUIDANCE

info@accounting-services.co.nz (Suzie Monk) — Fri, 26 Nov 2021 02:45:43 GMT

New COVID-19 Protection Framework guidance

The COVID-19 Protection Framework, also known as the traffic light system, will replace the Alert Level system at 11.59 pm on Thursday 2 December 2021.

Get ready for the change and find guidelines about how your business can operate under the COVID-19 Protection Framework.

COVID-19 Protection Framework — business.govt.nz

RESURGENCE SUPPORT PAYMENTS INCREASED

Thu, 11 Nov 2021 00:29:38 GMT

RESURGENCE SUPPORT PAYMENTS INCREASED

The amount and frequency of the Resurgence Support Payment is increasing from 12 November and will be available until Auckland moves into the new COVID-19 Protection Framework .

A new round of the Wage Subsidy has also opened.

Find financial support

LOOKING AFTER MENTAL WELLBEING DURING COVID-19

Tue, 19 Oct 2021 02:46:58 GMT

Looking after mental wellbeing during COVID-19...

During COVID-19 it’s important to look after the mental wellbeing of yourself and your workers. Business.govt.nz has helpful resources for businesses, including a wellbeing policy builder tool to help you build a positive and productive workplace.

https://govt.us17.list-manage.com/track/click?u=f5dffcaf5a82c108fdc0cc824&id=f6a4472bda&e=6b857cd491

Subscribe to business.govt.nz newsletter

Fri, 15 Oct 2021 03:49:21 GMT

Subscribe to business.govt.nz newsletter

If you would like to receive the latest government news, law changes and advice for businesses from government beyond COVID-19, please subscribe to the business.govt.nz newsletter. You can unsubscribe at any time.

https://ub.comms.business.govt.nz/mail/link/UxFp1PMsqAHbULrcKqZjmw

More time to file and pay GST and provisional tax

Fri, 08 Oct 2021 04:04:34 GMT

MORE TIME TO FILE AND PAY GST AND PROVISIONAL TAX

Due to a temporary shutdown of Inland Revenue’s systems in late October, the deadline to pay and file GST and provisional tax will be extended from 28 October to 4 November, subject to an Order in Council being passed.

https://ub.comms.business.govt.nz/mail/link/fhUmPP1gOs-NNCi2xP8sKA

NEED HELP DOING BUSINESS ONLINE?

Thu, 07 Oct 2021 02:49:08 GMT

NEED HELP DOING BUSINESS ONLINE?

Being able to operate online is more important than ever. Learn the basics of doing business online with Digital Boost, a set of free learning resources tailored to New Zealand businesses.

https://ub.comms.business.govt.nz/mail/link/kFbK1bgP4KCwHXfdj4JiKg

LOOKING AFTER YOUR MENTAL WELLBEING

Thu, 23 Sep 2021 04:41:55 GMT

LOOKING AFTER YOUR MENTAL WELLBEING

Looking after your family, your team and your friends is important right now, but it’s also important to take care of yourself. We’ve got resources that can help you take care of your mental health and wellbeing. Check out the link below.

https://www.business.govt.nz/risks-and-operations/health-and-safety/mental-health-and-wellbeing-support

MORE COVID QUERIES....

Thu, 16 Sep 2021 21:57:32 GMT

CAN I ASK MY WORKERS TO PAY FOR THEIR OWN MASKS DURING COVID-19?

You are responsible for your workers’ health and safety at work. You must provide all appropriate personal protective equipment (PPE), and make sure they use, wear and maintain the required PPE. This includes face coverings when required to do so under COVID-19 rules. Remember, face coverings required by COVID-19 rules and PPE required by health and safety at work law are different.

You cannot pass on the cost of providing PPE (in full or part) to the worker. You cannot make the worker provide their own PPE as a condition of employment. Check out these links....

https://www.worksafe.govt.nz/topic-and-industry/personal-protective-equipment-ppe/personal-protective-equipment-a-guide-for-businesses/

https://www.worksafe.govt.nz/managing-health-and-safety/novel-coronavirus-covid/contact-record-rule-and-face-coverings-our-expectations

MORE COVID QUERIES

Thu, 09 Sep 2021 23:12:53 GMT

MORE COVID QUERIES

Q: Can I make my employees take annual leave or sick leave to help complement their wages?

