Accounting Hub Newsletter Winter 2013

‘Mondayisation’ ahead Previously, when New Zealand celebrated Waitangi Day or ANZAC Day, and it fell on a Saturday or Sunday, it wasn’t recognised with a day of paid leave unless the employee normally worked on that day. For some New Zealanders, this projected the idea that these dates, marking significant moments in our history, weren’t important enough. Many also wanted to see employees enjoying their full entitlement of 11 public…  Read more

Teleworking – Buzzword or reality?

There have been some articles in the news media recently dedicated to the rise of “teleworking”. To me the term already seems out of date as it seems to refer to the use of a telephone (invented around 1876) when today it is much more likely that internet technology will be used. According to Wikipedia, the term telework was coined in 1973, which will explain its old fashioned sound. However…  Read more

Christmas Parties, Entertainment and Tax

Believe it or not, Christmas is just around the corner already, which will leave many of you thinking about how best to reward staff. It may also have crossed your mind to consider how much of the expenditure that you will make will be tax deductible. Generally, if you provide entertainment for your team, clients or any other business contact, some of your business entertainment expenses are tax deductible. Below…  Read more

Home Office Expenses

A common question that we get asked, is “what portion of my home expenses am I able to claim for tax purposes?” Where a self-employed taxpayer uses his or her home partly in furtherance of the conduct of a business, he or she is entitled to a partial deduction for the outgoings which relate to the use of the home for the work related activities. These include: – Heating –…  Read more

Standard mileage rate increases

The IRD standard mileage rate for motor vehicles is now 77 cents per km. This rate applies to the 2012 income year. The standard mileage rate may not be acceptable where an employee’s business travel exceeds 5,000km. The reimbursement should be based on actual expenditure or a reasonable estimate of the expenditure likely to be incurred by the employee. One way to claim in Xero is to enter the mileage…  Read more

To LTC or not to LTC, that is the question?

Owning a rental property has become topical again with the recent positive movement in the Auckland residential property market. Besides the question of which property to buy and where (and ignoring the difficulties of increasingly crowded auction rooms), many property investors will be wondering which legal structure to use for their investment. Loss Attributing Qualifying Companies (LAQCs) were popular in the past. That popularity contributed towards some negative media coverage…  Read more

Shift your business accounting in to “the cloud”

Recent advances in small business accounting software are changing the way that accountants are able to interact with their clients. Using online or “cloud” based accounting software such as Xero gives accountants the opportunity to work with their clients on a regular basis, rather than just collecting records from businesses and preparing annual accounts after year end (as an aside, Xero is fast becoming a New Zealand success story which…  Read more

General Ledger systems – which is for you?

For those who need more functionality than a cashbook system, the next step up in the off-the-shelf software market for business is the simple general ledger system. Typically these systems can keep track of accounts receivable (so you can use them for invoicing your customers), accounts payable (so that you can keep track of who you owe money to and when it is due) as well as all transactions that…  Read more

Software decisions – which cashbook software is best for your business?

For an owner of a small or medium sized business, the days of “shoebox record keeping” are long gone. There are several good quality, low cost accounting packages to suit every kind of business, ranging from simple cashbook systems to Enterprise Resourse Planning (ERP) systems capable of handling not just accounting information, but also human resources, customer relationship management and a wide range of other tasks. Most SME businesses will…  Read more

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