Keep up-to-date with us and what's happening in the business world |
|
|
- 4 Strategies to Help Your Business Weather Inflation - Kiwisaver Government Contribution - Are you on track? - Welcome to the team: Hollie, Tanya, Vivian & Nerissa
- Question of the Month: Can employees claim home office expenses while working from home due to COVID-19? - Xero Tip of the Month - Part payment of invoices - IRD Upcoming Tax Payment Dates |
|
|
As we navigate through the challenge of the rising inflation rate across the nation, it's essential that businesses look closely at their expenses and what they can do to ease the effects of high periods of inflation. To help guide you through that process, we've put together a short guide on the core areas to review & common tactics that can help your business adapt during times of high inflation. Spending review: Reduce expenses when and where possible:
Now is the time to review spending across all areas of the business. This process includes pure spending costs and analysing the cost process. How much control is being taken over the spending and costs that are going out of the business? Are there some immediate gains that can be made by changing suppliers, negotiating new rates, and stopping some costs altogether? It is critical that costs are streamlined so that the business can operate effectively to achieve its business goals and profitability. Now, this is of course something that should be done at all times, not just in times of inflation, but the opportunity is presented to start this process now in response to these inflation rises.
Efficiency analysis:
A core part of spending review is automating processes. This will reduce costs tangibly and increase the efficiency of the business. Saving time costs, particularly team costs, will deliver savings that can be redirected into other areas of the business, ideally to the most profitable areas.
Focus on profit:
All businesses must identify new or focus on the most profitable revenue streams in their businesses, or at least the revenue streams that will better withstand the rising inflation market (or have fewer costs associated with it). Focusing on these streams and directing resources, efforts, and costs here will make for a resilient business model as they go through the next 12 months and beyond. This isn't always an option for every business, but if there are multiple revenue streams, this should be a priority.
Review business pricing:
With inflation causing you to spend more, your business may need to review its pricing. While raising prices always comes with some customer resistance, it needs to be done to combat inflation's effect on your business costs. This is always a sensitive topic to tackle with clients and customers, but at least the way has been paved for you by prices rising across almost every single sector and industry. How we can help:
If you're wondering how to implement some of these strategies or how much you need to increase prices in order to keep up with inflation or maintain your margins, do give us a call. We can run the numbers, test out scenarios and figure out a sweet spot that will work for your business. We would love to help. |
KIWISAVER GOVERNMENT CONTRIBUTION - ARE YOU ON TRACK? |
|
|
Are you on track to receiving the full annual Government Kiwisaver contribution?
A reminder that you have until 30 June 2022 to make sure you have contributed at least $1042.86 into your KiwiSaver account to maximize the Government KiwiSaver Contribution top-up. Every dollar counts! Do you need to make a one-off payment to get yourself over the line? So how does it work?
So how does it work? If you’re eligible, the Government will contribute 50 cents for every dollar you contribute to your KiwiSaver account, up to a maximum of $521.43 each year. All you need to do is contribute at least $1,042.86 of your own money between 1 July to 30 June each year. For Salary and wage earners, your employer will pay your Kiwisaver contributions on your behalf. However, if you are self-employed, you can set up an automatic payment to your Kiwisaver provider.
To be eligible, you must: - be a Kiwisaver member
- live in New Zealand
- be 18 years old or younger than 65
- make one-off or regular contributions by 30 June each year.
More information is available on the Inland Revenue website, which can be accessed by clicking the button below. |
|
|
WELCOME TO THE TEAM: HOLLIE, TANYA, VIVIAN & NERISSA |
|
|
Originally from sunny Nelson, Hollie relocated to Wellington over three years ago to explore more opportunities in Accounting & Finance related roles. She joins us with more than 14 years of experience working within a broad range of industries within Chartered Accounting firms.
As our new Senior Business Services Accountant, Hollie will be working with you to prepare and provide crucial financial information while providing insightful strategic advice to support your business. Hollie is passionate about genuinely helping our clients reach their maximum potential while reducing the stress of compliance.
Hollie enjoys family time outside of work, she has three sons (17, 11, and 4) and a step-daughter (16), so family life is busy!
|
| Meet Tanya, a local Wellingtonian with an extensive background in administration and, more latterly, eight years of experience as an executive officer within schools.
As our new Xero Implementation and Training Manager, Tanya will be providing your business with in-depth Xero support and training while helping clients new to Xero migrate from their existing accounting system.
Tanya is looking forward to working with a variety of clients within different industries throughout New Zealand. Tanya is very process and systems-driven and passionate about helping clients achieve their goals most effectively.
Tanya's interests include reading, crafts, wallpapering, and spending time with her three girls. |
|
|
Born and bred in Hebei, China, Vivian has been in New Zealand for over three and half years, graduating from Wellington University of Victoria with a Master of Accounting. She is currently undertaking her chartered accounting (CA) qualifications.
As our new Business Services Accountant, Vivian will be responsible for preparing and providing you with crucial financial and accounting services while supporting your business.
Vivian enjoys putting her natural problem-solving skills to work in order to address a variety of challenges your business might face.
In Vivian's spare time, you can find her engrossed in a good book at the Library or checking out the local cuisine.
|
|
Originally from the Philippines, Nerissa relocated to Auckland, New Zealand, over two years ago, where she completed her graduate diploma in accounting at The Manukau Institute of Technology. Since then, she has held a number of various accounting and finance support roles.
As our new Business Services Accountant, Nerissa will be working with you to prepare and provide crucial financial information while providing insightful strategic advice to support your business.
Nerissa is passionate about helping our clients reach their maximum potential; she thrives in providing accounting and financial services that management can implement for sound decision-making.
Outside of work, Nerissa enjoys traveling and arts and crafts.
|
|
|
QUESTION:
Two individuals are employees earning PAYE-deducted salaries. They used to work from their employer’s office Monday to Friday until the COVID-19 pandemic disrupted this. Since part of the 2021 tax year and for the whole of the 2022 tax year, the employees have been working from home. They have incurred expenses (new computers, mobile phones and furniture) to set up their offices. They have not been reimbursed or paid by their employer for these expenses.
Are they entitled to claim any of these expenses in their tax returns? ANSWER:
Although each individual’s expenditure satisfies the general permission in s DA 1 for claiming a deduction (ie, they have incurred the expenditure in deriving assessable income), the "employment limitation" means that the expenditure is not deductible.
The employment limitation in s DA 2(4) denies a deduction for an amount of expenditure to the extent it is incurred in deriving income from employment. Income from employment includes PAYE-deducted salaries. The individuals are therefore not entitled to claim these expenses in their tax returns.
If the individual’s employer reimbursed this expenditure, the payment would be a tax-exempt reimbursement if was within the thresholds set by the Commissioner in Determination EE003. The employer could claim a deduction for the reimbursement payments. |
XERO TIP OF THE MONTH - PART PAYMENT OF INVOICES |
|
|
If your customer pays an invoice in multiple stages it can create a bookkeeping nightmare... But Xero has a quick way to record part payments!
To part-pay from within an invoice follow these instructions below; - Click on the match tab to bring up outstanding invoices.
Find the invoice the payment relates to and tick the box to the left. Xero will recognise that the full amount has not been paid and the word Split will appear to the right.
Click on Split and it will bring up the part payment. Click Split again to save and then click on reconcile. Done! You have now successfully part paid your invoice.
|
| |
|
IRD UPCOMING TAX PAYMENT DATES |
|
|
|
