The increase of the minimum sick leave entitlement from 5 days per year to 10 days per year will come into effect on 24th July 2021. What does this mean for you and your employees? For existing staff they will get the increase of entitlement on their next sick leave anniversary (not automatically on 24th July) For new staff they will get this on their 6 month anniversary The maximum… Read more
Some of you may have realised that Xero has instigated compulsory Multifactor Authentication for logging into their software. You can either use a generic authentication app or Xero have made their own app to help with this. Xero Launches Xero Verify Xero has launched its own authentication app, Xero Verify, to give small businesses world-class data protection. The new app makes it easy for users to set up multi-factor authentication… Read more
Do you have a passion you are thinking about turning into a paying gig? Have you always dreamed of doing what you love and making a living from it? We have shared some steps that we believe will help you avoid some common mistakes as you set out to earn an income from your favourite pastime. Do you have what it takes? Unless you’ve run a business before, it’s easy… Read more
This is something we hear a LOT! Along with the old myth about only paying tax once you earn more than $5,000… It’s important to understand the differences between a hobby and a business. A small side hustle you’ve been doing for years could actually be a business for tax purposes, and you may be accumulating tax debt without realising it. A hobby is generally something you do in your… Read more
If you want your new business to succeed, you need to make smart decisions and be strategic. Here we share five business killers that you should avoid if you want your startup to be successful, along with some strategies for lowering your start up costs. Too much overhead– Start with the bare necessities and focus on surviving your first year in business. By keeping your business lean in the early… Read more
When you’re a small business owner, you get used to people giving you advice. Sometimes you seek out their insights while other times they share whether you want them to or not. While the advice is almost always well-intended, it’s not always good. In fact, sometimes it’s downright awful. Here are some tips that well-meaning people give to small business owners that definitely should not be followed. 1. Never turn… Read more
2020 has been a difficult year for business owners. Now that a new year is upon you, it’s time to put your foot on the gas pedal and make 2021 the year for your business. Here are some ways you can grow your revenue this year and beyond: Review your business and address blind spots. The first thing you can do is to look at your current situation and identify… Read more
Do you ever feel stuck in your business? After all the time and effort you’ve put into it, your revenue seems to have plateaued or maybe has even decreased. If you’re having a profit problem, it can be a sign of a deeper issue that needs to be fixed. Below are the three key areas that you should look into: Products or services– Are your customers happy with what you’re… Read more
Drawing up the right financial documents matters to your small business’ success more than you think they do. They can give you a clear view of your financial health and can help you make sound decisions based on the numbers. Below are the six most useful financial documents that you can benefit from: Income statement- This shows your revenue and expenses and indicates if your business is profitable. Cash flow… Read more
Anyone with staff knows the frustrations that the complexities of the current Holidays Act legislation creates. The Government set up a Taskforce to review the Holiday Act in May 2018, which was made up of employer, employee and government representatives. There was widespread non-compliance with the Holidays Act 2003 and it was generally accepted that this is due to issues with not only the legislation, but the implementing of the legislation… Read more
In December 2020, the NZ Government passed legislation to implement a new personal tax rate of 39% for those with personal incomes above $180,000. This new rate comes into effect from 1 April 2021 (the 2021-2022 income year). What You Should Know As with any changes in tax, there are knock-on effects that you should know about. These include: New Fringe Benefit Tax rate of 63.93% for all-inclusive pay of… Read more
At face value, it can seem like a great idea. If you’re a small business owner with just a few employees, you probably think that hiring a payroll specialist is an expense that you can avoid. You feel that you can handle it yourself and you have the best intentions to keep your staff paid right and on time. What could go wrong, right? Well, quite a lot can go wrong as… Read more
The End Of Financial Year is always such a busy time with a LOT to think about as a business owner. We have share some important things for to consider as a reminder: Dividends (Companies) If you have a Limited Liability Company and there are retained earnings in the Company, you may want to look at paying out a dividend this year (prior to the potential personal tax rate increase). … Read more
This week the Government has announced proposed changes for residential property acquired on or after 27 March 2021. The proposed changes include: extending the bright-line test to 10 years amending the main home exclusion which would require tax to be paid on gains made for periods the property is not used as the owners main home allowing newly built homes to use a 5 year bright-line test not allowing property… Read more
Some small business owners find themselves in the difficult position of running a business that according to reports appears to be profitable, but still having no money in the bank. It’s a really important situation to address, after all, a lack of adequate cash flow is one of the main causes of small business failure. Here are some reasons profitable businesses have little money in the bank, and what business… Read more
It seems to be a time to celebrate in our world this month… International Women’s Day, 18 years in business, Danie achieving her NZPPA Payroll Certifications Level 2 & Pay Hero Certification, and our founder Di Crawford-Errington being named in the Top 50 Women in Accounting 2020 (the only NZer!) We took advantage of Ismae being in the office for the week and on Monday 8th March the celebrations… Read more
Another end of Financial Year is looming up fast! And what a crazy year it has been. There are quite a few different updates that are due to rollout on 1st April, so we have summarized them here for you: Minimum Wage Increase: From the 1st April 2021, the minimum wage hourly rates will increase to: Adult: $20.00 Starting out/training wage: $16.00 This will effect quite a lot… Read more
With the constant changes in Covid-19 levels and the uncertainty this brings to business, here is a summary of what support business owners can access to help you through the hard times. COVID-19 Wage Subsidy Payments Started This Week Applications for the wage subsidy opened last week and payments started to flow on Monday. This scheme allows employers to continue paying staff and protect jobs that may have been affected… Read more
Fixed Assets On 17th March 2020, the government announced that for one year, any assets purchased for a business under $5,000 (exc GST) can be expensed in the year it is purchased. This means the full cost of that asset can be claimed as a deductible expense in that period. As this was only a short term adjustment, this is due to finish on 16th March 2021 (yes next week)… Read more
Small steps can lead to a tremendous ripple effect on your business. Here are some simple things you can do to better manage your finances and stay ‘Ontrack’. Record all transactions, whether big or small. Expense tracking technologies can help you avoid errant spending. Make it a habit to keep your business and personal expenses separate. Reconcile what you know from your books with what your business bank accounts reflect.… Read more