A: At each alert level, employers and employees should first discuss whether the employee can work normally, how much work is available, and how to work safely at home or at their usual place of work.

During any alert levels, employers cannot make employees take:

• sick leave, if the employee is not sick,

• advanced annual leave,

• annual leave, without giving at least 14 days’ notice (unless the employee agrees to take annual leave, after a discussion in good faith).

If an employee can’t come to work because they have been told to self-isolate by the National Contact Tracing process or by a Health official, and they can’t work from home, the Leave Support Scheme is available to help pay their wages.

See the links below:

https://www.workandincome.govt.nz/covid-19/leave-support-scheme/

https://www.employment.govt.nz/leave-and-holidays/other-types-of-leave/coronavirus-workplace/leave-and-pay-entitlements-during-covid-19/

ANSWERS TO COVID-19 QUERIES

info@accounting-services.co.nz (Suzie Monk) — Thu, 09 Sep 2021 01:45:31 GMT

ANSWERS TO COVID-19 QUERIES

Q: As an employer, can I pay staff less than their normal wages during COVID-19?

A: Employment law still applies to all employment relationships, regardless of the circumstances that we find ourselves in, including different alert levels during COVID-19. This means you can only reduce employees' wages if they agree to it, after a discussion in good faith.

As an employer, you need to keep paying your employees at all alert levels, whether they are continuing to work at their usual place of work or from home, or if they are not able to work because of alert levels.

Employees should be paid their wages as set out in their employment agreement. If an employee has an employment agreement with minimum hours, but has been working for more than the minimum hours for some time, you need to calculate their pay according to the number of hours that they have been working, rather than the minimum hours in their employment agreement.

The Wage Subsidy can be used to help pay their wages. You can only reduce how much you pay your employees if the employee has agreed to receive lower pay. This means that if they don’t agree to it, you will need to pay their normal pay, even if this is higher than what you received from the Wage Subsidy.

If you have money left over from the Wage Subsidy, for example, if an employee no longer works for you, you can use their remaining subsidy to pay other affected employees. If there are no other employees to use the subsidy for, then the remainder must be paid back.

If your employees cannot work normally and your business is struggling to meet its costs, the best thing you can do is to talk to your employees in good faith, explain to them your business’ financial situation and talk about what options are available to you and them, and agree to any changes. If your business has unionised employees, make sure that you involve the union in discussions relating to any changes.

There are other financial support schemes available to help you pay wages during this time. For example, the Leave Support Scheme can help you pay employees who have to self-isolate, even if you don’t qualify for the wage subsidy.

Q: I have a question about applying for the Wage Subsidy, where can I go to get information?

A: Visit the Work and Income website if you have questions relating to the wage subsidies, including how much you get, what the criteria is and how to apply.

https://www.workandincome.govt.nz/covid-19/wage-subsidy/

NEW TEAM MEMBER

Tue, 07 Sep 2021 02:23:58 GMT

NEW TEAM MEMBER

Erica is our new Assistant Accountant who is a local lady currently working as a Tax & Performance Reporting Tutor at University of Waikato.

Erica holds a degree in Business where she achieved a Major in Accounting. Her work experience includes Orchard management and various roles working for KPMG in London. We welcome her as a new member to our small team

HOW BUSINESS MENTORS CAN HELP YOUR BUSINESS

Thu, 02 Sep 2021 04:09:41 GMT

HOW BUSINESS MENTORS CAN HELP YOUR BUSINESS

Business Mentors New Zealand offers guidance and support as you build, maintain or grow your business. If you get the right fit, they can even make the numbers sing. Check it out here: https://www.business.govt.nz/news/how-a-business-mentor-can-help-your-numbers-stack-up

2021 LAW CHANGES ROUND-UP

Tue, 20 Jul 2021 22:41:25 GMT

2021 LAW CHANGES ROUND-UP

From sick leave updates to new investment property rules, this year's law changes are all now gathered into one place. Check out this summary to see what applies to your business.

https://www.business.govt.nz/news/2021-law-changes-round-up/

COVID-19: Workplace Vaccinations

Wed, 14 Jul 2021 22:20:53 GMT

COVID-19: Workplace Vaccinations

Some businesses or organisations may be able to offer workplace COVID-19 vaccinations. The focus will be on large businesses, but there are some circumstances where small businesses might be eligible.

