Ean Brown Partners Blog

What's YOUR lightbulb moment? Book a FREE Business Idea Consultation today

2019-08-28T09:00:00+10:00

Let's make your business brainwave come to life!

Due to the success of our August promotion we have decided to extend it:

That initial "lightbulb" moment of inspiration is a great feeling, but it's only the first step when starting a business, developing a product, or launching a service. It is the planning, consulting and hard yards you put in after that which will ultimately determine whether your business concept succeeds.

So it pays to get expert, professional advice during those initial planning stages - except with this offer you won't have to pay a thing!

Even better, this offer extends to all NEW business ventures - even if you are already an EBP client.

What can we do?

Director and Chartered Accountant Ean Brown can:

Act as a sounding board for your business idea
Provide guidance on business planning and structuring
Estimate start-up and running costs
Suggest effective pricing strategies to ensure you remain competitive
And much more!

Who are we?

We are Business Advisers and Chartered Accountants based in Whangarei and Dargaville.

Our accounting team has over 160 years of combined experience, with each team member specialising in particular fields.

Ean Brown himself has worked in the accounting industry for over 40 years. As a proud local himself he has served the people of Northland with passion and dedication.

Want to kick-start your next business opportunity?

DON'T DELAY, BOOK YOUR FREE APPOINTMENT TODAY!

0800 367 425

accounting@ebp.co.nz

www.ebp.co.nz

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Subsidies available for quad bike crush protection devices

2019-08-06T09:00:00+10:00

Quad bikes are ubiquitous on New Zealand farms, however their use as farming vehicles also contribute to around five work-related deaths and many more injuries each year, with the 1,000+ ACC claims costing the country $12 million dollars.

Unlike utes and tractors, quad bikes provide no safe space for the rider should it tip and roll on hilly or uneven terrain. Quad bike injuries are often the result of accidental rollovers where the rider is crushed or pinned underneath the bike.

Accident data indicates quad bike rollovers are not limited to inexperienced riders, and could happen almost anywhere on a property. Certain farming activities such as spraying or mustering stock may also increase the risk of rollovers.

Fitting crush protection devices (CPDs) to quad bikes aims to reduce serious harm or death by providing the rider with a survivable space in the event of a roll.

In 2014 WorkSafe said the use of CPDs on quad bikes was a matter of personal choice. However after considerable review of available research they revised their position in a June 2019 policy clarification, and now recommend permanently fitting CPDs to work-use quad bikes.

In light of the new recommendation and in an effort to reduce quad bike accident statistics, ACC have collaborated with WorkSafe to design a workplace injury prevention subsidy to help rural businesses buy CPDs for their quad bikes.

The subsidy will contribute $180 towards the purchase price of either a Quadbar or LifeGuard CPD, with a maximum of two CPDs per business, including those who are self-employed.

Eligibility criteria for the subsidy extends to self-employed and small- to medium-sized businesses working in the agricultural sub-sectors with the highest injury rates, which include beef, sheep and dairy farming, and hunting and trapping.

It is worth noting that fitting a CPD is not regarded as a replacement for initial and ongoing workplace training, using protective gear and adhering to safe practices. In addition, CPDs themselves could potentially be the cause of injuries during a rollover, however having assessed the evidence WorkSafe consider the overall benefits of CPDs outweigh the risks.

Safe use of quad bikes on the farm involves:

Choosing the right vehicle for the job - an alternative vehicle may be a suitable, and safer, option
Ensuring the rider has the appropriate knowledge, skills and training for the task and terrain
Using all necessary safety equipment, including wearing a helmet
Not allowing anyone under the age of 16 to ride adult-sized quad bikes

To find out more about the workplace injury prevention subsidy and how to apply, visit this ACC webpage.

Recent new rules for hazardous substances and wastes

2019-07-30T09:00:00+10:00

About 1 in 3 NZ businesses manufacture, use or handle hazardous substances. Recently new requirements came into force regarding the storage of those substances, as well as the handling, storing, and transporting of hazardous waste. The changes will affect around 150,000 businesses in New Zealand, such as factories, agricultural businesses, printers, collision repairers and food processing plants.

From 1 June 2019 hazardous substance locations, or HSL, are required to be established when some class 6 (toxic) and class 8 (corrosive) substances exceed the quantity thresholds set out in the legislation. These quantity thresholds are higher for farms which are 4 hectares or more.

Establishing an HSL involves:

Setting up specific locations for the safe storage of hazardous substances

The storage sites must be inspected and certified by a WorkSafe New Zealand-authorised compliance certifier

WorkSafe should be advised of HSLs using the online WorkSafe notification form.

To assist with the task of compliance, WorkSafe have a handy hazardous substances calculator which businesses can use to create an inventory of the hazardous substances they have on site. The online tool will also detail the applicable regulatory requirements which need to be met, based on the substances entered into their inventory.

Hazardous substances are a major contributor to the estimated 600-900 deaths and 30,000 cases of ill health in New Zealand each year as a result from work-related disease. The Health and Safety at Work Act, under which the new rules fall, aims to manage H&S risks and the potential for harm within the workplace. In other words, businesses run the risk of prosecution from regulators even if no serious incident or harm occurs - a history of non-compliance alone could lead to large fines and penalties.

To learn more about the changes and ensure your workplace is up to code, visit the WorkSafe website. They have many resources, guides and information on the safe handling and storing of hazardous substances.

Home office expense claims - the new square metre rate for the 2019 year

2019-07-22T09:00:00+10:00

In a previous blog post from 19 June 2018 we detailed the two options for calculating home office expense claims: the standard calculation method, and the new square metre rate method which became available from the 2018 income year onward.

The square metre rate is a simplified way of claiming tax deductions using a rate set by Inland Revenue each year. The rate is based on Statistics NZ data on the cost of utilities per square metre of housing.

Inland Revenue have set the square metre rate for the 2018-2019 income year at $41.70 p/m². The adjustment, up from the previous year's $41.10, reflects the annual movement of the Consumer Price Index for the twelve months to March 2019, which showed an increase of 1.5%.

Unlike the standard calculation method, the square metre rate method does not require calculating business-use percentages on every invoice, or keeping those invoices in order to make a claim.

To calculate using the square metre rate the equation is:

(a x b) + (c x d)

Where:

a = the total amount of mortgage interest, rates and rent you have paid during the year
b = the percentage of the total floor area of your home that you use for the business
c = the area (in square metres) of the part of your home that is used primarily for the business
d = the square metre rate published by Inland Revenue.

If you have any questions regarding the square metre rate method or home office expense claims, please contact us - we will be glad to assist.

We're hiring! Are you up to the challenge?

2019-06-27T09:00:00+10:00

Changes to how Inland Revenue sends your mail

2019-06-25T09:00:00+10:00

Inland Revenue have been busy implementing their Business Transformation Programme, a multi-stage project designed to modernise the tax system. By streamlining processes and upgrading online services, they aim to make it easier for New Zealanders to manage their tax obligations.

As part of the latest updates to myIR (Inland Revenue's secure online tax platform) they have made changes to how they manage mail to their customers.

What does this mean for me?

For mail directed to come to you rather than a tax agent:

If you have a myIR login: you will receive an email notification advising new mail is available to view in myIR
If you do not have a myIR login: you will receive paper copies of letters in the post.

If your mail is redirected to your tax agent and you have a myIR login:

You will not receive an email notification; and,
The letter will not show as an unread item in your myIR; and,
You will not receive a paper copy in the mail; however,
You are able to log in to your myIR to read the letter at any time.

If you have previously received paper copies of returns in the mail and you have a myIR login, it may be that these will now be made available to you in myIR.

How do I check who gets my mail?

You can check myIR to find out who Inland Revenue is directing your mail to:

Log in to your myIR
Click on an account (tax type) - eg Payroll, GST, Income tax
Click on the 'My details' tab
Check "Mail sent to:" under the 'Account registration details' heading.

Please note each account (tax type) could have a different mail setting. For instance your income tax mail may be sent to your tax agent, however your GST mail goes to you because you manage your own returns.

How can I find out more?

If you are not sure how you are affected by these changes or you need more information, please contact us. One of our friendly advisers can assist with finding out where your mail is being directed, and advise on how you can ensure IRD mail is received on time, every time.

Penalty increases proposed for NAIT non-compliance

2019-06-24T09:00:00+10:00

The National Animal Identification and Tracing (NAIT) scheme is a system which links people, property and livestock. It was developed to identify and trace livestock (cattle and deer) within New Zealand, in order to manage biosecurity incursions such as disease outbreaks, and improve food traceability and consumer confidence in our food products.

There are growing expectations from importing countries for better product source information. This means a robust traceability system is vital for retaining access to international export markets. The NAIT scheme facilitates tracking and isolating disease outbreaks so that trade may resume faster and with less economic disruption.

The Mycoplasma bovis outbreak from 2017-2018 highlighted shortcomings in the NAIT scheme. Although NAIT accounts are a legal obligation for PICAs (Person In Charge of Animals), non-compliance issues surrounding the scheme resulted in information gaps in livestock data. These gaps had to be filled by MPI (Ministry for Primary Industries) officials using other data sources, which delayed gaining control over the M. bovis outbreak.

In response to the lessons learnt from M. bovis, as well as the results of a NAIT Review from 2016-2018, the Government has proposed law changes to the National Animal Identification and Tracing Act 2012 and associated regulations, including incentives for complying with the NAIT scheme.

The proposed changes will:

align penalties with other Acts to reflect the seriousness of non-compliance
tighten rules for handling un-tagged animals
improve the use of data
make changes to the performance framework of NAIT Ltd, the organisation running NAIT

"When there is wilful non-compliance with the NAIT scheme, the entire sector is put at risk. This is unacceptable and I know MPI is focusing on holding those people to account," said Damien O'Connor, Minister of Agriculture, Biosecurity and Food Safety, who announced the proposed changes earlier this year.

The current penalty maximums for most prosecutable offences are $10,000 (or $1,000 per animal) for individuals, and $20,000 (or $2,000 per animal) for body corporates. However a discussion paper proposes penalties be aligned with those in the Biosecurity Act and Animal Products Act, with farms potentially facing a maximum penalty of $100,000, and corporates $200,000.

Explaining the decision to increase penalties 10-fold, MPI said the current maximums equated to punishment for 10 non-compliant animals, when the average dairy herd was around 400 animals. "For a large-scale farming business, this is a relatively small cost and does not act as a disincentive to offend," MPI said.

The following three NAIT account requirements link person(s), location(s) and animal(s), for identifying livestock and their movements from birth to death/ live export:

If you are a Person In Charge of NAIT Animals, you must register with NAIT as a PICA - even if you have only one animal
As a PICA you must also register all locations you manage where NAIT animals are kept
All cattle and deer must be tagged with a NAIT-approved RFID (Radio-Frequency Identification) tag, then registered in the NAIT online system within 7 days of being tagged (or before their first off-farm movement, whichever comes first). Animals must be tagged and registered within 6 months of birth, or before they are moved from the NAIT location (whichever occurs first).

When livestock is moved from one NAIT location to another in a sale transaction, either the seller or purchaser must record the movement in their NAIT account. The movement must then be confirmed by the sender/receiver within 48 hours following the day of the movement.

For more information on NAIT visit ospri.co.nz. NAIT Limited is a subsidiary of OSPRI New Zealand Limited.

Changes to ACC CoverPlus levy invoicing for self-employed customers

2019-05-30T09:00:00+10:00

If you are self-employed you'll automatically be on ACC CoverPlus.

Until recently, ACC estimated your CoverPlus levy based on your previous year's earnings and issued invoices on this basis.

Following an ACC levy consultation last year, it was decided that from the 2020 year your levies will be based on actual earnings for that year, as filed with Inland Revenue. This change makes the CoverPlus levy simpler, both for you and ACC.

What this means is that most self-employed customers will not receive an invoice during 2019. The next invoice they can expect to receive will be mid-2020, which will be based on the actual earnings for the 2019/2020 year.

If you are on CoverPlus Extra

The levy for CoverPlus Extra is based on an agreed level of cover, therefore it will not be affected by the change. If you have opted for CoverPlus Extra, you will continue paying levies in advance and will be invoiced as usual this year.

Joining or leaving CoverPlus Extra part-way through a year means you will pay a CoverPlus levy for the remaining part of the year. ACC will calculate this for you.

If you have ceased trading

You will probably already have paid a CoverPlus levy based on your 2018 earnings. You will need to contact ACC (or your tax agent, who will liaise with ACC on your behalf) to advise your actual earnings for the 2019 financial year so they can re-assess your levy.

If you stop trading in the year ahead, you can either:

Contact ACC with your final earnings so they can issue you with an invoice, or
Wait for ACC to issue your invoice once Inland Revenue has confirmed your final earnings

If you are an employer

ACC levy invoices will be sent out to employers from 9 July. Get ready now by logging in to MyACC for Business, where you can:

Update your details
See how much you owe
Download current and past invoices
Set up payment plans
View payment history
View reports about work-related employee claims

Please contact one of our friendly advisers if you have any queries regarding your ACC levies.

2019 herd scheme values have been released by Inland Revenue

2019-05-27T09:00:00+10:00

In May each year, Inland Revenue release their determination of national average market values (NAMVs) of livestock for the prior financial year.

The NAMVs are used by taxpayers who have elected to value livestock using the herd scheme to value their livestock on hand for that income year.

As the name suggests, the values are based on national averages, and as such they may not always reflect the market value of the livestock of a particular taxpayer, or a particular region.

In order to ascertain the national averages, the Commissioner of Inland Revenue (CIR) enlists the services of a number of experienced livestock valuers throughout New Zealand, with each valuer being tasked to value the various livestock classes within their respective region. There is generally more than one valuer contracted for each region, and the requirement is for the valuations to be based on "good quality on-farm animals" as at 30 April. These regional market values are then used to calculate the national average market value.

In the case of sheep, beef, dairy cattle and deer classes, a weighted average based on total livestock numbers for a type of livestock in the region, compared to the national herd numbers for that livestock, is used. These numbers are based on Statistics NZ-collected data.

Because of the relatively low numbers of livestock in the remaining livestock types, a straight average is used to calculate the values of those livestock.

The NAMVs for the 2018/2019 income year were released by Inland Revenue on 22 May 2019.

Click here to see these values, as well as the 2017/2018 year values for comparative purposes.

Tax refunds paid in error - check with us before you spend them

2019-04-29T09:00:00+10:00

Be aware of "accidental" tax refunds which may have been issued over the Easter and ANZAC public holiday period.

There have been reported instances of people receiving unexpected refunds from Inland Revenue, with a high chance these were paid in error and needing to be paid back.

Some have put the issue down to Inland Revenue's recent week-long planned shutdown, during which time they closed their call centres, offices and online services in order to implement major changes to the tax system.

It was assumed the problem lay with provisional tax payments made throughout the year showing as credit balances, and in turn being refunded back to customers. Provisional tax is a way of pre-paying an income tax bill ahead of the financial year-end, so as to distribute the burden of large tax payments over the year.

However a spokesperson for Inland Revenue said they are aware of the problem but it was not a system-related fault. "It is a matter of how a few people have used the new system rather than a problem with the system itself".

The most prudent advice to follow if you find yourself in receipt of unexpected money from Inland Revenue is to not spend it until you have contacted your accountant or bookkeeper to confirm the reason for the refund. There may be a chance you will need to repay the money to IRD, so refrain from spending any until you are certain it was not paid to you in error.

If you are concerned you may have received a refund in error, please contact one of our friendly advisers - we will be able to liaise with Inland Revenue on your behalf to confirm the details of any monies paid to you.

UPDATE! Post-dating IRD cheques? Why you should make the switch to electronic payments

2019-04-26T09:00:00+10:00

We posted a blog article on 26 October 2018, regarding Inland Revenue's announcement they would no longer be accepting post-dated cheques from 1 February this year.

Following feedback Inland Revenue received in response to this decision, they have now put this change on hold while they review all non-electronic payment methods, to ensure these are still relevant and necessary.

However, given the ever-increasing shift towards electronic payment methods, and on-going improvements to online banking security, ease-of-use and accessibility, it is nonetheless prudent to consider moving away from paying your taxes by cash and/or cheque.

Current payment options which Inland Revenue accept include:

Electronic methods, including internet banking. This minimises delays and includes a formal notification of the date and time a payment was made to Inland Revenue
myIR customers are able to set up Direct Debits for GST, FBT, Income Tax, Working for Families, and Donation Tax Credits
Debit/credit card payments can be made over the phone, through the payment page on the IR website, or through myIR
The "my tax payment" option on all NZ banks' websites allows post-dating of electronic payments
Cash and eftpos payments can be made at Westpac branches and, provided you have a payment slip with a bar code, via Westpac Smart ATMs
Cheques can be posted to Inland Revenue's Lower Hutt postal address, or delivered to Inland Revenue offices during reception opening hours

Tax agents who are registered for myIR are also able to set up instalment arrangements and one-off payments by direct debit on behalf of their clients, provided the client is also registered for myIR, and they have granted authorisation to the agent to set up payments on their behalf.

For any questions relating to tax liabilities, tax arrears or tax payments, contact one of our friendly advisers - we will be happy to assist.

Open Day - FREE accounting, tax and business advice consultations

2019-04-18T09:00:00+10:00

Getting professional business advice to ensure maximum profits is a no-brainer. But finding the right adviser takes time and money. Something often lacking in the busy day-to-day of running a business.

Let us take the stress and cost out of accessing expert guidance. We are open Friday 26 April, with Director Ean Brown offering 100% FREE accounting, taxation and business advice consultations. Got a new business idea you're trying to launch? Want to know how to improve your bottom line? Need an accountant and don't know where to start? Why not get in touch with us to book a no-obligation appointment and see what we can do for you.

Who are we?

We're a friendly team of Chartered Accountants based in Whangarei and Dargaville. Our accounting team has over 160 years of combined experience, each with areas of specialist knowledge. Ean Brown himself has worked in the accounting industry for over 40 years. During this time he has been proud to serve the Northland region with passion and dedication.

How can we help you?

Ean and the team can assist with:

Business structuring and planning,
Profit optimising,
Tax minimising,
Finance applications,
Cashflow management,
Farm management,
Employment, HR and payroll services,
And so much more!

Explore our website to find out more about us: our homepage

DON'T DELAY, BOOK YOUR FREE APPOINTMENT TODAY!

0800 367 425

accounting@ebp.co.nz

www.ebp.co.nz/contact_us/

request_appointment

The Provincial Growth Fund - what is it, and how to apply

2019-03-28T09:00:00+11:00

The Provincial Growth Fund (PGF) was set up by the Government to assist in growing business opportunities in the regions. The objectives of the PGF is to create jobs that lead to sustainable economic growth and diversification within our economy.

Applications for funding are available to individuals, non-government organisations, companies, iwi and charities, except those situated in Auckland, Wellington and Christchurch.

Also exempt from the funding are housing, water and large-scale irrigation projects and social infrastructure.

Every application will be assessed against certain criteria, which includes:

improving the productivity within a region
creating additional value
having a link to regional priorities
being well managed and well governed, with appropriate trade-offs between risk and reward.

If you are unsure whether a project will be eligible for funding you are able to submit an Expression of Interest. The PGF team will then provide feedback on your proposal.

There are three investment tiers:

Regional – Support for economic development projects, feasibility studies and capability building identified within regions. Applications under the regional tier will be assessed under the overall portfolio of the Government's support for a region.
Infrastructure – Support for regional infrastructure projects that enable the region to be well-connected from an economic and social perspective, including: roading, rail, digital technologies, and communications.
Sectors – Support for initiatives targeted at priority or high-value sector opportunities. This includes the One Billion Trees Programme. The PGF will consider projects that increase local skills, reduce environmental impacts, and improve the productivity of the sector and have export potential.

Funding options available will depend on whether the project is commercial or non-commercial, and the likely outcome of the project.

Grants will generally be made for non-commercial projects and possibly feasibility studies.
Loans are the preferred method of funding commercial projects, though additional caveats may be required for transport projects.

Additional help may be available by way of the PGF underwriting a project, helping match the project with potential investors, or by taking a part ownership in a project where further debt is not supported.

Additional funding options to help grow our regions is available under the following banners:

He Poutama Rangatahi

He Poutama Rangatahi focuses on getting young people, aged between 15-24 who are most at risk of long term unemployment, connected with employers and into long term employment. Applications for funding under this banner must fit in with areas noted under the PGF targets and be for no more than $1 million per annum.

Whenau Maori

Whenau Maori focuses on supporting Maori landowners to develop their land. Applications must fit in with the overall PGF criteria and are up to $10 million.

Te Ara Mahi

Te Ara Mahi focuses on getting local people into local jobs. Applications must meet the overall PGF criteria. It includes up-skilling people, and offering tailored support to help individuals become work-ready and able to gain and sustain employment.

Further information on the above funding options is available at www.growregions.govt.nz/get-funding/.

Top Ten Tax Tips - get sorted before 31 March!

2019-03-25T09:00:00+11:00

With not long to go until financial year-end, we recommend giving some thought to the following suggestions so you can start the new tax year prepared and organised:

Top ten tax tips

Fill your drawers:

Can you stock up on stationery, postage and courier bags before 31 March? Claim now and save.
Staff expenses:

If you owe employees holiday pay, bonuses, long service leave or redundancy payments, you can claim for these now - as long as they are paid within 63 days of the balance date.
Can you fix it?

If you've got any significant maintenance or repairs on the cards, do it before year-end and save on tax.
Turn fun into savings:

Do you know which entertainment expenses you can claim 100% of? It's worth finding out - ask us if you need clarification.
Look at your fixed assets:

Do you have any you're no longer using or don't plan to use in the future? If so, you may be able to write off the book value.
While you're at it, check your stock:

Look at your stock as well, especially obsolete stock. There may be an opportunity to write off some of this as well - check with us on what could be done in this area.
Income boost:

Earned a lot more this year? Consider making a voluntary provisional tax payment.
Logging car use?

Remember to make a note of your odometer reading at year-end, and if you've kept a logbook of business & personal use, mileage and costs, good work!
Home office:

It's also a good time to review what home office expenses may be available for deduction, especially your home office. We can help with calculating this.
Saving time saves money!

Accountants are required to ask for information to comply with AML-CFT obligations, plus Inland Revenue may ask you, via your accountant, for extra information in relation to your end-of-year tax. Having your identification and tax documents collated and correct saves your accountant time, which saves you money.

Writing off bad debt?

If you're expecting a tax break from writing off bad debt, you may also expect to hear from IRD asking you to prove the debt is, in fact, bad.

A new ruling means Inland Revenue could request evidence of any steps you have taken to recover the debt (before writing it off), and proof there is no reasonable likelihood the debt will be paid.

Keeping it simple - IRD streamline tax obligations for individuals

2019-03-19T09:00:00+11:00

Inland Revenue's ongoing and far-reaching tax system overhaul includes streamlining efforts aimed at individuals. The changes will simplify and largely automate end-of-year tax obligations for PTS (Personal Tax Summary) and IR3 filers.

End-of-year tax assessments

Individuals will no longer be "filing" their taxable earnings information; rather, they will be checking the pre-populated account Inland Revenue hold for them to ensure it is accurate and complete.

For PTS earners who only earn "reportable income" (ie income from sources IRD receives information from directly, eg employers and financial institutions), this means a tax assessment arises at the earlier of either:

The individual confirming with Inland Revenue the pre-populated account is complete; or
The Commissioner of Inland Revenue notifying the individual she is satisfied the account is complete.

Refunds are then automatically paid out, preferably by Direct Credit (as a faster and more secure method for issuing tax credits).

For many individuals, the new process would greatly minimise the amount of interaction required with Inland Revenue.

Individuals who also have other income or deductions which are not reportable income should submit this information to Inland Revenue. Their pre-populated account would then be updated to become an "adjusted account". This includes individuals who hold investment portfolios and/or overseas investments.

Anyone who has very little reportable income must supply all their earnings information, much like the current IR3 process.

Claiming donations tax credits

Tax payers who exclusively have reportable income may only need to update their pre-populated account if they have made donations which are eligible for tax credits.

Accordingly the process for claiming donations tax credits will also be simplified, by adding new options for submitting claims:

Upload donation receipts throughout the year to myIR. By doing this, the year-end refund can be issued without the need to submit a tax credit form
Complete the donations section at the same time as submitting other tax information when updating the pre-populated account
Complete a separate online return via myIR (if all other income information has already been provided)

Individuals can also continue submitting a paper form, which is the current process.

The additional options will come into effect on 1 April 2019, for the 2018/19 financial year.

Other Inland Revenue changes coming on 1 April 2019

Additional KiwiSaver employee contribution rates will become available
Payday filing becomes mandatory

Read our blog post from 20 February 2019 for more details on these.

Inland Revenue key services unavailable

To implement the upcoming changes in Inland Revenue's systems, their key services will be unavailable between 3pm on Thursday 18 April until 8am, Friday 26 April 2019.

During this time Inland Revenue's myIR secure online service will not be available, and their contact centers and offices will be closed.

WDC adopts Easter Sunday shop trading policy

2019-02-25T09:00:00+11:00

Further to our prior blog posts from 21 February 2017 and 24 March 2017, it is now confirmed Whangarei District Council adopted the Easter Sunday shop trading policy on Thursday 21 February 2019 with immediate effect.

The policy gives local business owners the choice to open their doors and trade on Easter Sunday if they wish.

The policy also protects the rights of employees by giving them the right to refuse to work that day, should their workplace decide to open.

Following a consultation period opened in October 2018, the council received 29 submissions on the matter; 20 in favour, nine opposed.

Those in favour cited economic benefits, customer expectations of retail trading hours, tourism industry benefits, and consistency with other parts of the country which allowed Easter Sunday trading. In Northland this includes Far North District Council and Kaipara District Council - both have previously adopted the policy in their respective regions.

Those opposed considered the impact on the Christian faith, the reduction of rest days for employees, and whether in practice workers would genuinely be able to choose not to work on Easter Sunday.

Northland Chamber of Commerce chief executive Steve Smith said the policy meant freedom and flexibility for Whangarei businesses to decide their own trading hours.

Employment changes coming in 2019 - a broad overview

2019-02-20T09:00:00+11:00

There were a few bills passed by the Government in 2018 relating to employment legislation, as well as Inland Revenue changes regarding the filing of employment information.

Here is a broad overview of what will be coming into effect (and when) this year:

11 March 2019

ir-File

Inland Revenue's ir-File service in myIR will be discontinued. Monthly EMS and employer deductions schedules should be filed in the myIR 'payroll returns' account in the Business tab. The 'payroll returns' account will automatically become available in myIR from 28 February 2019 for bringing into your workspace.

1 April 2019

KiwiSaver

6% and 10% employee contribution rates will become available. The current options are limited to 3%, 4% and 8%.
People aged over 65 will be able to join KiwiSaver. Employers may make voluntary contributions for over-65s, but are not obligated to do so.

Minimum wage rates

The adult minimum wage rate will increase to $17.70 per hour.
The starting-out and training rate will go up to $14.16 p/h (being 80% of the adult rate).

Payday filing

Mandatory payday filing will come into effect. Read our blog post from 11 September 2018 for more information about payday filing.

6 May 2019

Restored rights to rest and meal breaks

Enforced breaks throughout a shift safeguard employee safety and productivity. The number and duration of breaks depend on the hours worked: an eight-hour day must include two 10-minute rest breaks and a 30-minute meal break; a four-hour day must include one 10-minute rest break. Employers must pay for rest breaks, but don't have to pay for meal breaks.

90-day trial periods restricted

Only businesses who employ less than 20 employees may use 90-day trial periods for new employees. Businesses who employ more than 20 employees can keep using probationary periods, which lay out fair processes for assessing employee performance.

Livestock NSCs for 2018/2019 have been released by Inland Revenue

2019-02-01T09:00:00+11:00

In January each year, Inland Revenue release their determination of national standard costs (NSCs) of livestock for the financial year. The NSCs are used by taxpayers who have elected to value livestock using the national standard cost scheme, to value their livestock on hand for that income year.

The NSCs for the 2018/2019 year were released on 24 January 2019. Click here to see these values, as well as the 2017/2018 year values for comparative purposes.

5 simple things you can do every day to build your business's brand equity

2018-12-20T09:00:00+11:00

Blog Series part 4

Let's face it, business branding and marketing is hard work. It takes a lot of time, dedication, effort and money. When someone is busy working in and on the business, this tends to be the first thing to move down (or fall off) the priority list.

But the good news is, earning yourself brand equity (you'll remember from this earlier blog post that brand equity is the customer loyalty and trust your business builds up over time) can be achieved by doing the following five simple things frequently and consistently:

1. Smile!

Yes, it sounds so simple – too simple even. But how often have you approached a customer service desk and the person behind it has regarded you indifferently? Before any words are even exchanged you are already made to feel you are an inconvenience. This means the next person in that business you interact with will need to work twice as hard to impress you, to negate that initial negative contact.

And no, we don't mean a fake, forced straightening of the lips. We are referring to a broad, genuine smile that radiates warmth and sincerity. It takes literally one second of your time and requires half a dozen facial muscles, but for your client the interaction will have a far greater and longer-lasting impact.

2. Forgive others for not smiling

Conversely, do not begrudge a client or customer who does not respond positively to you. You don't know what kind of day someone is having, so switching off your friendliness at the first sign of resistance is not helping anyone. Continue being warm and helpful throughout that, and every subsequent, interaction. Perhaps that will be the one bright moment in an otherwise dull day for that person, and if they continue to come back time and time again, that may in fact be the exact reason why they do.

Grumpy clients can of course be difficult and taxing on anyone's mental energy, but having empathy for their viewpoint will help you to remain calm and find a solution that works for both parties. Imagine the feeling of relief someone may experience after they initially walked in angry and confrontational, but subsequently left feeling happy because their issue was compassionately acknowledged and resolved.

3. Go the extra mile

We all like to do our jobs well, and clients expect that from us as a matter of course. However really happy clients are made when we go above and beyond the expected.

It can takes all forms, but ultimately just involves being intuitive and forward-thinking on how you can put a cherry on top of your customer service - offering assistance to an elderly person or a mother with a crying baby, or helping someone on crutches having trouble carrying bags. As thinking, feeling beings we are able to identify another's needs and find ways to lessen their burden. The smallest gesture on your part could mean a whole lot to someone else, and these are the moments that are remembered.

4. Follow through / follow up

Words are cheap; actions are where the real proof in the pudding lies. Always follow through on your promises and don't make any you can't (or won't) keep, no matter how good they sound in the moment. If you fail to deliver on your promises, any trust or goodwill you tried to establish will vanish before it ever gained traction. As the adage goes "under promise, over deliver", never the other way around.

In that same line of customer-centric thinking, it says a lot about businesses who make the effort to follow up with customers post-purchase. It shows they care about more than just money in the bank – they want to ensure the customer is happy and satisfied with their purchase. Post-purchase follow-ups help to build customer rapports to promote loyalty and trust, and encourage repeat business.

5. Show gratitude

Never take for granted that your clients have the power of choice. They chose to come to you, but they could just as easily have gone across the road to your competition. Always show your appreciation of that choice by simply saying "thanks for your business" each and every time. It's sobering to be reminded you wouldn't be in business if it wasn't for them!

In closing ...

Building your business's brand awareness is an ongoing process – it means doing the hard things well, and the small things often. But it is rewarding, and you'll know you are succeeding when customers, new and repeat, keep on coming with very little advertising on your part, and will happily sing your praises at every opportunity.

We hope you enjoyed this instalment of "The Key to Success" blog series. Topics we will be addressing in future posts include:

Product pricing
Invoicing and debtor control
Stock purchases and control
IT, business software and productivity apps
Managing cashflow and financing matters
Staff recruitment, contractors, employment law and payroll
Communication skills and time management
Financial understanding and taxation

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BREAKING NEWS! Minimum wage set to increase 1 April 2019

2018-12-19T09:00:00+11:00

The Government announced it will raise the minimum wage by $1.20 from 1 April 2019. It will be the largest increase since 1985.

This will increase the adult minimum rate from the current $16.50 to $17.70.

The starting-out and training rate will remain at 80% of the adult rate, rising to $14.16 from the current $13.20.

Workplace Relations and Safety Minister Iain Lees-Galloway said "the Government is determined to improve the wellbeing and living standards of all New Zealanders as we build a productive, sustainable and inclusive economy".

Mr Lees-Galloway said this upcoming minimum wage increase, which follows the April 2018 increase, is part of the Coalition Government's goal of having the minimum wage reach $20 per hour by 2021. "With the labour market tight and unemployment at the lowest since 2008 at 3.9%, now is the right time to lift the wages of our lowest paid New Zealanders," he said.

Approximately 209,000 workers will benefit from the increase, meaning an extra $48 (pre-tax) per week for those working full time. Around 36,000 people earning minimum wage are supporting children.

Future proposed increases, subject to annual reviews of economic conditions, are $18.90 by 1 April 2020, and $20 by 1 April 2021.

Information credits:

Newshub, 19 Dec 2018
www.newshub.co.nz

Season's greetings (and announcing the winner of our Christmas prize draw)

2018-12-17T09:00:00+11:00

Ho ho ho, and a merry Christmas to all! We would like to take this opportunity to wish all our clients, supporters and followers a very happy and safe festive season filled with family, friends, fun and (of course) food, and a prosperous 2019.

A quick reminder that our offices in Whangarei and Dargaville will be closing at 3pm and 12pm respectively on Friday, 21 December 2018. We re-open again at 8.30am on Monday, 14 January 2019.

If you think you might need to contact us before the end of 2018 we recommend getting in touch with us now, as we only have a few more days left at the office. For urgent matters during our annual close-down period contact Ean Brown on 0274 723 875.

As promised in a previous blog post, we celebrated the season of giving by doing a little giving of our own - we drew the lucky winner of our client-wide Christmas prize draw at the end of last week.

All our clients* were automatically entered into the draw to win a gorgeous Christmas gift hamper, as our way of saying THANKS for your business over the past year - we really do appreciate it.

The winner, a local deer farmer who has been a client of our firm for many years, was contacted personally by their EBP Client Manager to announce the good news.

The gift basket is currently winging its way to them.

Congratulations, and enjoy!

What could be better to have on hand this time of year with hungry visitors dropping by, than this delightful basket filled with hand-curated delectable goodies to tantalise the taste buds and keep everyone's festive spirits high.

