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Accounts Online Accounting tips

lightbulbsunDo you have a contingency plan? It is important to have a contingency measure in place just in case something happens to the key player(s) of the business.  Has your business got a contingency plan in the event of sickness or death?
Home office expenses: Tip – pay your home office expenses which include rates, insurance , electricity , phone , internet, repairs out of your business account. We can teach the software to do the business and private split.  This will save you having to revisit this at year end.

Acounting/Taxation service: SUM-it Accounts Ltd provides an accounting service for individuals, businesses , charities, and clubs.  If you are interested in finding out more please contact us. Also, if you know of any businesses or individuals that want a change or are struggling please put us in touch.

Tax Management Intermediary: Struggling to pay your taxes on time – tight on cashflow?  This service is excellent and saves businesses and individuals money as the IRD’s interest rates a lot higher.

Inland Revenue: The inland revenue are reviewing property transactions, cash economy and hospitality. It is important that you  bank your cash daily, or at least weekly,  and try and avoid paying expenses out of the cash or till.  This creates more work as you need to account for the dollars to your till tapes.For hospitality businesses are you reconciling to your till tapes daily?

Off the accounting topic, onto interior design 

Here is a Wellington Interior Designer’s Tip for arranging spaces

Her advice is to keep it simple and clutter-free.  Get the bones right before you even think about filling it up with furniture, art , rugs etc.  If the bones are not right you will never feel comfortable in a room – there will always be something missing.

Tax Management – Resolve your holiday cash crisis

Tax ManagementFree up working capital by paying your provisional tax when it suits you.
The period just after Holidays can be tough for many businesses.

In fact, more than half of those who responded to an Employers and Manufacturers Association poll said they experienced cashflow constraints between January and March every year.

There are several reasons why.
• Holiday Pay demands prior to the holidays
• Closing down over the holidays reduces cash flow
• The period following the holidays is traditionally slow
• GST and Provisional tax falls due 15th January, straight after holidays

On that final note, the Inland Revenue (IRD) is quick to reinforce that if you do not pay your taxes on time you will feel the repercussions in your back pocket. This will include charging late payment penalties of up to 20% pa and use of money interest (UOMI) of 8.4%.

Fortunately, Tax Management NZ (TMNZ) has an IRD-approved solution that allows businesses to resolve holiday cashflow issues. This solution is called Tax FINANCE (TF). TF lets you pay provisional tax when it suits you – without incurring late payment penalties and UOMI.

It is cheaper than many other traditional forms of finance – rates start from below 6% – and this extra funding does not affect existing lines of credit.

For instance, it costs just $145 to defer a $5,000 provisional tax payment for six months.

Approval is guaranteed, and no credit check or security is required.

Here is an example how TF (Tax FINANCE) works

1. You decide you need to delay payment of your provisional tax of $5,000 for 6 months
2. You pay TMNZ a one-off, tax-deductible finance fee of $145
3. TMNZ then pays the $5,000 into an IRD account held by the Guardian Trust (GT).
4. Six months later, you pay TMNZ the $5,000 provisional tax. Any IRD late payment penalties and interest will be reversed when transfers are complete.

How simple is that?

Please contact Accounts Online to find out more.