Find out more: https://www.business.govt.nz/news/covid-19-workplace-vaccinations/

DON'T MISS OUT: LOAN APPLICATIONS CLOSING SOON

Sun, 27 Jun 2021 23:55:37 GMT

DON'T MISS OUT: LOAN APPLICATIONS CLOSING SOON

If you think you’d benefit from a Business Finance Guarantee Scheme loan, talk to your bank or lender today. Applications have to be approved, signed and documented by June 30.The body content of your post goes here. To edit this text, click on it and delete this default text and start typing your own or paste your own from a different source.

https://www.treasury.govt.nz/information-and-services/new-zealand-economy/covid-19-economic-response/measures/bfg

HOW TO PROTECT YOUR BUSINESS FROM BEING HELD TO RANSOM

Thu, 24 Jun 2021 00:28:04 GMT

HOW TO PROTECT YOUR BUSINESS FROM BEING HELD TO RANSOM

Ransomware attacks can cause huge disruptions to your business, including loss of income, customer trust and resources. See the simple steps you can take to protect your business from a ransomware attack and how to react if you’re targeted.

Read more: https://www.business.govt.nz/news/how-to-protect-your-business-from-being-held-to-ransom/

BE IN TO WIN A $10,000 DIGITAL BOOST TRANSFORMATION PACKAGE

info@accounting-services.co.nz (Suzie Monk) — Wed, 16 Jun 2021 22:20:09 GMT

BE IN TO WIN A $10,000 DIGITAL BOOST TRANSFORMATION PACKAGE

Take your business online and go in the draw to win one of two Digital Boost Transformation packages worth $10,000 each. Sign up to free Digital Boost training to be eligible to enter. See prize details...

https://digitalboost.co.nz/giveaways?utm_source

DO YOUR EMPLOYEES HAVE AN EMPLOYMENT AGREEMENT

Fri, 04 Jun 2021 00:55:24 GMT

DO YOUR EMPLOYEES HAVE AN EMPLOYMENT AGREEMENT

All employees must have a written employment agreement that includes certain things, like the hours of work and the wage rate or salary - so it is important you get it right. Our Employment Agreement Builder can help. It is fast, free and easy to use.

https://www.employment.govt.nz/starting-employment/employment-agreements/employment-agreement-builder/

BIG BUSINESSES COMMIT TO HELP SMALL BUSINESSES GET DIGITAL

Wed, 02 Jun 2021 23:00:23 GMT

BIG BUSINESSES COMMIT TO HELP SMALL BUSINESSES GET DIGITAL

Big business and organisations have banded together to help small businesses across the country boost their digital skills, with free, subsidised or discounted training, support, products, services and research. Check the link below:

https://www.mbie.govt.nz/business-and-employment/business/support-for-business/digital-boost/digital-boost-alliance-aotearoa

MINIMUM SICK LEAVE ENTITLEMENTS INCREASING TO 10 DAYS

Tue, 01 Jun 2021 00:26:23 GMT

MINIMUM SICK LEAVE ENTITLEMENTS INCREASING TO 10 DAYS

From 24 July 2021, minimum sick leave entitlements will increase to 10 days per year. Employees will get the extra five days when they reach their next entitlement date – either after reaching 6 months’ employment or on their sick leave entitlement anniversary (12 months after they were last entitled to sick leave).

https://www.employment.govt.nz/about/news-and-updates/minimum-sick-leave-entitlement-increase-to-10-days/

INVESTMENT PROPERTY: LAW CHANGES AND TIPS

Tue, 25 May 2021 23:39:47 GMT

INVESTMENT PROPERTY: LAW CHANGES AND TIPS

Recent tax changes will impact residential property investors. We got information from some experts for tips on how to make the most of your investment properties.

https://www.business.govt.nz/news/investment-property-law-changes-and-tips-for-maximising-returns

IMPOSTOR SYNDROME: FEELING LIKE A FRAUD

Sun, 23 May 2021 23:31:05 GMT

IMPOSTOR SYNDROME: FEELING LIKE A FRAUD

Many small business owners struggle with the fear that their success is down to luck rather than hard work or talent.