* Current Ean Brown Partners Ltd clients as at the date of the prize draw

Our December "hot desking" date at The Orchard

2018-12-11T09:00:00+11:00

Yes, we probably don't need to remind you that 2018 is almost over so for all those last minute tax questions, we can have Chartered Accountants available onsite at The Orchard on Friday afternoon, 14 December 2018, to help sort you out before the holiday break.

Appointments are now required, but the price tag remains unchanged ...

~~No appointments needed~~

Please CONTACT US to make an appointment

100% FREE, no obligation advice

Add this event to your Google calendar:

Can't make it on Friday? No problem! You can also email Sally or email Flynn

Sally Adams

Chartered Accountant

Flynn O'Meara

Chartered Accountant

Public holiday scenarios - do you know how to treat them correctly for wages?

2018-12-04T09:00:00+11:00

Yes, another year is coming to close and you know what that means ... Christmas and New Year public holidays!

Fortunately there is no Mondayisation to contend with over the 2018/2019 festive season as the public holidays all fall on weekdays - good news for payroll managers!

Whilst preparing your pay runs over the coming weeks you may have to deal with some of the following public holiday scenarios. Read on to learn how to treat these correctly in your payroll system:

Length of service

Scenario: Jane starts her first day at a popular cafe during their busy season on Monday, 24 December. Is Jane entitled to Christmas Day and Boxing Day public holidays as paid leave on the 25th and 26th December?

Yes. Although Jane has only worked one day for the business she is entitled to any public holidays which fall after her start date.

There is no minimum length of service before an employee becomes entitled to public holiday benefits.

Type of employment agreement

Scenario: Derek is a casual worker at a tourist hot-spot over the summer and has been asked to work for the two weeks over the Christmas/ New year period to cover a staff member on ACC. Will he be entitled to anything for the public holidays he works?

Yes, Derek would receive time-and-a-half for the hours he works on the four public holidays, although he would not receive four days in lieu (alternative holidays) because he would not normally have worked those days.

It doesn't matter what type of employment agreement a worker is under - full-time, part-time, fixed-term or casual - all employees are entitled to public holiday benefits.

Requirement to work on public holidays

Scenario: Corinne works as a receptionist at a real estate firm on Tuesdays, Wednesdays and Thursdays. The business previously closed down for two weeks over the holiday break, but this year have decided to trial remaining open for business. The 2018/2019 public holidays would otherwise be working days for Corinne, however her employment agreement does not state she has to work public holidays. Is Corinne required to work on the Tuesdays and Wednesdays?

No, Corinne can refuse to work those days and be paid for the public holidays instead, as her contract does not stipulate she is required to work on statutory holidays.

An employee can only be made to work a public holiday if:

that day would be an "otherwise working day", and;
their employment agreement says they have to work on public holidays.

Annual close-downs

Scenario: Michael started work mid-December at a law firm. The firm closes down over the holiday break for three weeks. Michael is employed full time, Monday to Friday. Will he receive any wages over the close-down period?

Yes, Michael would be entitled to be paid for the four public holidays, but as he started mid-December he will not have any annual leave owing.

If a public holiday falls during a company's close-down period, then all employees are entitled to a paid public holiday (if they would normally have worked that day had the close-down not been in effect).

Public holidays coinciding with other leave

Scenario: Caleb works five days a week and has submitted a leave request for three weeks off, from 10 December to 28 December. His employer approved the request. How many days of annual leave should be paid to him over the three weeks?

When Caleb's pays are processed he should have a total of 13 days of annual leave paid out, along with two days of public holidays to cover Christmas and Boxing Day.

Public holidays take precedence over annual leave days when these fall on the same day.

Unable to work on a public holiday

Scenario: Holly works full-time in retail. As the duty manager she is often required to work public holidays, however on the eve of Boxing Day she finds out her grandfather passed away. Holly takes Boxing Day and 27 December off due to the bereavement. How should these days be paid in her wages?

She will receive one paid public holiday and one day of paid bereavement leave, both at her relevant daily pay. Of the three days bereavement Holly would be entitled to, only one day is recorded as taken for her grandfather's passing.

In the event an employee had intentions of working a public holiday however due to sickness or bereavement was unable to, it is treated as a paid, unworked public holiday. The employee would therefore:

be paid their relevant or average daily pay, but would not be paid time and a half or receive an alternative holiday, and;
no sick or bereavement leave should be deducted.

Parental leave

Scenario: Linda's baby is due on 20 December. She took maternity leave from her administration job a few weeks ahead of the due date on 3 December. Is Linda entitled to any payment from her employer for the public holidays?

No, Linda would not receive any public holiday pay from her employer.

For employees on parental leave when a public holiday falls, the employer does not have to pay the employee for the public holiday as the employee would not normally have worked that day.

If the employee is receiving a parental leave payment during such a time, the payment amount or the number of weeks they get a payment for is not affected by the public holiday.

There are a few key terms in the employment law realm which have scope to cause a great deal of confusion, such as "relevant daily pay", "average daily pay" and "otherwise working day". In cases where staff work regular set days and hours, or are on salary, these terms are usually clear-cut and easy to work out. However when employees work irregular hours and have changeable shifts, the lines can become blurred. For this reason the Ministry of Business, Innovation and Employment (MBIE) have developed a "Relevant and Average daily pay calculator" and an "Otherwise working day calculator" - click on the links to visit the MBIE website to use these handy tools.

And lastly, don't forget to keep accurate and comprehensive time, wage and leave records on all your employees. Being caught out not having complete employment records on file, either in electronic or hard-copy form, may result in hefty penalties which could dampen even the most jovial of holiday spirits!

Have we left any holiday season payroll conundrums off this list which have you scratching your head? Contact Vicki Cozens, our employment, payroll and HR specialist, for expert advice.

What is local SEO, and why you should have it

2018-11-30T09:00:00+11:00

Blog Series part 3

Search Engine Optimisation - you may have heard of it; you may also understand the importance of it. But are you aware of Local SEO, and how it differs from standard SEO?

Standard SEO vs Local SEO

Search engine algorithms are constantly being refined and nowadays they are incredibly intuitive. In Google's quest to provide optimal experiences for its users, it aims to serve up only the best and most relevant results for search queries.

For instance a search query like "what does an accountant do" will display a very different SERP (Search Engine Results Page) from the search query "accountant whangarei", because Google understands the second query has more immediate purchase intent behind it. The searcher is actively looking for a service or product nearby.

Check out the two SERP differences below:

The information SERP shows:

an answer box
"People also ask" box (to help refine a search query)
a website link to a business school
video suggestions

The local SERP provides:

paid links to local websites
blended "local pack" results, which mixes Google Maps data with relevant local listings

While anyone in the world with good SEO knowledge and an authorative website could potentially rank for a general search query, only businesses who have local SEO in place would appear in local searches.

Why is local SEO important?

As you can imagine, small businesses are working hard to get customers though the door on a limited advertising budget. With local SEO in place it means their NAPW information (Name, Address, Phone number, Website) is being served up to engaged shoppers who are looking for the services or products they offer. These searchers are in active purchase mode and they are in close proximity - what could be better than that?

In fact, there is something better than that: you can set up basic local SEO yourself easily and, even better, for free. And yes, SEO in general is highly complex and involved, which is why there are agencies and consultants who specialise in this area. However you can reserve yourself a "seat at the local SEO table" by actioning the following steps:

Google My Business

Given the immense popularity of Google's search engine (when did you last hear someone say "I'll just Bing it"?), it makes sense that the first step is claiming your Google My Business (GMB) listing.

A GMB listing feeds information to a range of places, including "local pack" and Google Maps search results. But the place you'll be most familiar with seeing it is on the right-hand-side of a SERP when searching for a business by name - see EBP's GMB information panel below.

How to claim your GMB listing

Visit Google My Business and click "Start now". You can also go to Google My Business Help, which steps you through the process for adding or claiming your listing. It provides instructions for both PC and mobile users, as well as a link at the bottom of the page to a Google My Business Go-To Guide which provides additional information.

Claiming your listing includes a verification process so Google can confirm you are the legitimate owner of the business. This step is to prevent others, such as competitors, from claiming your listing and potentially damaging your business's visibility or credibility in local search.

Once you're the owner of your business profile you will be able to:

correct false or obsolete information (eg if the industry category is wrong, or an old phone number is listed)
add missing information (eg standard hours of business, days you are closed eg public holidays, a business description, etc)
add extra locations, if you have multiple branches or stores
Add photos of your team, the interior and exterior of your business, videos, etc
You can even add a Google website! Check out ours here

From within the GMB dashboard you can also set user permissions, post content and special offers, create Google ads, and manage reviews.

There is also the handy 'Insights' section which provides stats on how customers search for your business, the search queries they use, if they are viewing your listing on Search or Maps, and the types of actions they are taking on your listing.

Having a free GMB listing to help your business rank in local search just makes good sense. Google wants businesses to claim their listings and keep them up-to-date, as it helps Google to serve up accurate information to its users. So this is a win-win-win for Google, your business, and the users.

Online directories

GMB is an example of a structured citation - that is, a place where your business's NAPW details appears online. Other examples of structured citation sites are business listing websites and online directories.

Your presence on reputable directories which perform well in search results is another easy way to help boost your local search rankings and build your brand's trustworthiness.

There are many citation websites out there so it pays to do some research (including industry-specific and location-specific) to find which ones are worthwhile listing your business on. You could perform a Google search on your local competitors to see which directories they appear on, as you will want be visible on those too.

Some directories you may be familiar with are YellowPages (paid directory), Chamber of Commerce (membership required), TripAdvisor, Finda and Neighbourly.

First check to see if your business is already listed (some directories pull information from other sites) and then claim it, or else create a new listing.

Keep it comprehensive and current

When it comes to listing your business online, make use of as many relevant fields the platform has to offer. The more information you make available to potential customers, the more likely they will want to interact with your brand. In GMB it's worth mentioning that some of the features visible on your SERP information panel, such as Attributes, Q&As, and Google reviews, are almost entirely generated by consumers, and are therefore not fields you can complete in the GMB dashboard.

And finally, like your website, listings should never be a set-and-forget exercise. Stagnant online information does not instill confidence in your audience, and without regular reviews it may result in obsolete details being pushed out to your potential customers.

We hope you enjoyed this instalment of "The Key to Success" blog series. Topics we will be addressing in future posts include:

Product pricing
Invoicing and debtor control
Stock purchases and control
IT, business software and productivity apps
Managing cashflow and financing matters
Staff recruitment, contractors, employment law and payroll
Communication skills and time management
Financial understanding and taxation

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Let us know your thoughts on this article - we appreciate your feedback.

What is a brand, and how to build one

2018-11-28T09:00:00+11:00

Blog Series part 2

Your brand is essentially your business's personality and the psychological responses that personality stirs within your customers. It's the personality you craft and the reputation you earn.

When a customer hears your business name, sees your logo, experiences your products, and hears your company's voice in its communications, these things will conjure a perception in your customer's mind of what your business is all about.

For instance, what comes to mind when you think of some of the world's biggest brands, such as Apple, Coca Cola or Nike? Their logo? A slogan or tagline? A memorable advertisement? The product itself? Whatever it is, it will also evoke an emotional response in you which forms your feelings on that brand.

Although you cannot directly control the feelings customers will associate with your brand, you can adopt strategies for building positive brand awareness which will resonate with your target market.

"Products are made in the factory but brands are created in the mind"
- Walter Landor, designer and branding pioneer

Know your audience

Essentially the first, and arguably the most important, step in branding is identifying your target audience.

A corporation such as Nike is so globally recognisable that they are able to target almost every person on the planet with their tagline "if you have a body, you are an athlete", however as a small business trying to build a brand from the ground up you need to focus on a specific niche market.

The benefit of narrowing your targeting scope is being able to concentrate your efforts on reaching just that particular audience. You may be targeting stay-at-home mums, time-poor young professionals, or well-off retirees. Whoever they are, once you know who you are trying to sell to, you can work out how to reach them.

Know your competition

Identify your main industry competitors and examine their brand identity. The reason behind this is not to imitate, but rather to differentiate. Once you dissect and understand their branding strategy you can use this information - the things they do well and not so well - to create your own unique position. If you choose to target a different niche market from them they effectively cease to be a direct competitor; if you do target the same audience then your goal is to figure out what you offer that they don't - your point of difference. Strive to make your brand stand out so customers purchase from you instead of the opposition.

"A brand for a company is like a reputation for a person.
You earn reputation by trying to do hard things well"
- Jeff Bezos, founder of Amazon

Define your personality

Armed with the knowledge of who your ideal customers are you can start developing a business personality that will appeal to them. Much like the personality of a person, a brand's attributes include a name, a defining look or style, a voice in which it communicates, as well as core values and principles.

At the heart of building a brand your customers can trust is defining what your business is most passionate about, and the driving force for doing what it does.

Understanding your business's ethics and philosophies will then help guide and direct everything from your name, logo and tagline, to your voice, message, and marketing strategy.

For instance, if you value eco-friendliness then your product packaging should be recyclable. If you are passionate about nurturing close client relationships you might adopt personalisation, a conversational marketing voice, and engagement via social media.

Your brand's attributes should all reflect and support your philosophy in a clear and consistent way.

Constant consistency

Speaking of consistency, be sure you are happy with your brand elements – logo design, colour palette, typography and font, photography and imagery styles, etc – because branding is founded on these being carried across all aspects of your business identity.

Your business cards, office signage, website design, marketing and advertising material, email signatures, product packaging, and so on - they should all mirror a unique and distinguishable style.

Even under the best circumstances it could take half a dozen impressions before something becomes recognisable to a person. If you keep changing your style this may either: take longer; not happen at all; or worse, you may be remembered negatively because you don't appear committed to your own branding.

"A brand is a promise. A good brand is a promise kept"
- Muhtar Kent, chairman and former CEO of The Coca-Cola Company

Find your voice

Where does your niche audience hang out? How do they communicate? What are their interests? Answering these questions will help you determine which platforms to use to reach them, the brand voice to use when speaking to them (conversational, professional, friendly, technical, etc), and the best ways to connect with them. Use this information to construct a marketing strategy for communicating and engaging with your audience.

Earn brand equity

Brand equity is the loyalty value your business builds up over time by providing consistent, superior customer experiences.

Ultimately branding is something you achieve after the sale, not before. It can be likened to getting a sense of someone's personality only after you've interacted with them.

Once a customer has dealt with your business they can begin to develop a sense of trust and loyalty in your brand; earn enough brand equity and you will have customers crossing the road from the competitor to come to you!

We hope you enjoyed this instalment of "The Key to Success" blog series. Topics we will be addressing in future posts include:

marketing strategies
Product pricing
Invoicing and debtor control
Stock purchases and control
IT, business software and productivity apps
Managing cashflow and financing matters
Staff recruitment, contractors, employment law and payroll
Communication skills and time management
Financial understanding and taxation

BLOG COMMENTS

Let us know your thoughts on this article - we appreciate your feedback.

Our November "hot desking" date at The Orchard

2018-11-23T09:00:00+11:00

Having the correct structure for your business right from the start is key to ensuring your current and future tax effectiveness, profit distribution, asset protection and wealth maximisation.

But how do you know if the best trading entity for you is as a sole trader, partnership, company or trust?

Monday 26 November at 2pm is when Jared Slatter, our expert on business planning and structuring of small to medium-sized businesses, will be available again at The Orchard Business and Event Hub. Why not have a chat with him on how to maximise your tax position and future-proof your business - you've got nothing to lose, not even a cent.

Also coming along is our payroll, HR and employment expert Vicki Cozens. If you have any concerns relating to paying staff wages, employment issues, HR compliance, or shifting to payroll filing, she's the lady you need to be talking to.

And as always ...

No appointments needed

100% FREE, no obligation advice

Add this event to your Google calendar:

Can't make it on Monday? No problem! You can also email Jared or email Vicki

Jared Slatter

Chartered Accountant

Vicki Cozens

Chartered Accountant

The EBP Tradies Quiz - how many did you get right?

2018-11-09T09:00:00+11:00

As promised in our recent Carters Trade Breakfast blog post, here are the answers to our Tradies Quiz. Did you get all five questions correct?

And while you're at it, why not try your hand at our fun Claimable Business Expenses quiz.

This short, interactive Messenger-style quiz will give you the correct answers to each question as you go along, and provide your final score when you reach the end.

START QUIZ NOW

Can't see images? Download a PDF of the answer sheet here.

Inland Revenue online unavailable during Disaster Recovery testing

2018-11-07T09:00:00+11:00

Inland Revenue will soon be running a Disaster Recovery (DR) test across their online customer channels. The purpose of the test is to ensure Inland Revenue is able to continue its operations in the event of a disaster.

What this means for IR customers

While Inland Revenue switch to and from the Disaster Recovery site there will be IR services and products, including myIR, which will be unavailable during the scheduled time-frames.

Refer to the table below for which systems will be affected, the expected time-frames, and the impact on those services:

Got questions relating to tax liabilities, tax arrears or tax payments? Contact us - we will be happy to assist.

EBP attend Carters Trade Breakfast (and we announce the winner of the Tradies Quiz)

2018-10-30T09:00:00+11:00

Carters hosted a Trade Breakfast recently, and EBP attended in order to meet and chat with busy tradies before their very hectic days commenced.

Ean Brown, Sally Adams, Jared Slatter and Flynn O'Meara went along with a small stand and lots of giveaways, to connect with attendees as they enjoyed the hearty bacon, eggs and sausages being cooked up on the Carters BBQ (yum!).

We also had a $50 Carters voucher up for grabs for anyone who completed our "Tradies Quiz", and the lucky winner (who, incidentally, got all 5 questions correct!) was Brendan Lovell from Lambly Builders. We personally contacted Brendan today to give him the good news, and he was pretty stoked. Congratulations Brendan, your voucher is winging its way to you now.

Here's a couple of photos of the event:

Interested in completing the quiz? Have a go and see if you can match Brendan's perfect score (answers will be posted next week in a blog post):

Our October "hot desking" date at The Orchard

2018-10-29T09:00:00+11:00

Who doesn't enjoy a good 2-for-1 deal? And what's even better than that? When it doesn't cost you a cent - or even a dollar!

That's right, enjoy access to TWO Chartered Accountants for FREE advice, guidance and assistance on your most problematic tax and accounting quandaries when you visit The Orchard Business and Event Hub this Wednesday morning.

Jessie is a regular at The Orchard and has forged a number of connections over the course of her many visits.

Sally will be "hot desking" for the first time, and with over 20 years of accounting experience she's a veritable treasure trove of knowledge.

No appointments needed

100% FREE, no obligation advice

Add this event to your Google calendar:

Can't make it on Wednesday? No problem! You can also email Sally or email Jessie

Sally Adams

Chartered Accountant

Jessie Alison

Chartered Accountant

Post-dating IRD cheques? Why you should make the switch to electronic payments

2018-10-26T09:00:00+11:00

Inland Revenue have announced that from 1 February 2019 they will no longer accept post-dated cheques for tax payments.

Previously Inland Revenue would honour post-dated cheques by not presenting them until the date shown, allowing customers to submit cheque payments ahead of their tax due date.

However with the increased use of electronic methods for making payments, Inland Revenue want to encourage their customers to make the switch from using cash and cheques.

Inland Revenue spokesperson Meade Perrin says "Payments New Zealand figures show 67 out of every 68 payments in New Zealand are electronic and there's a 20% decline year on year in the use of cheques generally.

"Compared with electronic payments, cheques are expensive to process and the technology used to process them, both by IR and banks, is approaching the end of its working life.

"Technology is more and more becoming part of our everyday lives and there's already been a significant shift to using digital methods for paying tax and receiving refunds, with 95.5% of all payments received by IR already digital.

"We want to keep that momentum building and ease taxpayers towards digitising all their payments," Meade Perrin says.

They acknowledge there will be some impact on customers who post-date their cheques, but they are confident any disruption will be minimal as banks readily offer convenient and easy-to-use ways to pay electronically.

Additionally, internet banking allows customers to set the date a payment is to come out of their account, which effectively achieves the same result as using post-dated cheques.

Payment options which Inland Revenue accept include:

Electronic methods, including internet banking. This minimises delays and includes a formal notification of the date and time a payment was made to Inland Revenue
myIR customers are able to set up direct debits for GST and FBT, and from April 2019, Income Tax, Working for Families, and Donation Tax Credits
Debit/credit card payments can be made over the phone, through the payment page on the IR website, or through myIR
The "my tax payment" option on all NZ banks' websites allows post-dating of electronic payments
Cash and eftpos payments can be made at Westpac branches and, provided you have a payment slip with a bar code, via Westpac Smart ATMs
Cheques can be posted to Inland Revenue's Lower Hutt postal address, or delivered to Inland Revenue offices during reception opening hours

Tax agents who are registered for myIR are also able to set up instalment arrangements and one-off payments by direct debit on behalf of their clients, provided the client is also registered for myIR, and has granted authorisation to the agent to set up payments on their behalf.

For any questions relating to tax liabilities, tax arrears or tax payments, contact one of our friendly advisers - we will be happy to assist.

Cashmanager RURAL wagebook will not update for payday filing

2018-10-19T09:00:00+11:00

Our recent blog post on payday filing triggered some of our clients to contact us and enquire how the change will be handled in Cashmanager RURAL's wagebook.

CRS Software Ltd have confirmed in a news article on their website they will not be updating their wagebook for payday filing.

According to the article "as legislative requirements become increasingly complex we believe the simple wagebook in Cashmanager RURAL may not meet your employer obligations in the future. For this reason, we don't intend to move into the payroll space".

Instead they will look to partnering with payroll providers who specialise in employer compliance as third party wage systems. To minimise double-handling of data, wage-related transactions are then able to be imported from the payroll system into Cashmanager RURAL, or in the case of Cash Manager Focus, a direct feed means wage information will arrive automatically.

CRM Software Ltd advise cloud payroll providers, such as PaySauce, are easy-to-use, time-saving and cost-effective platforms for the preparation of pay runs.

Click here to read the full article "Changes to Payday Reporting and Filing" on CRM Software's website.

If you have questions about payday filing specifically pertaining to Cashmanager RURAL software, we recommend you contact CRM Software Ltd direct on 0800 888 080.

For all other questions please contact Vicki Cozens, our employment, HR and payroll specialist, for help and advice.

Vicki Cozens

Chartered Accountant

Dargaville out of office - Friday 26 October 2018

2018-10-19T09:00:00+11:00

Due to all-staff training being undertaken in our Whangarei office, we advise

our Dargaville office

will be closed on Friday, 26 October 2018

Our Whangarei office will be open for business as usual.

The Dargaville office will re-open again at 8:30am on Monday, 29 October 2018 .

We apologise for any inconvenience caused

Flynn welcomed as a member of CA ANZ

2018-10-19T09:00:00+11:00

We recently celebrated Flynn O'Meara being acknowledged at an awards event as a new member of Chartered Accountants Australia and New Zealand, making him a Chartered Accountant and able to use the letters 'CA' after his name.

He was presented with a certificate at the CA ANZ Northland Gala Event 2018 on Thursday 13 September, held at the Whangarei Cruising Club.

Becoming a Chartered Accountant requires many years of studying, examinations and on-the-job training, so it is rather a momentous achievement. Well done Flynn!

Check out some of his photos from the awards ceremony below:

Flynn waiting to receive his certificate (second row, far right)

Flynn being presented his certificate

The EBP team. From left to right: Flynn O'Meara, Barbara Collinson, Jared Slatter, Vicki Cozens, Andrea Allen, Jessie Alison, Tui Yardley (former EBP team member).

AML/CFT - what is it and what does it mean for me?

2018-10-01T09:00:00+10:00

As of today Accountants will now come under the obligations of the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (or AML/CFT).

What is AML/CFT?

Each year 1.35 billion dollars of fraud and drug-related money is laundered in New Zealand through seemingly legitimate business transactions.

The purposes of the AML/CFT Act is to detect and deter illegal activities associated with money laundering and terrorism financing, and in doing so increasing public and international confidence in the New Zealand financial sector as a safe place to do business.

Professional service groups such as lawyers, accountants and real estate agents, by way of the services they provide, have financial involvement in high-value business transactions. Changes to the AML/CFT Act have now extended to include them in being responsible for reporting suspicious activities.

What does this mean for me?

If you are joining an accountant or accounting firm as a new client from today, you will be asked to supply identification documents to verify yourself as an individual, as well as due diligence being undertaken on any entities you may be involved with, whether these are companies, trusts or partnerships. It may also require the accountant needing to understand the exact nature of your business, and your source(s) of income and/or funds.

This information will need to be obtained and verified before the accountant is able to set you up as a client and commence any work for you.

If you are already with an accountant you may need to provide additional information when there is a change to the nature and/or range of services being provided to you.

Your accountant will let you know what, if any, information is required from you when they set up their AML/CFT compliance procedures.

Why no man is an island - knowing when to stop going it alone in business

2018-09-28T09:00:00+10:00

Blog Series part 1

When starting up a business, a lot of small business owners are like impressive power-house dynamos, working in, on, and for the business, in every possible capacity: CEO, CFO, stock controller, salesperson, marketer, IT guru, PR specialist - as well as making their own coffees and taking out the rubbish.

It's impressive, admirable, and sometimes just plain necessary in those early cash-strapped days. But it is definitely not sustainable. In order to grow a business - and not completely burn out in the process - there comes a point when you need to take stock of your skills, time and resources, and know when to start bringing in outside help.

When you've been a one-(wo)man-band for so long, it can feel difficult to bring new people into the business. It's something a lot of SME owners struggle with. After all, no-one knows your business better than you – you've been living and breathing it! It can be hard to see how anyone could possibly improve on what you're already doing yourself.

Here is how DIY-ing it can be helping, and also possibly hindering, your business growth:

You know exactly what is happening in your business, but may not understand why
You've managed to market yourself locally, but are having trouble reaching further afield
You have a website, but customers are not finding it in search engines
You're becoming too busy working IN the business to be working ON the business

You're working hard, yes, but are you working smart? Know your limitations, and understand that in order to grow you need to bring in skills and expertise to help free up your own time, as well as provide expert advice on "where to from here".

"Great things in business are never done by one person. They're done by a team of people"
- Steve Jobs, co-founder of Apple Inc

Skills can be brought into the business through employing staff, using contractors, or outsourcing to an agency. A busy hairdresser could hire a receptionist to take care of appointment bookings. A web developer might use a contractor to handle overflow work. A builder who doesn't have time for paperwork could consider outsourcing to a bookkeeper. Consider the skills you need, the time commitment required, and the costs involved to decide on the best option for your situation.

Professional expertise can come from business advisers, who can review your business structure, benchmark your performance against your competitors and industry, advise you on ways to increase profit margins, help you access financing and structure debt for the best tax advantage, as well as prepare business plans, cash flow projections and trading forecasts. Sometimes business owners are hesitant to use these types of services due to the perceived high costs, however the benefits that come from tax minimisation and profit margin increases soon outweigh any possible savings from "going it alone".

"A big business starts small"
- Richard Branson, founder of Virgin Group

Ultimately the reason people start their own business is so they can enjoy autonomy, freedom, and a greater work/life balance. But if you end up running yourself into the ground trying to do it all you not only have less of those things, the business is also unable to exist without you. Bringing in extra help helps you focus on what really matters, and eventually allows you to step back and let the business work for you, rather than the other way around. And that's a pretty good measure of success.

We hope you enjoyed this first instalment of "The Key to Success" blog series. Topics we will be addressing in future posts include:

Branding and marketing strategies
Product pricing
Invoicing and debtor control
Stock purchases and control
IT, business software and productivity apps
Managing cashflow and financing matters
Staff recruitment, contractors, employment law and payroll
Communication skills and time management
Financial understanding and taxation

BLOG COMMENTS

Let us know your thoughts on this article - we appreciate your feedback.

Our September "hot desking" date at The Orchard

2018-09-12T09:00:00+10:00

Are you ready ...

For payday filing?

Payday filing is currently voluntary, however on 1 April 2019 it will become mandatory for employers.

It may still seem like a far way off, but now is the ideal time to start reviewing your current payroll processes and put a plan of action into place to help you get ready for the shift.

If you are not sure what payday filing is or how to get your organisation ready, we posted a blog article on how to access Inland Revenue's range of information resources to help you get started.

Read the blog post

If you are still left with burning questions, or you would like to confirm you are on the right track, catch up with Vicki at The Orchard on Friday, 21 September, for free advice and guidance. Vicki is our employment, HR and payroll specialist and can help you on the right path.

Jared Slatter, our commercial properties expert, will also be joining Vicki at The Orchard this month. It will be Jared's first time hot desking at The Orchard, so now is your chance to access free advice on business planning, and structuring of small to medium-sized businesses.

No appointments needed

100% FREE, no obligation advice

Add this event to your
Google calendar:

Can't make it on Friday? No problem! You can also email Vicki or email Jared

Vicki Cozens

Chartered Accountant

Jared Slatter

Chartered Accountant

Payday filing - are you ready for April 2019?

2018-09-11T09:00:00+10:00

Payday filing has been available to employers since April 2018, and from 1 April 2019 it will become mandatory.

Inland Revenue have been writing to employers to remind them to start preparing for the shift to payday filing.

Payday filing means instead of filing an Employer Monthly Schedule (IR348) and Deduction Form (IR345) each month, employers must file their employment information each payday, in line with their normal payroll cycles. PAYE payment dates will remain the same.

So if you haven't already, now is the time to start assessing your current payroll processes, and how these may need to be adjusted for payday filing.

Inland Revenue have put together a range of resources to help payroll practitioners understand, and prepare for, payday filing, including webpages, seminars and webinar:

Click to visit IRD's payday filing webpage

Click to download IRD's software checklist

Inland Revenue nationwide seminars

Inland Revenue will be running seminars throughout the country from September to November 2018, where they will outline what the changes will mean for employers and payroll managers, and attendees will have the opportunity to ask questions.

Click here for Inland Revenue's webpage to register your interest in one of their NZ-wide seminar dates.

IRD note that spaces are limited so early registration is advisable. Each attendee must complete a separate online registration.

Inland Revenue on-demand webinar

If you are unable to attend a seminar you can register for the free 45-minute Inland Revenue webinar, run in conjunction with CCH Learning, where they will share information on payday filing and how to get prepared.

Click here to register on CCH's website. After registering you will be emailed a link to the on-demand event, as well as a link to download the PDF workbook.

Have questions about how payday filing may affect your business? Contact Vicki Cozens, our employment, HR and payroll specialist, for help and advice.

Vicki Cozens

Chartered Accountant

Q&A - Our farm manager wants to take a two week holiday - can we say no?

2018-08-30T09:00:00+10:00

Question: Our farm manager wants to go on holiday for two weeks and take his son, who also works for us. The manager started with us 16 months ago; the son started nine months ago and says he has 11 days annual leave accrued.

We can't do without our farm manager for two whole weeks! And with his son going as well, that leaves us with no-one to milk the cows. Are they allowed to go on leave together? Can we tell him he can take one week's holiday at a time?

Answer: Once your farm manager reached his one year anniversary of employment with you he became entitled to four weeks of annual leave, and you must allow him to take at least two weeks of that as uninterrupted holidays.

As his son has not been employed by you for a full year he is not entitled to paid leave at this stage.

Timing and duration of annual leave

All employees are entitled to four weeks of paid annual leave after each 12 months of continuous employment for their employer.

When it comes to taking that leave the timing and duration should be mutually-agreed upon by both parties, with the following rights for employees and employers coming into play:

Employees have the right to:

take at least 2 weeks of leave at once (if they want to)
take leave at any time during the year, as long as their employer agrees
carry over leave into the next year (though the employer can make them take leave in some circumstances).

Employers can:

tell a worker when they should take time off, as long as they give at least 2 weeks' notice
restrict when they can take time off - for example, at busy periods - however they can't unreasonably refuse.

Accrued annual holidays

The concept of accrued holidays is not found in the Holidays Act 2003, but it acts as a useful tool for employers to estimate their financial liability for annual leave, and may be helpful for employees to see their progress towards becoming entitled to their four weeks of paid annual leave.

It can, however, also be confusing for employees to see an accrued holidays balance on their payslips, because they are not legally entitled to take accrued holidays until they reach their yearly anniversary.

Although employers are under no legal obligation to allow employees to take holidays in advance, they may use the accrued annual leave balance to help them decide:

whether to agree to an employee's request to take annual holidays in advance; and if so,
how many weeks'/ days annual holidays in advance the employee can take.

The number of holiday days paid in advance will then be deducted from the accrued balance, and reduce the following year's annual leave entitlement.

Got annual leave questions? Please contact Vicki, our payroll, HR and employment specialist - she will be happy to assist.

Vicki Cozens

Chartered Accountant

Our August "hot desking" date at The Orchard

2018-08-24T09:00:00+10:00

Do you know ...

The difference between an employee and an independent contractor?

You're not alone! Correctly defining a working relationship is not always easy and clear-cut, and many factors may muddy the waters.

To help provide some clarity on this topic we recently posted a blog article explaining the differences between contractors and employees, and the "tests" which have been developed to help businesses categorise the people they have working for them.

Read the blog post

If you are still in the dark, it may help to seek professional advice to ensure you get it right, and what better time to do this than to have a FREE chat with Flynn on Tuesday morning to discuss your situation.

Of course if you have any other vexing issues, puzzling problems, or frustrating headscratchers, why not approach him with those too. Flynn is an experienced Chartered Accountant with a special interest in technology - ask him about accounting software or productivity apps!

No appointments needed

100% FREE, no obligation advice

Add this event to your
favourite e-calendar:

Can't make it on Tuesday? No problem! You can also e-mail Flynn

Flynn O'Meara

Chartered Accountant

Employee vs independent contractor - what's the difference?

2018-08-20T09:00:00+10:00

There are quite distinct differences between employees and independent contractors, although sometimes it can prove difficult to definitively categorise a worker as one or the other. For this reason the courts have developed a number of legal tests to help businesses classify workers.

Definitions

Before we cover these legal tests, it may help to first understand the differences between employees and contractors.

Note that, regardless of which category a worker falls into, health and safety laws apply to all employees and contractors.

Employees

An employee is a person who carries out work for reward under the terms of an employment agreement, with the reward almost always in the form of a wage or salary.

All employees have minimum employment rights under New Zealand's various employment laws, including the Employment Relations Act 2000, Minimum Wage Act 1983 and the Holidays Act 2003.

Employers are required to maintain records on their employees, detailing the terms of employment as well as wage, time and leave information.

Independent contractors

A contractor delivers services to a third party under an independent contractor agreement, and the services they render are charged to the third party on an invoicing basis.

