GST & Unit Title Bodies Corporate (UTBC)

The IRD has recently published an interpretation statement (IS 23/08) to provide guidance on how GST applies to different transactions between a unit title body corporate, its members, and third-party suppliers. A UTBC is a separate legal entity to its members.  It can decide whether to register for GST.  UTBCs are generally considered only making taxable supplies to their members in the form of members’ levies.  The value of supplies…  Read more

Setting your chargeout rate as a professional services provider

If you operate as a self-employed lawyer, IT specialist, architect, manage a firm or agency, or provide professional services in any capacity, your time is your most valuable asset. As such, it’s crucial to ensure that you’re charging appropriately for your services, not only to maximise your income but also to maintain fair wages for your staff and strike a healthy work-life balance for yourself. In this post we look…  Read more

Tier 3 not-for-profit financial statements: a beginner’s guide

Many not-for-profit organisations fall under the Tier 3 standard which is a specific set of accounting standards designed for smaller entities, usually organisations with relatively simple financial structures and limited resources.  These standards are issued by the External Reporting Board (XRB) which is a Government Agency. The Tier-3 standard applies to Public Benefit Entities (PBEs) that do not have public accountability and have expenses less than or equal to $2…  Read more

Rising interest rates: impact on small businesses and mitigating those effects

In the world of business, one constant factor you are likely to encounter is change, particularly in the financial landscape. One such change that can bear significant implications for small businesses is rising interest rates. Understanding how this impacts your business and identifying solutions to counteract these effects can be key to sustaining and growing your business. With the election out of the way, business people and mortgage holders are…  Read more

5 important financial ratios for your small business

As a small business owner, you’re likely already wearing many hats. But the hat of a financial analyst might seem a little oversized, particularly if your background isn’t in finance or accounting. However, understanding financial ratios can be a game-changer for your business, helping you assess your business’s financial health and make informed decisions. Financial ratios: what are they? Think of financial ratios as a thermometer for your business’s financial…  Read more

Small business guide to depreciation

Depreciation is basically a reduction in the value of an asset over time. What this means for your business is that if you buy a substantial asset like a computer or a car, you can claim a certain amount of the loss of value over time as a business expense. It’s also a method of spreading the costs of large assets over time. It’s important that your business claims the…  Read more

How to reduce your tax bill (the right way)

Taxes – there’s no avoiding them. But there are ways to reduce the amount you have to pay so that your business is more profitable. All it takes is some preparation, planning, and the advice of a good tax specialist. So one of the first things you need to do is talk to your accountant about all the legal strategies available for minimising your tax bill. Here are some examples.…  Read more

Accounting best practices when starting out as a professional services contractor

Starting out as a professional services contractor is an exciting time. Whether you are in IT, medicine, engineering, law or something more creative, contracting provides a unique set of opportunities and challenges. And whether your goal is to just have enough work for yourself, or build a future agency, getting your accounting right from the get-go will be key to the success of your business, enabling you to make financially…  Read more

Trusts update July 2023

Over the last few years there have been several changes that alter the landscape for family trusts. These changes include a new Trusts Act 2019, new and comprehensive disclosure requirements that began for the year ended 31 March 2021 and a high profile tax avoidance case (Frucor) which did not involve trusts but which did involve the use of associated entities where all rules were followed by the taxpayer but…  Read more

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