Try these tips to overcome impostor syndrome.

https://www.business.govt.nz/news/impostor-syndrome-feeling-like-a-fraud

RESURGENCE SUPPORT PAYMENT

Tue, 23 Mar 2021 22:00:00 GMT

Get your applications in:

You have until 12 April 2021 to apply for a Resurgence Support Payment if your business was impacted by the alert level change on 28 February.

Applications have now closed for payments relating to the alert level change on 15 February .

https://www.ird.govt.nz/covid-19/business-and-organisations/resurgence-support-payment/apply

MINIMUM WAGE INCREASES ON 1 APRIL 2021

Wed, 17 Mar 2021 22:00:00 GMT

The adult minimum wage is increasing to $20 an hour from $18.90 an hour on 1 April 2021. The starting-out and training minimum wage rates will also increase, from $15.12 to $16.00 per hour.

Employment New Zealand publishes up-to-date minimum wage rates on its website. Find out more below:

https://www.employment.govt.nz/hours-and-wages/pay/minimum-wage/minimum-wage-rates/

GIVE YOUR BUSINESS A DIGITAL BOOST

Wed, 10 Mar 2021 22:00:00 GMT

Join the thousands of Kiwi businesses who are taking up free online Digital Boost courses to help them do business smarter. Check out this link to find out more:

https://digitalboost.co.nz/

RESURGENCE SUPPORT PAYMENTS

Sat, 06 Mar 2021 22:00:00 GMT

New round of Resurgence Support Payments

Applications open on 8 March 2021 for a new round of Resurgence Support Payments for eligible businesses affected by the current alert level change.

Applications for businesses that were impacted by the change in alert levels from 14-21 February, are open and will close on 22 March 2021.

The payments are not a loan and don't need to be paid back. Check the link below.....

https://www.business.govt.nz/covid-19/financial-support-for-businesses/#e-23899

LANDLORDS: MORE TENANCY LAW CHANGES

Sat, 27 Feb 2021 22:00:00 GMT

Recent changes to tenancy laws affect:

how you can end a tenancy
rent bidding and how you advertise your property
tenants' right to make changes to your rental

https://www.business.govt.nz/news/landlords-more-tenancy-law-changes

NEW COVID-19 SUPPORT PAYMENT

Wed, 24 Feb 2021 22:00:00 GMT

If you're a business or organisation that experienced a revenue drop of at least 30% due to the recent rise in COVID-19 alert levels, you may be eligible for a Resurgence Support Payment. It's not a loan and doesn't need to be paid back.

Check it out below.....

https://www.business.govt.nz/covid-19/financial-support-for-businesses/

COVID-19: FINANCIAL SUPPORT

Sat, 20 Feb 2021 22:00:00 GMT

See what government support you can get. Examples include:

paid leave while you or staff wait for COVID-19 test results
tax payment options
wage subsidy if alert levels change

https://www.business.govt.nz/covid-19/financial-support-for-businesses

CONTACT TRACING - QR POSTERS AND THE TRACER APP

Tue, 16 Feb 2021 22:00:00 GMT

Contact tracing: QR posters and the tracer app

A reminder that your customers scanning in may be the difference between changing Alert Levels. Make sure you display your QR codes prominently and make them easy to find and use!