Contractors pay their own taxes and ACC levies, and are not covered by most employment-related laws. This means they do not get things like annual holidays or sick leave, and they cannot bring personal grievances.

Businesses who use contractors are not required to hold records on contractors.

Legal tests

Defining a worker as either an employee or a contractor is not always clear-cut, so a number of tests have been devised to help businesses decide on the correct classification. These are:

Intention test

This takes into account how both parties view the contract and define the working relationship from their perspective.

Note that, although the intention of both parties is relevant, on its own it is not enough to determine the true nature of their relationship. In other words, the business and the worker cannot simply "decide" to be employer/employee or client/contractor - a number of other tests would need to support the intention.
Control test

This determines who controls how and when the work will be performed (eg working hours, when holidays are to be taken, etc): if the business mostly controls these, the worker is likely an employee; if the worker has a lot of autonomy, he or she is likely a contractor.
Independence test

Used to determine what level of risk is incurred by the worker, such as investment in plant and machinery, the ability to subcontract work, or ability to work for other people. The greater the independence, the greater the likelihood the worker is a contractor.
Integration test

This test considers the level of dependence the worker has on the business, such as who provides the tools, and who pays for the materials used. A contractor would be responsible for supplying and maintaining his/her own tools of the trade.
Economic reality test

Finally, the fundamental/ economic reality test will ascertain the working relationship based on what the normal commercial practice is for the type of work performed. It will consider things such as whether the worker: pays their own taxes and ACC bills, works for profit, is GST registered, advertises for work, and issues invoices to obtain payment.

It is important to note that meeting some of the above tests does not necessarily mean you can assume someone is an independent contractor. Each situation needs to be reviewed on a case-by-case basis, with the entirety of the working dynamic taken into consideration to reach a conclusion. It is advisable to seek professional advice in this regard to avoid potential costs in the event you get it wrong.

Why does any of this matter?

Employees and contractors have very different rights and responsibilities, and as such, so do the businesses who use them carry out work for them.

Classifying a worker incorrectly (either accidentally or deliberately) could result in the business becoming liable for unpaid PAYE taxes, minimum wage shortfalls, and leave entitlements not provided, as well as potential penalties from Inland Revenue and/or the Employment Relations Authority.

Need help determining whether a worker is an employee or contractor? Contact Vicki Cozens, our employment, HR and payroll specialist, for help and advice.

Vicki Cozens

Chartered Accountant

Check with your accountant before paying taxes or claiming refunds

2018-08-17T09:00:00+10:00

If you are linked to Inland Revenue's myIR you may receive correspondence via the online service notifying you of upcoming tax payments, or credits available for refund. However if you are also with a tax agent or accounting firm these notices have the potential to cause issues.

Your accountant may have your tax credits reserved to cover other tax liabilities which have not yet been actioned by Inland Revenue at the time they issue your refund notice.

In the event you instruct IRD to release these earmarked refunds you risk penalties and use-of-money interest being applied to the unpaid taxes. It is possible neither you nor your tax agent may become aware of this situation for some time, resulting in potentially significant accruals of penalties and interest.

On the other side of the coin, tax amounts Inland Revenue notify as being due for payment may differ from the final tax liability your accountant arrives at. In this instance you risk over- or under-paying your taxes, and in the latter case also possibly incurring penalties and interest.

Should you receive correspondence or notices from IRD advising of taxes to pay or refunds available, we recommend you contact your accountant or tax agent to confirm the information before taking any action.

For tax queries big or small, we are only a click away - we love to help!

Q&A - My accountant needs my annual tax certificates. How do I get them?

2018-08-13T09:00:00+10:00

	Question: My accountant is asking me for my RWT certificates for the last financial year, but my bank hasn't issued me any. How can I obtain these?
	Answer: If you use online banking, your annual tax statements may have been made available to you via your online banking login.

Banks and other financial institutions usually send out annual statements (IR15) showing your gross interest details, as well as the amount of Resident Withholding Tax deducted.

For active users of online banking, banks may use the online service to upload tax certificates to users' account profiles instead of posting them out. The bank will then send a notification advising the certificate is available for viewing, saving and/or printing.

If you have not received your tax statements by standard mail as you were expecting, check your online banking portal in the first instance or contact your bank to request copies.

Need help? Please contact us - one of our friendly advisers will be happy to assist.

Announcing the winner of our EoY Livestock Count prize draw!

2018-07-25T09:00:00+10:00

We re-introduced our Livestock Count prize draw for the 2018 income year, to reward farming clients who submitted their closing livestock numbers to us within two weeks of their balance date.

As our farmers have balance dates ranging from March to June we collated all qualifying entries and Ean drew our winner on Monday morning at our weekly Team Meeting.

The winner, whom we have contacted personally today, is a long-time client of our firm who manages beef cattle in the lovely small town of Okaihau in the Far North. Congratulations!

The prize is this gorgeous gift basket filled to the brim with delicious goodies carefully hand-picked by the ladies at Gifts on Rathbone. It includes an assortment of sweet and savoury delights, such as salty caramel popcorn, pistachio and cheddar bites, Bourbon Bacon jam (yes, you read that right), as well as an aptly-themed cow-print carry-all.

Not a farmer? Don't despair!

We understand people like prizes, and we don't want you to go out and buy cattle just to be in the draw for next year!

That is why we will be having a Christmas-themed prize draw in December, when we will draw the name of a lucky EBP client* to take home a yummy gift basket full of festive treats and goodies - perfect to appease those hungry visitors during the holiday season.

* A current Ean Brown Partners Ltd client at the date of the prize draw

Q&A - Can sharemilkers and contract milkers claim 20% deduction for farmhouse expenditure?

2018-07-23T09:00:00+10:00

Question: Can sharemilkers and contract milkers use the same approach as farmers and claim 20% deduction for farmhouse expenditure?

Answer: Yes - sharemilkers and contract milkers may claim a 20% deduction for farmhouse expenditure (for example, power and insurance bills) without calculating actual business use of the farmhouse, if:

They carry on a sharemilking or contract-milking business as sole traders or a partnership independent from the farm owner's business;
The business is of sufficient scale to require its own home office and centre of operations in the sharemilker's or contract milker's farmhouse; and
The sharemilker or contract milker's farmhouse is used in a similar manner to and to a similar extent as other farmhouses on type 1 farms.

In 2017 Inland Revenue changed the way farmhouse expenses were treated for tax. Prior to these changes taking effect farmers were allowed to claim a flat 25% of expenses such as repairs and maintenance, house power and house insurance relating to the farmhouse when calculating their taxable income.

We published a blog article in May last year outlining how these changes would affect farmers and their expense claims for the 2018 year on, and contacted our farming clients with advice on the new rules.

Want to find out more about these farmhouse expenditure changes?

Read our 5 May 2017 blog post on this topic

Farmhouse expense deductions - an overview

In brief, the changes mean the allowable claim is limited to full time farmers where the value of the farmhouse is 20% or less of the total value of the farm (type 1 farms). This has the effect of removing small block farmers from the automatic allowable deduction. For type 1 farms which qualify for the automatic deduction this is reduced from 25% to 20%.

For those farmers whose house value is more than 20% of the total value of the farm (type 2 farms) the allowable deduction is based on a time and square-footage basis.

Sharemilkers and contract milkers

Inland Revenue confirmed in a "Question we've been asked" from May 2018 that sharemilkers and contract milkers may use the same approach as a type 1 farm to make a 20% deduction claim.

If you would like some help with your farmhouse expense claims or require more information, please contact us - one of our friendly advisers will be happy to assist.

Schedule PAYE tax payments early to avoid hefty penalties

2018-07-17T09:00:00+10:00

If you file your PAYE returns on time but forget to pay the full amount of PAYE by the due date, Inland Revenue may charge a non-payment penalty as well as late payment penalties and interest.

Non-payment penalties

This non-payment penalty is 10% of the PAYE amount outstanding, and further 10% penalties will be added for each month the amount remains unpaid.

Once the overdue amount is paid (or an instalment agreement is entered into) the last 10% penalty will be reduced to 5%.

Late payment penalties and interest

Penalties are applied to overdue payments as follows:

Initial 1% penalty may be charged on the day following the due date, then;
A further 4% penalty may be charged on unpaid tax (and this includes penalties amounts) after the 7th day following the due date, then;
A 1% penalty may be charged for each month the amount remains unpaid

Interest will also be charged on outstanding amounts, including the value of accruing penalties.

As you can see, penalties and interest charges can snowball quite rapidly if amounts are left unpaid.

Set-and-forget - how to avoid penalties

Many people file their IR345 (employer deductions) and IR348 (employer schedule) at the beginning of each month, then arrange to make payment on the due date. This can increase the risk of forgetting to make payment later in the month when the due date comes around.

One way to combat this is to set up a bill payment through your online banking at the same time you process your PAYE. Internet banking allows you to schedule (future date) bill payments, meaning you can effectively set-and-forget a payment for processing on the due date (just make sure you have enough funds available in your account on the due date to cover the amount being withdrawn).

If you pay your PAYE by cheque, Inland Revenue will generally not present post-dated cheques before the date shown on the cheque. We do recommend highlighting the cheque's date in order to draw attention to this.

If you are having difficulty making tax payments by their due dates and are concerned about accruing penalties, contact us to discuss your options with one of our friendly advisers - we are here to help.

The kilometre rate - an alternative method for mixed-use vehicle expense claims

2018-07-13T09:00:00+10:00

From the 2018 income year on there are two methods for calculating the business portion of a mixed-use vehicle:

cost method based on actual costs, or;
kilometre rate method, with that rate being set by the Commissioner of Inland Revenue.

The business portion of a vehicle's use must be well documented using either a logbook or actual records. You must record the odometer reading at the start of the financial year, and then again at the end of the financial year. This is required to determine whether the total mileage travelled during that year exceeds 14,000 km's.

If full records are maintained and the kilometre rate method is elected, the Tier One rate is used for the first 14,000 total kilometres, and Tier Two rates for any km's thereafter.

If no logbook is maintained, only the first 3,500 kilometres can be claimed at Tier One, and the remainder calculated at Tier Two rates, based on vehicle type.

The 2017/2018 kilometre rates are:

The Tier One rate is higher as it is a combination of vehicles' fixed and running costs; Tier Two rates include only the running costs.

The kilometre rate method may be elected for any mixed-use vehicle held at the beginning of the 2017/2018 income year, unless the vehicle is disposed of during that year.

Bear in mind! Electing the kilometre rate method is irrevocable - once selected, it will apply to that vehicle until it is disposed of.

See below for a flowchart to see it all in action or click here to download it as a PDF:

As always, we encourage you to contact us if you have any queries, or want to know how these methods for calculating business-use vehicle deductions affect your unique situation.

Our July "hot desking" date at The Orchard

2018-07-13T09:00:00+10:00

Do you know ...?

About the kilometre rate method for claiming expenses on the business portion of mixed-use vehicles?

From the 2018 financial year on there are two methods available for calculating the business portion of a mixed-use vehicle: a cost method based on actual costs, and a kilometre rate method, with those rates being set by the Commissioner of Inland Revenue.

Read our blog post to find out more

If you want to find out how these calculation methods may apply to your business's use of vehicles, pop over to The Orchard on Monday morning and catch up with Jessie!

No appointments needed

100% FREE, no obligation advice

Add this event to your
favourite e-calendar:

Can't make it on Monday? No problem! You can also e-mail Jessie

Jessie Alison

Chartered Accountant

IRD to adopt leniency due to online GST processing issues

2018-06-29T09:00:00+10:00

Inland Revenue have advised the problems with their online system for filing GST returns have now been resolved.

They acknowledge myIR has been slow or unavailable recently, which may have caused frustration and inconvenience to customers who have been trying to use the online services.

Due to these issues, Inland Revenue have confirmed they will not apply late filing and late payment penalties to GST returns due yesterday for the period ended 31 May 2018, if they are filed and payments made by Wednesday, 4 July.

They apologise to their customers for any negative impact the service issues have had.

Q&A - Do I need to include accommodation in my farm employee's gross wages?

2018-06-29T09:00:00+10:00

	Question: We have heard we have to add the value of the accommodation we provide to our farm employee on to their gross wages. Is this true?
	Answer: Yes, that's correct. Many farm employees are employed on an agreed gross weekly or fortnightly wage, and in addition they either board in the farmer's home, or the employer provides a house for them. The value of the board or accommodation provided to your employee is taxable income and should be treated as gross income to them.

The value of the accommodation provided must be based on a fair market rental, taking into account the type of accommodation, and the remoteness of the area your farm is in.

Not sure how to establish fair market value rent?

Read our blog post on this topic

The PAYE calculation is based on the total gross wages, which is the agreed gross wage plus the value of the accommodation.

The total value of accommodation is then deducted from the employee's earnings and paid to the farmer for rent or board.

An example:

Gross wages per week	800.00
Accommodation (fair market rental)	250.00
Total gross income	$1,050.00
PAYE (tax code M)	(195.36)
Total net income	$854.64
Less accommodation	(250.00)
Net wages paid to employee	$604.64

Would you like further assistance? We offer a range of payroll, employment and HR services to meet the needs of businesses large or small.

E-mail Vicki Cozens, our employment specialist, or request an appointment with her.

Vicki Cozens

Chartered Accountant

Farm worker allowances and benefits - are you treating the tax correctly?

2018-06-27T09:00:00+10:00

Farm employees are often paid allowances or receive benefits from their employer as part of their employment agreement.

Some of these allowances will be tax-free in the hands of the employee. Others will need to be taken into account when calculating their wages and corresponding PAYE deductions, as the value of the benefit is deemed to be part of their gross income. Others may be caught under the Fringe Benefit rules.

It is important to be able to distinguish the different types of allowances and benefits so that the correct accounting and tax treatment is made.

Inland Revenue recently issued a "Questions We Have Been Asked" article on this topic. In the article they note that a farm worker definition includes farm employees and some contract workers. If you have contract workers engaged in completing farm-related work on your farm and want to know more, contact us to discuss this further.

There are two main types of allowances: reimbursing allowances, and benefit allowances.

Reimbursing allowances

Reimbursing allowances are those that reimburse a farm worker for expenses they will, or are likely to, incur in carrying out their work on the farm. If the employee was in business themselves they would be able to claim these costs as a deductible expense. Common types of reimbursing allowances are for wet weather gear, working dog expenses, quad bike running costs, protective clothing, and shearing equipment.

Reimbursement allowances are tax-free to the employee and tax-deductible to the employer.

Benefit allowances

Benefit allowances are split into two categories: those that are paid in cash, and non-cash benefits.

Cash benefits

Cash benefits are those that are paid to the farm worker to compensate them for the conditions of their service, such as working in a remote location, working in a dangerous or dirty environment, a cash allowance in lieu of providing stores and rations, or an allowance to assist with boarding school fees for their children.

These allowances provide a financial benefit to the farm worker rather than reimbursing them for costs incurred in carrying out their work. They are therefore taxable in the hands of the farm worker and subject to the PAYE rules. The employer is entitled to a tax deduction on the payment of these allowances.

Non-cash benefits

Non-cash benefits such as the provision of food, like meat, eggs, fruit and vegetables provided to the employee provides an economic advantage to the employee. It is therefore likely to attract Fringe Benefit Tax. The FBT rules are quite complex and include a number of thresholds before FBT is payable. If you are providing non-cash benefits to your farm workers we strongly suggest you discuss this with us, to ensure you are treating this correctly for tax purposes.

Non-cash benefits are generally not taxable to the employee but are deductible by the employer, although the employer may be liable for FBT.

We would be happy to assist if you are unsure how to treat the allowances or benefits you are providing to your workers. E-mail us or request an appointment to get in touch with one of our friendly advisers.

Our June "hot desking" date at The Orchard

2018-06-20T09:00:00+10:00

"Home office expense claims - which method is best for you?" - EBP blog

Did you know about the new simplified option for calculating your home office tax deductions?

If you don't, and you have an area in your home used for work purposes, you might be interested to know there is a new option available for the 2018 income year for calculating your home office tax deductions. Read our blog post to find out more about this.

Then, if you should have further queries about it or need help deciding which method of calculation is better for your circumstances, you can catch up with Jessie at The Orchard on Tuesday morning for some unbiased advice.

As always, you don't need an appointment - it's all casual, informal and FREE!

No appointments needed

100% FREE, no obligation advice

Add this event to

Can't make it on Tuesday? No problem! You can also e-mail Jessie

Jessie Alison

Chartered Accountant

Home office expense claims - which method is best for you?

2018-06-19T09:00:00+10:00

If you have a home office or use an area in your home for work purposes, you now have two options for calculating the amount you can claim as a tax deduction:

Option 1: standard calculation

This method involves calculating the area in your home used for work as a percentage of your home's total floor area, and applying this percentage to the following household expenses:

house insurance
power
minor repairs and maintenance
water
mortgage interest and rates/ rent

As you would with your normal business expenses, you need to retain your invoices and keep appropriate records in order to claim for them.

If you are farming and live on the farm, you may be entitled to claim 20% of the household expenses listed above. We suggest you refer to our blog post from 3 May 2017: Farmhouse expense tax deductions - important changes taking effect this financial year.

More information on calculating home office expenses this way, including examples, can be found on this IRD webpage.

Option 2: square metre rate

From the 2018 financial year on you can choose instead to use Inland Revenue's square metre rate. This rate is based on the average cost of utilities per square metre of housing, but excluding rent or mortgage interest and rates.

This method is a simplified way of claiming tax deductions, and does not require you to calculate the business percentage of each invoice, nor keep invoices the way you would for the standard calculation method. You simply multiply your home office percentage by Inland Revenue's square metre rate.

You will still be able to claim a portion of the rates and mortgage interest/ rent paid during the year, and like the standard calculation method these values will be based on the percentage of total floor area your workspace occupies.

Square metre rate for 2017/2018

The Commissioner of Inland Revenue has set the square metre rate for the 2018 income year at $41.10 p/m².

This rate will be reviewed by Inland Revenue each year.

Which method is best for me?

The square metre rate uses Statistics New Zealand information to calculate the average annual cost of utilities for the average-sized NZ household, divided by the sum of the average square metre size of a NZ home.

The key word here is 'average'; if you have a larger-than-average office, and/or higher-than-average utility charges you may be better using the standard calculation method.

As each taxpayer's situation is unique, we recommend you review your home office claim each year to determine which method will work best for you. Alternatively you can contact us if you would like some assistance on this matter.

Beef+Lamb NZ Farm Safety System workshops in Northland

2018-05-28T09:00:00+10:00

Beef + Lamb New Zealand have developed a Safety Management System for farmers, which they are presenting throughout the country in a series of one-day workshops.

On Thursday 31 May 2018 they are presenting a workshop in Tangiteroria, and on Friday 1 June 2018 they will be at Whananaki North.

The Safety Management System and workshops are free for B+LNZ levy-paying farmers, and by coming along to a workshop you'll receive a free copy of the Safety Management System, learn how to apply it on your farm, and be able to ask questions from a WorkSafe NZ representative who will be present at the workshops.

What is the Safety Management System

It is a set of plans and procedures that you can customise for your farm. It makes the paperwork easy – 90% of it is already done.
The system has been developed specifically for New Zealand sheep and beef farmers by B+LNZ's safety partner Exigent Risk Management (previously QSI), and in conjunction with WorkSafe NZ.
The system is simple and straightforward. When you put it in place on your farm, within a postive safety culture, it will help you ensure your farm is a safe workplace – and compliant with health and safety regulations.

The Tangiteroria workshop runs from 10am to 3pm; the Whananaki North workshop is 10am to 1pm. Lunch will be provided at both events.

Registrations are essential!Visit the B+LNZ webpages below to RSVP for a workshop nearest you:

Tangiteroria Past event - registrations closed	Thursday 31 May, 10am - 3pm Tangiteroria Sports Complex 23 Pukehuia Road Tangiteroria
Whananaki Nth Past event - registrations closed	Friday 1 June, 10am - 1pm Whananaki Coastal Charolais Woolshed Opposite Otamure Bay Campsite, just past 193 Rockell Rd Whananaki North

MyACC for Business - why you should check your ACC levy invoice

2018-05-28T09:00:00+10:00

ACC has recently replaced ACC Online with MyACC for Business, with the aim of providing new and improved online services to their business customers.

Like the introduction of any new computer system there are the usual glitches and stumbling blocks, and ACC are occasionally relaying incorrect information to customers who contact their call centres.

Payment plans

If you had a payment plan in place during the prior year, ACC will add any new adjustments relating to that year onto the same payment plan.

As ACC already have your bank account details on file, the new direct debit amounts for the updated payment plan will then automatically deduct from your bank account with no additional authorisation required from you.

We advise to review your ACC levy invoices carefully, including checking the payment plan schedule shown on the invoice as payments may not be evenly distributed.

For instance, the ACC Workplace cover final levy for 2017 may be evenly split across the instalments of the payment plan, however the full amount of the provisional levy for 2018 may be scheduled for deduction from your bank account one month after the date of the invoice.

If you think your invoice is incorrect or needs amending, please contact our office or ACC direct to have this changed.

Multiple payment plan letters being generated

The ACC computer system has also been issuing letters for the same invoice on the same date but with different payment plan details. We have found on occasions when contacting ACC the amounts being quoted were different again.

If you receive correspondence from ACC with conflicting information, or a letter advising your payment was incorrect, we suggest you contact ACC to discuss, or alternatively you can contact our office and we can liaise with ACC on your behalf.

ACC CoverPlus Extra

On another note, if you are on ACC CoverPlus Extra we strongly advise you either arrange a payment plan or make payment by the due date shown on your invoice.

If payment is not received by ACC and no payment plan is in place by this date, ACC will automatically cancel your Coverplus Extra policy and you will revert to ACC CoverPlus.

A new application for CoverPlus Extra will then have to be submitted and approved before the agreed cover is in place.

If you are affected ...

If we act as your ACC agent we will carefully check the details of your ACC levy invoices when we receive them, then contact you if there are any anomalies and, if applicable, contact ACC on your behalf to arrange any changes required.

If you receive your invoices direct from ACC and would like assistance with any ACC-related issues, please contact Andrea Allen, our ACC specialist.

Andrea Allen

Chartered Accountant

Our May "hot desking" date at The Orchard

2018-05-21T09:00:00+10:00

"How small businesses can use tech to be more productive" - business.govt.nz

Are you leveraging technology to work smarter, not harder?

MBIE published an article recently on the benefits of using technology to boost business productivity - and they're emphasising it's not just limited to big corporations. Even small businesses can improve efficiency with digital tools such as cloud-based storage, online document products, add-ons, plug-ins, AI, and more.

This month we have two of our Chartered Accountants hot desking at The Orchard: Vicki, employment and payroll specialist; and Flynn, who is our resident IT guru and self-confessed technophile.

If you want to explore how digital tools can help you streamline your workload, have a casual chat with Flynn this Thursday morning to discuss your options. It isn't nearly as complicated, expensive or hard to implement as you might think!

And if you have any difficult employment questions or payroll issues, you can kill two birds with one stone and catch up with Vicki as well - this is your chance to pick her brain for free!

Make sure to diary this event so you don't miss out!

No appointments needed

100% FREE, no obligation advice

Add this event to

Can't make it on Thursday? No problem! You can also e-mail Vicki or e-mail Flynn

Vicki Cozens

Chartered Accountant

Flynn O'Meara

Chartered Accountant

2018 herd scheme values have been released by Inland Revenue

2018-05-16T09:00:00+10:00

In May each year, Inland Revenue release their determination of national average market values (NAMVs) of livestock for the prior financial year.

The NAMVs are used by taxpayers who have elected to value livestock using the herd scheme to value their livestock on hand for that income year.

As the name suggests, the values are based on national averages, and as such they may not always reflect the market value of the livestock of a particular taxpayer, or a particular region.

Because of the relatively low numbers of livestock in the remaining livestock types, a straight average is used to calculate the values of those livestock.

The NAMVs for the 2017/2018 income year were released by Inland Revenue on 15 May 2018.

Click here to see these values, as well as the 2016/2017 year values for comparative purposes.

Our April "hot desking" date at The Orchard

2018-04-20T09:00:00+10:00

Inland Revenue have now completed their system upgrades

Are you finding your way around the new My Business tab?

If not and you're having issues navigating their new myIR Secure Online Services, make sure you catch up with Jessie this coming Thursday morning over at The Orchard.

Jessie is our resident tax expert, and is highly experienced in dealing with Inland Revenue and the use of their online services.

She's also very knowledgeable about all sorts of other tax and accounting matters, so whatever your question might be, Jessie will be happy to have a casual chat with you and provide FREE tax advice!

Make sure to diary this event so you don't miss out!

No appointments needed

100% FREE, no obligation advice

Add this event to your favourite e-calendar:

Can't make it on Thursday? No problem! You can also e-mail Jessie

Jessie Alison

Chartered Accountant

UPDATE! PAYE reporting - an overview of the proposed changes

2018-04-16T09:00:00+10:00

Further to our blog post from 15 December 2017, Parliament has now passed legislation enabling payday filing. This requires employers and payroll intermediaries to file employment information (similar to an Employer Monthly Schedule) every payday instead of monthly.

As we mentioned in our earlier blog, payday filing is voluntary from April 2018 but will become compulsory from April 2019, so it is advisable to start thinking now about how you will integrate payday filing into your existing payroll processes.

Payment due dates and payment methods will remain the same; the only change is the frequency you will be submitting your employment information to Inland Revenue.

Payday filing can be done electronically in one of three ways:

directly from your payroll software (if supported by your software provider)
by file upload via myIR under the new Payroll Returns account (if supported by your software provider)
onscreen via myIR under a new Payroll Returns account

The payroll subsidy

Between 1 April 2019 and 31 March 2020 you will be able to claim the payroll subsidy if your PAYE and ESCT deductions are less than $50,000 a year.

The payroll subsidy will be removed from 1 April 2020.

For more information, check out Inland Revenue's Payday filing webpage, or contact Vicki Cozens, our employment, HR and payroll specialist – she will be happy to help.

Vicki Cozens

Chartered Accountant

Celebrating our team's achievements!

2018-04-13T09:00:00+10:00

We have some staff achievements to celebrate! We already know we have a fabulous team, but it's always good to be reminded of their amazing individual achievements.

Flynn O'Meara - qualified as CA

At the end of last month (auspiciously the end of the financial year) Flynn O'Meara officially became a fully-fledged Chartered Accountant, and was welcomed as a full member of Chartered Accountants Australia and New Zealand (CA ANZ).

His years of juggling full-time work and study are now over, which hopefully means he has a bit more free time up his sleeve for R&R on the weekends!

He is now entitled to use the letters 'CA' after his name, so a brand new set of EBP business cards were delivered to him shortly after.

Congratulations Flynn, great job!

Sally Adams - 20 year anniversary

This Sunday marks 20 years since Sally Adams started work with the firm, back when it was still PricewaterhouseCoopers. She was here to witness the formation of Gilmore Brown Limited, and the subsequent rebrand to Ean Brown Partners Limited.

She finished her studies towards becoming a Chartered Accountant whilst working full-time at the company, and over the years she has become a wealth of knowledge in her industry, as well as a respected and valued member of our EBP team.

We acknowledge our staff's 20-years-of-service milestones by having a celebratory presentation and morning tea, as well as flowers and a gift for the recipient.

Congratulations Sally, we're all looking forward to your next 20 years!

More anniversaries:

And because we have so many dedicated and loyal staff members, it turns out we have a couple more anniversaries to acknowledge:

Pam Brown - 14 year anniversary

This Sunday also marks Pam's 14 year anniversary of working for us in our Dargaville office.

Valeria Maw - 3 year anniversary

Three years ago today Valeria started her first day with us, also based in our Dargaville office.

Inland Revenue scheduled shutdown of selected services

2018-04-11T09:00:00+10:00

IMPORTANT INFORMATION FOR BUSINESSES AND EMPLOYERS! Some of Inland Revenue's services will be unavailable from Thursday 12 April until the morning of Tuesday 17 April.

Between 3pm Thursday 12 April and 8am Tuesday 17 April you will not be able to log on to your MyIR Secure Online Services, or contact Inland Revenue through their contact centres. Some online services for employers will be unavailable earlier.

Employers will not be able to submit Employer Monthly Schedules (IR348) electronically from midnight tonight (11 April) until 8am Tuesday 17 April.

The scheduled shutdown is to enable Inland Revenue to transfer a range of business tax types into their new system, as part of their transformation programme to make tax simpler for New Zealanders.

Add event to calendar

If you have any questions please contact us - we will be happy to help.

Don't forget - minimum wage rates increase 1 April

2018-03-29T09:00:00+11:00

With 1 April only a few days away, don't forget to check your employees' wage rates ahead of the minimum wage increasing to $16.50.

Any employees currently earning less than $16.50 p/h will need their rate raised for hours worked from 1 April 2018.

The starting-out and training minimum wage rates remain at 80% of the adult minimum wage, so these are going up from $12.60 to $13.20 an hour.

This becomes the fifth increase to the minimum wage since April 2014 and, at .75 cents, becomes the first increase to be higher than the previous .50 cent raises.

If you have any questions regarding this, or any other employment and wage matter, please contact Vicki Cozens, our Employment, Payroll and HR specialist.

Vicki Cozens

Chartered Accountant

E-mail Vicki

Daylight saving ends this weekend - do you have nightshift workers?

2018-03-27T09:00:00+11:00

A reminder that daylight saving ends this weekend when the clocks are put back one hour at 2am on Sunday morning, 1 April 2018.

If you have employees working a nightshift spanning this time period and work one hour more than they normally would due to the time change, they are entitled to be paid their appropriate rate of pay for the actual hours they have worked.

For example: an employee is rostered to work 8 hours - 10pm to 6.30am, with a half hour break. At 2am the clock goes back. When they finish at 6.30am they will have worked a total of 9 hours. They are therefore entitled to be paid for the 9 hours they worked, rather than the 8 hours they were rostered for.

If you have any questions regarding this, or any other employment and wage matter, please contact Vicki Cozens, our Employment, Payroll and HR specialist.

Vicki Cozens

Chartered Accountant

E-mail Vicki

Are you prepared for 31 March? Get your books in shape now

2018-03-22T09:00:00+11:00

It feels like the 2018 calendar year has only just begun, yet the beginning of the 2019 financial year almost upon us - where have those three months gone?

Depending on your level of preparedness, the approach of 31 March could be a time of high stress or just another date in your business calendar which you take into your stride.

To help you fall into the latter category, we've compiled a short checklist of items within your business which you should review and action now, to help close off your 2018 financial year in tip top shape.

Get your books in shape

Debtors

Review your debtors' ledger and write off any bad debts before the end of the year. You are only able to take a tax deduction for a bad debt if it is actually written off prior to balance date.

Fixed assets

Review your fixed asset register to see if there are any assets that you no longer have. Write off all assets which you no longer own, assets which are obsolete and have no market value, and assets which are broken and have been scrapped.

Trading stock

Have a look at your trading stock. There are two options for valuing trading stock - the lower of cost, or market selling value. If you think that there are items you won't be able to sell and recover the purchase cost on, have these revalued before balance date.

Vehicle expenses

If your vehicle expense claim is based on a kilometre rate, remember to note down your vehicle odometer reading on balance date and total kilometres travelled during the year. If you pay employee vehicle reimbursements during the year on a kilometre rate note down the total kilometres each employee has been reimbursed. If you use a logbook for a three month representative period, check when it was last kept. A new logbook must be kept at least once every three years or when your business usage changes by 20% or more.

The following items are also worth noting. First you will need to consider whether you have the cash flow resources available, and then whether incurring the expense in the current financial year is more advantageous than leaving them until next year. This can be a bit of a gamble and requires some crystal-ball gazing. If you are expecting higher income in the following year, it may be better to leave these to be claimed then.

Repairs and maintenance

Consider whether to bring forward any repairs and maintenance due on your assets so it is done before balance date. We suggest you discuss this with us before completing any major work, to determine whether the cost will be deductible.

Purchases of consumables

Consider whether there are any consumables that you will need in the following year that can be purchased prior to balance date. Items such as advertising, stationery, fertilizer and fencing materials can be claimed in the year of purchase even if they are not used before balance date. There are specific limits to the amount on some of these consumables, so if you intend to spend large amounts contact us first to discuss what these limits are.

We hope you have found this timely reminder helpful and, as always, please feel free to contact us if you require assistance.

If you are an EBP client we will be sending out your 2018 annual accounts checklist on your balance date, or alternatively you can download one from our website:

Businesses and farmers:

Use this checklist

Individuals and rental property owners:

Use this checklist

Own livestock? Use these to submit your opening numbers:

Sheep, dairy and beef cattle

Deer, horses, pigs or goats

Close to paying off your student loan? A savvy tip to avoid extra fees

2018-03-19T09:00:00+11:00

Did you know ... Inland Revenue add a $40 administration fee each year to your student loan balance?

The fee is charged on the 1st of April if the outstanding balance is $20 or more on that date.

With 1 April 2018 not too far away, if you are close to paying off your student loan it may be beneficial to make a voluntary payment now to clear the balance, before the administration fee is due to be charged.

Have any questions regarding your student loan? Feel free to contact us - we will be happy to assist.

Our March "hot desking" date at The Orchard

2018-03-15T09:00:00+11:00

Look what's looming ...

Have you got all your ducks in a row?

If not, head on over to The Orchard on Wednesday, between 11am and 3pm, to have a casual chat with Jessie about what you can do now to make closing off the 2017/2018 financial year go as seamlessly as possible.

Jessie is highly knowledgeable in all matters relating to tax AND she's super easy to talk to, so you can be sure to come out of that meeting feeling like you're winning at this financial year end.

Make sure to diary this event so you don't miss out!

No appointments needed

100% FREE, no obligation advice

Add this event to your favourite e-calendar:

Can't make it on Wednesday? No problem! You can also e-mail Jessie

Jessie Alison

Chartered Accountant

Workplace accidents - the importance of reporting to WorkSafe

2018-03-07T09:00:00+11:00

The recent media release by WorkSafe serves as a timely reminder to check that your Health and Safety reporting processes include clear directions on the how's and when's to notify WorkSafe of serious accident or illness events.

In brief, WorkSafe reported on a company that was fined over $98,000, plus ordered to pay reparations of $24,000, for an incident where a worker required surgery and hospitalisation for head injuries and a skull fracture, sustained after 200kg of plasterboard fell on them.

The company failed to report the incident to WorkSafe at the time it occurred. The company also downplayed the seriousness of the incident when they did report it to WorkSafe, noting probable concussion from impact with no reference to the head injuries, fractures or surgery.

