Cash versus accrual accounting explained
May 9, 2022
The difference between cash basis and accrual basis accounting comes down to timing. When do you record revenue or expenses? If you do it when you pay or receive money, it’s cash basis accounting. If you do it when you get a bill or raise an invoice, it’s accrual basis a...
Accounting 101: Mixed Use Business Vehicles
October 28, 2021
Company Vehicles available for Private Use by Shareholders – Logbook or FBT?
Shareholders of companies often use their personal vehicles for business and private purposes.
To deal with that private use aspect - a Close Company (a company with 5 or fewer natural persons wit...
Accounting 101: Rental Properties and Tax FAQ’s
August 11, 2021
Do I have to return GST on rental income, and can I claim GST on any rental expenses?
No. Properties used in a long-term residential rental activity are an exempt supply for GST purposes - no GST can be charged on rent income or claimed on expenses.
Note that residential pro...
Counting your Livestock
May 13, 2021
Attention Farmers with Livestock!
The 1st of June is fast approaching and we will be asking you to send us your farming records sometime in the following 10 months. Rather than waiting until we request your records and trying to remember your livestock numbers as at 31 May, ...
Accounting 101: ACC - CoverPlus vs CoverPlus Extra
October 19, 2020
CoverPlus vs CoverPlus Extra – Main differences, which one should I be on, and prices.
The ACC cover that most of us are familiar with is CoverPlus, which is the automatic policy for everyone whether they are self-employed or on PAYE wages. This type of cover pays out 80% ...
Accounting 101: Using Tax Pooling for late or underpaid tax
August 12, 2020
Have you missed your tax payment? Worried about the IRD’s late payment penalties and use of money interest (UOMI) charges?
Then tax purchasing could help you!
New Zealand tax-payers have to pay tax on certain dates, at certain amounts, depending on their income levels.
If ...
Accounting 101: What we need at Annuals Time
June 19, 2020
You may be thinking “I have all my data on Banklink/Xero, why do you still ask for my records”?
Although our computer system might show the year end balances and amounts, we need extra confirmation from a second source that the information we have is correct, and that no...
Payroll Team Update
November 4, 2019
Business Shutdown – Leave Management Plan
Have you worked out your team’s Leave Management Plan? If your business traditionally shuts down over the festive season you need to plan closing and opening days, check if anyone needs to work during the closedown, get your team sending in their leave requests, and start ...
Accounting 101: GST
November 4, 2019
In New Zealand, goods and services tax (GST) is added to the price of most products and services. If your business is GST registered, you collect GST from customers (by adding 15% to your sale price) and you pay this to the government, less any GST that your business has pai...
Accounting 101: Financial Statements
August 6, 2019
How to read your Financial Statements
Essentially, the financial statements tell a story about money. They show where an entity’s money came from and where it went over a specific time period, which is usually over a year. They also show where the money is at the end of that period. In NZ, the standard financi...
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