From 1 January 2024, online marketplaces must disclose information about sellers and transactions on their platforms. This makes income earned on digital platforms (also called the sharing and gig economy) more transparent to Inland Revenue if you earn income for services such as: – providing short-stay accommodation – providing ride-sharing services for a fare – sharing assets such as cars, caravans/RVs, parking, or storage space – providing personal services, such as graphic design, creating websites, or odd jobs like deliveries, pet sitting, furniture assembly or trades services Inland Reve ..read more

If you’re looking for simple ways to automate and streamline your accounts processes this year, look no further than Hubdoc.  Hubdoc makes data entry of bills and receipts easier, by automating the process of entering them into Xero.  This is a modest step in automating low-level tasks that can take up a lot of your time. You can email, take photos or scan or upload documents to store in Xero.  It will then extract details such as a supplier’s name, invoice numbers, amounts, and due dates and you can tell Hubdoc how you want to publish the information in Xero to match it in your ..read more

What does it mean for you? From 1 April 2024, the tax rate for trusts will increase from 33% to 39%. Draft legislation has been released and is expected to be law by end of March 2024. The change aims to make the tax system fairer – since the top personal tax rate increased to 39% there has been a 50% increase in the amount of money going through trusts. As it currently sits, the Bill would see the 33% trust tax rate retained for the following: Trusts with less than $10,000 of income (if over $10k, then 39% applies) Disabled beneficiary trusts Deceased estates in the year of death and the fir ..read more

If you’re a project-based business you are mostly likely familiar with deposit invoices and progress payments, but you could be offering a product or service and still benefit from creating deposit invoices. Here are 6 advantages of having deposit invoices or progress payments as part of your business process: Consistency in Revenue: You’ll be creating a reliable revenue stream when you request a partial payment upfront. This can lead to a consistent stream of funds which allows you to manage your cashflow and meet any costs or financial obligations. A better Accounts Receivable Process: Your ..read more

The rapid technological advancements we’re seeing are a double-edged sword for many business owners, presenting both great opportunities and potential challenges. Adopting and integrating these new technologies is essential if you want to remain competitive, but it requires careful navigation and a clear strategic plan for your tech stack. 5 key steps for transforming your use of business tech There are solutions for enhancing areas of your business – your bookkeeping, accounting, forecasting, inventory management, project management and a host of other key operational areas. These apps slot p ..read more

When you’re self-employed it’s essential to make sure you’re adequately covered should you be unable to work, especially if your business is unable to continue earning without you! If you’re self-employed or a non-PAYE shareholder-employee in New Zealand, there are different options available for cover through the ACC if you’re injured and unable to work. You have two options for your ACC cover, either ACC CoverPlus or ACC CoverPlus Extra. ACC CoverPlus Extra is an optional cover that extends beyond the standard ACC CoverPlus. If you’re self-employed or a contractor you’ll automatically be pla ..read more

Are you heading away for a break from the business this year? This time of year can be hard on small business. Your expenses continue and your cashflow can suffer when your debtors go on holiday. Leading up to the holiday period, is your business cash flow in good health to carry you through? With a bit of pre-planning and being proactive, you can set yourself up for a financially stress-free holiday. Planning your cash-flow over the holiday period Invoice early – Send any invoices that you can, and in advance if possible. Perhaps consider whether you have any regular clients or customers that ..read more

Love it or loathe it, Black Friday and Cyber Monday (BFCM) sales are mere days away with some retailers starting their sale period early. While it’s tempting to jump on the bandwagon and discount everything in sight, you’ll need a solid BFCM discounting strategy. Think about: How much revenue do you need to meet your financial goal? How much profit do you expect to make for each order? Have you included advertising costs in your projections? Ideally, any discount you apply should be tested against your budget to lower the chances of losing money on the deal. The following discount strategies ..read more

What constitutes a risk to your business? It could be as straightforward as a tax bill you didn’t expect or as comprehensive as a natural disaster. If the first half of this year is anything to go by, natural disasters can be devastating. It’s important to assess the type and level of risk and develop strategies to cope. We’ll be heading into a new year soon and it’s a great time to take a common-sense survey of your business to check everything that could damage your business and take some sensible precautions. Some of this is straightforward – if you know how much your monthly wages bill is ..read more

If you’re a company director, you have legal and ethical duties and some important tasks to attend to. If you’re new to leading and overseeing a company, start with understanding your role. Being a good director can help your company run well, achieve its goals, and maintain a good reputation. As a company director, you have obligations to your company and shareholders, responsibilities under the Companies Act 1993, and obligations under an ethical code of conduct. The Institute of Directors in New Zealand has a code of practice for directors and encourages company boards to adopt th ..read more