Value based pricing vs charging by the hour

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

How to set payment terms if you’re a freelancer or contractor

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

New year’s resolutions

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

Property restructure fish hooks

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

Pros and cons of working with family and friends in business

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

What to do if you get audited

No business owner looks forward to a letter from the taxman requesting a closer look at the books. If you’ve received an audit letter – an official request by Inland Revenue to review your accounts and confirm your taxes have been paid to date – don’t panic. Prepare. These four steps will help you get through the process with minimal stress and the best possible outcome. Respond promptly If you file…  Read more

Reasons to consider hiring a financial planner

For business owners who want financial security now and freedom in retirement, having a financial planner on the team is a must. A financial planner will create a customized, strategic action plan to help you achieve your personal financial goals. Getting to know you and your business inside out is the first step a financial planner will take to understand where you are now, where you want to go, and then…  Read more

What to do if you fall out with your business partners

It’s been said that a business partnership is a lot like a marriage, and the comparison holds true when things go awry: the end of a partnership is a lot like divorce. Lawyers will be involved and assets will need to be divided. However, a separation need not be overly dramatic or unnecessarily painful. These tips can help make separation easier – and more amicable – should your business partnership come…  Read more

AIM: is it hitting the mark for provisional tax?

UPDATE 11 April 2023 If you have a growing businesses or find cash flow difficult to manage under the standard provisional tax system, you may like to consider moving to the AIM system for provisional tax. We first tried this system ourselves when it came out in 2018 (see below). Since then we have been struck by how easy the management of cash flow has been for us compared with…  Read more

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