Businesses

Image: Cashflow chart

How active observation of the world around you can help cashflow

How active observation of the world around you can help cashflow 1200 630 Colin Kennedy

Researchers in Italy have found that farm animals like dogs, cows and sheep can detect an earthquake up to 20 hours before it occurs. Perhaps it is ionisation of the air caused by rock pressures or that animals can smell gases released from quartz crystals before the quake. The lesson business owners can take from…

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Audit claim data highlights level of IRD’s behind-the-scenes activity

Audit claim data highlights level of IRD’s behind-the-scenes activity 1200 630 Lee Stace

Inland Revenue (IRD) is still actively reviewing taxpayers despite COVID-19 and the various business disruptions the pandemic has caused in the past 12 months, according to figures released by Accountancy Insurance. They saw a 31 percent increase in claims in all categories during the 2020-21 financial year compared to the 2019-20 financial year. In terms…

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How to build a business that can run without you

How to build a business that can run without you 1200 630 Colin Kennedy

Are you micro-managing your team and, in doing so, ensuring your business can’t run without you?  All business owners, tax specialists included, pour their life and soul into the business and work hard to grow it. But at a certain point, even though it is hard to let go – and it is your expertise…

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Working capital solution amid timber shortage

Working capital solution amid timber shortage 1200 630 Lee Stace

For builders wanting to ensure they have enough materials to complete the jobs they have scheduled over the coming months amid the current timber shortage, there’s a source of funding available to them that they may have overlooked if they require working capital. It’s their provisional tax payments. And a service called tax pooling –…

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How to diversify your business

How to diversify your business 1200 535 Colin Kennedy

The COVID-19 pandemic has honed many business owners’ minds about what parts of their business can continue to provide revenue if the rolling lockdowns continue. And it has undoubtedly had many business owners wondering how they can diversify their products or their markets to ensure the business remains afloat in both good times and bad.…

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Miscalculated your tax loss carry-back? Don’t worry – help is at hand

Miscalculated your tax loss carry-back? Don’t worry – help is at hand 1200 630 Lee Stace

Tax pooling can reduce the interest cost a taxpayer faces by up to 30 percent if they have overestimated their loss under the temporary tax loss carry-back scheme. Under the temporary Inland Revenue (IRD) scheme, those who expect to make a loss in the 2019-20 or 2020-21 income year can estimate that loss and use…

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Why do some companies fail while others prosper?

Why do some companies fail while others prosper? 1200 630 Colin Kennedy

“It’s a funny market,” according to one business owner. “Some businesses I know are thriving, while others in the same industry are struggling just for cashflow.” The truth is that perhaps it is less a ‘funny market’ and more symptomatic of the type of market we have here in New Zealand and, importantly, how we…

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Taxing times: Are you facing a cashflow crisis in April and May?

Taxing times: Are you facing a cashflow crisis in April and May? 1200 600 Lee Stace

Tax represents cash and for all businesses, cash is king – especially in April and May. After all, Inland Revenue (IRD) is expecting two tax payments over these months. The first is due tomorrow (7 April). That’s called terminal tax. If you did not pay enough tax during the 2019-20 income year, you will be…

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Property tax changes announced – what you need to know

Property tax changes announced – what you need to know 1200 630 Lee Stace

Property investors will no longer be able to offset their interest expenses against rental income when calculating their tax. This is one of three tax measures announced today by the Government as it attempts to cool the overheating New Zealand housing market. The others include: Extending the bright-line test to 10 years.A ‘change-of-use’ rule within…

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Terminal tax isn’t due until 7 April – so why’s IRD already charging interest?

Terminal tax isn’t due until 7 April – so why’s IRD already charging interest? 1200 630 Lee Stace

Just because a terminal tax amount for the 2019-20 income year is not due and payable until 7 April does not mean Inland Revenue (IRD) is not already charging interest. Why is this happening, you may be asking? There could be several reasons. The method used to calculate your provisional tax payments, your income tax…

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