Empower Your Business

Accounting is Just the Beginning

Nov
10

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Accounts and Tax Returns

Category: Accounting, Business, New Business, Tax Tags: , , ,

At A+BAC we make life easier for you.

Accounts and Tax Returns.
Making it easy for you by getting it right on time, every time. No fuss or drama and more advice for your hard-earned money.  Contact us today: www.abac.co.nz or 0800 ASK NICK

Feb
25

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How to Minimise the Chances of an IRD Audit

Category: Accounting, Business, Tax Tags: , , , , ,

Many business owners in New Zealand believe that the chances of being audited by the IRD are so slim that they don’t need to worry about it.

Well, speaking as someone who has been in little offices many times with clients being grilled by the IRD—and having been involved with clients whose homes and business premises have been raided by the IRD—I can tell you that being on the wrong side of the IRD is a frightening, stressful and very expensive place to be.

I wouldn’t recommend that experience to anyone in any possible way. It is important then to make sure that the IRD focus their attention on others, rather than you, which can be achieved relatively easy most of the time.

Read the full article here

Oct
25

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How To Save Tax AND Sleep at Night

Category: Accounting, Business, Tax Tags: , , , , , , , ,

Ways to cut your tax bill can put in two broad categories: the legal and the illegal. Although in both cases your cash flow will improve, one of the two will put you at risk of insomnia, bankruptcy, divorce, nervous breakdown or even jail.

In this article, I provide real, practical examples of how to save thousands of dollars in income tax -and still sleep soundly.

Read the full feature here

Mar
24

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10 Things To Do Before the Tax Year Ends

Category: Accounting, Tax Tags: , , , , , 2 Comments

Out with the old, in with the new? Yes, maybe, but before we get to the 1 April 2011 what should we, as business owners, be doing?

  1. If you have trading stock (unless it’s clearly not going to exceed $10,000 in value) do a stock-take. Even if you have a perpetual inventory system on your accounting software you still need to check it’s accurate. Make sure you identify and write-off any unsaleable items or stock worth less than cost.
  2. Write off any bed debts to get tax deductibility as the accounting entries must be made before 31 March. It doesn’t mean you have to stop chasing.
  3. Review your fixed assets and identify and write-off any which you’ve disposed of or stopped using.
  4. Make sure you have everything to hand for your accountant, stock-take details, accounts receivable and payable, work-in-progress, year-end bank statements, any new loan or finance paperwork and use of home details in particular.
  5. Bring forward any planned expenditure to get tax deductibility early.
  6. If you have sufficient cash reserves and the customer or client won’t mind defer income by delaying jobs until after 1 April. Don’t, like a client of mine used to, just delay invoicing until the 1 April – it’s a bit obvious!
  7. Get your accountant to help you prepare some interim financials so you can take any necessary tax-saving steps or make sure you know your up-coming tax liabilities BEFORE the year-end.
  8. Trust resolutions allocating distributionsto beneficiaries must becompleted and signed within 12 months of the Balance Date.
  9. To pay dividends before the end of this income year you’ll need to pass the appropriate resolutions prior to 31 March 2011.
  10. Get a new accountant, one who is really interested and cares about your business, who doesn’t just focus on tax and year-end financials, see Six-reasons-to-change-accountants.

If you’re not clear on anything or want to make sure you stay on the right side of the IRD just give me a ring at no cost on 0800 ASK NICK or email nick@abac.co.nz. There’s only a few days left to go!

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