Get your QR code: https://www.business.govt.nz/covid-19/contact-tracing/

LOW-VALUE ASSETS THRESHOLD CHANGING AGAIN

Sun, 14 Feb 2021 22:00:00 GMT

A reminder for people operating a Business that the Low-value asset threshold changes again on 16 ^th March 2021

Low-value asset threshold for depreciation

The Government has recently passed legislation that temporarily increases the low-value asset threshold for depreciation from $500 to $5,000. This will allow you to deduct the full cost of your business assets with a value of less than $5,000 in the year they purchased them. This is instead of having to spread the cost over the life of the asset.

The low-value threshold will be raised further to allow the immediate expensing of assets purchased on or after 17 March 2020 that cost less than $5,000.

The Government is only raising the threshold for a short time until 16 March 2021. They're doing this so you and other business people keep investing in their businesses throughout the COVID-19 outbreak.

For assets purchased on or after 17 March 2021, this threshold will be permanently increased from $500 to $1,000.

SMALL BUSINESS CASHFLOW (LOAN)

Tue, 09 Feb 2021 22:00:00 GMT

New eligibility for the Small Business Cashflow (Loan) Scheme now in effect

Businesses applying for the Small Business Cashflow (Loan) Scheme SBCS, can now apply using new criteria which took effect on Thursday 28 January 2021.

The changes to criteria cover 4 areas:

The date that a business or organisation was established.
The decline in revenue test.
Employee number test.
Ability to borrow more than once.

The criteria changes were announced by the Government late last year, to align with the application period which had earlier been extended to the end of 2023.

When announced, it was signalled these changes would take effect early February, but IRD have been able to implement them earlier, so eligible businesses and organisations are able to apply for the loan under the new criteria sooner.

More information about the changes to the eligibility criteria and SBCS in general can be found at https://www.ird.govt.nz/covid-19/business-and-organisations/small-business-cash-flow-loan

MINIMUM WAGE INCREASE 1 APRIL

Tue, 02 Feb 2021 22:00:00 GMT

Minimum wage to increase to $20 from 1 April

The Government has confirmed that the adult minimum wage will increase from $18.90 to $20.00 per hour on 1 April 2021. Employers need to ensure their payroll systems and processes are updated in time for the change.

The starting-out and training minimum wage rates will also increase on 1 April 2021, from $15.12 to $16.00 per hour.

As an employer, you need to ensure your payroll systems and processes are updated.

All employers and employees should also take note of the minimum wage changes, as it sets a new relative benchmark for pay negotiations.

https://www.employment.govt.nz/hours-and-wages/pay/minimum-wage/minimum-wage-rates/

BE YOUR OWN BOSS

Mon, 25 Jan 2021 22:00:00 GMT

Be your own boss

Want to start your own business? These tips and tools can help you:

plan and research
choose a business structure, eg sole trader or company find out about funding.

Click here: https://www.business.govt.nz/starting-a-business

DIGITAL BOOST

Tue, 19 Jan 2021 22:00:00 GMT

Digital Boost: Free digital skills training

Get free digital training for small businesses, and learn how to:

reach more customers
make business processes more efficient
get better insights from data

Find out more here: https://digitalboost.co.nz/

XMAS HOURS

Mon, 21 Dec 2020 22:00:00 GMT

We'd like to take this opportunity to thank all our clients and followers for your support during the year, it's certainly been a very different year and we've all had to make adjustments.

Hopefully you are able to spend time with loved ones during the festive period and have a little "me time"!!

We are taking a break and our Office will be closed from 24 ^th December 2020 and returning 7 ^th January 2021.

Merry Xmas and a Happy New Year!!!

ZEN AND THE ART OF RECORD-KEEPING

Sat, 19 Dec 2020 22:00:00 GMT

It's easy to let paperwork go when you are busy. If a summer slowdown beckons, it's a good time to check your systems and catch up on filing. You'll thank yourself during tax time or payday filing.

https://www.business.govt.nz/tax-and-accounting/tax-time-tips/keeping-tax-records

FAMILY TIME vs BUSINESS TIME OVER SUMMER

Wed, 16 Dec 2020 22:00:00 GMT

The summer holidays offer a good opportunity to get together and discuss plans for the future of your family business.

