Entrepreneurs must master the art of saving as it increases profits and efficiency. One of the great ways for any franchise business to save money is to deduct costs that eventually result in lower underlying tax bills. But it is essential to understand that not all costs are tax-deductible in New Zealand. Keep reading to learn what franchise costs are, what deducting costs mean, are franchise fees tax deductible, etc. At the end of this post, you will also come to know about a leading company that can help you play within the complex rules of taxation and assist you in winning the tax game. U ..read more

The Taxation (Income Tax Rate and Other Amendments) Bill was passed last year, and this required increased disclosure from Trusts. These changes have been made to improve the transparency of trusts and their financial positions. Additional information disclosed as part of the new rules will help Inland Revenue understand how trusts are being used to accumulate and distribute income. From the 2022 income year, trustees will need to provide the following information to the IRD as part of the annual filing process: Financial summaries with a statement of profit or loss, as well as a statement o ..read more

The period after 31st of April of every year can be both nerve wrecking and a relief as the end of the financial year is met. Sole traders and companies will hustle and bustle to get their annual accounts done (also known as financial statements and/or taxation returns) and it is a busy period for everyone, including accountants. For everyone, worried or not, we have collated a checklist of everything you could possibly need to complete your annual accounts. It is a process which can be easily managed, even under time pressure. The NZ tax laws state that all financial statements and annual ac ..read more

Unless you want Inland Revenue (IR) audits and consequences, you know you are bound to do it. Without it, you never will be in control of your company's financial state. Besides, your decisions and assessments would be shots in the dark. Wondering what we are talking about? Business accounting, of course. A sincere and consistent job of accounting will help you evaluate your business performance accurately, create a better budget, make precise future projections, and ensure statutory compliance. Now the question is, what is the best accounting software that you can trust to simplify the accou ..read more

Cloud accounting is the form of bookkeeping your business online. This means that all records, expenses, assets, liabilities, and various details are all kept online within one platform or software. Software like Xero is an excellent cloud accounting software that Elite Accounting also uses for their clients, the platform is all encrypted, secure, and safe and can be accessed by both the accountant and the client. With moving your business online and utilizing accounting software solution, it means that your accounts are all connected to the cloud, which otherwise means that it is stored and ..read more

Every year many New Zealanders end up in debt to the Inland Revenue (IR) Department due to underpaying or underreporting their tax liabilities, whether on purpose or by mistake. Owing the Inland Revenue can be worrying and bothersome, particularly when they have placed a lien or levy on your wages and property. The purpose of this post is to educate our readers about tax debt so that they can avoid getting into it. Here we will also reveal how to get rid of one if you have already got into tax debt. So, continue reading to level up your tax knowledge. Understanding Tax Debt Individuals create ..read more

The new tax rate for those that earn more than $180,000 NZD annually comes into effect from this month (April 2022). This tax bracket lies 11% above the rest at a 39% tax rate. Besides being a form of sustaining economical loss within New Zealand and maintaining government revenue after the Covid-19 pandemic, the government has also placed its reasoning for this increase on its efforts in ensuring a “fair and progressive” tax system where everyone “pays their fair share of tax”. The problem however is, the integrity of the 39% personal tax rate. The government is particularly concerned about ..read more

Parliament has finally (on 29 March) passed legislation removing the ability of residential property investors to claim mortgage interest as a tax-deductible expense on existing properties. It is now just awaiting the formality of royal assent to become law. There are two changes to be expected from passing the new rules. First, unless an exception or exemption exists, interest cannot be claimed as an expense for residential property purchased on or after 27 March 2021. Second, for property acquired before 27 March 2021, the ability to deduct interest on existing loans is being phased out ove ..read more

Before the COVID-19 pandemic, owning a business was hard enough. Now that we are living effected by a virus, maintaining a business has become even harder. We are faced full of uncertainties and for businesses, it’s either survival or a failure in this unpredictable time. With this, many business owners lose hope, and they end up giving up before the worst. Here are some tips which may come in use in keeping things striving during the pandemic: 1. Have an organized and optimistic mindset. With all the negativities brought about by the pandemic, a business owner must keep positive and optimist ..read more

Managing a successful private practice in New Zealand can be difficult at times, especially when covid is present. Here are some tips on how to run a successful practice in New Zealand utilizing technology. Dr Lynn Ho owns a solo family practice in America and shares her experience of ensuring a stable long term family practice with the use of technology, namely making her practice partially online. Dr Ho has claimed that technology has “improved patient access, makes her practice run more efficiently, and deal with documentation requirements”. The changes that technology was able to provide ..read more