Want to read the full media release? Click here:	WorkSafe NZ: "playing down workplace incidents doesn't pay"

Health and safety laws in New Zealand have had a few changes over recent years but one thing that hasn't changed is the requirement to notify WorkSafe of all serious events that happen to people carrying out work, or as a result of work that your business is responsible for.

WorkSafe state notifiable events are:

DEATH - If a worker dies whilst carrying out work. WorkSafe must be notified immediately using their 24/7 0800 number.
INJURY - If a worker is injured as a result of work, or in a place of work.
ILLNESS - If a worker falls seriously ill as a result of work.
INCIDENT - If someone faces serious or immediate risk to their health and safety due to unplanned/ uncontrolled work incidents.

The 'Notify WorkSafe' tool on WorkSafe's website provides further information and guidance when reporting accidents and incidents.

Having good Health and Safety practices in place goes a long way to reducing the chances of mishaps and accidents, but should the unimaginable occur don't risk further penalties by not following reporting procedures.

As always, if you have any questions please feel free to contact us - we will be happy to assist.

Related articles - Here are some of our past blog posts we think you might also be interested in:

Workplace health and Safety consultants - not a quick fix

We are presenting FREE Xero seminars - register today!

2018-02-16T09:00:00+11:00

FREE SEMINARS

on Xero accounting software

Having smart, intuitive, cloud-based software is one thing; knowing how to use it is quite another.

The team at Ean Brown Partners Ltd believe in empowering people with the knowledge and skills to enable them to confidently manage their business. Effective use of your software's features means less time spent on administration, leaving more time to invest back into growing the business.

As part of our commitment to "giving back" to the Northland community we are running FREE seminars on Xero accounting software during February and March. And because we know it's not always easy to take time out of your busy schedule, we are presenting these seminars in both Whangarei and Dargaville locations, and all during handy lunchtime time-slots. Bring along your lunch while our experienced presenters show you Xero tips and tricks to help you work smarter, not harder.

	SEMINAR 1: Xero for beginners
	Considering switching to Xero?
This seminar is ideal for those who are contemplating moving to Xero in order to gain greater control and understanding of their business.
Whangarei	12pm, Monday 26 February 2018
Dargaville	12pm, Tuesday 27 February 2018

	SEMINAR 2: Advanced Xero
	Want to maximise your Xero?
This seminar is aimed at supporting businesses already using Xero by demonstrating time-saving tips and efficiencies, and an overview of the latest Xero features.
Whangarei	12pm, Tuesday 6 March 2018
Dargaville	12pm, Wednesday 7 March 2018

Whangarei		Dargaville
The Orchard 85 Cameron Street click for map		Dargaville Town Hall 37 Hokianga Road click for map

Click here to register

HURRY! Seats are limited

About your presenters:

Jessie Alison

Jessie has eight years of experience in the accounting industry, specialising in taxation, company governance and estate planning.

She is a trained and certified expert Xero adviser who believes the benefits of Xero, besides saving time on bookkeeping and making GST filing super easy, are more about using the software's tools to track business performance.

Valeria Maw

Valeria enjoys helping clients with their tax planning, succession planning, forecasting and risk management. She has been on the Xero Partner Advisory Council (XPAC), a presenter of numerous Xero seminars, as well as running individual Xero training.

She feels cloud-based technology helps free up her clients' time to focus on the things they love.

Vicki Cozens

With over seven years of accounting industry experience, Vicki specialises in management accounting, employment law, HR and payroll.

Having used Xero extensively and working with a number of clients who use the full Xero suite, she knows all the software's tips and tricks to optimize for maximum efficiency.

Our February "hot desking" date at The Orchard

2018-02-15T09:00:00+11:00


Which of these describes you when hearing the word "payroll"?

If you can relate to the first, you will be interested to know that our employment, HR and payroll specialist Vicki will be "hot desking" at The Orchard on Friday morning.

Pop over to The Orchard's beautiful collaborative office space on 85 Cameron Street and have a chat with her over a coffee about any issues that have you scratching your head or keeping you up at night.

No appointments needed

100% FREE, no obligation advice

Add this event to your favourite e-cal:

Apple Google Outlook Outlook.com Yahoo

Can't make it on Friday? No problem! You can also e-mail Vicki

Vicki Cozens

Chartered Accountant

Livestock NSCs for 2017/2018 have been released by Inland Revenue

2018-02-12T09:00:00+11:00

The NSCs for the 2017/2018 year were released on 1 February 2018. Click here to see these values, as well as the 2016/2017 year values for comparative purposes.

Employment law changes 2018 - what to expect

2018-02-08T09:00:00+11:00

Employment law's ever-changing landscape is seeing another raft of new and upcoming changes.

If you are an employer or an employee, you could potentially be affected by some or all of these. Here is a quick run-down on what to expect:

Changes to medical certificate requirements - effective 31 January 2018

Amendments to the Holidays Act 2003 allow employees to obtain proof of sickness (medical certificate) from a range of health professionals, not just doctors.

The amendment replaces "medical practitioner" with "health practitioner", meaning health practitioners who are registered with an authority (as recognized under Health Practitioners Competence Assurance Act 2003) have the ability to issue medical certificates for sick leave purposes.

These include but not limited to:

Dental Council
Medical Council
Chiropractic Board
Nursing Council
Midwifery Council
Podiatrists Board

Minimum wage increases - effective 1 April 2018

The minimum wage rate will increase by .75 cents to $16.50 per hour.

Parental leave increases - effective 1 July 2018

Parental leave increases from 18 to 22 weeks. The Government is planning to increase this to 26 weeks in 2020.

Other areas of change on the horizon ...

Limiting the use of 90-day trial period to employers with less than 20 workers
Reintroducing the right to rest and meal breaks
Restoring reinstatement as the primary remedy when an employee has been unjustifiably dismissed
Statutory redundancy compensation in order to protect workers affected by restructuring
Extending the application of NZ employment law to all employees working in New Zealand, including foreign workers employed by foreign companies

This is of course a very brief overview, so if you would like to discuss how any of these changes may affect your personal circumstances, drop us an email - we would be glad to assist.

Related articles - Here are some of our past blog posts we think you might also be interested in:

	PAYE reporting - an overview of the proposed changes
	Changes to parental leave payments from 1 June
	BREAKING NEWS! The minimum wage just got a raise!

Out of office - Monday 5 February 2018

2018-02-02T09:00:00+11:00

With Waitangi Day falling on Tuesday, we advise our offices in Whangarei and Dargaville

will be closed on Monday, 5 February 2018

We re-open at 8:30am on Wednesday, 7 February 2018

If you wish to email us we will tend to your inquiry on our return, however for urgent matters
please contact Ean Brown on 0274 723 875

We apologise for any inconvenience caused

Workplace Health and Safety consultants - not a quick fix

2018-02-01T09:00:00+11:00

With increased focus being put on health and safety within workplaces, there has been a large increase in the number of health and safety professionals in the marketplace.

Many small businesses feel they do not have the time or skills to comply with the new regulations and are tempted to engage an adviser. Now WorkSafe has issued a warning to businesses to carry out their due diligence when considering engaging the services of an H&S consultant.

Complying with health and safety regulations needs to be an ongoing process – simply purchasing a pre-filled folder of forms, policies and procedures which sits on a shelf is not considered to be meeting your health and safety obligations.

Health and safety compliance requires continuous monitoring of risk assessments, and adopting processes to ensure those risks are removed or mitigated. It involves creating a workplace culture where everyone within the business is actively involved in exercising safe practices.

There is no substitute for the unique knowledge a business's owner and workers have regarding their industry, their workplace and facilities, and work practices.

WorkSafe advise businesses need to be aware of what consultant costs are involved and what they can expect to receive for that money.

Health and Safety Association of NZ (HASANZ) – a national umbrella organisation representing all workplace health and safety professions - has developed a brief checklist of questions to ask an H&S consultant, to help businesses choose a qualified and competent adviser:

Which professional association do you belong to - can you confirm this?
What qualifications and/or certification do you have?
What relevant skills and experience do you have for this job?
Can you give me examples of similar work you have done recently?
Are you happy for us to contact your clients about your work for them?

WorkSafe is currently working on creating a register of health and safety consultants. You can also find health and safety advice, resources and templates on WorkSafe's website.

As always, if you have any questions please feel free to contact us - we will be happy to assist.

Two-factor authentication - stop hackers at the gate

2017-12-20T09:00:00+11:00

Passwords - they are both the saviour and bane of our modern world. We all want and need to protect our data, however the barrage of sites, apps and devices requiring unique and hard-to-guess passwords is frankly overwhelming. Most people will have experienced the frustration of being locked out of their own accounts by forgetting a login or password.

The common temptation to use an simple password, and then re-use it across many sites, puts us at high risk of cyber-attacks. Once obtained, this password will be all a hacker needs to access our digital lives, including identity and banking information. This is where two-factor authentication comes in.

What is two-factor authentication?

Two-factor authentication (2FA) – also known as multi-factor authentication or two-step verification – adds a second layer of protection to your accounts to strengthen your login. In the event your password becomes compromised, it would not be enough for an attacker to gain access to your online accounts.

Benefits of 2FA

Provides protection against hackers
Keeps online accounts safe
Protects your identity
Free and easy to set up
Available on most popular websites today

How does 2FA work?
2FA uses different forms of credentials to confirm it's really you.

Step (or factor) one is something you know, eg a PIN number or password. When this is accepted it will ask for step two to be entered, consisting of an additional code or unique identifier, in order to access your account.

Examples of factor two verifications include:

Something you have (hardware/ software) eg

A code sent to your phone via SMS

A physical token which generates a code

An app on your phone which generates a code

Something you are (biometrics) eg

A fingerprint or retina scan

Voice recognition

Using more than one unique identifier reduces the chances a hacker can access your accounts, even if they successfully get past step one.

Where can I use 2FA?

Many of the world's largest websites and providers now offer 2FA on their user accounts, including:

Email accounts, eg Gmail, Outlook and Yahoo
Social media accounts, eg Facebook, Instagram, LinkedIn and Twitter
Online banking, eg ASB, ANZ and Westpac
Communication accounts, eg MailChimp, Skype and WhatsApp
Online shopping sites, eg Amazon, Apple and eBay

Many devices also support 2FA, including laptops, tablets, smartphones and some gaming consoles.

How do I set up 2FA?

Each site may vary in how they apply 2FA, but it usually takes only a matter of minutes set up and activate.

Check for 2FA under your online accounts' security settings, or search the directory of Turn It On, a dedicated 2FA resource site, to see which websites offer 2FA as a security option, and step-by-step instructions on how to enable 2FA on that site.

Tips for using 2FA

Once you have 2FA enabled, remember to:

Continue exercising best-practices for passwords and PINS:
1. Don't share passwords/ PINS with other people
2. Don't use passwords containing personal information
3. Use a mixture of numbers, symbols and upper and lowercase letters
4. Don't re-use passwords across multiple sites and devices
5. Aim for passwords which are long, strong and unique (easy-to-remember = easy-to-guess!)
Keep any hardware used for your step two codes (phone, device or token) safe and secure
Change your password immediately if you receive a step two code you didn't instigate. It may mean someone has obtained step one (your password) and is attempting to access your account

Staying cyber-savvy can be tricky in this ever-changing technological landscape, so we encourage you to contact us if you are concerned about your cyber security.

Related articles - Here are some of our past blog posts we think you might also be interested in:

	Xero or Zero? Phishing scams claiming to come from Xero accounting software
	Scam alert from Inland Revenue, and tips on safeguarding your identity
	Gone phishing - how to spot a scam before it spots you!

PAYE reporting - an overview of the proposed changes

2017-12-15T09:00:00+11:00

If you are an employer you will be aware of the ever-evolving rules for compliance to meet the requirements of Inland Revenue and other government bodies. You'll also know this often involves a lot of administrative work on the part of the business owner in order to meet these obligations.

To alleviate compliance costs and administrative burden, the Government is working on modernising the New Zealand tax system to make it simpler and more certain for all New Zealanders. PAYE administration is being reviewed as part of this reform. By utilising modern digital technology, the proposed changes would integrate tax obligations into employers' processes and systems, making tax compliance a part of the process of paying wages as opposed to a separate, additional activity. These legislative changes will be part of a taxation bill to be introduced into Parliament.

The Government state the aim of the proposed changes to PAYE reporting is two-fold:

To simplify and streamline PAYE administration in order to reduce compliance costs for businesses and not-for-profit organisations. Research has indicated that similar reforms in GST have already contributed to a reduction of more than 20% in compliance costs
To improve accuracy of employee deductions, identify issues faster, eg employees using incorrect tax codes, and reduce the chances of employees missing out on entitlements or incurring debt

It is acknowledged there may be software costs and/or costs associated with changes to processes involved, however the goal is to reduce the extent to which Inland Revenue imposes separate or additional requirements on employers. In other words the intention is to make things easier, and the long-term savings of time and/or money should outweigh any initial implementation costs.

Proposed changes – an overview

Employers would no longer need to file employer monthly schedules (IR348); instead they would file all their PAYE information on a payday basis. "Payday" is defined as the day on which an employer makes a payment of PAYE income to an employee, and "payday basis" means employers would need to file with Inland Revenue within 2, or 7, working days following each payday (see point 4 and 5 below for further detail). For weekly pay cycles, this would mean filing 52 times a year; fortnightly means filing 26 times a year
Employers using payroll software would be able to supply PAYE information to Inland Revenue directly from their payroll system using an integrated filing function. You would not need to leave your payroll program or download/upload reports in order to file PAYE
Anyone not using payroll software will not be required to start doing so but would still have to file PAYE on a payday basis
The electronic filing threshold (currently set at $100,000 of PAYE and Employer Superannuation Contribution Tax (ESCT) deductions per year) will reduce to $50,000. If you fall under this threshold you will still be able to file using paper forms; anyone over this threshold must file electronically
Anyone falling above the electronic filing threshold, and all payroll intermediaries and employers using payroll software, would be required to file by the second working day after payday; for all other employers it would be seven working days. Employers above the electronic filing threshold but unable to file electronically (eg no access to internet services, or not using computers) can apply for an exemption
The Government is not proposing to change the payment due dates of PAYE and related deductions, however employers will be able to make these payments on payday if they choose to do so
The Government's current payroll subsidy would cease from 1 April 2018
Under the proposed changes, employers would have the option of filing PAYE information each payday from 1 April 2018, and it would become mandatory to do so from 1 April 2019

This is a very brief summary of the PAYE changes being proposed in the taxation bill, and we welcome your questions if you are unsure how these changes, if introduced, may impact your business. Please phone or e-mail our employment, HR and payroll specialist, Vicki Cozens – she will be happy to discuss any concerns with you.

Vicki Cozens

Chartered Accountant

Xero or Zero? Phishing scams claiming to come from Xero accounting software

2017-12-07T09:00:00+11:00

If your creditors issue you invoices via their Xero accounting software you will probably be familiar with the basic format of these emails.

What you should also be aware of is that scammers are exploiting the simplicity of Xero emails by sending convincing-looking scam emails replicating the content. They may look similar to this one, which was recently received by one of our clients:

Xero have advised that genuine Xero emails will always come from a xero.com domain or sub-domain address, such as:

@xero.com
@post.xero.com
@send.xero.com
@sendnz.xero.com
@support.xero.com

Xero warns against taking any form of action on emails not originating from their xero.com domains, however this is not a fool-proof method of determining authenticity, as some phishing scams attempt to spoof (impersonate) the xero.com domain (as is the case in our example illustrated above). These emails will appear to legitimately originate from xero, but are in fact being sent from a different domain.

Just a few examples of emails/ domains which are NOT used by Xero (and are therefore definitely scams) include:

subscription.notifications@post.xerosys.com
subscription.notifications@post.xero.biz
subscription.notifications@xero.secpay.org
emailinvoice@xero.co.nz
accounts@post.xeros.com-au.tk
info@billingxero.co.nz

So what can I do to protect myself?

Some things to look out for when trying to spot malicious email:

incorrect grammar or spelling, especially very basic errors in sentence wording and construction (in our example above, note the "is" missing from the subject line - "Your xero invoice available now.")
the true URL's (web addresses) of links not matching what is being shown in the email (you can check this by hovering (DO NOT CLICK!) over the link with your mouse pointer - watch to see if the URL that pops up is different to the one it is claiming to be) (in our example above, the blue link to the invoice was in fact pointing to another URL, ie not https://in.xero.com/...)
the email is requesting information from you which should already be held by the legitimate organisation, or is asking for information which is not in any way relevant to your business with them
urgent calls to action, such as threats an account will be closed if you do not respond immediately by clicking this/ opening that. Scammers are trying to scare you into acting impulsively
unusual or unexpected presentation of information, eg: generic salutations such as "Dear Sirs" or "Hello" instead of your name or organisation name; the senders email address doesn't look right/ is unfamiliar; the email's content is worded or laid out differently to how you usually receive it (in our example above, note the absence of a name after "Hi", yet there was a space preceding the comma to indicate a name should go there)
the sender is not someone you have ever had dealings with. With Xero invoice scams it could mean a company name which is not known to you, or emails from, say, UPS (United Parcel Service) when you've not ordered anything, or someone claiming you've won a competition you never entered, and so on (in our example above, the client did not recognise NJW Ltd as a supplier)

Even if an email seemingly passes all of the above 'tests' but your instincts tell you to be wary, err on the side of caution and delete it, or follow up with the organisation concerned directly (ie not by following any links inside emails).

Xero recommends forwarding any Xero-branded scam emails to them at phishing@xero.com. Xero's Security Noticeboard is where they update their community members on known scams, along with recommendations on keeping yourself safe.

If you are concerned about any suspicious emails you have received, we strongly recommend contacting us before taking any action. We are only a phone call or email away.

Related articles - Here are some of our past blog posts we think you might also be interested in:

	Scam alert from Inland Revenue, and tips on safeguarding your identity
	Gone phishing - how to spot a scam before it spots you!

'Tis the season for public holidays

2017-12-05T09:00:00+11:00

This year the public holidays fall on the following days:

Some things to remember when paying wages over this period:

If a public holiday falls on a day your employee usually works, they are entitled to a paid day off.
You can only require your employee to work a public holiday if it is written in their employment agreement.
If an employee works on a public holiday work AND it is a day they normally work you must:
1. pay the employee time and a half for the hours worked, and;
2. provide them with another paid day off at a later date (day in lieu)
The employee is entitled to a full alternative day off (day in lieu), regardless of how many hours they worked on the public holiday.
Employees won't be entitled to a day in lieu if they only ever work public holidays or wouldn't normally have worked that day.

Remember, if you need some help working out public holiday entitlements this year, our employment, HR and payroll specialist, Vicki Cozens, is only a phone call or e-mail away.

P.S. Want some 100% FREE advice from Vicki? Catch up with her at The Orchard on Tuesday, 12 December. Read our blog post (linked below) for further details or to add a reminder to your favourite e-calendar.

Related articles - Here are some of our past blog posts you might also be interested in:

	Would you like FREE advice relating to employment, HR and/or payroll matters? Read: Our December "hot desking" date at The Orchard
	Do you have a bach or holiday home which is sometimes rented out? Read: Taxing relaxing - when is holiday home income taxable?
	Unsure about what employee leave and wage records you need to be keeping for all your staff? Read: Employee holiday and wage records - a handy checklist for employers
	Will you be throwing end-of-year client functions or a staff Christmas party? Read: Entertainment expenses - not all fun and games!
	Planning on renting out your spare room(s) to make some extra money over the holidays? Read: Are you an Airbnb host or renting out rooms? Read on so you don't get caught out!
	Unsure how to define an "Otherwise working day" or rules around public holidays falling due during close-downs and annual holidays? Read: It's (Public) Holiday season again! Employer tips to getting it right

Our December "hot desking" date at The Orchard

2017-11-29T09:00:00+11:00

Some things are just better in two's: ears, socks, doughnuts.

With that in mind, this month we give you
not one, but two accounting brains to pick!

You read that right, FREE tax advice from two fully qualified and experienced Chartered Accountants!

Jessie and Vicki both have loads of knowledge in various fields, so if you want to know about:

Provisional tax
Employment and HR (thinking of taking on casual staff to cover your busy season?)
GST
Health and safety
FBT
Payroll (think of those upcoming public holidays!)
Tax pooling
Well, you get the idea ...

Then you should definitely head to The Orchard on Tuesday morning, 12 December, to catch-up with one (or both) for some sound advice. It will be our last hot desking date for 2017, so wrap up the year in a neat ribbon by directing your two legs over to 85 Cameron Street - they look forward to meeting you.

Add event to your favourite e-cal:

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Can't make it on Tuesday? No problem! You can also e-mail Jessie or e-mail Vicki

Jessie Alison

Chartered Accountant

Vicki Cozens

Chartered Accountant

Naming rights - how to choose an effective business name (pt 2)

2017-11-21T09:00:00+11:00

Part 16 of our blog article series: "Strategies for business success"

(and part 2 of 2 of our mini blog series on "Naming rights - how to choose an effective business name")

In part 1 we provided you with some ideas to help you get started on a list of possible business names. That divine spark of inspiration can be elusive, but hopefully our tips gave you the starting block to clear any pesky cobwebs.

Following on from there we'll now run through some of the things a good brand name should do, to help you whittle that list down to just one.

Remember that your business name needs to work hard for you – it doesn't just get to sit around idly above your front door, resting on its laurels. So appraise your shortlist carefully and consider if each of the names meet at least some of the following:

Evoke emotion

Us humans tend to be an emotional bunch, so much so that, according to scientists, emotional recall happens in the brain much faster than rational recall. That is, we will feel much faster than we think. Use this to your advantage when naming your business to create an emotional connection and a deeper brand loyalty. Consider the names "Nana's Biscuits" and "Homebake Biscuits" - both suggest they are freshly baked at home, but no one makes biscuits quite like Nana, right?

Convey your values

Is your brand ethically aware? Is it upholding certain values, such as humane animal treatment, or ethical sourcing of raw product materials? In today's saturated consumer markets, having a defined ethos can be the difference which makes a customer choose your brand over your competitors. Incorporating your values into your brand name can help cement your business image as one of integrity and trustworthiness.

Reference what you offer

A good strategy for businesses on a budget is having a name that tells customers what you are offering. This can minimise money spent on marketing and also gives you better SEO (Search Engine Optimisation) – whenever potential customers search the internet for your product or service, you will show more prominently in the search engine results because the product is right there in your company name! This could prove to be a very competitive advantage over competitors with more abstract names, as everyone is clamouring to be at the top of the search results page.

Concise and memorable

We are bombarded 24/7 by advertisers trying to get our attention, so it can be hard work trying to be heard amongst all the noise. With consumer attention spans stretched to capacity, it helps to keep your business name short, memorable and easy to spell.

Many of the big companies we're all familiar with – think Google, Netflix, and Uber – use single-word names because they are easy to remember. And with more and more people using mobile devices to access the internet, short names and URL's are also faster to enter.

Be mindful of your choices of spelling too – a single wrong character when typing out a web address means a potential client may not find your site (or worse, land on the opposition's website). Word-of-mouth referrals (the best kind of organic, free advertising) will also come easier if people aren't struggling to pronounce or spell your company name. Before committing to a name, think about how your name sounds when spoken out loud, not just how it looks on paper.

To wrap up ...

When thinking of names, there is no right or wrong, but there is definitely a good, better and best. Pit your names against the above considerations towards branding and marketing, and you will eventually arrive at one that simply jumps off the page and screams "EUREKA!"

This concludes our blog article mini-series on 'Naming rights - how to choose an effective business name'. Please feel free to share this article on Facebook, or leave us a comment below to let us know what you thought - we love your feedback!

BLOG COMMENTS

What factors would you consider when choosing a name? Are there important considerations you think we've missed off our list?

Keep on eye on our blog this month as we present a series of articles on
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You won't want to miss these!

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Is your company culture hurting your profits?

2017-11-17T09:00:00+11:00

Company culture has long been linked to business performance, and while a strong culture doesn't guarantee business success, it does provide a foundation for it. Conversely, a poor culture can actually damage your business.

While it's easy to think of business culture as a bit "soft" compared with, say, achieving sales, a 2014 study shows this is not the case, reporting that public companies named in a "Best Places to Work" list in 2009 outperformed the S&P 500 by 115% in the following five years.

The study suggests that a culture which engages and motivates employees helps the bottom line. But the reverse isn't true: A company's success isn't enough to produce a positive culture, and companies that succeed without a positive culture are likely to see performance decline.

If your business is currently performing well, great. But if it's doing so at the expense of employee satisfaction and happiness, chances are that your success is unsustainable – especially in economically tougher times.

So what proactive steps can you take to improve your company culture?

Understand your team

The key to understanding your team is finding out what motivates and drives each person. For example millennials are typically willing to give up a substantial amount of salary to work at a job that provides a better working environment. Millennials also favour companies with better diversity and inclusion programmes.

An Australian study showed that organisational culture for older workers was particularly positive in companies led by older CEO's with positive attitudes towards older workers.

The key point is that, at an organisational level, a positive age-diversity climate is linked to higher company performance. It all boils down to understanding your staff. In other words, what's good for older employees is also a good fit with the values of your millennial staff.

Creating a discrimination-free environment (not limited to age – also include gender, culture, sexual orientation, etc) provides your company with a diverse and multi-faceted workforce.
Be flexible

Workplace flexibility matters why? Because the "work to live, not live to work" mantra has resonated with today's employees, and so flexibility and a healthy work/ life balance is highly sought after.

Adopting an open mind towards the flexible workplace helps you:
- Attract and retain top talent
- Gain access to a broader talent pool
- Achieve increased productivity
- Respond to changing market needs
If you are open to negotiating working hours and/ or flexible work locations (eg working from home), make this clear when advertising job vacancies.

If your position is rigid in this regard, perhaps consider taking this option for a trial run. You may be surprised by the increase in employee satisfaction and overall productivity.
Empower your staff

A key to a strong internal culture is having staff think and behave like business owners.

By giving your staff the autonomy to put customers first, your business will benefit and your employees will feel valued. For instance if you're in retail, trust staff to make swift decisions about refunding unsatisfied customers or replacing goods they didn't like.

Delegating all but the most complex decisions to whoever has the most customer contact ensures customers issues are sorted quickly and efficiently. Your own time will be freed up, your customers will be happier, and so will your front-line staff.

Want to read more of our articles on how to achieve a happy workplace? Check out our mini blog series "How to build a great team":

	Part 1: Employee recruiting - creating job listings to attract the right people
	Part 2: Employee on-boarding - how to do it best to impress
	Part 3: Employee retention - how to create a culture of happiness

Our November "hot desking" date at The Orchard

2017-11-14T09:00:00+11:00

"Put away that wallet mate, your money's no good here" ...

... is something you normally don't hear an accountant say.

However if FREE advice sounds good to you (and it should), you definitely need to head to The Orchard on Monday afternoon to catch up with our delightful Jessie for some friendly, unbiased tax advice.

So go on, tuck your wallet back in your pocket and save the date to your calendar. We've even made it super easy to add a reminder to your favourite e-cal!

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Can't make it on Monday? No problem! You can also e-mail Jessie

Jessie Alison

Chartered Accountant

NZ trust law to be overhauled

2017-11-10T09:00:00+11:00

The Trustee Act has been under review for some time. The changes being proposed are to make trust law easier to access and understand.

On 1 August, Justice Minister Amy Adams introduced the Trusts Bill to Parliament. This will be the first significant change since the introduction of the Trustee Act 1956.

The old Act has been viewed as being narrow in scope, with trust administration being complicated and expensive.

Most trusts, like family trusts, business trusts and protective trusts, are set up with a trust deed or other document, such as a will. These are known as express trusts.

The draft Bill expressly states that trustees will have to:

Know the terms of the trust
Act according to the terms of the trust
Act honestly and in good faith
Hold trust property
Act for the benefit of the beneficiaries or the permitted purpose
Exercise trustee powers for a proper purpose

Although a trustee must not use a trust for self-benefit or act where there is a conflict of interest, many trust deeds specify situations in which a trustee can act in their own interest, such as when a trustee is also a beneficiary.

The Bill does not address relationship property issues, which will be considered as part of a broader review of relationship property law, by the Law Commission.

There should also be no need to change existing family trusts, as the new Act will largely restate existing law.

A new process for disclosure

The draft Bill includes a process for disclosure of trust information. This includes the trust deed, documents relating to the property and administration of the trust, and other information holding trustees accountable. Trustees will have some flexibility with disclosure, but the Bill favours keeping beneficiaries informed.

Exceptions for specified commercial trusts

If a specified commercial trust arrangement was created before the beginning of the Act, it will be exempt from some provisions. That could reduce the need to amend existing terms, like trustees keeping particular information and providing certain information to beneficiaries.

Specified commercial trusts created after the beginning of the Act will be able to modify or exclude specific provisions, such as those that protect the rights of lenders and borrowers.

The FMCA and trusts

Particular express trusts subject to the requirements of the Financial Markets Conduct Act are not subject to some of the Bill's requirements. The FMCA is to be amended to reflect the Bill's wording with regard to various duties relating to the functions of supervisors and managers.

If you would like to discuss what a trust would entail or what your responsibilities might be as a trustee, contact us.

What does all this mean for you?

Quite possibly, little or nothing. But if you've had a trust quietly ticking away in the background for some years, it could mean a lot. Our advice is to get in touch with us to discuss your trust and any possible impact.

Naming rights - how to choose an effective business name (pt 1)

2017-10-31T09:00:00+11:00

Part 15 of our blog article series: "Strategies for business success"

(and part 1 of 2 of our mini blog series on "Naming rights - how to choose an effective business name")

One of the very first things on the to-do list when starting up a new business is deciding on a great name.

Choosing a name can be a fun exercise, an opportunity to let your creativity flow, however it can also feel like an overwhelming responsibility – much like the angst associated with naming your newborn.

But fear not! We'll take you through some suggestions on how to get started on compiling a list of potential business names, and in part 2 we'll run through some of the things a good brand name should do, to help you whittle that list down to just one.

Get resourceful

If your mind is a complete blank and you don't know where to start, it can be helpful to refer to some resources for inspiration. Internet searches, dictionaries and thesauruses, White (or Yellow) Pages, and so on. Find words you like, or that have particular relevance to your business, and play around with different combinations.

There are also loads of website programs (often free to use) which will generate business name suggestions based on your input of a couple of key words. Try businessnamegenerator.com or naming.net, with plenty of others available online as well. Even if they don't create a "eureka!" moment, they may at least help to budge that persistent mental block.

Check out competitors

What are the names of your local competitors? How about nationally, or even worldwide? Using the power of the internet, researching businesses in the same industry can give you inspiration on what (or what not, if they are dreadful!) to name your business, but will also tell you which names are already taken – good to know, for intellectual property purposes. A quick way to check if your preferred name is available is to enter it at onecheck.business.govt.nz – it confirms if the name can be used as a company name in New Zealand, if the domain name is available, and/ or the name can be trade-marked.

Whilst researching competitor names, also check out how these businesses are leveraging their brand for marketing and advertising purposes, and if their strategies look effective.

Research your customers

Consider your market and the type of customers you are wanting to attract, and use their demographics to guide you. You might want to use tongue-in-cheek humour, convey your hip, contemporary style, or establish a professional image – all of these are effective strategies, provided they speak to your target market.

Relate to your industry

A lot of naming cues can be gleaned from your particular industry too. For example, "Accountants R Us" does not paint the sort of professional image you'd expect from your accounting firm, nor does "Smith & Sons" invoke the image of a tech startup.

Get feedback

Make the most of your contacts – your friends, family, associates, possibly even current or potential customers – by asking them for their suggestions and/ or feedback. This will help you gauge reactions before committing to printing 10,000 business cards. Get an online poll started, or sit down for a brainstorming session. You might be surprised with the results!

Still stuck?

If you are still struggling, you also have the option of bringing in a branding professional. There are costs involved with engaging these services, but their expert knowledge and skills in marketing may well pay for themselves in the long run.

Look out for part 2 of our blog article mini-series on 'Naming rights - how to choose an effective business name', where we'll discuss some of the things a good brand name should do for your business. Please feel free to share this article on Facebook, or leave us a comment below - we love your feedback!

BLOG COMMENTS

Where do you find inspiration for names? Have you come across any business names that you think are particularly brilliant or exceptionally awful?

Keep on eye on our blog this month as we present a series of articles on
strategies for business success

You won't want to miss these!

Subscribe to our monthly blog titles e-mail

Taxing relaxing - when is holiday home income taxable?

2017-10-27T09:00:00+11:00

If you sometimes rent out your holiday home, you may have to pay tax on that income. Inland Revenue says you have a "mixed-use" holiday home if, during the tax year, you use it for:

Private use, and
Income-earning use, and
It's unoccupied for 62 days or more.

It will still be deemed private use if you receive rent from family members, or from non-family members who pay less than 80% of market rates.

The property becomes "income-earning" if you get rent from non-family members at 80% or more of market rates. You must keep a record of the days it is used for income earning and those for private use, unless the situations below apply.

You can keep the property outside the tax system if it's privately owned, and your income-earning revenue is less than $4,000 a year. You can also remain outside the tax system if you make a loss, and your gross income from income-earning use is less than 2% of the property's rateable value.

If you are required to return the income for tax and an expense relates to income-earning use and private use, you need to apportion it using the formula below:

expenses x income-earning days

income-earning days + private use days

If you make a loss from your mixed-use holiday home, and your gross income from income-earning use is less than 2% of the rateable value, you can't claim the loss in the current year. You must carry it forward to offset against income from your holiday home in a future tax year.

If you're unsure if your holiday home is classed as "mixed-use", please drop us a line - we'll be happy to discuss your unique situation.

Our October "non-hot desking" date at The Orchard

2017-10-25T09:00:00+11:00

As a sponsor of The Pick 2017, our team are currently hard at work putting together a workshop for the 20 finalists of the Northland business ideas challenge, hosted by The Orchard.

The workshop is aimed at providing the finalists with quality business advice and the financial skills to help them on the road to success.

As the workshop will be presented at The Orchard early next month, we are opting to miss October's Hot Desking day in order to focus on designing a power-packed presentation.

But don't despair, we will be back again in November for free advice, friendly chats and perhaps even free bikkies*.

* Subject to us remembering to bring them, and resisting the temptation of eating them en route!

Have a pressing question that can't wait? No problem! Flick us an e-mail

Vodafone emails shut down 30 November - make the switch now!

