All business owners should be aware of their break-even point — that is, the number of units you need to sell in order to cover your operating costs. Once you’ve reached your break-even point, it’s time to celebrate: your business is no longer in the red, and you are officially earning a profit. In this article we will show you how to calculate your break-even point so you can make wise… Read more
It’s unusual for tax to be a front page issue but right now there are a lot of headlines being generated and a lot of hyperbole being used by many media commentators. This article is an attempt to look past the spin to make sure that you are up to speed with the tax changes that have occurred that will affect you now as well as the proposals that have… Read more
Ever heard the story about the engineer who fixed the broken machine with a single tap of his hammer? He sent his clients an itemised bill for his work: Tapping with hammer: $5 Knowing where to tap hammer: $95. This is an example of value-based pricing. If you’re like most freelancers or contractors, knowing how to price your services can be a real struggle. Charging an hourly rate can feel less… Read more
Following up on late or non-paying customers is no freelancer or contractor’s favourite task. Which is precisely why you need to set payment terms up front – and in writing – before you work with a new client or customer. By communicating and agreeing on the non-negotiables for doing business with you, you’ll avoid awkward misunderstandings, frustrating disputes, and in most cases, the ugly hassle of debt collection. These tips will… Read more
At this time of year many people are looking forward to a holiday ahead, but also thinking about how they can make their work work for them better than it did in the past. Some people will be thinking nervously about leaving their full time job to start a new business. Since setting up my own business more than 6 years ago, I have been lucky enough to meet lots… Read more
One small but important change that we have noticed recently is that Google has started charging GST for it’s G Suite (email, apps and storage products) and for advertising. You’ll need to revisit any rules that you have set up in Xero to make sure that you are claiming the GST on these payments. From the paperwork that we have seen it looks like this change took effect from 1… Read more
PayPal is the world leading online payment service. You can transfer money to and from your bank account, pay for goods, and even receive payments worldwide. It’s a useful tool for entrepreneurs, freelancers, and even for personal use. However, it does have its drawbacks. PayPal takes a significant chunk of money when it comes to converting and billing international payments. You could end up losing about 5% of your cash… Read more
From time to time we get asked by clients about moving their rental property into a different entity. Usually when doing this, a property will be “sold” to a related party. The reasons for the request vary but usually relate to a change in the relationship of the people that own the property, a perceived tax benefit from restructuring the finance at the same time as the ownership or else… Read more
Ever dreamed of starting a family business? Investing in a franchise opportunity with friends? Businesses owned and operated by families can have incredible staying power. Volkswagen, Samsung, and Nike – all family-owned companies – are among the world’s most successful, leading brands. We can be included in that bunch too! Owner/director Andrew, works alongside his accountant sister, Helen here at The Accounting Hub. So we speak from experience when we say, it… Read more