Here are some rules to follow to make sure it's only the barbeque that gets heated.

h ttps://www.business.govt.nz/news/summer-family-business-planning

EXTRA RESOURCES DURING SUMMER RUSH

Sat, 28 Nov 2020 22:00:00 GMT

As summer gets closer, it's time to start thinking about your summer employment needs. Student Job Search is a job site that helps employers access a talent pool of over 400,000 tertiary students. Any employer can use Student Job Search and benefit from the innovation, skills and knowledge that students can bring to an organisation. When hiring students, it's important that you know your employment obligations.

Check out this link: https://www.employment.govt.nz/about/news-and-updates/do-you-need-talented-workers-for-seasonal-work-this-summer/

SMALL BUSINESS LOAN SCHEME EXTENDED TO DEC 2023

Tue, 17 Nov 2020 22:00:00 GMT

Changes to the government's small business cashflow (loan) scheme makes it easier for small businesses to access finance. The changes include:

Applications open 3 more years, closing 31 December 2023.
No interest charged if loan repaid within 2 years (up from 1 year).
Fewer restrictions on what the money can be spent on.

Already have one of these loans? Your loan will automatically be covered by the new terms and conditions.

Small businesses, including sole traders and contractors, can apply for these low-interest loans through Inland Revenue.

https://www.ird.govt.nz/updates/news-folder/covid-19-small-business-cashflow-loan-changes

WELCOME NEW TEAM MEMBER

Wed, 11 Nov 2020 22:00:00 GMT

Welcome to our new Team Member, Bronwyn Dawson.

B ronwyn brings a vast amount of Accounting experience to the Team spending the last 4 years working in the Avocado industry and most of the previous 17 years with Nokia NZ.

CHECK IF YOU MIGHT RUN OUT OF CASH

Tue, 10 Nov 2020 22:00:00 GMT

This revamped cash flow forecaster helps you see month by month if you risk spending more than you earn. It's common when changing your business or during seasonal ups and downs.

Check out this link for the Cash Flow Tool: https://www.tools.business.govt.nz/cashflow-forecaster

ADVICE FOR SOLE TRADERS STRUGGLING WITH DEBT

Mon, 19 Oct 2020 22:00:00 GMT

Debt can be a normal part of being in business. But it's important to know how much debt is too much for you. Here's how to get back on track, plus details of government financial support for self-employed people.

S teps to take: - https://www.business.govt.nz/news/debt-advice-for-sole-traders

FUNDING OPTIONS TO SUIT YOU

Mon, 12 Oct 2020 22:00:00 GMT

Need extra money for your business? Whether it's for day-to-day costs or long-term expansion, use this Funding Explorer tool to understand options for you and your business.

https://www.tools.business.govt.nz/funding-explorer

BUSINESS PLANS UP IN THE AIR? TIPS TO PIVOT

Mon, 05 Oct 2020 22:00:00 GMT

The COVID-19 pandemic has upended plans for 2020 and beyond. Here are tips and tools to help you identify and maximise opportunities to help your business survive and revive.

https://www.business.govt.nz/news/business-plans-up-in-the-air-tools-to-help-you-pivot

THINKING ABOUT HIRING FRIENDS OR FAMILY?

Mon, 28 Sep 2020 23:00:00 GMT

Having friends or family help out in your business can seem like a good way to support them and your business. However, an informal arrangement could be considered employment and turn out to be costly. A recent ruling by the Employment Court details how an almost 50-year friendship ended after an employment disagreement.

https://www.employment.govt.nz/about/news-and-updates/hiring-friends-and-family-can-be-costl y

DESIGNING THE FUTURE OF WORK IN NZ

Mon, 21 Sep 2020 23:00:00 GMT

The way New Zealanders work is changing fast. In response to this, the Innovation Fund is currently looking for ideas about how New Zealand might prepare for these changes. Specifically, the Fund is looking for realistic, evidence based solutions and advice to design the future of work in New Zealand. There is a total of $350,000 available in the Fund for this.