2017-10-20T09:00:00+11:00

Vodafone has announced it will close its email service down on 30 November 2017. They declared their "email service is no longer delivering the sort of experience [their] customers need today".

This means any email addresses with the following domains will cease at the end of next month:

clear.net.nz	quik.co.nz
es.co.nz	vodafone.co.nz
ihug.co.nz	vodafone.net.nz
paradise.net.nz	wave.co.nz
pcconnect.co.nz

If you are currently using an email address which will be affected by this and ...

You have not already set up another email address:

We recommend you do this as soon as possible to avoid possible business interruption and/or loss of important emails and contacts.

You will also have time to set up automatic forwarding of emails to your new email address (similar to a postal redirection when you move house), and notify important contacts, agencies and providers of your new email.

Vodafone have endeavoured to make the change-over as easy as possible by setting up a comprehensive information website, with links to recommended alternate email services (Gmail or Outlook), FAQs, checklists and how-to videos. Click here to check out their site.

If you have already arranged another email address:

We would like to update our records to ensure you experience no interruption to client services or email communications. Please click here to advise us of your new email address using our online contact form, or send us an email.

Jessie and Pam welcomed as members of CA ANZ

2017-10-19T09:00:00+11:00

We are very proud of our two team members who were honoured at the Chartered Accountants Australia and New Zealand's Northland Gala Dinner 2017, held at the Turner Centre in Kerikeri last Friday.

Jessie Alison and Pam Brown were formally acknowledged and welcomed as new members to CAANZ, where they were presented with certificates to mark their achievement after many years of hard work and study.

Jessie Alison is now a Chartered Accountant, and Pam Brown is an Accounting Technician. Congratulations to you both!

Check out their photos below:

Jessie Alison receiving her certificate

Pam Brown receiving her certificate

The boarder line - when is rental income not taxable?

2017-10-17T09:00:00+11:00

If you receive income, you must pay tax. So if you have rental income, you have to pay tax on it, right? Maybe, maybe not – if you receive rent from boarders.

When you get income from boarders, your tax position depends on how many boarders you have, and how much you charge, compared with Inland Revenue's standard-cost method. In other words:

If you have . . .	Then the standard 2017 cost is . . .
One or two boarders	$263 a week for each
Three or four boarders	$263 for boarders one and two, and $215 for boarders three and four

If you charge less than standard-cost figures for four or fewer boarders, you don't have to declare that income and you cannot claim any loss.

If you charge more than the IRD standard-cost amounts, or you have five or more boarders, you may have to pay tax. Your return must not only show all payments received, but list actual costs, backed up by full documentation (this is called the actual-cost method).

If you and your spouse or partner have boarders and tax is payable, the person who's most directly involved each day should declare the income.

If you get your income for board in advance, it's taxable in the year in which you receive it.

Residential rentals

Owning property for generating rental income is a taxable activity, even though it is not usually classified as carrying on a business.

Expenses relating to the rental property can be claimed, such as:

Rates and insurance
Interest
Fees or commission
Repairs and maintenance
Related motor vehicle and travel expenses
Mortgage repayment insurance
Accounting costs for preparation of related accounts
Depreciation (excluding the building)

Rental income received in advance is taxable in the year you receive it.

The tenancy bond is not taxable, as it is passed on to Tenancy Services. Any amounts paid to the landlord for damages when the tenants leave is taxable income.

You cannot charge GST on rent, or claim it on the property's purchase price or ongoing rental costs. When you claim deductions, you use the cost of the expense, including GST. However, that's not the case for homestays, farm stays, bed-and-breakfast businesses, short-term stays (think Airbnb) and other types of commercial dwelling.

If you would like to have a chat with us about your sources of rental income or the expenses you can claim, please drop us a line - we'll be happy to assist.

Labour Day approaches - a quick reminder of workers' public holiday entitlements

2017-10-16T09:00:00+11:00

With the first public holiday since the beginning of June approaching (Labour Day, which will be observed next Monday, 23 October 2017) we briefly remind employers of workers' entitlements on NZ public holidays:

If your business is open AND;

you require your employee to work AND that day is one the employee would normally work - the employee must be paid for the hours they work at a rate of time and a half. They are also entitled to a day in lieu (alternative holiday), to be taken at a later date.
you require your employee to work AND that day is one the employee would not normally work - the employee must be paid for the hours they work at a rate of time and a half. They are not entitled to a day in lieu (alternative holiday).

If your business is closed AND;

that day is one the employee would normally work - the employee must be paid for the public holiday at their relevant daily pay (or average daily pay).
that day is one the employee would not normally work - the employee is not entitled to any payment for this day.

If you require assistance working out public holiday entitlements, please contact Vicki, our payroll and employment specialist.

Vicki Cozens | Chartered Accountant

E-mail Vicki

Are you a contractor or thinking of contracting? Here are tips for success

2017-10-06T09:00:00+11:00

There are many benefits to being a contractor but there are also a raft of responsibilities and hidden costs involved. We've collated some helpful tips and information from business.govt.nz to ensure you don't get caught out.

What to charge?

Your charge-out rate must cover the costs an employer would pay for if you had a salaried job. A good method is to take the rate you would earn from a similar salaried job and add at least 20%, eg:

$50 per hour salaried rate
Plus 20%
= $60 per hour contract rate

Use the MBIE charge-out rate calculator below to work out a suitable hourly rate. When it asks you to enter a salary, put in your projected annual income instead.

Finding out what the market rate is, or what similar contractors are getting paid, can also help you when negotiating your rate.

Record your hours

If you're contracting though an agency, you'll be expected to fill in timesheets that break down the hours you work. These will be used to bill the client.

Even if you don't have to do timesheets, it can be a useful discipline. Write down your hours as you go instead of trying to remember at the end of the day or week. Better still, use a smartphone app - there are several on the market and many are free.

You'll also need to decide how you'll charge for your time - eg by the hour, half day, or full day - and put it in your contract.

Keep the work lined up

To avoid unplanned gaps in work, keep looking ahead for the next contract. This will involve actively promoting yourself, reaching out to your networks and keeping your finger on the industry's pulse:

Use your networks: Many contracts are found by word of mouth. The more you put yourself out there, the more contracting work you'll hear about. Approach:
- people you've worked with
- friends and family
- relevant professional associations
- contacts on professional networking sites, eg LinkedIn
Let people know you're looking for work, what you're looking for and when, and your skills. Building your networks takes time.
Build a good reputation: In contracting, your reputation is everything. Do a good job and your next contract will be much easier to find. If you don't have the right skills to do a contract, be honest - no matter how much you want the work. People will judge you on the work you do and your approach, so remember to always be professional.
Make time to look for your next contract: Plan time to network and look for contracts. Meet people for coffees, speak to industry contacts and keep an eye on industry news and jobs sites.
Demonstrate you understand the client: People often hire contractors to fill a gap, solve a problem or tackle a job that urgently needs doing. Show clients you can quickly fit in, get the job done and have the skills to address whatever it is they need. This will help build your reputation.
Consider the time of year: If you're deciding between two contracts, pay attention to when each one ends. For example, it can be hard to get new contracts between December and February, when organisations wind down for Christmas and summer. If you contract to government agencies, there can be lean pickings in the run-up to an election.

Budgeting for the (un)expected

Many contractors overestimate what they can earn in a year. Make sure your contracting rate covers things an employer would normally pay for, eg holidays and time off sick. Here's how to budget for the ebbs and flows - and the expenses - that come when you work for yourself:

Broken income: If you're contracting, you may have unplanned gaps between the end of one contract and the start of another. Ideally put aside some income in case you don't have continuous work.
Sick days: It's a good idea to factor in not being able to work five days a year when you're too sick to work. Include this in your hourly rate calculation.
Public holidays: When you're a contractor you may not be able to - or want to - work on public holidays. In New Zealand we have 10 national holidays, eg Easter and Labour Day, and one holiday per province, eg Hawke's Bay anniversary day. Budget for these as well.
Annual leave: Some contractors budget to use gaps between contracts to take a holiday, but if you don't save a buffer you may find you can't relax or go away between jobs.
Expenses: You may need to buy or replace equipment like a computer, tools or safety gear. You can claim these back when you do your taxes.
Insurance: Ask yourself what could go wrong at work, and think about types of insurance that might cover you for these risks. You might also want to protect your assets, vehicle or buildings against loss or damage. Public liability insurance is important as it covers you if an organisation sues you for damaging their property or reputation.
KiwiSaver: It's a good idea to plan for your retirement. As a contractor you have to set up and pay into KiwiSaver yourself. If you pay in at least $20 a week, or $1,043 a year, you'll get a $521 top-up from the government.
Taxes and ACC: Put away enough money regularly, eg when your invoices are paid, to pay your income tax, ACC and - if you're registered - GST. Keep the money in a separate account so you don't spend it by mistake. Think about opening a high interest account for this purpose.

Common mistakes

Not holding on to all the records you need to keep. Check out Inland Revenue's handy record keeping checklist to keep yourself compliant. TIP: Keep hard-copy records attached to your GST return for that period. That way if Inland Revenue asks to see them, you'll have all the information at hand.
Not having good systems or staying on top of things.
Not keeping your records for long enough. You must keep everything for at least seven years.
Leaving it too late to pay your tax. Be aware of what penalties may be imposed.
Not getting advice up front. Getting the right advice at the right time is crucial for contractors. Experts can help you to set yourself up so you don't keep making the same mistakes, eg saving the right amount for provisional tax.

The Ministry of Business, Innovation and Employment has a range of business information and resources, like templates, checklists and quizzes, on their website, www.business.govt.nz, all aimed at helping small businesses succeed.

If you are a contractor, or thinking about contracting, please feel free to drop us a line - we can assist you with:

Choosing the best business structure to trade under
Applying for financing
GST registration and filing of GST returns
Making the right expense claims
Minimising your tax bills

Information credits:

www.business.govt.nz

Accounting software - how to choose the right one for you (pt 3)

2017-09-29T09:00:00+10:00

Part 14 of our blog article series: "Strategies for business success"

(and part 3 of 3 of our mini blog series on "Accounting software - how to choose the right one for you")

Following on from part 1 and part 2 of this mini blog series, in part 3 we will compare the software features and functionality being offered up by four of the more common providers.

So let us begin by introducing the software providers and their products:

About the providers ...

MYOB is a well established Australian company with no intentions to move global. The focus will remain on Australia and New Zealand.

Xero is big and growing. There's a vibrant marketplace for add-ons and things which can help you tailor your experience.

Reckon is a well established international brand with over 600,000 users.

CRS tailor their product specifically to New Zealand farmers.

All the reviewed products offer:

	Automatic bank feeds - no more manual data input
	Auto-coding - set up rules to allocate much of your bank transactions automatically
	Cashbook functionality - for your GST
	Basic reports - to see how your business is tracking
	Budgeting - tools to manage your cashflow

Internet connectivity

MYOB BankLink and CashManager Rural both require you to install a program on a Windows PC.

BankLink stores your data on your PC and only needs the internet once in a while to download new data. It is fine on dial-up or slower rural connections.

CashManager stores your data in their cloud and needs to be connected the whole time you're using the program. They recommend low broadband speeds at a minimum.

MYOB AccountRight and Reckon Accounts give you the choice of online or offline.

Reporting

Nowadays most users don't think twice about running on-screen reports, whilst others still prefer handling printed reports. Whatever your preference may be, all of the software examined has some form of built-in reporting.

If you want custom reports, you'll have to look at the higher-end offering from each. MYOB AccountRight, Xero Standard, Reckon Accounts and CRS CashManager all allow you to build your own.

Invoicing and debtor/creditor tracking

Moving in to the mid-weight arena; MYOB Essentials and AccountRight, Xero Standard, Reckon and CRS all offer debtor invoicing. Invoices you create seamlessly integrate with the program, and allow you to track what you are owed.

Creditor tracking, ie keeping an eye on what you owe others, is also important. MYOB Essentials, MYOB AccountRight and Xero Standard allow you to save your invoices right in to the program for easy source document reference. These ones can also "read" the invoices to speed up bill creation, though this isn't polished yet.

Reckon and CRS also allow creditor tracking.

Payroll

Like invoicing, payroll is a feature reserved for mid-level and above. MYOB Essentials and Account Right, Xero Standard, Reckon and CRS offer payroll options.

We haven't had the pleasure of working with Reckon or CRS payrolls, however we can say that, in our opinion, of MYOB and Xero payrolls, MYOB just edges ahead at the technical end of the scale.

For small businesses each of the above will be perfectly adequate, however we recommend for larger clients to do further research. Payroll can get exceedingly complicated and basic software doesn't always cut mustard at the extremes.

MYOB Essentials and AccountRight, and Reckon offer apps for your employees so they can fill in their own timesheets on the go.

Accountant access

Whether it's preparing GST or helping you troubleshoot, it's much easier when you and your accountant can both be looking at the same screen.

All of the online programs allow an accountant's log-in. The offline programs, MYOB BankLink and offline AccountRight and Reckon Accounts, are a little more involved when it comes to getting information in and out for your accountant, and also for general support.

Support

MYOB, Reckon and CRS boast business hour phone support. Xero offers only online documentation and community crowd-sourcing of help.

Flexibility

In some cases you might like to choose a basic software, then upgrade as your business progresses. MYOB Connected Ledger and Essentials, Xero, and Reckon One allow fast "one-click" transitions to add or remove features on the go.

Point of sale

You can have your POS transactions integrate with the business ledger to save even more time.

MYOB Essentials and AccountRight have optional add-ons and mobile card payment devices at great rates. You can accept card payments anywhere your mobile gets reception, perfect for selling ice-creams at the beach this summer.

Xero has numerous approved 3rd party add-ons and you'll be able to find one that suits your business well.

Inland Revenue communication

MYOB Connected Ledger, MYOB Essentials and Xero offer IRD filing. When your GST is ready, you can click a button to have the information sent straight to Inland Revenue. Cut down on time and errors in copying numbers from one form to another.

The above are also developing the same for payroll filing and we hope to see this in action shortly.

Livestock management

CRS CashManager Rural's time to shine! The number one reason to choose CashManager Rural is its recording and reporting of livestock. You can make useful insights and identify strengths and weaknesses in your livestock management when these tools are used well.

The drawback is that you only get out what you put in. Use it every day and see the benefits.

Related to livestock, a farmer should aim for software that allows general quantity reporting. Fonterra milksolids produced, and livestock purchases and sales, all need to be reported on at least annually, and a software with quantities makes this much easier.

MYOB BankLink offers this right now, and it's scheduled to roll out to their other products this year.

Job tracking

Useful for professional firms, builders, and other service industries; grouping transactions in to jobs can help you identify what service line needs improving and how much you really made from a particular job.

MYOB AccountRight has this built in. CashManager Rural has a variation, in that separate farm units can be set. Reckon and Xero Standard have the option for an additional cost.

Inventory management

Retail operations can benefit from up-to-the-second accurate inventory tracking. In particular you can make sales while away from the warehouse and not have to call up to check your stock quantities first.

MYOB AccountRight, Xero Standard and Reckon Accounts provide this as standard.

Price

The cost of your accounting software, by and large, will be a pretty small part of your operating expenses, regardless of which option you pick. In saying that, you also don't want to throw away money on features you don't use.

Listed below are some prices for the various packages (current as at 29/9/17, GST excl):

To wrap up ...

You will see, from all the information we've covered, there are multitudes of considerations and factors which may affect your decision to choose one program over another. Ultimately, whatever choice you make really only needs to fulfill one vital criteria; your satisfaction. If a software program has you doing better business more efficiently, you have succeeded in choosing the software best for you.

This was the final instalment in our blog article mini-series on 'Accounting software - how to choose the right one for you'. we hope you've found the information we've compiled for you helpful. Please feel free to share this article on Facebook, or leave us a comment below - we love your feedback!

BLOG COMMENTS

What features do you value most in your accounting software? Are there particular functionalities not yet available which you hope will be introduced in the near future?

Keep on eye on our blog this month as we present a series of articles on
strategies for business success

You won't want to miss these!

Subscribe to our monthly blog titles e-mail

Daylight saving and shift work - a reminder for employers

2017-09-25T09:00:00+10:00

On Sunday morning our clocks went forward one hour. We all missed out on an hour of sleep, but on the upside we can now start enjoying more daylight hours each day.

Sunday has been chosen as the most ideal day for daylight saving changeovers as fewer people are working during that time, therefore minimising the impact on workers and employers.

If, however, you had employees working a shift when daylight saving commenced, they will be entitled to be paid their normal hours. For example if they worked from midnight to 8am on Sunday morning, they would have worked for 7 hours but should be paid for 8 hours so they are not disadvantaged by the change.

When daylight saving ends again and the clock goes back one hour (on the first Sunday in April) it works like this: someone working from midnight to 8am would end up working a total of 9 hours, and accordingly should be paid for the actual number of hours worked, ie 9 hours.

If you have any queries regarding daylight saving and its effect on paying wages, please contact our employment and payroll expert, Vicki Cozens. Click here to e-mail her - she will be happy to help.

Our September "hot desking" date at The Orchard

2017-09-19T09:00:00+10:00

How does 100% free, no-strings-attached tax advice sound?

That's right, FREE tax advice!

Make a note in your diary for this Friday morning, when Jessie will be at The Orchard again to assist anyone struggling with financial matters. No appointment needed, just drop by and say "Hi".

Add this event to your preferred calendar:

iCalendar • Google Calendar • Outlook • Outlook Online • Yahoo! Calendar

Can't make it on Friday? No problem! You can also e-mail Jessie

Jessie Alison | Chartered Accountant

The importance of cashflow forecasting

2017-09-15T09:00:00+10:00

Cash is king! We all understand that if a business runs out of cash-on-hand, it cannot operate: it won't be able pay its workers, purchase stock, or cover building lease and electricity charges. However with cashflow forecasting, you can pro-actively keep your business viable.

Cashflow forecasting is exactly what it sounds like - taking an educated guess at your up-coming sales and expenses, to ensure the former can cover the latter.

How often you forecast cashflow depends on the soundness of your business - if your business is struggling, you should ideally be forecasting and revising your cashflow every single day.

Benefits of forecasting your cashflow include:

Identifying potential shortfalls in cash balances in advance - effectively your "early warning system"
Ensuring your business can afford to pay suppliers and employees
Spotting problems with customer payments early, reducing the risk of bad debt write-off's
Keeping current information on hand for stakeholders such as banks and lending institutions

The following will help you to maintain and improve a healthy cashflow position:

Protect your cash position against revenue surprises by maintaining a cash buffer. A balance equivalent to at least two months of operating expenses acts as an insurance policy against the unexpected.
Be frugal with your revenue expectations and take action immediately if it looks like sales figures are not going to make you break even.
Credit checking up front will reduce the risk of customer non-payment. Stipulate clear payment terms on your invoices, and communicate regularly with your customers.
Every dollar you spend reduces cash reserves. The best way to protect your cash is to create a budget for the spending you know you need, and more importantly, sticking to it.

If you would like to have a chat about your business's cashflow position, please drop us a line - we'll be happy to help.

Accounting software - how to choose the right one for you (pt 2)

2017-08-31T09:00:00+10:00

Part 13 of our blog article series: "Strategies for business success"

(and part 2 of 3 of our mini blog series on "Accounting software - how to choose the right one for you")

Following on from part 1 of this mini blog series on "Accounting software – how to choose the right one for you", in part 2 we will discuss how to establish your business's accounting requirements, choosing the right package to suit your needs, and tips for successful implementation.

Choosing a software package is comparable to shopping for a new appliance – if you don't take the time to ascertain exactly what you need and how you plan to use it, you risk getting caught up in the product's sales hype. You may end up spending more on features you'll never use, whilst potentially missing out on some great functionality. The better you understand your business's needs, the better equipped you are to find the right software to match.

Establishing your business's accounting requirements

Here are some points to consider which will have bearing on your software choice:

What type of trading entity?

Whether you are trading as a sole trader, trust, partnership or limited company will affect the type of software required. For a sole trader a simple and affordable personal accounts package may be sufficient, whereas the needs of a large company will demand a robust, multi-user, full-featured system with scope for enhancements.

Do you employ staff?

Using an accounting software program which includes a payroll function will streamline the arduous payroll processes and make it easier to stay compliant.

How many transactions per month?

Assess how many transactions you process a month. Ten or less transactions per month could indicate a manual system would be the most cost-effective option. High levels of transactions would benefit from a software program that intuitively remembers past entries to maximise efficiency.

How many users?

If the number of software users is limited to one person, a fairly low-cost and basic package will meet your needs, however more than this will require a robust system capable of supporting concurrent-users.

Also consider the cost of user licences, as well as the level of access you want to allocate to different users - check the package has that capability.

How about your future needs?

Lastly, look beyond the "here and now". If you foresee a lot of business growth, you may need to choose a software package that can comfortably grow with you. After all, you don't want to be forced to move to another system again in a few years time.

Choosing the right software package – a checklist

	The software is designed to cater to your specific industry and/or business size (small, medium or large enterprise)
	All functionalities and/or add-on modules are capable of dealing with your specific requirements
	The software meets all statutory requirements, to enable you to stay compliant
	It is compatible with your current computer operating system (Windows, Mac, Linux, etc)
	The software can be customised, if necessary
	Ability to integrate easily with other programs, systems and online platforms
	High online security protocols in place with regards to keeping your business information secure and mitigating threats (especially pertinent to cloud-based software)
	Good levels of software support available (training, help desk access, maintenance and updates, and ongoing product development)
	Your accountant is familiar with the program, and it is compatible with your accountant's software

Successfully implementing a new system

Once you've completed your due diligence and made your decision to migrate, the final process is devising a plan of action to implement the new software and transfer your business data. A little bit of forward-planning goes a long way to ensuring the transfer goes smoothly:

Talk to the team

Open lines of communication are key to a successful strategy. Meet with your team to discuss the change, outline the advantages of the new accounting package, and brainstorm potential problems and solutions. Help get everyone on board and align the team's objectives. If your organisation is large you could assign a team to oversee the project.

Installation

Depending on the software selected, installation could be in the form of discs, an internet download, or the supplier managing the install. This is often a fairly quick process however larger packages can take some time and cause business disruption.

Training

Comprehensive training should be provided to all users who will work with the software - check with the supplier if training is included. In large businesses it may be prudent to give in-depth training to one or two people to become fully conversant with all aspects of the program, and they in turn provide specific training to other team members or departments.

Company set-up and data transfer

For large organisations a great deal of data will need to be loaded into the new program. Depending on the software this may be possible by data export/import functions, or by manual data-entry. Performing a range of data integrity checks afterwards can help ensure everything has been inputted or migrated successfully.

Smaller organisations may be able to fill in basic information only and switch from a cashbook to software on the first day of a new GST period.

Running parallel systems

A useful strategy you may wish to employ is to run your old and new systems side-by-side for a while. You can then compare them to ensure you're consistently getting the same results in both. In the event you discover your new system is not working as you'd hoped, you will still have the old one as a fall-back.

Going 'live' and software support

There may be some trepidation when your new software goes live, and there will be a learning curve ahead as everyone comes to grips with using the new program. However, armed with good training, software support and help desk access during those initial months, you will soon find your feet and be using that software like a pro!

Watch out for part 3 of 3 of our blog article mini-series on 'Accounting software - how to choose the right one for you' where we give you a general overview of how some popular accounting programs stack up against each other.

Keep on eye on our blog this month as we present a series of articles on
strategies for business success

You won't want to miss these!

Subscribe to our monthly blog titles e-mail

Free MYOB events happening next month - secure your spot now!

2017-08-23T09:00:00+10:00

Upcoming FREE events

Join MYOB for an Employers Essentials breakfast seminar, along with guest speakers from Inland Revenue and myHR, to discover what your business should be doing to meet employer obligations, and how to manage your payroll easier.

Event details:

Employer Essentials
Date	Time	Venue	Booking link
Wednesday, 27 September 2017	7.30 am	Barge Showgrounds Events Centre 474 Maunu Road, Whangarei	Click to book

Or how about an MYOB Tips & Tricks session, designed to help you get the most out of the more powerful features of the MYOB software products, as well as learning how to expand the capability of your software package with add-ons.

Event details:

Tips & Tricks
Date	Time	Venue	Booking link
Wednesday, 27 September 2017	3.00 pm	The Orchard Business and Event Hub 85 Cameron Street, Whangarei	Click to book

Our August "hot desking" date at The Orchard

2017-08-17T09:00:00+10:00

Next Friday morning is the day and time when you can catch Jessie again at The Orchard, offering 100% free, no-strings-attached tax advice.

That's right, FREE tax advice!

28 August is the imminent due date for provisional tax payments

if you are losing sleep over your tax bill, talk to Jessie about the benefits of

tax pooling and if it is right for you.

Add this event to your preferred calendar:

iCalendar • Google Calendar • Outlook • Outlook Online • Yahoo! Calendar

Can't make it on Friday? No problem! You can also e-mail Jessie

Jessie Alison | Chartered Accountant

Accounting software - how to choose the right one for you (pt 1)

2017-07-31T09:00:00+10:00

Part 12 of our blog article series: "Strategies for business success"

(and part 1 of 3 of our mini blog series on "Accounting software - how to choose the right one for you")

What are you currently using to handle your business finances – a manual bookkeeping system, an accounting software package, an accountant or bookkeeper, or (most commonly) a combination of these? An even better question is: how well is your current system serving you and your business growth?

In our current age of technological advancement, the rate of development of high-tech hardware and software is exponential. This applies as much to accounting software, which is becoming increasingly smarter, more intuitive and, best of all, more user-friendly.

But with all the choices currently available, how do you know which software is best for you? If you are considering moving to a new accounting software package, you have come to the right place. Over three articles we will give you the run-down on everything you need to know to help you decide.

Types of software packages

Depending on your business size and requirements, accounting software packages can be categorised as one of three product levels:

Entry level accounting

Ideal for small enterprises and sole traders, these packages provide standard accounting functions such as transaction recording and basic financial reporting. They are usually very cost-effective solutions if moving up from manual bookkeeping.

Small to medium business accounting

In addition to the standard features of an entry-level software program, they can include business operation modules such as CRM (Customer Relationship Management), job tracking and workflow management, and inventory control and stock purchase. They support the use of multiple simultaneous users.

Enterprise accounting

Predominantly for large organisations, they share many of the features of small to medium business packages, however they are more robust and offer advanced functionality and integration.

Advantages of accounting software

There are some compelling advantages to using computer software to manage your business. These include:

Simplified data entry

Entering transactions is quicker and easier than ever before, and some software programs intuitively remember past inputs, meaning entries only need to be done once.

Optimised processes

Smart software functionality can help streamline tasks which were previously time-intensive.

At-a-glance reports and analysis

Vital business data is readily accessible in a range of reports and financial statements, to facilitate informed business decisions and planning. Think profit and loss statements, debtors and creditors reports, inventory control and cashflow forecasting.

Automated tasks

Tasks which were previously done manually are able to be executed at the click of a mouse or programmed to run at a set time, saving you valuable time to redirect elsewhere within the business.

Accurate calculations

Software-performed calculations can eliminate the risk of human error, such as superimposed numbers or misplaced decimal points.

Integration with other software and supporting functions

Imported bank statements and e-filing (electronic filing) of GST returns are just two examples of how accounting software can bridge the gap between sending and receiving data to and from other online platforms.

Data accessibility

Especially relevant to cloud-based software, the ability to access your data 24/7 means you are no longer shackled to your office desk when working on your business finances. Lifting the restrictions on time, place and platform allow you to get the information you need, even when you are on your tablet in the middle of the night on the other side of the world.

Information sharing

The ability to easily distribute reports and share data with your team, your business partners, and your bookkeeper or accountant, ensures all parties are working with the most up-to-the-minute information available.

Key considerations

The list of advantages is extensive and appealing, however the following are some points to address before you commit to a software package:

Price

Whether you are buying an off-the-shelf software package or from a SaaS (Software as a Service) provider, the initial and/or ongoing costs of the software, add-on modules and support packages will play a pivotal role in your decision.

Set-up and implementation

There will be significant disruption as you migrate to the new system, including data transfer (think customer details, opening balances, chart of accounts, creditor information, employee and payroll data, etc). Depending on your business size, it can be advisable to run your old and new systems concurrently for a few months in order to validate your data output. This may mean additional time pressures on you or your team, or costs, if chargeable services are used to facilitate the transition (such as from the software provider or your accountant).

User training

In order to utilise your new software's full functionality, it is important to arrange for comprehensive product training for all end users. Initially this may mean a reduced level of productivity for your business as everyone becomes acquainted with the system, but ultimately will also ensure you and your team gain the maximum benefit from the available features. Ask your system provider if they include training as part of their set-up service.

Initial and ongoing support

Check the software provider includes a good level of product support and helpdesk access, both in the initial installation stages, and also for the product's long-term use. A software module or package that does not include helpdesk support or product updates is not worth spending money on.

Specialised requirements

Accounting software and add-on modules (such as payroll) are, by design, largely broad in scope to cater to most businesses and industries, however it is advisable to do your due diligence and research if they will work for your business model. For instance, a software package which includes basic payroll functionality might work for a small business employing ten full-time salaried staff, but would not be suitable for a large business with 200+ staff working day and night-shifts and managing multiple allowances and rates.

Watch out for part 2 of 3 of our blog article mini-series on 'Accounting software - how to choose the right one for you' where we give you tips on establishing your business's accounting requirements, choosing the right package to suit your needs, and how to successfully implement a new system.

Keep on eye on our blog this month as we present a series of articles on
strategies for business success

You won't want to miss these!

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We're hiring! Are you up to the challenge?

2017-07-10T09:00:00+10:00

Our July "hot desking" date at The Orchard

2017-07-07T09:00:00+10:00

This month's "hot desking" date is your chance to pick the brain of our resident Xero & HR/employment/payroll expert, Vicki Cozens.

That's right, FREE advice on your vexing Xero conundrums and most perplexing employment problems!

You could ask her about:

Xero tips and tricks to save you time and make you more efficient
How to calculate annual leave correctly
Employee wage and holiday records
The correct process to deal with problem employees
Employment agreements
Filing GST returns in Xero
Or anything else that is baffling you!

Add this event to your preferred calendar:

iCalendar • Google Calendar • Outlook • Outlook Online • Yahoo! Calendar

Can't make it on Tuesday? No problem! You can also e-mail Vicki

Vicki Cozens | Chartered Accountant

The Pick 2017 - are you ready to branch out?

2017-07-04T09:00:00+10:00

Want to LEAF your old day job behind?

Want to BRANCH out and experience new things?

Have you heard about The PICK 2017? It's a BUSINESS IDEAS CHALLENGE for Northlanders, hosted by The ORCHARD (that business and event hub we always harp on about). There are heaps of AWESOME PRIZES to be won and a bunch of AWESOME PEOPLE standing by to help CULTIVATE your idea from SEED to HARVEST. We are proud supporters of The Orchard and excited to be part of another great business initiative for Northland.

To find out more about the who, why, where, when and how:

click here to visit the website for The Pick 2017

MORE ABOUT
	AND

We've been providing FREE accounting advice at The Orchard business and event hub since it was formed last year. We wanted a positive forum in which to provide hands-on support to Northland businesses, and as The Orchard revolves around all things business we just had to get involved - we see it as our way of giving back to the local community and share some of our wisdom.

We didn't know what to expect when we first started "hot desking" at The Orchard, and we certainly didn't anticipate the space to become the hive of activity as it is now - less than a year after opening. This innovative shared collaborative space is bustling with people and bursting at the seams with ideas. It's awesome to see so many businesses and people from all walks of life coming through the doors.

"The great thing about The Orchard are all the passionate mentors available to help you - these guys really know their stuff and really care about supporting businesses" - Jessie Alison

So naturally, when we were approached by The Orchard to become a sponsor of their new business ideas competition, The Pick 2017, we couldn't wait to jump on board!

We think Northland is an amazing place to live, work and play. This competition is designed to bring more of those things to our great region, and we are so pleased we can offer support where it is needed. When first starting a business, or realising a great new idea, the hardest part is getting it off the ground. Here is an opportunity to get all the support you could ever dream of to get you started. You'll be surrounded by experienced business people who know all the steps you need to take, and can guide and nurture you all along the way. Don't miss out - sign up today!

Keep an eye on our blog and Facebook page for more about The Pick 2017.

Keeping your business finances in order is as easy as IOU

2017-06-30T09:00:00+10:00

Part 11 of our blog article series: "Strategies for business success"

As a small business owner, your time is often tied up with managing daily operations and work-flow, keeping your customers and staff happy, and looking for opportunities to grow your business. 'Finances' is that dreaded F-word that you would prefer to ignore rather than tackle head on.

But it doesn't have to be that difficult, as long as you stay IOU - Informed, Organised and Up-to-date:

Informed

Regular financial reviews

Reviewing your financial statements only at year-end exposes you to the risk of identifying problems too late. In order to keep your finger on the pulse and stay one step ahead, plan to set aside some time each month to review your balance sheet, profit and loss, and cash flow statements (read our blog post on tips to deciphering your financial statements).

These regular evaluations will give you invaluable insights into your business performance, provide critical data for projecting future revenue, cash flow and expenses, as well as early detection of issues in order to implement pre-emptive measures. Being aware of your financial position each month allows you to plan for business expansion and guide your business strategy.

Bring a professional on board

Accountants and bookkeepers are your trusted allies when it comes to sound advice and business expertise. Their comprehensive knowledge and access to resources can help your business:

become more efficient
identify opportunities for growth
isolate and manage risks
stay compliant with tax laws and Inland Revenue

It may seem tempting to do it yourself for the sake of saving some money, however an accountant's technical proficiency in minimising your tax bill and keeping you penalty free will almost always outweigh any cost savings you make from going it alone.

Educate yourself

It's been said that knowledge is power, and for good reason. Making the decision to learn about financial management means you are better equipped to plan your business strategy and future direction. If you understand what the figures on your financial statements mean for your business, you are arming yourself with the confidence to negotiate contracts and business agreements, and deal with banks and financial lending institutions.

Basic accounting courses are often available as correspondence or online courses, or evening classes at local learning institutes. Conduct your research to find a course provider and mode of delivery that suits your needs.

Organised

Move to the cloud

Cloud-based financial systems offer several advantages, including integration with other systems, allowing fast retrieval of up-to-date data across many platforms. They have efficient expense tracking that improves accuracy, and can deliver automation of daily financial processes to enable you to use the time-savings elsewhere.

Above all, cloud-based systems boast the unrivalled advantage of access to your information anywhere, anytime, from any device, and access to data can be easily shared with your team members and bookkeeper or accountant.

