McLEAN AND CO.
Glossary of Financial Terms www.mcleanandco.co.nz/page89.htm
Setting Your Prices www.mcleanandco.co.nz/Page105.htm
Back claiming of Rebates www.mcleanandco.co.nz/Page57.htm
Creating a successful Market Niche www.mcleanandco.co.nz/Page83.htm
The Companies Act 1993- a Summary www.mcleanandco.co.nz/Page99.htm
The Government will soon release a discussion document proposing changes to the tax rules. The changes are intended to reduce business tax compliance costs and include:
When this discussion document is released, a summary of it and an electronic feedback form will be accessible from the IRD homepage www.ird.govt.nz and a full version of the document will be available at www.taxpolicy.ird.govt.
ARE YOU IN THE BUSINESS OF MOTOR VEHICLE DEALING?
Do you sell motor vehicles? Import more than 3 vehicles a year? Operate a car fair or auction? Sell vehicles online?
If so, you will probably need to register under the new Motor Vehicle Sales Act 2003 (MVSA) if you want to be in the business of motor vehicle trading. You can find information about the MVSA and the new Motor Vehicle Traders Register (MVTR) at www.motortraders.med.govt.nz.
This website will be the home of the MVTR when it is launched on the effective date of the MVSA. That date is currently expected to be in December 2003. (Until then, the Motor Vehicle Dealers Act 1975 will apply.)
The MVSA has made a number of significant changes to the business of motor trading, and you can read more about them in the FAQ section of the website. You can also subscribe to a free monthly newsletter, MVTR Matters, by e-mailing email@example.com. If you are already in the motor vehicle business or are thinking about registering as a trader, the newsletter is an excellent way to stay informed.
IRD AND ACC
IRD have now completely ceased all ACC activities. IRD ceased processing for payments for ACC and SEA (self employed ACC Levies) from the end of July and all remaining ACC and SEA debt has been written off.
If you file late returns for 2001 and earlier years, IRD will not bill you for SEA Levies nor will information be passed to ACC to enable you to bill them.
If there is any activity that changes the earnings on which levies are calculated and this results in a refund of SEA, IRD will arrange with ACC to make a manual refund. For employer refunds, you should contact ACC directly.
For the 2002 and subsequent years, income tax reassessments arising from changes to earnings in the relevant key points (Withholding Payments, active Partnership Income, Self-employed Income, Expenses) on the IR3 return will result in information being passed to ACC for them to issue an amended invoice.
BOARDERS IN PRIVATE HOMES
If you have private boarders (except your own relatives) living in your home, you may have to return some of the board payments you receive as income.
If you have one boarder living in your home, none of the board payments which you receive are taxable, and no expenses incurred through having the boarder are deductible.
If you have two, three or four boarders living in your home, you can do one of the following:
If you have five or more boarders living in your home, you must keep full records of all your household expenses, and work out the proportion of the expenses relating to the boarders. You then deduct the boarders share of the expenses from the total board payments you receive, and include the remaining profit as income in your tax return.
NEW WEBSITE FOR EMPLOYERS
A recently launched website ( www.worksite.govt.nz ) combines the resources of a number of government agencies into a one-stop information resource on employment information and employer's responsibilities.
It is designed to help employers look for staff, grow their business or get assistance in running their business.
For example, the "At Work" section provides information on the minimum entitlements you are required to provide staff, including wages, holidays and leave. It covers your obligations in employing or dismissing staff, and gives information on workplace health and safety.
INCORPORATED SOCIETY FILING REQUIREMENTS
Are you involved in running a society? Are they up to date with their filing requirements under the incorporated Societies act 1908?
It is important that society's file the following information, and not because it is required by the Act:
Implications for not providing information as required are:
To find more information on filing requirements, visit the "Information Library" at www.societies.med.govt.nz.
THE IMPORTANCE OF ACCOUNTING
As well as being necessary for the preparation of Income Tax Returns accounting plays a major role in tracking the performance of a business.
Many small business people fail to recognise the benefits of regular accounting information.
During the year there may not be the need to prepare complete financial statements, but regularly monitoring the following indicators will make the businss owner more aware of his financial situation and give him information which will enable him to plan, react and put into place actions to improve business health:
Plan your time day/week/month and get clear on your top priorities for each.- get clear on where you want to focus your energy and it can help you make decisions more quickly if an event arises that is not top priority
Use the 80/20 rule to your advantage- (the principle that says 80% of your success comes from 20% of your efforts)- as a business owner you need to figure out where your most profitable 20% is and spend the majority of your time in these activities.
Ask for help- by hiring assistance, you invariably are able to produce much more in much less time
Automate- as much as possible use technology to your advantage.
Simplicity- as you get busier its crucial to simplify your efforts to make your business easier to run.
Consolidate- try and merge several tasks into one instead of repetitive action
Leverage- obtain multiple uses out of materials you've already created. In creating new materials for your business, ask yourself "how can I use this again?"
Vision- by staying connected to the big picture/big vision for your business, you will be more inspired and find yourself accomplishing great things in less time.
Chunking- complete similar types of work at the same time e.g. making a running list of calls to return, writing, scheduling clients etc. and then setting aside a block of time dedicated to accomplishing these- you'll find that its more effective and better use of energy to accomplish similar tasks together
Analysis- keep track of what's working well in your business- what are customers complimenting you for? what are customers complaining about? what should you be doing more of? - analysing your business and its progression over time will often point out places where you can simplify, consolidate, or change in order to save more time and work more easily.
f we can assist further, please email McLean and Co as follows:
CONTACT McLEAN AND CO. BY EMAIL BY CLICKING ON THIS LINK
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