F ind out more here: http://http//www.innovationfund.co.nz/how-it-works

WORKING REMOTELY

Mon, 14 Sep 2020 23:00:00 GMT

COVID-19 has changed where some of us work – which can come with new challenges. When working remotely it's important that employers and employees consider aspects related to employment law, health and safety, as well as costs, privacy and data security issues. For example, employers should consider if they need to update the employment agreement to reflect any permanent changes to working arrangements, like hours of work or place of work.

Find out more: https://www.employment.govt.nz/workplace-policies/productive-workplaces/flexible-work/things-to-consider-when-working-remotely/

DO BUSINESS ONLINE

Tue, 08 Sep 2020 23:00:00 GMT

Having a digital presence has never been more important than now. Use our free tool and join the 10,000 other businesses who have learnt how to reach new customers and build more sales.

U se this tool: https://www.tools.business.govt.nz/do-business-online

ACC: HAS COVID-19 HIT YOUR PAYROLL?

Mon, 24 Aug 2020 23:00:00 GMT

If you are an employer and your payroll has changed, or might change, this will affect your ACC provisional levies.

Update ACC with your estimated liable payroll by the end of September to make sure your 2020/21 provisional levy is as accurate as possible.

F ind out more - https://www.acc.co.nz/newsroom/stories/employers-ensure-the-impact-of-covid-19-is-reflected-in-your-levy

CONTACT TRACING MANDATORY

Sat, 15 Aug 2020 23:00:00 GMT

Contact tracing mandatory for all businesses under Alert Levels 2 and 3 !!

ALL businesses will be required to display government generated QR code posters at all premises from 12pm on Wednesday 19 August . Find out how to get your QR code poster and what to do if you have multiple sites.

Find out more.....

https://www.business.govt.nz/covid-19/contact-tracing

WHAT ALERT LEVELS 2 AND 3 MEAN FOR BUSINESSES

Sat, 15 Aug 2020 23:00:00 GMT

Restrictions are in place for businesses to keep workers and customers safe from COVID-19.

If you're still unsure what the rules are for Alert Levels 2 and 3 please refer to the following link....

https://www.business.govt.nz/covid-19/operating-at-alert-levels

OVERSEAS INVESTMENT IN KIWI BUSINESSES

Sun, 02 Aug 2020 23:00:00 GMT

LAW CHANGES: OVERSEAS INVESTMENT IN KIWI BUSINESSES

If you are a New Zealand business seeking overseas investment, there are new requirements.

Find out about the changes and what you need to do.

https://www.business.govt.nz/news/law-changes-overseas-investment-in-kiwi-businesses

Support for Apprenticeships

Tue, 28 Jul 2020 23:00:00 GMT

Support for Apprenticeships

New initiatives will be available for employers to keep and bring on new apprentices.

Find out more. https://www.workandincome.govt.nz/work/apprentice-support

Parental Leave law changes

Wed, 22 Jul 2020 23:00:00 GMT

Law changes: Paid parental leave extended from 22 to 26 weeks on 1 July.

Here's what you need to know.

https://www.business.govt.nz/news/paid-parental-leave-changing-2020

Doing Business Online

Sat, 18 Jul 2020 23:00:00 GMT

Successfully doing business online can build sales, save time and reach new customers. Use this free new tool to learn how your business can do better business online:

http://www.tools.business.govt.nz/do-business-online

Alert Level 1 for Businesses

Wed, 10 Jun 2020 23:00:00 GMT

"WHAT ALERT LEVEL 1 LOOKS LIKE FOR BUSINESSES"

https://www.business.govt.nz/covid-19/workplace-operations-covid-19-alert-levels/

KiwiSaver Account Bonus Payment

Tue, 09 Jun 2020 23:00:00 GMT

REMINDER: KIWISAVER BONUS

To get the maximum Government contribution of $521.43 each year, you need to make sure you contribute at least $1,042.86 yourself by 30th June.

So check your contributions total in your KiwiSaver account from 01/07/2019 - 30/06/2020 to see if you'll qualify for that bonus this year. If not, you can make a lump sum deposit to top it up if you want that bonus amount of $521.43.