Keep business and personal transactions separate

It may seem tempting to whip out a business credit-card to pay for a personal expense (or vice versa) because it's the first card to hand when you reach into your wallet, but the messy transaction trail this leaves behind in your statements will far outweigh any immediate convenience.

Your statements will look far neater and be easier to follow if you don't have to perform correcting account transfers, so avoid these altogether by being vigilant about keeping business and personal expenses separate.

Keep good records AND reduce your accounting fees

One reason people are sometimes reluctant to engage the services of an accountant or bookkeeper is the expected costs involved. However as accountants are time-based service-providers, it makes sense that you can reduce your accounting fees simply by presenting timely and well-organised documentation. In addition to fully utilising the features of your accounting software and maintaining good communication with your accountant throughout the year, you can reduce the amount of time your tax agent spends sorting through jumbled paperwork, querying transactions and making requests for missing documents and information.

Up-to-date

Tomorrow (noun) - A mystical land where 99% of all human productivity, motivation and achievement is stored.

Don't procrastinate

When you are already busy with the day-to-day running of your business, dealing with your finances as well can seem daunting. There will always be something else more urgent which gives you the excuse to put off sitting down to your paperwork, however the undue stress you create for yourself long-term will invariably overshadow that fleeting feeling of relief.

Scheduling (and sticking to!) daily or weekly time slots for catching up on paperwork will actually reduce your stress, keep your staff, customers and accountant happy, as well keeping the money flowing in when you stay on top of your invoicing – which leads on to the next tip ...

Make sure you get paid!

This might seem like stating the obvious, but people are in business to make money, yet a surprising number of business owners do not properly keep track of their debtors – failure to invoice jobs and accurately track payments mean money is slipping through the cracks, threatening your business's viability and success.

Prioritise time, at least once a week, to generate and send out invoices for work completed, allocate debtor payments received, and chase up overdue invoices. Good debtor procedures ensure your business's billable time is being properly remunerated, and staying on top of your accounts receivable means you get a firm handle on who your good and bad payers are, and reduces the risk of bad debts and write-off's.

In closing ...

No matter what industry you're in, finances are part of the deal when running a small business; good financial management is the positive contribution you can make to secure the viability of your business model and ensure success and prosperity for the future.

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What are some struggles you've experienced with running a small business? What would be your best advice to someone starting out?

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Scam alert from Inland Revenue, and tips on safeguarding your identity

2017-06-27T09:00:00+10:00

A warning about scams claiming to be from Inland Revenue

Inland Revenue have recently released a scam alert on their website, advising of the latest methods being employed by scammers to try and obtain customers' personal information.

The most common methods used by fraudsters to collect someone's personal information are e-mail, SMS (text message) and phone scams. These include phoning and claiming to be from Inland Revenue, or sending an e-mail or SMS that appears to come from Inland Revenue or a tax refund agency.

Phone and SMS scams

Scammers claiming to be from Inland Revenue are cold calling people to say they are being investigated for tax fraud. The scammer requests personal information, including the person's IRD number, before threatening them with legal action. In some cases people are told they must pay a debt urgently or risk facing jail time.

Some people have also reported scammers leaving voicemail messages stating they are subject to criminal action for tax fraud, and leaving a phone number for the person to return the call.

Fraudsters may also claim to be calling from Inland Revenue or a tax refund agency to offer you a refund. This may be on the condition that you:

make an upfront direct payment to a bank account through a global money transfer provider
make the transfer through a false website address, which they will give you while they're talking to you
provide identity information to them

SMS scams may ask you to contact them on a fake Inland Revenue number instead of calling you directly.

E-mail scams

Criminals use e-mail scams known as phishing to get your personal information and money. They send out fraudulent e-mails with the Inland Revenue logo on them to thousands of customers every day, usually promising things such as tax refunds.

E-mail scams may include a website link which will direct you to a false webpage. This webpage will usually be a very good replica of the real thing. You may be asked to enter personal Inland Revenue information, eg your myIR Secure Online Services user ID and password. Clicking on the link in the e-mail may also trigger a virus to be downloaded onto your computer. Both of these actions can result in the fraudster having access to your Inland Revenue information and other personal details.

REMEMBER! Inland Revenue will never e-mail you to:

notify you of a tax refund
ask you for personal information, such as your myIR Secure Online Services account user ID and/or password
ask you to enter personal information on a third party website

Here is IRD's webpage where they alert of the latest scams circulating, however be aware these are merely a small sampling and there are may be multitudes of variations to these.

So what can I do protect my identity and personal information?

There are a number of proactive steps you can undertake to keep yourself safe from scammers and identity thieves:

Online

Be careful sharing personal details on social media sites.
Don't enter personal, credit card or bank account details on a website if you're not sure it's genuine. Check the website address - fraudsters can create replicas of real websites.
Make sure you 'Logout' correctly after you've finished on a website such as online banking
Keeps passwords and PINs safe and change them regularly.

Postal mail

Lock your mailbox and collect your mail regularly.
When moving house, contact important organisations to update your address and arrange for a mail redirection.

Personal documentation

Keep key documents that can be used to establish your identity in a safe and secure place.
Shred or destroy mail that contains personal information before you throw it away. Consider getting your statements provided online - it's safer for you and better for the environment too.
Check bank statements closely. Transactions you don't remember making can be a sign that someone is using your identity.

Phone

Remember that legitimate businesses and organisations won't usually phone you for your personal details. If someone claiming to be from an organisation calls you asking for:
- personal information
- account information, or
- credit card information
ask for their name and number. Check with the organisation, using their publicly available 'contact us' number, to confirm the phone-call you received was genuine before returning the call.

Electronic devices

Remove all personal information from electronic devices before you sell or dispose them. These include computers, phones and even iPods – any device that has ever held personal or credit card information.
Make sure your electronic devices have the latest security updates.

Inland Revenue

Make sure you log out correctly using the 'Logout' link once you have completed your online myIR activities.
Inland Revenue offer voice ID as a service, which adds an extra layer of security to your account by using voice recognition software. To register for this service, call Inland Revenue on 0800 257 843 (make sure you have your IRD number handy when you call) or click here for more information.

Reporting scams

Inland Revenue investigate, and take action on, reports of phishing scams, and will update their website as new scams alerts emerge.

If you receive a suspicious e-mail, SMS or phone call, contact Inland Revenue on phishing@ird.govt.nz and include:

the email received, or
the number that the text message or phone number (CallerID) originated from
any names and call-back numbers given by the text sender or phone caller
details about the scam including:
- the amount of tax refund quoted
- the reference number
- the information requested, and
- any other relevant information

If you have been contacted by e-mail, text message or phone from someone claiming to be from Inland Revenue and you're unsure if it's legitimate, we urge you to contact us before taking any action or disclosing personal details. We are able to view information Inland Revenue hold on you and can confirm with you if any steps need to be taken.

Source:

www.ird.govt.nz

Changes to parental leave payments from 1 June

2017-06-01T09:00:00+10:00

New leave rules coming into effect today

A law change means new rules for parental leave apply from June 2017. Changes include when a new parent can take parental leave payments, and what happens if a baby is born prematurely.

Parents who want to get parental leave payments can choose to first use other types of paid leave they're entitled to, eg:

annual leave
alternative days
special leave
time off in lieu

They can choose to start their 18-week parental leave payment period once they have taken other types of paid leave - even if this is after the child's arrival.

Previously the parental leave payment period couldn't start later than the child's arrival.

Parental leave scenarios

Remember:

Any eligible working parent can get parental leave payments if they are the permanent primary carer of a child under six.

This applies to employees, including those with non-standard working arrangements such as casual, seasonal, temporary and fixed-term employees, and self-employed people.

Parental leave eligibility tool

Premature babies

If a working parent is applying for, or receiving, parental leave payments and their baby arrives before the end of 36 weeks' pregnancy, they are entitled to:

preterm baby payments for up to 13 weeks
parental leave payments when they go back on parental leave - if it's no later than the original expected due date

If they go back to work for a period between the preterm baby being born and the original expected due date of the baby - other than for their keeping in touch hours - they will lose any remaining entitlement to preterm payments.

However they will still be entitled to up to 18 weeks' parental leave payments - or however many weeks are remaining - if they've stopped work before the original expected due date and if the baby hadn't been born prematurely.

For more information:

Keeping in touch days	Preterm parental leave

Source:

Ministry of Business, Innovation and Employment (NZ)

If you would like to contact our payroll and employment expert, Vicki Cozens, she is only a phone call or e-mail away – she'll be happy to assist.

Employee retention - how to create a culture of happiness

2017-05-31T09:00:00+10:00

Part 10 of our blog article series: "Strategies for business success"

(and part 3 of 3 of our mini blog series on "How to build a great team")

Following on from our previous two blog posts for attracting the right staff with an enticing job listing, and subsequently integrating them successfully into your company culture, you should be pretty happy with your efforts to finding an outstanding candidate who is the right fit for your business enterprise. You may be forgiven for thinking that all the hard work is now done - you can sit back and let your staff get on with their jobs, right?

Talent retention is a key component of the employee life-cycle that will ultimately (and hopefully) span the longest length of time, so it makes sense that this aspect requires a well-considered approach.

So how do you maintain happy, engaged, loyal employees? The answer lies in creating a company culture that nurtures, challenges and rewards your staff. Here are some things to consider:

Beyond the honeymoon period

We can all identify with the initial excitement of something – buying a car, moving house, or starting a new job. At the beginning, everything is rosy and bright, and there is boundless enthusiasm for the new 'thing'.

Invariably this feeling will go, but it needn't spell the start of dissatisfaction and boredom if good levels of communication are practised with your employees. This could be in the form of structured staff appraisals, less formal one-on-one conversations, or ideally a combination of these, to ascertain if your employee:

Is still feeling challenged in their role?
Is liking or disliking particular tasks or aspects of their position?
feels their skill sets are being properly engaged?

With this information you can really start to understand your employee: their aspirations and goals, their drivers and motivators, and their own metrics for success. Together you can then work on structuring their role so that it fulfils them, as well as your business requirements. You may even discover that your staff member has hidden talents that are not being utilised. Passion will ultimately drive success more than passivity – if you can engage someone's passion, it becomes a win-win for you and the employee.

Nurture and grow

Career plans and a desire for personal growth is inherently present in most employees – we all wish to progress, whether it is knowledge, skills, job rank or title, and/or pay scale.

By providing on-going training you not only support your employees' career development and long term goals, you will also reap the rewards of their new knowledge for the benefit of your business.

Training can range in format from unstructured (eg staff training other staff, or an employee carrying out independent research) to structured (eg workshops, seminars, webinars, conferences or courses).

Training can be industry or job-specific, or pertaining to personal development, such as time-management, stress management or personal branding.

Freedom and empowerment

An often-overlooked factor for job satisfaction is the freedom of autonomy. If you encourage your team to be free-thinkers and lateral problem-solvers, there is an implied sense of trust and respect for their ideas, instincts and judgements.

A willingness to place faith in your team's skills will pay dividends when it can lead to uncovering better efficiencies or improved business strategies.

The key is balance – allow them the flexibility to stretch their problem-solving skills in order to execute strategic risks, whilst also making yourself available to offer advice and guidance if they need additional support.

Work-life balance

We're all familiar with the old adage "work to live, not live to work", and this very much hinges on having a good work/life balance. By being flexible and accommodating your staff's personal commitments and circumstances – both the planned and unplanned - you respectfully acknowledge that all your employees have lives outside of work and sometimes the unexpected can – and will – happen.

Recognition, reward and appreciation

Everyone likes to be acknowledged when they do something well, such as on-boarding a large client, closing a big contract, or exceeding a quarterly production target. Receiving recognition for these achievements will undoubtedly give warm fuzzies and a sense of accomplishment to the employee.

And rewards don't have to be costly – being praised in front of the team, a thank-you card, or a small token such as a gift card, can really make someone's day and have them leaving work at the end of the day with a skip in their step.

Regular organised work outings, such as Christmas or mid-winter functions, or morning tea shouts, can be great morale-boosters for the crew, help strengthen team relations, and provide your staff with a feeling that they are appreciated and valued.

Teamwork and inclusiveness

A company's inherent culture will always be more than just the individuals who work there – no matter how content each person might be, there will never be a happy company culture if team members do not work harmoniously alongside each other. At the heart of every business with low staff turnover and overall contentment, is the integral sense of equality, mutual respect and teamwork.

Excessive levels of hierarchy within an organisation can also create segregation, a "them vs us" environment, where lower level groups are excluded from knowing the company's long term plan. For strategic business planning to be successful, every member of staff needs to be fully invested in this process in order to build accountability, engagement and commitment. Consider adopting regular team meetings where business planning decisions can be discussed, and everyone has the opportunity to offer their input.

It is natural for your employees' objectives and motives to evolve over time, but by maintaining an open dialogue with them, recognising good performance, providing meaningful work and nurturing a positive, inclusive workplace, you are sure to amass loyal employees and a happy, productive workplace.

That's it for our blog mini series on "how to build a great team". We hope you've enjoyed reading our articles!

BLOG COMMENTS

What do you value most in a working environment? In your opinion, how important is workplace culture?

Our payroll and employment specialist Vicki is only a phone call away if you need assistance with your recruitment and on-boarding processes. Or send her an e-mail - she'll be happy to help!

E-mail Vicki

Vicki Cozens | Chartered Accountant

Keep on eye on our blog this month as we present a series of articles on
strategies for business success

You won't want to miss these!

Subscribe to our monthly blog titles e-mail

Our June "hot desking" date at The Orchard

2017-05-24T09:00:00+10:00

Jessie will be "hot desking" early in the month of June to catch up with more innovators, entrepreneurs and visionaries, as the hive of activity continues to buzz at The Orchard, Northland's premier business and events space.

Have an informal chat with Jessie about all things tax (perhaps over a nice hot cuppa on a cold day!), then stay on for session #8 of The Orchard's ever-popular (and FREE) Lunch Box Sessions:

These 'bite-sized learning' opportunities are only 30 minutes long and take place during a midday timeslot, allowing people to catch the presentations during their lunch break. These sessions are absolutely free, offer a wide range of topics presented by knowledgeable speakers, and are great opportunities for owners of SME's and start-ups, and other like-minded entrepreneurs, to meet, learn and grow together.

Take your lunch, make yourself a cuppa and sit back and enjoy!

For more information about Lunch Box Sessions, e-mail Kayla Tattley at The Orchard.

Details of Lunch Box Session #8 on Thursday 1 June:

Topic: Creating your marketing strategy - where to start and how to finish

Presenters: Katy Mandeno and Chris Anderson - Strategic Thinkers from Level: Strategic Marketing and Design Co

Scope of learning: In this session you'll learn:

Marketing Strategy - learn where to start and why
Marketing Insights - what are 'insights' and how can you use them to grow your business
Product - creating your value proposition
Audience - beyond the demographics; getting to know the real customer
Brand - emotional decision making

Can't make it on the Thursday? No problem! You can also e-mail Jessie

Jessie Alison | Accountant

IRD notice regarding late payment grace period letters for GST

2017-05-23T09:00:00+10:00

IRD have issued a notice advising some customers may have been incorrectly issued with Late Payment Grace period letters on 18 May 2017.

The affected GST periods are 31 March 2017 and 30 April 2017, and the respective letters advise the following:

Period ended 31 March 2017

Customers that filed and paid on or before 8 May 2017 incorrectly received a letter advising the payment is late and to pay an overdue amount of $0.00.

Period ended 30 April 2017

Customers that filed early for the period ending 30 April 2017 incorrectly received a letter advising the payment was due 29 May 2017 and this is now overdue.

They advise customers who have received the letters to disregard them.

Inland Revenue have apologised for the error and will be reviewing their processes to prevent a recurrence of the issue.

If you are still concerned, we are only a phone call or e-mail away – we'll be happy to help.

Employee on-boarding - how to do it best to impress

2017-05-23T09:00:00+10:00

Part 9 of our blog article series: "Strategies for business success"

(and part 2 of 3 of our mini blog series on "How to build a great team")

So you've followed our tips for attracting exceptional talent? Great! You have invested time and resources into finding the best-fit applicant, and now they arrive at work, fresh-faced and bushy-tailed, ready to impress.

But are you also ready to impress them? An employee/employer relationship is a two-way street - have you given consideration to what their first impression of your company is when they arrive on day one?

Imagine this: you turn up to your new workplace at 9am -there is no-one assigned to greet you, there is no workstation, uniform and/ or safety gear organised, and everyone seems "too busy" to show you the ropes. You feel awkward and unwelcome because the vibe you are getting is that you are a nuisance that nobody wants to deal with.

Having a new recruit experience pangs of regret for accepting your job offer is obviously not the best way to start an employment relationship, so here are some ways you can ensure a smooth integration and, most importantly, retain that fresh enthusiasm your employee walked in with:

Warm Welcome's Work Wonders

Your new employee is likely to feel nervous and uncertain when they arrive. By letting the whole team know (particularly the receptionist or likely first point of contact) to expect the new candidate, it can immediately help make them feel welcome and included. Being greeted by first name with a warm handshake and generous smile will just serve to top it all off.

Paperwork first, but not on the first day

Yes, a lot of employment information will be required, and yes, it is tedious yet necessary. Instead of immediately sitting your new recruit down with a daunting pile of forms and contracts to read and complete, consider having these made available to them in advance of the start date. They can complete the paperwork in a leisurely and non-pressured environment, allowing them time to seek independent council if required, and deliver everything to you on day one.

If you intend utilising the option of a 90-day trial period, it is imperative the employee agrees to this by signing their employment agreement before they commence working. If an employee signs at any time after they have started work, the trial period becomes invalid – this includes signing at their first morning tea break!

Introductions and Inductions

Before they arrive, designate a team member to show them around the workplace. This person should ideally have great people skills and have a sunny disposition – no-one wants to be shown the ropes by 'negative Nigel' or 'disgruntled Dave'.

Some of the things that should be covered are:

Where they will be working
Where they can keep their bag and personal items
Where the facilities are (lunchroom, kitchen, toilets, storeroom, stationery room, etc)
Rules around break times, and where to find cups, coffee, milk, etc (even how the urn or hot water zip works, if it's not immediately obvious)
Introductions to other team members, where they predominantly work, and what they do (it is also helpful to point out the payroll and HR managers, the safety officer and their team leader)
If safety gear is a requirement, show them how and when these are to be used. For safety inductions it is advisable to have the induction procedure recorded, and the employee sign and date the document to acknowledge they have been briefed appropriately
Any other information that will be relevant and helpful (think back to what you were shown, or wish you'd been told, when you first started)

Buddy up

The new candidate will already have the required knowledge and/or experience you need (after all, that's why you selected them!) however they won't know your company or your internal procedures. It is great for a smooth transition, as well as for building team relationships, if you assign a buddy who your new staff member can "shadow" or work alongside for a few weeks. This will ensure that work quality is not be compromised during the training stage, and the buddy can oversee their progress until they can be left to work independently.

Ideally the buddy will be the same person who did the 'Introductions and Inductions', but if not, ensure a professional hand-over is exercised ("This is Sandy. She also does accounts payable and will show you the ropes for the next few weeks", not "that's it from me. Just go and pop your head into Sandy's office – she's the last one at the end of the hall").

Touch base – touch down?

Don't be afraid to put the question to your latest recruit: "how did we do?" After the initial 'settling in' period is over, touch base with your employee (by now not so new anymore) and find out if they have everything they need to do their job effectively, if they are experiencing any issues, and if there was anything they feel was not covered in their induction/ training process. Use their feedback to improve your process for the next intake.

Lastly, don't be too stubborn to accept newcomers' ideas for improvement. They were hired because you felt they had something good to offer your business, so by shutting them down when they suggest better ways of doing things, you are sending the signal that their ideas are not valued. The fresh eyes a new person brings to your business should be encouraged and celebrated!

Look out for part 3 next week: "Employee retention: How to create a culture of happiness" - why understanding your employees' motives helps keep them happy and engaged.

BLOG COMMENTS

Have you got a WOW or WHOA "first day on the job" story to share? What employee on-boarding advice would you add to the article?

Our payroll and employment specialist Vicki is only a phone call away if you need assistance with your recruitment and on-boarding processes. Or send her an e-mail - she'll be happy to help!

E-mail Vicki

Vicki Cozens | Chartered Accountant

Keep on eye on our blog this month as we present a series of articles on
strategies for business success

You won't want to miss these!

Subscribe to our monthly blog titles e-mail

Livestock NAMVs for 2016/2017 have been released by Inland Revenue

2017-05-19T09:00:00+10:00

In May each year, Inland Revenue release their determination of national average market values (NAMVs) of livestock for the prior financial year.

The NAMVs are used by taxpayers who have elected to value livestock using the herd scheme, to value their livestock on hand for that income year.

As the name suggests, the values are based on national averages, and as such they may not always reflect the market value of the livestock of a particular taxpayer, or a particular region.

Because of the relatively low numbers of livestock in the remaining livestock types, a straight average is used to calculate the values of those livestock.

The NAMVs for the 2016/2017 income year were released by Inland Revenue on 19 May 2017. Click here to see these values, as well as the 2015/2016 year values for comparative purposes.

Our May "hot desking" date at The Orchard

2017-05-18T09:00:00+10:00

Reminder! GST returns are due 28 May

(Psst, did you know you get an extra day because the 28th falls on a weekend?
You won't be penalised for filing and paying on Monday 29th)

Start the 2017/2018 financial year off right by getting your April GST return spot on. Head over to The Orchard next week and have a chat with Jessie - she can help you sort out those pesky GST quandaries just in time for filing.

Best of all: NO appointments needed; 100% FREE advice

Can't make it on the Tuesday? No problem! You can also e-mail Jessie

Jessie Alison | Accountant

Employee recruiting - creating job listings to attract the right people

2017-05-15T09:00:00+10:00

Part 8 of our blog article series: "Strategies for business success"

(and part 1 of 3 of our mini blog series on "How to build a great team")

Employees are one of the biggest assets a business has. Having a great team of people not only makes the working week fun but also ensures customers and clients enjoy their experience with your firm and want to come back again and again.

When it comes to recruiting, it helps to change your thinking from "finding the right people" to "attracting the right people". There is a small but subtle difference there – with the first you are assuming you have the choice from an endless pool of talent, when in actual fact you are just as much putting your company "on the market" as the candidates are. The trick is to highlight your brand as an attractive and desirable workplace in order to draw in applications from the best and brightest talent.

Whatever media platform you choose to advertise your job vacancy on (traditional print media, online platforms such as Seek, Trade Me, Linked In, etc), everything revolves around crafting a great job listing.

Here are some guidelines for writing a listing that *zings*:

SEO (Search Employment Optimisation)

According to Seek, 69% of all job searches on their website include a keyword search. This means naming your job position appropriately is a must. It may seem cute to call for a "Green Machine Executive", but if job seekers are searching for "Groundskeeper", you will be missing out on your target audience.

Likewise, including other relevant keywords in your listing, like your business location, or industry-specific diplomas or certificates required, will assist job seekers to find your ad amongst the masses.

Why, oh Why?

It's not necessary, but sometimes it helps to start off with 'why' - why do you need this vacancy filled? If you have a long-time staff member retiring, it demonstrates that people like working for you and you are a good employer. If you are hiring due to business expansion, it shows your company is growing and succeeding. These subtle snippets of information can help make your company appealing to job seekers.

Big Shoes To Fill

Introduce the job position: what is it, what does it involve, and who will they be reporting to? Write a clear, unambiguous list of tasks and duties, so a candidate can assess if they fit the requirements. Avoid vague, wordy allusions which are designed to sound clever and academic, but instead will confuse. For instance, consider using "marketing" instead of "brand awareness facilitator" – it's succinct, and people understand it.

If you intend using the same job description from last time you advertised the job, check if you need to update it – often a position will evolve (sometimes drastically) over time, especially if one person has been doing it for many years.

Wants and Needs

Next on the list are the "must have's" – skills, qualifications and/ or experience that are simply not negotiable because, without them, a person will not be equipped to do the job successfully. Bear in mind that the longer the list, the narrower your pool of potential applicants becomes. So consider the list carefully and remember that some people may not be academically-minded but learn very quickly in a 'hands-on' situation.

A "desirable's" list is a good compromise when culling back the "must have's" list – it lets people know these attributes will be looked upon favourably, but they may also stand an equally good chance without them.

Express Yourself

Towards the end of the listing is your opportunity to sell your company and its culture to the potential applicant. A few brief sentences outlining your firm's values, ideals and mission statement can help someone decide if those values are in line with their own. Don't underestimate the power of injecting some light humour - people appreciate seeing the human side to a company!

Of course this is also the perfect opportunity to brag about any employee incentives you provide: health insurance, performance bonuses, career development, work/life balance, flexible hours, superannuation, etc. Sometimes it's these types of benefits that will appeal to an applicant more than just the base salary range. Other benefits can come in the form of convenient location: proximity to childcare centers, parking, or public transport.

Many job seekers will also use the power of the internet to research a company before deciding to apply for a position. Take a quick tour through your company website and try to see it through fresh eyes – does it look like the sort of company you would want to work for?

Formidable Formatting

Designing your job listing for visual appeal is vital. An advert that consists of a solid block of text is daunting, and a reader will likely tire quickly and move on.

Including your company logo at the top of the listing offers a three-fold benefit:

instant brand recognition
visually sets your listing apart from the others
a great way to introduce imagery and colour to the listing

Using formatting tools, such as bold subheadings and bullet lists, help to break up and organise the text. This will make reading easier and allows people to skip ahead to sections of interest.

You Had Me At Job Vacancy

Lastly, let the job seeker know how to apply. Do you have an online application form on your website? Do they need to e-mail a CV and application letter, or should they phone the HR Manager? Whatever method you request, make it as easy as possible by supplying links or contact details. You don't want to miss a fantastic application because your process is too complicated.

Sold It?

All done! Or are you? Before hitting 'submit', look over your listing and ask yourself "is this eye catching?" If not, revisit your formatting and layout so it is easier on the eye. Then ask yourself "would I apply for this job?" If the answer is "no" you need to reword, redesign and refine until it becomes a "yes".

Remember that you are merely one firm among a sea of others, all fishing in the same ocean. Make your listing the tempting bait the talent pool is attracted to.

Look out for part 2 next week: "Employee on-boarding: How to do it best to impress" - why hiring someone is only step one in creating a great team.

BLOG COMMENTS

What are your tips for creating a winning job vacancy ad? What do you look for in a listing when you are job hunting?

Our payroll and employment specialist Vicki is only a phone call away if you need assistance with your recruitment and on-boarding processes. Or send her an e-mail - she'll be happy to help!

E-mail Vicki

Vicki Cozens | Chartered Accountant

Keep on eye on our blog this month as we present a series of articles on
strategies for business success

You won't want to miss these!

Subscribe to our monthly blog titles e-mail

Employee holiday and wage records - a handy checklist for employers

2017-05-09T09:00:00+10:00

As your business grows you will find yourself at some point needing to hire staff. Employees are a great addition to your business, bringing specialised expertise to the table and freeing up your time to do what you do best.

Employing staff does however involve responsibilities regarding keeping accurate holiday and leave records and wage and time records. And new employment standards legislation, which came into force on 1 April 2016 as a way to strengthen enforcement of employment standards, means the negative consequences for incomplete records have increased, resulting in potentially hefty penalties for non-compliance.

We want to assist employers with their record-keeping obligations, and with many employers still uncertain as to what exactly needs to be recorded, we've put together a handy checklist of the minimum requirements for information to be held for each employee under the various Acts:

Holiday and leave records

The Holidays Act 2003 s81 requires employers to keep up-to-date holiday records. These records may be incorporated with other wage or time records that the employer is required to keep, and must contain the following:

	Employee name
	Date employee started working for you
	Number of hours worked each day in a pay period and the pay for those hours
	Employee's current entitlement to annual holidays
	The date when the employee last became entitled to annual holidays
	Employee's current entitlement to sick leave
	Dates of, and payments for, any annual holiday, sick leave, domestic leave or bereavement leave taken by the employee
	The dates of, hours worked, and payments for, any public holiday worked by the employee
	The date on which the employee became entitled to any alternative holiday
	The date of, and payments for, any public holiday or alternative holiday on which the employee did not work, but for which the employee had an entitlement to payment
	The cash value of board or lodgings provided
	The cash value of any alternative holidays that the employee has surrendered for payment
	Date of termination of employee
	Amount paid for holidays on termination

Wage and time records

The Employment Relations Act 2000 and the Minimum Wage Act 1983 require employers to keep wage and time records for every employee. Both these Acts state that, where the same information is required under each respective Act, an employer does not need to keep a duplicate record of that information in order to comply with the Acts, thus removing any unnecessary double-ups in record keeping. The wage and time records must contain the following:

	Employee name
	Employee age (if under 20)
	Type of work the employee usually performs
	Type of employment agreement (individual or collective)
	If a collective agreement is in place: title, expiry date and employee classification under the collective agreement
	Hours worked each day, including start and finish times and any non-paid breaks taken, and number of days of employment in each pay period
	Dates of, and payments for, any annual holiday, sick leave, domestic leave or bereavement leave taken by the employee
	Details of wages paid each pay period and the method of calculation
	Details of any employment relations education leave taken

While this may all seem like a lot of information, keeping holiday, leave, wage and time records can be relatively straight forward, with many payroll software programs or computerised timesheet systems doing a lot of the required work for you.

It is acceptable to state the employee's usual hours in their employment agreement, however if the employee works outside of their usual hours additional records will need to be kept (eg a completed timesheet).

Workplace rosters and/or employee timesheets are easy ways to maintain records of hours worked, start and finish times, and days worked by your employees. If timesheets are used, they should be signed by the employee and handed in at the end of the pay cycle.

Annual, sick and bereavement leave forms are also an easy way to record leave requested and leave taken by an employee. Again, these should be signed by the employee.

Records may be kept electronically, but regardless of whether they are stored digitally or in hardcopy form, they must be retained for 6 years.

Don't be like the filing clerk at Dilbert's office! Failure to keep or produce records can result in a penalty of $1,000 per breach, with a cap of $20,000 if there are multiple breaches in a three-month period. The most serious breaches, such as exploitation, can carry maximum penalties of $50,000 for individuals, and the greater of $100,000 or three times the financial gain for a company.

If you wish to discuss any of the above in relation to your own record-keeping practices, or any other payroll and employment queries, contact our payroll and employment specialist Vicki.

E-mail Vicki

Vicki Cozens | Chartered Accountant

Keep on eye on our blog this month as we present a series of articles on
strategies for business success

You won't want to miss these!

Subscribe to our monthly blog titles e-mail

Farmhouse expense tax deductions - important changes taking effect this financial year

2017-05-03T09:00:00+10:00

Since the 1960's farmers living on the farm have been able to claim a flat 25% deduction for farmhouse expenses such as power, insurance and minor repairs and maintenance. They were also able to claim a 100% deduction on telephone rental, rates and the interest on the farm mortgage.

Inland Revenue recently advised it considers this flat rate no longer appropriate and will be replaced by a new approach, with these changes to farmhouse deductions applying from the 2017/2018 year onwards. The new approach largely relates to sole traders and partnerships, as separate rules apply to houses provided to farm employees, shareholder-employees and beneficiaries.

The deductibility, or percentage of deductibility, of farmhouse expenses will depend on a number of factors, including who owns the farmhouse, who operates the farming business, and who lives in the farmhouse. We suggest you review your current claims on farmhouse expenses in light of the following principles applied by Inland Revenue:

Where it is possible to dissect expenses into deductible and non-deductible amounts, that method should be used first, eg business and private toll calls
Where it is difficult to separate the deductible and non-deductible amounts the expense needs to be apportioned on a fair and reasonable basis. An adjustment based on time and space will generally be an appropriate basis for expenses such as power, repairs and maintenance, and dwelling insurance
Where expenses are incurred on the farm as a whole, eg mortgage interest and rates, the farmhouse expenses will first need to be determined. This is calculated using the cost of the farmhouse relative to the total cost of the farm. Once this is established then the farmhouse expenses are apportioned between the private and business use of the farmhouse (type 2 farms only - see below)

To reduce the compliance costs for farms with a low private-use element, Inland Revenue have classified farming businesses as:

Type 1 farm - farming businesses where the value of the farmhouse (including curtilage and improvements) is 20% or less of the total value of the farm
Type 2 farm - farming businesses where the value of the farmhouse (including curtilage and improvements) is more than 20% of the total value of the farm

The total value of the farm includes all blocks of land (such as run-offs) which are farmed together as part of the same farming enterprise.

For farmers operating type 1 farms the Inland Revenue will accept that 20% of the farmhouse is used for business purposes. If you believe your business percentage should be higher you will need to do the actual calculation to work out your business use percentage. Type 1 farms may continue to claim 100% deduction on rates and mortgage interest.

The type 2 farms will need to calculate the business use of the farmhouse as there is no minimum percentage provided by Inland Revenue. This home office calculation must be based on the actual use (time and space used) of the farmhouse for business. This percentage can then be applied to all general farmhouse expenses that cannot easily be dissected, such as power, dwelling insurance and repairs and maintenance. Only the home office percentage can be claimed for mortgage interest and rates relating to the farmhouse. For example, the dwelling and curtilage makes up 25% of the total farm value, of which the home office comprises 15% of the dwelling, therefore you will be able to claim 15% of 25% of the mortgage interest and rates. The remaining 75% of the mortgage interest and rates is attributed to the farm itself and is therefore fully claimable.

Telephone rental and fixed line charges can no longer automatically be claimed 100% for business. The starting point is that you can claim 50% of these charges. You can still claim a higher percentage if you can show the actual business use of the telephone is greater than 50%. If there are two telephone lines, one charged at a domestic rate, the other at a commercial rate, you will be able to claim 100% of the commercial rental but none of the domestic rental.

If you wish to discuss any of the above with regard to your specific circumstances, please contact one of our friendly advisers.

Keep on eye on our blog this month as we present a series of articles on
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One year and (ac)counting - Ean Brown Partners celebrates its first anniversary

2017-05-01T09:00:00+10:00

Ean Brown Partners Ltd celebrates its

one year anniversary

1 May 2016 marked the day Ean Brown Partners Ltd branched off from the former Gilmore Brown Ltd, an iconic and respected accounting, taxation and advisory firm which represented Northland for well over 15 years.

So although Ean Brown Partners Ltd may only be 1 year old today, we are by no means a fledgling to the industry - in fact we are very well-versed with the Northland district and its many and varied businesses.

We want to take this opportunity now to sincerely thank all our clients, supporters and followers for the trust and loyalty they have invested in us - we are pleased you are along with us on this journey.

We are also tremendously proud of our team and their extraordinary efforts over the past 12 months - their hard work, dedication and innovative spirit has steered a course to success for our clients and our firm.

What can you expect from us during the next 12 months? As always we will continue to ...

regularly write interesting and informative blog articles on a range of topics
produce quarterly newsletters to keep you up-to-date with the latest developments
improve and refine the services we offer, as well as the delivery of those services
provide top-notch service with a smile

Here's to the coming year ... CHEERS!

Our April "hot desking" date at The Orchard

2017-04-21T09:00:00+10:00

Well, hello 2017/18 financial year!

Want to start the year off right? Come and talk to Jessie for great tips on keeping your books organised

(Psst, it could even save you money! But don't tell your accountant )

Head over to The Orchard (Level 1, 85 Cameron Street, Whangarei) next week and Jessie will be more than happy to discuss ways you can minimise your stress (and your accounting fees) by organising your financial information in a way which will make tax time a breeze!

Imagine going
from this ...	to this ...

Best of all: NO appointments are needed; 100% FREE advice

Can't make it on the 27th? No problem! You can also e-mail Jessie

Jessie Alison | Accountant

Gone phishing - how to spot a scam before it spots you!

2017-04-21T09:00:00+10:00

Scammers are becoming increasingly more prevalent and sophisticated. They are wily, savvy, and keep up-to-date with technology developments and media platforms so they can find new and cunning ways to illicit funds from unsuspecting victims. And just as people become alert to one scam, you can bet another one follows closely behind.

You may think you have the best security systems, firewalls and anti-virus software in place, however most scams rely on people. The term 'social engineering' refers to scammers trying to deceive and manipulate people into letting their guard down - clicking a link, opening an attachment, or other similar actions which are often performed without a second thought. Sadly, scammers rely heavily on people being trusting, helpful and naive, so a certain level of cynicism works in your favour when it comes to online security.

Here are some tips on identifying a scam, and helpful tricks to keeping you and your business safe:

The "what's what" of electronic scams - a glossary of terms:

Baiting Baiting plays on people enjoying a good 'find' by leaving around USB flash drives infected with malware. A user pockets an unguarded, seemingly-forgotten flash drive and then unwittingly infects their computer, or even an entire network, when they try to use it. Obviously the best advice for this situation is to never trust unattended electronics. Drop them in the nearest bin to prevent others from falling victim, or take them to your nearest police station - if it was genuinely lost the owner will go to claim it.	Phishing The now well-famous scam of an e-mail pretending to originate from a bank or a supplier, asking you to click this link, open that attachment, or reply to them with your account details. Sometimes these are very obviously scams, however some go to considerable lengths to feign authenticity by copying logos or adding genuine links to the footer of the e-mail. We give you some suggestions on clues to look for when receiving suspicious e-mails below.
Ransomware A user inadvertently downloads malware which locks up their computer or a whole network. The firm literally is held to ransom as it must pay the extortionist to be able to access its data, or else all files will be deleted, permanently encrypted or otherwise impossible to access.	Scareware This scam involves convincing the user that their computer has been hacked or infected with malware or they have inadvertently made an illegal download. Predictably, the problem can only be 'fixed' by clicking on a link, at which point the user's computer actually does become infected.
SMiShing Short for 'SMS phishing', it attempts to fool you via text messages. It can trick a user into downloading malware such as a virus or Trojan horse onto his or her mobile phone or other device. If this device is set up to sync with your office system you can see the problem! SMiShers can also use text messages to obtain financial data from users for the purposes of identity theft and fraud. A great tip is to never click on links from senders whom you do not recognise, or who seem suspicious. A curiosity link-click is all it can take - you know what they say about the cat!	Vishing Short for 'voice phishing', vishing is the telephone equivalent of phishing, and is not always carried out over the internet; instead it makes use of voice technology. This type of scammer fools the victim into thinking that he or she is assisting a genuine business contact. Some can display a fake number or caller ID on your phone. Automated recordings may direct you to call a given number or enter account details. Vishers may also intercept your follow-up call to confirm the call was genuine. A common trick is for the scammer not to hang up so they are able to stay on the line of your phone and impersonate a genuine contact.

Some clues to look for when trying to identify a scam, especially phishing e-mails, include:

Originating e-mail address and display name - these may give a clue as to whether the e-mail is genuine or not. Look for spelling variations or an unusual domain eg 'PayPal.uk' instead of 'PayPal.com', or the display name says 'Paypal' but the address is 'help@payingpal.com'
Logo quality - often the e-mails will include a company logo which may be low resolution, fuzzy or pixelated due to it having been copied from the real company's website
Incorrect grammar, sentence construction and/or spelling - may indicate the writer's first language is not English and is attempting to write in professional language
Content - an e-mail advising you have a UPS parcel awaiting collection even though you have not ordered anything from overseas should raise suspicion
Account login links - these are a big giveaway! Organisations such as banks which deal with your sensitive information are highly security conscious and will never ask you to follow a link within an e-mail. If such an agency e-mails you they will often include warnings that their staff would never ask you to disclose your personal information or passwords via e-mail or phone, and to only log in to their online platform by physically typing the website address into a browser. If your phishing e-mail tells you to 'update your details' using a link, delete it immediately

Pretexting - when all is not as it seems

Pretexting is a social engineering ruse where a fictional situation is created for the purpose of obtaining personal and sensitive information from an unsuspecting individual. It usually involves researching a target and making use of this data for impersonation or manipulation. Pretexting often involves a scam where the impersonator asks you to provide your information in order to confirm your identity, then uses that information for nefarious purposes. Some examples of pretexting include:

A caller, claiming to work for the business's IT company, requesting login details because they are undertaking some 'routine maintenance' and need remote access to the system
An official-looking announcement appearing on the bulletin-board advising the number for the helpdesk has changed. When employees use the new number to call for help, a call-centre asks for their passwords and ID's in order to gain access to the company's private information
A contact might come through social media establishing a rapport as a prospect interested in what the business offers, all the while manipulating you into revealing sensitive information
The friendly new reps from one of your suppliers turning up at reception with morning tea for the team and cheerfully asking questions about your business operations and assets
An e-mail which appears to be from your Boss or Manager, requesting you to arrange for a large sum to be paid to an overseas 'consultant' from the company bank account

In each of these scenarios, take a moment to assess the situation. If your instincts are telling you something is amiss, proceed with caution. If in doubt, stall them until you can authenticate their identity and purpose. You could:

Ask them to wait while you confer with your Manager, IT Consultant or a colleague
Contact the company they claim to be from to verify they are genuine. Be careful not to call a number they provide you with; instead, look up the company's phone number yourself
Ask for their contact details so you can call back, or request they come back later. This allows you time to check their credentials without feeling like you're 'put on the spot'
Ask lots of questions. If they are genuine they should have no problem answering these

A legitimate person will understand you are doing your due diligence or following protocol, and will likely be happy to comply with answering questions or coming back later. However if they seem edgy, caught off-guard, or start getting demanding, pushy or even aggressive, this should immediately raise red flags.

If you are concerned about online safety and cyber security, please contact your IT provider for advice and recommendations.

Keep on eye on our blog this month as we present a series of articles on
strategies for business success

You won't want to miss these!

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Easter 2017 - helpful reminders to employers paying public holidays

2017-04-12T09:00:00+10:00

Easter break is almost upon us, and if you are an employer here are some reminders regarding the treatment of public holidays when paying wages:

Good Friday

Most businesses are legally required to be closed on Good Friday, however if your business is allowed to trade and you are open, any employees who work (and Fridays are their usual working day) will be entitled to:

be paid time and a half for the hours they work, and
receive a day in lieu (alternative holiday)

If an employee comes in to work and Fridays are not a day they would normally work, they should be paid time and a half but will not receive an alternative paid day off.

Easter Sunday

If your business is operating in the Kaipara or Far North districts, your local district council has now given you the option of trading on Easter Sunday. In this instance you would pay employees who voluntarily opt to work this day their usual rates - they are not entitled to time and a half or an alternative holiday.

If you have chosen not to open, or your business is located in the Whangarei district where most businesses are legally not allowed to trade on Easter Sunday, any employees who normally work Sundays will not receive any pay for this day unless you have offered this in your employment agreements.

For further information regarding the recent changes to the Easter Trading Bill, read our blog posts:

"The Easter Trading Bill and what it means for retailers and retail staff" and the subsequent update to that article.

Easter Monday

Normal public holiday rules apply:

If your business is open AND;

you require your employee to work AND that day is one the employee would normally work - the employee must be paid for the hours they work at a rate of time and a half. They are also entitled to a day in lieu (alternative holiday), to be taken at a later date.
you require your employee to work AND that day is one the employee would not normally work - the employee must be paid for the hours they work at a rate of time and a half. They are not entitled to a day in lieu (alternative holiday).

If your business is closed AND;

that day is one the employee would normally work - the employee must be paid for the public holiday at their relevant daily pay (or average daily pay).
that day is one the employee would not normally work - the employee is not entitled to any payment for this day.

Remember:

Only Good Friday and Easter Monday are public holidays - Easter Sunday is not a public holiday

If you wish to discuss the above, or any other payroll and employment queries, contact our payroll and employment specialist Vicki.

E-mail Vicki

Vicki Cozens | Chartered Accountant

Keep on eye on our blog this month as we present a series of articles on
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The end of the 2017 financial year is here - are tax bills getting you down?

2017-03-31T09:00:00+11:00

Tax bills! As we reach the end of the 2016/2017 financial year and tax positions become apparent, we think this is an uncomfortable, yet important, topic to write about.

It can be emotionally stressful when you feel you are unable to meet your tax payment obligations, so this article aims to make taxpayers aware of the Inland Revenue processes around tax arrears and debt collection, and the ways you can help yourself to mitigate the negative consequences of ignoring overdue taxes.

First of all, it pays to remember that it is Inland Revenue's job to collect taxes. In order to do their job effectively they need to ensure they are keeping on top of all taxes due to them, and where there are outstanding payments they have been stepping up their debt collection processes over recent years. Their current processes mean debts can no longer "slip under the radar", and all tax payers, big and small, are subject to these same debt follow-up procedures.

However Inland Revenue also aim to be fair - if you suffer from extenuating circumstances which affect your ability to meet tax obligations, Inland Revenue have a few ways in which they can try and help you:

they may agree to defer the tax payment until you've recovered from your situation
they may accept a payment arrangement over a period of time
or in some circumstances, they may write off some, or all, of the debt

What are Inland Revenue's debt collection processes?

Here's what you can expect if you fail to pay your tax on the due date:

As soon as you miss a tax payment Inland Revenue will start charging penalties and interest on the outstanding amount.

At present they charge a 5% penalty if the tax is outstanding for one week. They will then charge a 1% penalty for every month the tax remains outstanding (for late payments first arising after 1 April 2017, the 1-month incremental late payment penalty will no longer be applied on GST, income tax and Working for Families Tax Credits). The penalty is calculated on both the principal outstanding tax amount, as well as the previous penalties that have been charged. These compounded charges can mount up very quickly!

Inland Revenue currently charge interest at a rate of 8.27% per annum, however this will reduce to 8.22% p.a. on 8 May 2017. The interest accumulates daily on the outstanding tax.

Once a tax payment becomes overdue, Inland Revenue will send you a letter advising you of the missed payment, and request for you to pay it.

If you do not take any action (ie, make no efforts to contact Inland Revenue or pay the outstanding amount), Inland Revenue will send a follow-up letter urging you to make payment.

If you ignore this letter, it is likely the next letter you will receive from them will advise you that they will take the tax owed directly from your bank account. Yes, Inland Revenue have the power to take money from your bank account!

Moreover, upcoming changes to Inland Revenue's processes mean anyone who is not complying with meeting their tax obligations can now also have their credit rating negatively impacted!

What can you do about it?

The good news is that you do have options!

You can contact Inland Revenue and propose a payment plan - if they agree to an instalment arrangement for your outstanding tax, monthly penalties are supressed. In addition, if you contact Inland Revenue for an instalment arrangement before the tax becomes due, even more penalties are supressed. Interest is still charged, but your credit rating will not be affected
Interest rates charged by Inland Revenue are generally a lot higher than bank interest rates. Therefore it is usually better to take out a bank loan to pay your tax arrears - you will still be charged interest by the bank, however you will end up paying less overall
Tax pooling is a way to 'buy' and 'sell' tax with other tax payers. You may be able to 'purchase' tax available on the due date, which means Inland Revenue will get their money on time. You may still be charged interest, but these rates are generally a lot lower than what Inland Revenue charges

What Inland Revenue look at when considering a payment plan

They will look into the circumstances behind why you cannot pay the tax owed, and that these reasons are legitimate, such as an accident or emergency, or something beyond your control
Whether you can afford to fund the tax in some other way (eg, if you have assets which can provide security on a loan) – Inland Revenue prefer you to finance your tax debt elsewhere
Whether you have kept up-to-date with filing obligations. Inland Revenue will refuse to agree to a payment plan if you have outstanding returns. In other words, they want you to be compliant!
Whether your instalment amount offer is reasonable. Generally if the outstanding tax would be paid off in less than a year it is acceptable. If the outstanding tax were to be paid off over a longer period, more evidence of your inability to pay may be required
Whether you have adhered to the terms of any previous payment plans. If you haven't complied with previous instalment arrangements, it is unlikely Inland Revenue will accept another one. If you cannot meet an instalment payment, they want you to contact them as soon as possible.

Still concerned?

Talk to us! We act for you, not Inland Revenue. We know how Inland Revenue processes work so we can recommend the best course of action for your situation. We can review your financial position, assist you when dealing with Inland Revenue in coming to a payment arrangement or tax write-off, make arguments on your behalf, and suggest improvements that you can make to help your situation.

We encourage you to contact us as soon as possible if you are concerned about your tax bills - it's our job is to help you reduce your tax, and your stress.

Our March "hot desking" date at The Orchard

2017-03-27T09:00:00+11:00

The end of the 2016/2017 financial year is almost upon us!

Need some last minute business questions answered before 31 March?

Then head over to The Orchard (Level 1, 85 Cameron Street) and catch up for a coffee and a chat with Jessie.

As The Orchard are holding their free Co-working Day on 30 March, Jessie will be Hot Desking on a Thursday this month instead of the usual Friday - so if that is the reason why you've not had the chance to meet her before now, here is your chance!

And remember: NO appointments needed; 100% FREE advice

Jessie Alison | Accountant

As an added bonus, The Orchard will also be presenting another popular "Lunch Box Session" the same day. These 'bite-sized learning' opportunities are only 30 minutes long and take place during a midday timeslot, allowing people to catch the presentations during their lunch break. These sessions are absolutely free, offer a wide range of topics presented by knowledgeable speakers, and are great opportunities for owners of SME's and start-ups, and other like-minded entrepreneurs, to meet, learn and grow together.

Take your lunch, make yourself a cuppa and sit back and enjoy!

For more information about Lunch Box Sessions, e-mail Kayla Tattley at The Orchard.

Details of Lunch Box Session #5 on Thursday 30 March:

Topic: ACC levies and 'personal risk' insurances - are you paying too much and possibly getting nothing in return?

Presenter: Nicki Spence (Spence Assets Limited) - Registered Financial Adviser / Insurance Broker

Scope of learning: In this session you'll learn the key differences between Workplace Cover (aka Cover Plus) and Cover Plus Extra, which one is right for you, and how you may be able to save thousands of dollars a year on your levies. We'll also briefly touch on how to run a health check on your Life (etc) insurances.

7 April tax reminders from Inland Revenue

2017-03-27T09:00:00+11:00

Inland Revenue are currently sending texts and letters to taxpayers, advising them of the upcoming 7 April due date for tax payments.

Please note that the details Inland Revenue holds about the amount you owe may not necessarily be correct. Their system does not always report the correct amount of tax owing, with tax transfers and penalties often being missed.

You may therefore receive a notice of an amount to pay which differs from what we have advised you. If you are uncertain about how much you need to pay, please give us a call or send us an email and we will confirm for you the correct amount.

Keep on eye on our blog this month as we present a series of articles on
strategies for business success

You won't want to miss these!

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UPDATE! The Easter Trading Bill and what it means for retailers and retail staff

2017-03-24T09:00:00+11:00

Further to our blog post from 21 February, we can now confirm that Kaipara District Council has given businesses within its region the freedom to decide if they want to open on Easter Sunday.

Easter trading used to be decided for the whole of the country at central government level, and most businesses (with some exceptions) were restricted from opening on Good Friday and Easter Sunday. Doing so put the owner at risk of facing a $1,000 fine.

However due to the growing demand from both the public and retailers to open for business on Easter Sunday, changes to the Shop Trading Hours Act 1990 have passed the decision on the issue over to local authorities.

The Kaipara District Council received 35 public submissions on the policy proposal: 19 were in favour, 13 were opposed and 3 remained neutral.

The Dargaville Business Forum welcomed the decision, saying businesses are likely to benefit from tourism flowing through the area during the long weekend.

"Everything is becoming more connected and on-demand these days, and giving businesses the flexibility to trade is a welcome move," forum chairman Peter Boyd said.

The Far North District Council announced mid-February they would open up Easter Sunday trading across their district.

Whangarei District Council has not made any public announcements, however they have confirmed to us they have not made a decision for 2017, and will revisit the matter in 2018.

Kaipara District Council spokeswoman, Heidi Clark, said the policy neither required shops to open, nor employees to work, nor people to shop on Easter Sunday.

If you have any questions regarding this matter, please give us a call or send us an email – we'll be happy to help.

Source:

The Northern Advocate

Keep on eye on our blog this month as we present a series of articles on
strategies for business success

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Check out our new signage!

2017-03-23T09:00:00+11:00

Our iconic billboard sign

has had a makeover!

You may have seen the hive of activity happening around our building recently as the giant billboard-sized signs were getting repainted. The project has now been completed and we're pretty happy with the results. Take a look for yourself ...

Check out the "before" and "after" photos, plus some progress shots

BEFORE

Overpainting the old sign ...

Almost there ...

Just the scaffolding to remove ...

AFTER: Ta-dah!

Decipher your financial statements - how to interpret the 4 main reports

2017-03-14T09:00:00+11:00

Part 7 of our blog article series: "Strategies for business success"

While many small business owners prefer brainstorming new ideas to reviewing financial statements, achieving a solid grasp on financial analysis can be remarkably empowering.

Taking the time to regularly review financial reports can help you assess and improve current performance, avoid risk and make realistic plans for future growth.

Protect the financial health of your business by learning your way around these important financial reports:

1. The cash flow statement

The cash flow statement is arguably the most important report for small businesses. A business needs cash flow to pay its debts and finance obligations, make cash distributions to owners, and to supplement other sources of capital to grow the business.

It is worth highlighting that the actual cash flow of a business can be different to its profit shown in the profit and loss statement, due to asset sales or purchases, finance drawn down or repaid, and other capital revenue or expenses. The profit and loss statement can also include non-cash items such as depreciation and livestock adjustments.

Understanding and regularly reviewing your cash flow statement can help you avoid a cash shortfall by revealing precisely where you cash has been spent, and if you're at risk of running out of it!

Monthly examination of your cash flow statement can help you predict and forestall a "cash crunch" by tracking:

The in and out flow of money for operational activities; investments (such as the purchase of office equipment or the sale of portfolio holdings); and financing (such as loan repayments)
Whether your net operating cash flow is less than your profits after tax (which means you are spending more than you earn)
Trends that show cash running low in some months and high in others, allowing you to take steps to build a reserve and ensure continuous "cash on hand" in future

Using a cash flow forecast, based on expected cash coming in and cash expenditure going out, will allow you to predict when additional finance is required, or when additional funds are available. It is a useful monitoring tool and will highlight when your business is not going according to plan so that early remedial action can be taken.

2. The statement of profit and loss

Your profit and loss statement (also known as an income statement) summarises the revenue, cost of sales and expenses your business has incurred over a specific period of time.

Unlike the cash flow statement, the profit and loss statement does not report the cash inflows of sales and cash outflows of expenses. Therefore the bottom line of the profit and loss statement is not a cash flow number.

In order to give you an accurate overview of your financial performance, the profit and loss statement typically breaks down into four sections:

Your revenue (known as the "top line")
The cost of the goods or services you sell (known as cost of goods sold)
The total costs of doing business, such as operating expenses, administration expenses, and expenses associated with taxes and interest
Your net income (the often quoted "bottom line"), which is what remains when the costs of doing business are subtracted from your top line revenue

The profit and loss statement can be used to calculate a number of important key metrics. Two of the more important ones are gross profit margin and net profit margin.

The gross profit margin shows how efficiently you are managing your resources and where optimisation is needed so you can work towards a healthier bottom line. The equation looks like this:

Sales, less cost of goods sold (COGS) = gross profit

Once you know your gross profit you can divide it by your total revenue to calculate your gross profit margin.

The net profit margin calculation goes a step further by determining how much revenue remains after subtracting all expenses, including COGS. Net profit reveals your precise profit per dollar of sales after deducting operating expenses, interest paid on debt, etc. In order to keep in touch with your financial status, it's wise to calculate net profit every month. Be aware that if you are reviewing your profit and loss statements throughout the year, the net profit margin will generally be before any income taxes on profit have been calculated.

3. The statement of changes in equity

The changes (or movements) in equity statement shows the change in your business's net worth over the financial year, and identifies the factors that resulted in the change in equity, such as:

dividend payments - dividends paid must be deducted from the shareholder equity as they represent distribution of wealth to shareholders
share capital - the value of further share capital issued or redeemed
reserves - gains and losses arising from the sale or revaluation of assets or investments
non-taxable herd adjustment - relates to movements in livestock values of qualifying livestock which are revalued each year based on Inland Revenue determinations

4. The balance sheet

The fourth invaluable financial report for small businesses is the balance sheet. The balance sheet summarises what your business owns (assets), what you owe (liabilities) and the current value of your business to investors (owners' equity).

The balance sheet shows the relationship of the business assets on the one side, to its liabilities and equity on the other side. You have probably heard at some time the traditional accounting equation: "Assets equal Liabilities plus Owners Equity".

You might also have heard the term solvency, which relates directly to the balance sheet of a business. Solvency is the ability of a business to cover its liabilities with the assets it owns.

Your assets may include cash in the bank, short-term investments, accounts receivable, inventory, equipment and property.

Your liabilities may include a bank line of credit, accounts payable, wages payable, rent, tax, and utilities.

A business can build up a good sales volume and have a good net profit margin, but if the business can't pay its bills on time, opportunities for growth could be lost and, at worst, the business could fail.

There are two key ratios that measure solvency:

The current ratio is the total current assets divided by the total current liabilities. The current assets include cash, accounts receivable, inventory, and prepaid expenses.

In order to be solvent and cover liabilities, a general rule is that a business should have a current ratio of 2 to 1, meaning that it has twice as many current assets as current liabilities, however in saying that it does depend on the type of industry your business operates in.

The quick ratio uses only cash and accounts receivable, as these assets are the only ones that can be used to pay off debts quickly. The quick ratio is a 1 to 1 ratio, meaning cash and accounts receivable must equal the amount of debt. This is a more difficult ratio to achieve.

These ratios are just as important to lenders as they are to business owners. Banks will look closely at these ratios to determine if the business has sufficient assets to service the additional debt.

Together with the cash flow, profit and loss and changes in equity statements, the balance sheet provides crucial insight into your company's operations and overall performance.

Final tip

If you still feel unsure, who better than your accountant to help walk you through each report? Clarify any concerns and ask all your questions when you meet with them to review and finalise your financials, so you will feel comfortable analysing them independently. It's well worth the effort! When you understand your key financial data, you pave the way to smarter decision-making and more sustainable growth for your business.

As always, we are only a phone call or e-mail away if you wish to discuss your financial reports with us in greater detail.

Keep on eye on our blog this month as we present a series of articles on
strategies for business success

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Entertainment expenses - not all fun and games!

2017-03-07T09:00:00+11:00

Entertainment is a legitimate deductible expense, however it does have some rules ...

Circumstance matters!

Some examples to illustrate ...

Dinner for a sales rep while out of town on business is 100% deductible, but ...

if they are dining within their local area it is a personal expense (ie not deductible).

If there is a client at either dinner however, it's 50% deductible.

Morning and afternoon tea for your employees is 100% deductible, but ...

Friday night drinks for your employees is only 50% deductible.

Taking your family out for lunch is a personal expense.

Sponsoring a local sports team is 100% deductible, but ...

providing a meal to the same team after the game is only 50% deductible.

A golf club sub paid by the company is 100% deductible.

Taking your well-deserving employees to Fiji for the end-of-year Christmas function (yes please!) is 100% deductible, but ...

hiring a launch for a Christmas function to entertain your clients is only 50% deductible.

As you can see, the rules surrounding entertainment expenses are complex and make for some odd results. It doesn't take much to go from fully deductible, to half or even nil. To help you make sense of it all, here are some general ...

Rules of thumb:

Directly in line with business (eg food for employees on the job) - 100% deductible

Promotion to the public (eg sponsorships or donations given in the name of the company) - 100% deductible

Employees' memberships (eg gym memberships) - 100% deductible (note: watch out for FBT!)

Offshore (eg meals for clients or employees while overseas) - 100% deductible

Employee enjoyment (eg Friday drinks, either in or outside of the office) - 50% deductible

Client entertainment (eg dinner with the client, or an event for your clients to meet) - 50% deductible

What should I do when it's 50% deductible?

Inland Revenue recognise it can be a nuisance running calculations each GST period, so they allow you to claim all of your entertainment, even the whole amount of 50% deductible expenses, as they happen. You then make an adjustment once a year.

Your accountant will usually work out the adjustment for you when they do your year-end financials.

If you are doing it yourself, you need to make the adjustment in the same period you file your year-end income tax returns:

Tally your whole GST-inclusive entertainment expenses for the year
Multiply by 20 and divide by 23 to get the GST-exclusive amount
Divide this by two, as the adjustment is for 50%
Multiply this by 3 and divide by 23. This amount goes into box 9 of your GST return and will have the effect of increasing the GST amount you need to pay

The FBT line

If employees (including shareholder-employees) are able to choose when they enjoy the entertainment, it is subject to Fringe Benefit Tax. For instance, giving an employee a bottle of wine to open at a work function is classified as entertainment; give the same employee the same bottle of wine to take home, it becomes a gift and therefore subject to FBT.

Any other entertainment not tied to employment duties will also be subject to FBT.

Fringe Benefit Tax is a tax on the value of things, and is almost always more costly in time and money than the benefit's actual worth.

Keeping good records

You should always keep your receipts and invoices for entertainment expense claims. Over the course of a financial year it is also easy to lose track of what the circumstances were behind each invoice, so best practice is to add a note documenting details such as what the purpose was, who was present, and what their relationship is to your business.

If you have a lot of entertainment expenses you may find it more convenient to group your receipts by type, eg 'workers dinner', 'business dinner - no client', 'business dinner - with client', etc.

Most accounting software programs also allow you to add notes to your transactions, which will assist your accountant when coding.

In the business world, 'entertainment' is a bit of an oxymoron because it's not always fun and games. Talk to us before your entertainment expenses become like the headache that follows a work Christmas function! We are only a phone call or e-mail away.

Keep on eye on our blog this month as we present a series of articles on
strategies for business success

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UPDATE! Proposed changes to schedular payment regime

2017-03-01T09:00:00+11:00

Do you have contractors working for you

Further to our blog post from 10 February 2017, the bill for the proposed changes has now been passed.

These changes will take effect from 1 April 2017, and Inland Revenue are currently updating their website. They advise further information will be available by mid-march, including a downloadable version of the IR330C.

Want to discuss this further with our advisers? We are only a phone call or e-mail away.

Source:

www.ird.govt.nz

IRD notice regarding delayed processing of GST Direct Debit payments

2017-03-01T09:00:00+11:00

If you have made a GST payment for the period ended 31 January 2017 and the amount has not yet been deducted from your bank account, note that Inland Revenue have posted the following message on their website homepage:

"There is a delay in processing direct debit payments for GST due 28 February. No penalties will be charged if your payment was requested on or before the due date. The debit should appear in your bank account tomorrow."

If you are still concerned about incurring penalties, we are only a phone call or e-mail away – we'll be happy to help.

Source:

www.ird.govt.nz

Strategic business planning - more than just a 'to-do' list

2017-02-24T09:00:00+11:00

Part 6 of our blog article series: "Strategies for business success"

The end of the financial year approaches and is typically a time when business owners review the year that's been and look ahead to the one approaching. It's a time for reflection and stock-taking, both in the literal and figurative sense: has the company grown, progressed, improved? Has it suffered slumps and dips in sales and/ or production, and if so, how can these be mitigated or avoided in 2017/2018?

It's all very well to gather your team and banter around ideas for new schemes to try in the upcoming year, however all you are effectively creating is an extensive to-do list which may or may not achieve the results you are after. The trick is to make informed decisions on what to exclude, as well as what to incorporate.

"the difference between successful people and VERY successful people is the VERY successful people say "no" to almost everything" Warren Buffet (investor, business magnate and philanthropist)

Businesses are sometimes concerned that by eliminating options from their business strategy they are putting caps on their potential success, however you can never hope to excel at everything. Strategy is knowing what to say "no" to, as much as it is about knowing what to say "yes" to. If you don't make any trade-offs, you don't have a strategy. You are basically firing arrows in a dark room, hoping something will hit the bulls-eye.

A successful business strategy addresses both the 'microscope' and the 'telescope': improving the here and now moment (the 'what is') and the long term vision (the 'what will be'):

The microscope – improving 'what is'

With the benefit of hindsight you can look back on the previous year and identify which things contributed positively to your efficiencies, productivity, sales, marketing, etc. Using data and statistics (such as KPI's, marketing campaign results, productivity reports) to help you determine which of these had the biggest uptake, and then allocate resources to maintaining, developing and improving them.
Conversely, which failed or had nil effect? These should be culled, or at least critically reviewed to see if the reason for their failure is evident – if the idea was solid but the planning and/or execution was lacking, decide if improving the shortcoming(s) can save it from the trash bin.
What new ideas, processes, campaigns, efficiencies can you and your team come up with, and which of those show the most potential? Again, you cannot adopt them all – decide on the best of the best, and drop the rest. You can always revisit ideas during your next review and decide if their scope or value has improved.

The telescope – improving 'what will be'

"It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change" Charles Darwin

Technology is moving at such a rapid rate that it will (and does) devour businesses and industries whole if they are not responsive to change. And reacting as soon as the warning signs appear can often be too late; you need to be proactive and develop your business strategy with a view to looking ahead – 3-5 years at least, but ideally longer.

"the digital era will dwarf what occurred in the information era. It'll be a brutal disruption, the majority of companies today will not exist in a meaningful way 10 to 15 years from now" Cisco's CEO, John Chambers

What up-and-coming new entrants to the global industry scene could disrupt your business model? What changes to your supply chain, or expectations from customers, could you reasonably foresee, anticipate and plan for? Unlike short-term planning, long-term planning is not about performance improvement. It is about forgetting the past and reshaping your business to compete more effectively in the future.

Get your team involved

This is critical – no strategy will work if your entire team is not informed, involved and, above all, committed to the cause. Everyone needs to know the grand plan, as well as their respective part to play. Hold frequent team meetings where progress can be tracked, and hold everyone accountable for achieving their own targets and project deadlines.

Establish your capacity to implement your strategy

Anything you have decided to pursue is likely going to involve some investment, either in the form of new skills, new products, new services, etc. Enlist your accountant to complete a return on investment (ROI) analysis if you require new equipment or additional staff. This will help you establish how much revenue needs to be generated in order to turn a profit or provide benefit to the company, and also how the business can access the funds for growth. For example, will you need a larger credit line or new capital?

As always, we are only a phone call or e-mail away if you require assistance with your business's strategic planning – we'll be happy to help.

Keep on eye on our blog this month as we present a series of articles on
strategies for business success

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The Easter Trading Bill and what it means for retailers and retail staff

2017-02-21T09:00:00+11:00

If you are a shop owner this means that from Easter 2017 your district council can now vote on whether Easter Sunday trading is permitted in your region.

Last week the Far North District Council voted to open up Easter Sunday trading across their district, allowing businesses to operate without fear of prosecution. The new trading rule was passed unanimously despite reservations from some councillors. Previously only Paihia businesses were allowed to open due to its bustling tourism industry, whereas shops in equally-popular Russell were not.

Kaipara District Council closed public submissions on their 'Statement of Proposal for Easter Sunday Shop Trading Policy' on Friday 3 February 2017. They advised hearings would be held in mid-February.

Whangarei District Council stated in a council meeting agenda held 16 December 2015 "That Whangarei District Council supports the submission of Local Government New Zealand to the Shop Trading Amendment Bill expressing its support for Territorial Authorities to be able to regulate trading on Easter Sundays through a bylaw." They have made no public announcements regarding their vote on the matter.

What this means for employers:

If your district is to allow Easter Sunday trading and you plan to open, you must advise staff of their right to refuse to work (eg by way of a letter or memo delivered in person or via a group e-mail). This must be done between the eight to four weeks leading up to Easter Sunday, or as soon as possible for new staff commencing less than four weeks before Easter Sunday.

For Easter 2017 this means employees should be notified between 19 February and 19 March 2017.

A link to Employment New Zealand's Easter Sunday trading letter template to employees can be found here.

If an employee chooses not to work, they must notify you in writing (via letter or e-mail) within 14 days of receiving the right to refuse. In the event the employee opts out of working that day, you must accept this decision without any prejudice to the employee.

What this means for employees

If you are advised (in writing) by your employer that you have the right to refuse to work on Easter Sunday, you may refuse without giving your reason(s) and without repercussions, however you must advise them of your refusal in writing and within 14 days of receiving the right to refuse.

You may file a personal grievance if you believe you have been made to work Easter Sunday, or have been treated badly as a result of refusing to work Easter Sunday.

If you have any questions regarding this matter, please give us a call or send us an email – we'll be happy to help.

Sources:

Ministry of Business, Innovation and Employment

NZ Herald

Kaipara District Council

Whangarei District Council

Keep on eye on our blog this month as we present a series of articles on
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Co-working office spaces - 6 benefits which explain their growing popularity

2017-02-17T09:00:00+11:00

Part 5 of our blog article series: "Strategies for business success"

An emerging trend that is gaining wide-spread appeal is the increase in co-working spaces. These work environments step away from the traditional notion of a single company leasing an office space; rather, they are fully equipped, tech-ready hives of activity, wherein entrepreneurs, SME's, start-ups and freelancers spend their time working, learning and collaborating.