Welcome Team Member

Mon, 01 Jun 2020 23:00:00 GMT

Welcome to our new team member Colleen Hay. Colleen joined Omokoroa Accounting & Taxation last November in the role of Office Manager. Colleen has a strong background in Insurance but also has experience in managing her own business.

Brightline Test New Rules

Wed, 02 May 2018 23:00:00 GMT

From 29 March 2018 the bright-line test for residential property has been extended from 2 years to 5 years. The extended bright-line test only applies to properties for which an agreement to purchase the property was entered into on or after 29 March 2018. If an agreement to purchase a property was entered into before that date, the 2-year bright-line test will still apply.

Kiwisaver Kick Start

Mon, 08 Jun 2015 23:00:00 GMT

As part of budget 2015 Government announced the removal of the $1,000 KiwiSaver kick-start contribution. As this change became effective from the day of the announcement, the kick-start is no longer available for members joining on or after 2pm 21 May 2015.

New Website

Mon, 25 May 2015 23:00:00 GMT

Omokoroa Accounting & Taxation Ltd is pleased to announce the launch of it's new website.

Accounting, Omokoroa Accounting & Taxation Ltd, Tauranga, New Zealand

Business Accounting Tips

Business Accounting Tips

1. Remember, GST Isn’t Your Money

2. Don’t Rely on the $200 Receipt Rule

3. Build a 10-Minute Morning Routine

Haven’t Seen Your ACC Bill Yet? Here’s Why

Haven’t Seen Your ACC Bill Yet? Here’s Why

Estimating Your ACC Bill

Do You Have Outstanding IRD Debt?

IRD Crackdown on Tax Debt

Managing Your Debt

Don’t Ignore Your Tax Debt!

Contact Us

ACC Updates

ACC Updates

CoverPlus Extra

Business Levy Updates

NZ Budget 2025 Announcements

NZ Budget 2025 Announcements

Changes to KiwiSaver Contributions

Investment Boost Tax Incentive

Growing Your Business

Growing Your Business ﻿

Provisional and Terminal Tax. What’s the Difference?

Provisional and Terminal Tax. What’s the Difference?

Making a Payment to the IRD

Planning for financial year-end 2025

Planning for financial year-end 2025

Annual stock-take

Debtors and creditors

Reconcile cash floats

Review procedures and policies

Updated Accounting Standards for Tier 3 and Tier 4 charities

Updated Accounting Standards for Tier 3 and Tier 4 charities – how to prepare now

What do you need to do?

1. Know what tier you are

2. Know what has changed

3. Be ready to report

4. Find more information

Meet The Team: Ann Fairweather

Meet The Team: Ann Fairweather

Tell us about your background.

What do you enjoy most about your job?

What are you most proud of?

What’s the best piece of advice you would give someone considering accounting services?

Outside of work, what can you be found doing on the weekend?

Tell us something about you, that people might be surprised to know.

The Benefits of eInvoicing For Your Business

The Benefits of eInvoicing For Your Business

How it works

The Benefits For Your Business

The Perks of Tax Pooling

The Perks of Tax Pooling

What’s tax pooling?

How It Works

The pros of tax pooling

Meet The Team: Suzie Monk

Meet the Team: Suzie Monk

How long have you been working at Ōmokoroa Accounting?

Tell us about your background.

What do you enjoy most about your job?

What accomplishment are you most proud of?

What’s the best piece of advice you would give a client considering accounting services?

Outside of work, what can you be found doing?

Tell us something about you, that people might be surprised to know.

Estate Planning: Have You Got a Plan?

Estate Planning: Have you Got a Plan?

The Essential ‘Just in Case’ Document

Navigating the Current Economic Climate: Survey Results

Navigating the Current Economic Climate: Survey Results

Tips for Alleviating Financial Stress

#1. Have a written budget.

#2. Know your reserves.

#3. Review your pricing.

#4. Review your expenses.

#5. Address your debt.

July Tax Changes: What You Need to Know

July Tax Changes: What You Need to Know

Income Tax

Growing Your Business

Navigating Tax and Business: Common Questions Answered