So what is the appeal? Here are 6 reasons why co-working may not only be as good as, but perhaps better, than working from home or a traditional office environment:

1. Premium office fit-out

If you are just starting out, setting up an office can be an expensive exercise: a functional work station, printer, scanner, copier, network accessibility, professional meeting rooms - the list goes on. Co-working spaces allow you to walk in, sit down, and have immediate access to these vital business tools without the hefty cash outlay.

2. Access to support and business coaches

Everything can seem very daunting when you don't have the proper support and advice needed to steer you in the right direction. Co-working spaces are filled with business people from all types of industries, and ranging from small start-ups to those with extensive business experience and knowledge. There is always someone available who can offer advice based on their own experiences, assistance from a professional adviser, or even someone who will take on a more formal coaching role, to help guide your business decisions.

3. Community vibe

Many freelancers now choose co-working spaces over the isolation and/or distractions of working from home. The co-working environment becomes a unifier to a community of people who, although working independently on vastly different projects, are working in a space conducive to creativity, camaraderie and fellowship.

4. Networking and collaboration

A natural follow-on from the sense of community that evolves when a group of people spend a lot of time together, is the sharing of information and learning from one another. Discovering that your neighbour at the next desk is struggling with a problem similar to your own leads to organic collaboration and problem-solving dynamics. There have even been instances where collaboration was taken one step further and two or more businesses merged to become one company.

5. Flexible use-of-space options

Depending on the co-working space they often offer a range of choices for the use of the facilities. The Orchard, Northland's own collaborative business and events hub, have a casual "pop-in" hourly rate which is capped to a daily limit, as well as membership plans to suit your requirements – casual "hot desking" for two or more days per week, through to 24/7 access to a "hot desk" or your own designated desk. There is also a ghost plan for the use of meeting rooms only. No matter your level of commitment or workload, there will be an option to fit your needs.

6. Training and learning opportunities

To support the development and success of new businesses and start-up ventures, some co-working spaces will hold workshops and seminars on topics ranging from recruitment basics, to social media marketing, to leadership and team work, and everything in between. Presented by fellow business people "in the know" in their chosen field, these snippets of learning on foundational aspects of businesses management allow co-workers, and the general business community, to learn with, and from, each other in a more structured context. The Orchard, for instance, host fortnightly "Lunch Box Sessions" – affectionately coined as 'bite-sized' learning – held during a 30-minute midday time slot.

The Orchard and Us

As business advisors, Ean Brown Partners Limited are very proud of our association with The Orchard, the brainchild of Northland's economic growth groups Northland Inc and Northland Chamber of Commerce. These organisations facilitate the success of Northland's emerging pool of new entrepreneurs and start-ups, and as strong advocates for our local thriving business community Ean Brown Partners Limited like to walk the walk, not just talk the talk - we "hot desk" once a month at The Orchard, offering free business advice and guidance on either an appointment or drop-in basis. To find out when our next "hot desking" date is, keep an eye on our blog and Facebook pages.

P.S. We also offer biscuits! Come down and have a chat with us – you bring along your business questions, we'll supply the biscuits. See you there!

Keep on eye on our blog this month as we present a series of articles on
strategies for business success

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Proposed changes to schedular payment regime

2017-02-10T09:00:00+11:00

Do you have contractors working for you

Are you aware of proposed changes to the schedular payment regime which are expected to come into force from 1 April?

The following is a brief summary of these changes:

Variable tax rates

Contractors will be able to elect their own withholding rate without having to apply to Inland Revenue. Minimum rates apply: 10% for resident contractors and 15% for non-resident contractors or those with a temporary work visa. Most payroll software should be able to handle variable withholding tax rates.

If a contractor does not elect their own withholding rate then the standard rates set out in Schedule 4 of the Income Tax Act 2007 will apply. If a contractor does not provide their name and IRD number the withholding rate is 45%.

Exceptions

Withholding rates may be lower than the above minimum if a contractor holds a special tax rate certificate issued by Inland Revenue.

If Inland Revenue advises you that a prescribed withholding rate applies to an individual contractor this rate must be used.

The withholding rates for non-resident entertainers or sports people will remain at 20%. They are not able to select their own withholding rate.

Tax Notification form

Contractors will need to complete a new tax rate notification form instead of the current IR330 form. They only need to complete this if they want to change their tax rate or when they first start working for you.

Labour hire payments

If you are a labour hire business providing contractors to work for a client, the contractor payments will be subject to the schedular payment rules. The proposed standard withholding rate for this is 20%.

If you would like to discuss this issue with our advisers, please contact our office - give us a call or send us an email - we will be happy to help.

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Our February "hot desking" date at The Orchard

2017-02-07T09:00:00+11:00

For FREE business advice

(or just a friendly chat and a coffee)

Level 1, 85 Cameron Street, Whangarei

No appointment needed!

Mobile business solutions - 3 ways to boost your revenue using technology

2017-01-27T09:00:00+11:00

Part 4 of our blog article series: "Strategies for business success"

In today's world, smartphones, tablets and similar devices are virtually everywhere. We enjoy unprecedented levels of connectivity and access to information from wherever in the world we happen to be - news is now available live and streamed in real-time; e-mails can be read on the go; it's possible to Google the answer to almost any question you can think of; catch up on TV shows when waiting at the doctor's office; video chat with friends overseas while you sit in your favourite cafe enjoying a morning coffee. Or, like most people, use it primarily to scroll through Facebook!

From a business perspective, if you have a tablet or smartphone you already possess the right tools needed to shorten your sales cycle and boost your bottom line. From CRM apps, to invoicing and payment technology, there's a mobile solution available for your small business that can make it easier to convert inquiries into prospects, and nurture prospects into customers.

1. CRM ("Customer Relationship Management")

Nothing improves the outcome of a friendly sales call or meeting than being able to demonstrate that you know, understand and care about your customers' needs.

A mobile CRM app provides you or your sales team with instant, up-to-date data on all your customer accounts. It also enables you to quickly capture data on new prospects and customers whilst you are meeting with them, or as soon as you hang up the phone.

With your customers sales history at your fingertips, including detailed information on buying preferences, it is easy to suggest relevant new products, up-sell or cross sell on the spot.

If you are new to mobile sales tools, you might want to look into Insightly, an app that ties in project management capabilities with a CRM. This solution allows you to access your customer database, as well as collaborate, assign tasks and create milestones for your sales team while on the go.

Most accounting software also has a CRM element that you might not be maximising. MYOB Essentials and Xero are both popular, mobile-accessible accounting solutions. Both of these allow you to store names, contact numbers and notes, and view reports on past transactions.

2. Quotes and invoicing

Don't miss an opportunity to have your quote at the top of your potential customer's list for consideration. Phone quotes and hand written carbon copies have done the job in the past, but nowadays your average consumer is expecting more. As other businesses issue slick, branded quotes via e-mail, it's all too easy for customers to forget your phone call or misplace your paper quote.

Traditional invoicing also has its fair share of limitations. Issuing timely invoices, tracking payments and following up accounts can easily consume a large part of your day. How often does a client claim they didn't receive an invoice in the post just to put off paying, or not pay at all? Some clients also like to pay in fractions of the actual invoice value, but how will you know when it's fully paid?

Mobile solutions can alleviate some of the stress. You can generate invoices while you are still on-site, direct to the client's inbox – no more "lost in the post" again! You can also make use of the tracking built into software such as MYOB OnTheGo and Xero and send follow-up statements, accurate to the cent that day, while you're out on another job.

3. Accepting mobile payments

If you were equipped to take payment on the spot, how dramatically would it impact your bottom line? Mobile POS (Point of Sale) tools empower small business owners to close sales instantly, minimizing the risk of your customer raising objections later, or simply changing their minds.

Easy and secure credit card processing capabilities are an important feature of mobile POS solutions and make instant payment a breeze – anywhere, anytime.

Vend is a robust tool designed to easily manage sales on your iPad.

Major banks also provide methods for accepting payments while on the go: BNZ's PayClip is a small device which connects to your phone and allows you to receive EFTPOS, debit and credit card payments, with the benefits of low fees and no long term contracts; ANZ has FastPay, an app available for both iPhone or Android; ASB's version is Accept mPOS, a handheld pinpad that allows contactless, chip and swipe payments.

MYOB OnTheGo is another app tie-in with MYOB software which can connect to PayClip to receive card payments anywhere your phone can go.

Choosing the right mobile solutions for your business

The reason many business owners hesitate to use mobile tools is not due to lack of interest; they simply feel overwhelmed by the many choices available and are too busy to research the options.

If you want to take advantage of mobile technology but don't know where to start, your first step is to look at your current systems. You might not be utilising your online accounting software to its full potential, or you could discover you are using an outdated system, in which case it may be time to look into an all-in-one mobile-friendly accounting solution.

Still unsure how to proceed from here? Why not give us a call or send us an email - we'll be happy to assist you with selecting the right software that best fits your business needs.

Keep on eye on our blog this month as we present a series of articles on
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Upcoming Public Holidays - a reminder to employers

2017-01-25T09:00:00+11:00

With two public holidays coming up (Auckland/Northland Anniversary Day on Monday 30th January and Waitangi Day on Monday 6th February), we remind employers of public holiday entitlements under the Holidays Act 2003 for the following scenarios:

Your business is open AND;

you require your employee to work AND that day is one the employee would normally work - the employee must be paid for the hours they work at a rate of time and a half. They are also entitled to a day in lieu (alternative holiday), to be taken at a later date.
you require your employee to work AND that day is one the employee would not normally work - the employee must be paid for the hours they work at a rate of time and a half. They are not entitled to a day in lieu (alternative holiday).

Your business is closed AND;

that day is one the employee would normally work - the employee must be paid for the public holiday at their relevant daily pay (or average daily pay).
that day is one the employee would not normally work - the employee is not entitled to any payment for this day.

If you require assistance working out public holiday entitlements, please contact Vicki, our payroll and employment specialist.

Vicki Cozens | Chartered Accountant

E-mail Vicki

BREAKING NEWS! The minimum wage just got a raise!

2017-01-24T09:00:00+11:00

Michael Woodhouse, Minister of Workplace Relations and Safety, has announced today that the minimum wage will increase by 50 cents to $15.75 an hour on April 1.

The starting-out and training hourly minimum wage rates will increase from $12.20 to $12.60 per hour, remaining at 80% of the adult minimum wage.

An increase to $15.75 will benefit approximately 119,500 workers and will increase wages throughout the economy by $65 million per year.

The increase is the fourth successive 50c increase: the rate was raised from $13.75 to $14.25 in April 2014, then to $14.75 in 2015, and $15.25 last year.

Information and photo credits:

beehive.govt.nz, 24 Jan 2017
www.beehive.govt.nz

NZ Herald, 24 Jan 2017
www.nzherald.co.nz

Our January "hot desking" date at The Orchard

2017-01-17T09:00:00+11:00

Are you in need of some FREE business advice, or just a friendly chat and a coffee?

Head over to The Orchard on Friday 20 January (Level 1, 85 Cameron Street, Whangarei) and catch up with our lovely Jessie. She has a world of knowledge and is eager to help you resolve any questions, queries, problems, inquiries or concerns you might have about running your business. No appointment needed!

Jessie Alison | Accountant

Ean Brown Partners Ltd are excited to be supporting The Orchard. To discover what this unique organisation is all about, head over to their website:

www.theorchard.co.nz

Risky business - taking control of risks to increase rewards

2016-12-12T09:00:00+11:00

Part 3 of our blog article series: "Strategies for business success"

The moment you open your business doors for profit, you can be sure that risks are following close behind. And in today's open-market world, business risks are increased even further due to the impact of changes to the global economy.

To stay on top, major business decisions should be made after carefully balancing up the risks versus the expected rewards for any project. To protect your company's operational and financial well-being long-term it is important to identify not only the risks that your business is currently facing, but also those risks which may become a problem in the future.

Identify your risks

A solution can only be found once the problem is identified, so knowing your risks is step one. The types and scale of the risks can vary depending on your company's operations and industry, however the following situations can have serious ramifications on the long-term success of a business:

Reduction in consumer disposable income
Exchange rate fluctuations
Shortage of skilled labour
Economic downturns
Technological advances

Staying informed about local, national and global trends and developments can go a long way towards predicting changes which could impact your business model, products or services. This foresight will help your business to remain relevant and stay one step ahead of the competition.

Classify your risks

Business risks can be grouped into three categories:

Financial risk: Financial risk impacts your company's cash flow, income and shareholder wealth. It encompasses being able to meet your commitments as they fall due and the ability to cope with changes in the market such as interest rate movements, commodity price variances and credit risk.

Strategic risk: Strategic risk is determined by your company's business functions, investor communications and operating environment. It is affected by the market where it sells and buys goods and services. Environmental risks such as changes in Government and compliance regulations can also impact your company. Changes in supply and demand, and competitors that vie for sales in your market, can all pose considerable strategic risks.

Operational risk: Operational risk can be broken down into two sections: process risk and product risk. Process risks involve staff, equipment, materials and business procedures, which can all upset a company's' continued operations. Product risks include product improvements and developments, and a company's approach to the research and development of new products and/or services.

Categorising your risks will provide clarity on the issues at hand and offer a sound foundation for building the solution upon.

Mitigate your risks

After identifying and classifying the risks your business is facing you can begin developing strategies towards eliminating, or at least mitigating, those risks. Getting your business team together to brainstorm ideas and think outside the box may result in some surprising solutions that can not only keep your business profitable, but accelerate growth beyond expectations.

As business advisers we make it our business to keep up with trends that could impact our clients bottom line. If you would like assistance with your business risk assessments, contact our office today – one of our friendly advisers will be ready to help!

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Are you an Airbnb host or renting out rooms? Read on so you don't get caught out!

2016-12-09T09:00:00+11:00

Airbnb is an online accommodation platform that allows people to rent out their spare rooms, home or office spaces and is growing in popularity in New Zealand, with more than 7,000 properties listed on the website.

While this is becoming a popular avenue for earning additional income, many people are unaware of the tax obligations associated with the resulting income generated.

Any income received from renting out your spare room, home or property is liable for income tax and will need to be declared in your tax return.

There are some expenses relating to maintaining and renting out your property which you can claim, however you will need to keep receipts and a record of when the room was rented.

If you are only renting your spare room, the deduction claimable for these expenses will be limited to the percentage of the area of your house that was rented.

Inland Revenue has said "if a person is renting rooms in their home to tourists (via websites such as Airbnb and bookabach) they are effectively acting as a landlord and will need to pay tax on that income accordingly."

If you are unsure of your obligations regarding rental income or wish to discuss the matter further, please contact one of our friendly advisers – we will be happy to help.

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Do you provide accommodation to your employees? Here's what you need to know

2016-12-05T09:00:00+11:00

Providing accommodation to workers as part of their remuneration package is treated as taxable income for the employee. Accordingly, Inland Revenue have stated the value of that rent must be at current market value.

In the event of a review or audit, Inland Revenue will check to see that you have followed, and documented, a reasonable process for obtaining the market value for rent in the area of the accommodation you supply.

This market value rent is included in the taxable income of the employee and PAYE must be paid on it. It is also taken into account for Child Support, Working For Families Tax Credits and Student Loans purposes.

The factors to consider when obtaining a market value rent include location, size of the accommodation, number of bedrooms, parking availability, condition of the accommodation and any restrictions such as pets, smoking, access, etc.

The methods used to obtain the market value may include a valuation from a registered valuer, an estimate from a real estate agent or property manager, searching for rental property ads on websites, or another reasonable basis.

In all cases, it is necessary to document the basis chosen. This may mean obtaining written estimates or printing comparable internet listings.

It is suggested that the value of the accommodation should be reviewed at least every three years.

If you have any concerns about obtaining a reasonable market value, contact one of our friendly advisers to discuss your options.

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Our December "hot desking" date at The Orchard

2016-12-02T09:00:00+11:00

Come and see Jessie next Friday at The Orchard - Level 1, cnr Cameron and Walton Streets in Whangarei (entry is off Walton street).

Jessie is our very enthusiastic and friendly team member who will be available to help you with your business questions, queries, problems, enquiries and concerns.

Want to find out more about The Orchard and how they are helping Northland businesses succeed? Visit their website:

www.theorchard.co.nz

It's (Public) Holiday season again! Employer tips to getting it right

2016-12-01T09:00:00+11:00

With Christmas Day 2016 and New Year's Day 2017 falling on weekends again this year, here is some timely advice regarding the transferring of public holidays and how to work out public holiday pay entitlements.

Transfer of public holidays falling on weekends

If the public holiday falling on a Sunday would otherwise be a working day for your employee, the public holiday must be treated as falling due on Sunday.

If the public holiday falling on a Sunday would NOT otherwise be a working day for your employee, the public holiday must be treated as falling due on the following Tuesday (as Monday is Boxing Day / 2 January Holiday).

An employee is entitled to a maximum of four paid public holiday days, therefore if an employee is rostered to work on both Sunday and Tuesday, the Tuesday must be treated as a regular day. In the event you do not require them to work on Tuesday, we recommend discussing suitable alternative options with the employee well in advance. These could include roster changes or the employee taking annual leave for that day.

"Otherwise working day"

In most circumstances it is easy to establish if an employee would have worked a specific day had it not been for the public holiday falling due. However in instances where the matter is less clear-cut, here are some factors to consider with a view to establishing entitlement to public holiday pay:

The employee's employment agreement
The employee's work patterns
Whether the employee works for the employer only when work is available
The employer's rosters or similar scheduling systems
The reasonable expectations of both employer and employee that the employee would work the day concerned

Christmas close-downs and annual holidays

Employees may be entitled to public holidays which fall during a business close-down period. Entitlement to public holiday pay should be established using the above factors to determine if that day would otherwise be a working day, were it not for the close-down period being in effect.

Similarly, a public holiday which occurs during an employee's annual holidays is treated as a public holiday, not annual holiday.

If you wish to discuss the above, or any other payroll and employment queries, contact Vicki.

E-mail Vicki

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Leaving school to study agriculture? FMG scholarship applications closing soon!

2016-11-25T09:00:00+11:00

Applications are closing soon for the 2017 FMG Agriculture Scholarship. Each year, FMG awards scholarships to two promising students, contributing $5,000 towards course fees for each year of their undergraduate degree.

Students are invited to apply if they can maintain at least a B- average and planning on commencing their first year at Lincoln, Massey or Waikato universities in 2017, studying towards a Bachelor in any of the following:

Agriculture
Agricultural Science
Commerce (Agriculture)
Viticulture and Oenology
AgriScience
AgriCommerce
Science (Agriculture or AgriTech)
Management Studies (Agribusiness)
Agribusiness and Food Marketing
Land and Property Management (Rural)

Applications open each year on 1 October and close on 5 December, so get in quick!

To find out more about how to apply, visit the FMG website:

www.fmg.co.nz/scholarships

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Supporting Northland business success. Visit us at The Orchard!

2016-11-22T09:00:00+11:00

Do you have a great enterprising idea but unsure how to proceed? Are you a new and emerging business? Need access to modern and professional office space facilities? Are you seeking expert business advice to help you develop your business model?

If you can say 'yes' to any of the above, come and talk to Ean Brown Partners Ltd at The Orchard, Northland's fantastic new business and event hub, for FREE professional advice.

As a huge patron of business success in the Northland region, Ean Brown Partners Limited are proud members of the Northland Chamber of Commerce and The Orchard. We want to be 'hands-on' with helping local companies thrive by working from The Orchard office space ("hot-desking") once a month, starting on Friday 25 November, where we will be available to answer all your business questions, provide tips and advice, and act as your professional sounding board.

The brainchild of the Business Innovation and Growth team at Northland Inc, and in partnership with the Northland Chamber of Commerce, The Orchard is a collaborative business and event space, offering all the facilities of a contemporary office fit-out, slick creative think tank zone, and spacious event and meeting rooms, designed to support Northland's thriving community of entrepreneurs, innovators and business start-ups. The Orchard provides new businesses a common place to access office amenities, tools, network contacts and guidance from established business professionals in Northland - like us!

The Orchard hub can be utilised however you want and need – there is no need to be a member. Pop in casually to co-work, or sign up to a membership plan - there are no sign-up fees or long-term contracts. Need a boardroom? Use the bookable rooms to host meetings or events – you may be eligible for free use! Visit The Orchard's website for more information.

Keep an eye out on our blog and facebook page for further upcoming dates of when we will be onsite at The Orchard to help drive your business growth.

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Juggling the books - 6 bookkeeping pitfalls and how to avoid them

2016-11-14T09:00:00+11:00

Part 2 of our blog article series: "Strategies for business success"

Although most business owners recognise the importance of careful financial management, few want to spend their time dealing with "The Books". Unfortunately, not keeping a close eye on your income and expenses can be very costly for a business.

Here are 6 of the most common bookkeeping pitfalls, and some simple tips for getting back on track:

Mixing business and personal

Problem: All too often, business owners adopt a "buy now, sort later" approach to expenses, using the same bank account or credit card for personal and professional purchases. At the end of the month, they're left poring over statements, trying to sort things out. Mixing business and personal expenses costs extra hours of bookkeeping each month, and muddies your overall financial picture.

Solution: Avoid this pitfall by using a separate bank account and credit card for business spending, and being disciplined about separating expenditures.

Neglecting to track reimbursable expenses

Problem: Receipt-tracking is a necessary part of business ownership - you need to keep track of receipts to understand spending patterns and effectively manage your company's finances. But far too many business owners take a haphazard approach to collecting and organizing receipts - especially while on-the-go, where a whopping 50% of their expenses are generated.

Solution: Using an expense-tracking app can assist with recording and managing your expenses. Options like Paypr and Receipt Bank can record expenditure, as well as generate expense reports. Plus, many of these apps sync seamlessly with your business bank account and accounting software.

Not taking advantage of technology

Problem: Are you still relying on manual accounting methods? While basic spreadsheet tools can get the job done, they leave the door wide open for human error. Data entry errors and formulas that don't include relevant items are common mistakes.

Solution: Manual methods simply can't match the technological benefits offered by software like MYOB or Xero. These systems track invoicing, link with your credit card and business bank account, organize expenses, and generate insightful financial reports.

Not keeping accounts up-to-date

Problem: Many business owners cite bookkeeping as their most dreaded business responsibility and will find a host of reasons to avoid dealing with it, preferring to shove it aside until the mountain of paperwork becomes insurmountable.

Solution: Being consistent by allocating a block of time each week to deal with it means the accounts are always up-to-date, the level of paperwork is kept manageable, and errors can be identified more readily and dealt with much sooner after they occur.

Not reconciling bank accounts

Problem: One key element of bookkeeping is to reconcile the accounts with bank statements, however it is a task often neglected or overlooked to the detriment of the business.

Solution: Reconciling your bank account each month ensures the cash in your accounting system matches the cash at your bank. By checking off your bank statements against your accounting records you will be able to identify errors and take swift measures to correct them.

Lack of communication

Problem: Failing to keep your accountant up-to-date with major transactions such as property purchases or loans/asset purchases can result in your accountant spending additional time working out where the money went, or trying to track down important documentation at year end.

Solution: Consistent communication is key! And it doesn't need to be lengthy - a quick phone call or short e-mail to your accountant as the transaction occurs, or ensuring the relevant paperwork is given to your accountant at year end, can save you a lot of time, trouble and possibly money.

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Owning your own business - 5 advantages to being your own boss

2016-11-01T09:00:00+11:00

Part 1 of our blog article series: "Strategies for business success"

Have you ever considered starting your own business but were put off by the statistics on the success rates of new ventures? Think again! There are huge positives to owning and running your own business.

Here is our top 5 list of advantages to being your own boss:

Owning you own business means that you are in control of your destiny. You decide on the direction the business should take, and you decide on the steps you will take to get there. Having passion and vision for your business allows you to identify opportunities, plan ahead and nurture growth both in the short and long-term future. In the process you create a business model that reflects your ideals and philosophies.

Being your own boss allows you the flexibility to change and adapt. You can choose where you work, how you work and who you work with, and make changes accordingly as you identify problems/opportunities.

Become the master of your own work/life balance. Getting this ratio right is a major factor in achieving long-term happiness, and happiness leads to success. After all "if you love what you do, you'll never work another day on your life!"

Personal growth and continued learning are vital developmental processes that lead to an individual's sense of achievement and satisfaction, not just at work but life in general. Running a business will provide unlimited learning opportunities and challenges - confident decision making, conducting successful meetings and negotiations, the art of delegating, coaching and mentoring staff for success, effective management of debtors and creditors, to name just a few.

The feeling of making your mark on the world is a level of accomplishment few get to enjoy. Your business doesn't need to be ground-breaking, be operating on a global scale or curing cancer to achieve worthwhile impact. Regardless of what you are selling, manufacturing, producing or creating, you are helping your customers achieve their own goals, whatever those may be. And that alone has surely got to be a feel-good factor!

No-one goes into business having all the required skills, but therein lies the adventure. You will be constantly learning and adapting as you go, and the sense of triumph that results is exhilarating. Always be willing to listen to advice from peers and mentors, ask lots of questions, seek out different view-points, and adapt everything you learn to suit your unique business strategy and match your own personal integrity. In addition, increasing your business contacts and networks can open doors to further opportunities which you may never have considered, or even dreamed of, before.

Yes, there are risks, but there are also huge rewards - both financially and personally - if you are willing to take a chance on yourself. If you are considering becoming your own boss and starting a business, talk to a business adviser today and learn how to monitor the financial health of your business right from the start. Knowledge is power, and knowing how to monitor the finances of your business will allow you to correct any issues as they arise before they jeopardise your business success.

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Crackdown on cashies - Inland Revenue continue focus on construction industry

2016-10-27T09:00:00+11:00

The "hidden economy" of cash jobs and undeclared income remains a strong focus for Inland Revenue, who are scrutinising the construction industry for record keeping and tax compliance.

Inland Revenue have launched another advertising campaign to encourage subcontractors to pay their income tax or risk facing punishment. The campaign also encourages people to confidentially report cash deals and other types of non-taxed contracting.

Inland Revenue have advised they will be writing to construction businesses to remind them of their obligations to declare all their income - no matter how big or small - when they file their GST and/or income tax returns.

Evasion includes: not maintaining adequate records, omission of information from tax returns and forms, or providing incomplete or misleading information.

Inland Revenue are getting smarter at finding those who fail to declare their income. Punishments can include late payment penalties, shortfall penalties, criminal convictions or the ability to contract for work.

We recommend businesses thoroughly review the robustness of their systems, ensuring all jobs are recorded appropriately and GST is properly dealt with, as well as making sure all income is declared in annual tax returns so the correct amount of tax is being paid.

Inland Revenue advise that making a full voluntary disclosure may benefit you by not being prosecuted in a court of law, or having your shortfall penalty reduced by up to 100%.

We can help you put your taxes right - contact our office to discuss your situation with one of our friendly advisers.

Calling all dairy farmers - entries are now open for the 2017 NZ Dairy Industry Awards!

2016-10-25T09:00:00+11:00

Are you one of today's achievers with an eye on the future?

The New Zealand Dairy Industry Awards attracts farmers from across the country, working in all levels of the dairy industry. There are three competitions, offering entrants the chance to challenge themselves, earn a regional or national title and to share in substantial regional and national prize pools.

Why enter the Dairy Industry Awards?

Learn, grow, succeed

Through the awards programme, entrants learning and development is accelerated. It is a place to challenge yourself, raise the bar and climb that career ladder.

Stand out

Showcase your skills - stand out from the herd! Take your passion and drive, and turn it into something that sets you apart.

Be rewarded

Improve your career prospects and upgrade your business skills. Be rewarded for your hard work with prize money, recognition and industry exposure.

The three categories are:

Share Farmer of the Year
Dairy Manager of the Year
Dairy Trainee of the Year

Entries opened on	20 October 2016
Early Bird entries close	9 November 2016
Entries close	30 November 2016

To find out more or to enter, visit the New Zealand Dairy Industry Awards website on the link below:

dairyindustryawards.co.nz

Main causes of stress for business owners and how to counter them

2016-10-19T09:00:00+11:00

Many entrepreneurs believe that hard work and dogged determination are all it takes to build and sustain a successful business. But when you consider the pressures of running a company, it seems wise to add effective stress-management to the list. Left unchecked, stress can erode your passion and undermine performance, not to mention taking a serious toll on your health.

Research compiled by Office Vibe reveals that over 70% of professionals regularly experience the physical and mental symptoms of stress. And stress-related illness costs businesses a whopping $200 billion a year in missed work and medical bills.

Wondering how you can stop stress from derailing your productivity, profits, and overall well-being? Follow these practical tips for avoiding the main causes of "business burn-out."

So many tasks, so little time!

Busy business owners have notoriously long to-do lists. Without effective strategies for managing time and sharing the load, you'll be forced into a reactive versus proactive position – the perfect storm for chronic stress and impaired decision-making.

Try these approaches to free up more of your time:

resist the urge to micromanage and begin delegating more tasks to partners and employees
use a project management tool to prioritize and assign tasks, track progress, and share results with clients (here's a handy list of top-ranked tools)
hire an accountant to help you navigate taxes and implement year round time and money-saving financial solutions.

Maintaining positive cash flow

All businesses, particularly start-ups, must ensure they have enough cash to keep running after covering expenses each month. Cultivating a consistent cash flow is crucial for managing both your finances and your stress levels. Here are a few ways to stay cash flow positive:

follow up promptly on unpaid bills, and consider offering an incentive for early bill payment (such as a small discount when payment is received within five days of invoicing)
be wary of slashing prices: if you must mark down a product or service, be sure you can recover your costs elsewhere
think "less is more" when purchasing inventory to avoid sinking precious cash into excess stock
have a trusted employee monitor your cash flow, and inform you once it dips below a certain threshold.

Attracting new customers

Starting to panic because you keep missing your sales goals? Auditing your current approach and implementing better growth strategies is key to alleviating that stress. Here are a few ideas to get started:

drill down into the behaviors and preferences of your customers, so you can better target your marketing
analyze each step in your sales process to see where the holes are, and tighten your approach
use your audience research to develop a new product or service – one that fills a unique need for your customers and gives you a leg up on the competition.

Starting and growing a business takes tremendous energy. But by leveraging skilled help and improving key management processes, you'll learn to pace yourself – and keep that passion burning for years to come.

Are you and your farm team ready for mating season? Here are some tips for success

2016-10-11T09:00:00+11:00

Every farmer hopes for a successful cow mating season, but don't just leave things to chance. You can maximise your success rate by taking proactive measures now which may prevent or minimise mistakes - mistakes which could lead to injury, time off work or equipment damage, and ultimately affect your profits.

When it comes to your farm team, some things to consider are:

Is your team refreshed, rested and ready to go? You want your team to be sharp and focused, however if they have been working long hours with little break, chances are their reflexes and judgement will be impaired. Ensure your team are reaping the benefits of regular time off so that they can fully recharge. Remember, tired people make mistakes!
Is your team fully trained? Could they use a refresher? It is easy to assume that everyone is as knowledgeable as you, however it is worth finding out if this is actually the case. A new or inexperienced farm worker may benefit from some additional hands-on training, and experienced workers could benefit from a refresher course to sharpen their skills. Assess individual skill levels in areas like knowledge about behaviours of a cow in season, safe handling of bulls (see below) and correct tail paint applications, and address any shortcomings with on-farm training or a workshop.
Is your team on the same page as you? Again, don't assume everyone knows what your expectations are or what you are trying to achieve this mating season. Great communication is key to ensuring that every employee knows his or her role, and why it is important that this time of year is managed effectively. Not everyone will know, for example, that the ramification of a low six-week in-calf rate could be a more drawn-out calving next year. Engage with your employees to help them see the big picture.

It's no bull! Every year there are farm-related injuries due to improper safety around bulls!

To ensure you or one of your workers doesn't become a statistic it is worth addressing the issue of bull safety by having a safety briefing with your team. Some points to discuss are:

Be aware of your position in relation to the bull and have an exit strategy. Do not corner a bull, and don't allow yourself to get cornered by a bull
Check fences and gates of bull paddocks and use a ute or tractor in the paddock whenever possible
Establish an emergency plan and make sure everyone knows the drill
Don't allow inexperienced staff to handle bulls. Have workers demonstrate their ability to read the signs of bull behaviour before allowing them contact

Information credits:
Rose McVeagh, DairyNZ people management specialist
Fonterra FarmSource September 2016 edition

Health and Safety on the farm - practical risk management tools

2016-10-06T09:00:00+11:00

Saferfarms.org.nz is a website designed by Worksafe NZ and ACC to assist in managing the risks you and your workers may face on the farm.

The guides, factsheets and templates cover a wide range of subject including staff training, contractor induction, safe use of quad bikes and working with chemicals.

The website also allows you to create an account to personalize the information based on your farming needs.

Further information can be found on the SaferFarms website in the link below:

www.saferfarms.org.nz

The $20,000 reason to ensure your workers have Employment Agreements

2016-09-06T09:00:00+10:00

Statistics NZ have determined that more than 170,000 workers (almost 1 in 10 employees) do not have their employment terms and conditions in writing.

Under New Zealand law every employee must have a written employment agreement, whether this be individual or collective (union), and employers must retain a copy of the agreement on file.

Part-time, and particularly casual workers, were the worst affected, with one third of casual workers and 17.4 percent of part-time workers reporting they had no written agreement.

Industries identified as most likely to breach this legal requirement are agriculture, forestry and fishing with 20 percent of employees reporting absence of agreements, followed closely by construction, accommodation and food services with 15 percent.

The Employment Standards Act, passed in March this year, gave the inspectorate the power to issue infringement notices to employers who fail to provide their workers with written employment agreements. It could impose a fine of $1,000 for each breach, up to a maximum of $20,000 over a three-month period, with additional fines for having no records.

Now would be a good time to check that each of your employees has been issued and signed an agreement outlining their employment conditions and terms, and you hold a copy for your records. This is also the time to review the terms to ensure they are still relevant and current with legal minimum requirements.

Here at Ean Brown Partners Ltd we offer employment relations and human resource consulting services, including advice on employment agreements and employment legislation. Contact us for assistance with getting your employee records in order - it could prove to be a costly exercise if you are caught out!

Email Vicki

Received a text from Inland Revenue? Talk to us first!

2016-09-05T09:00:00+10:00

Inland Revenue are starting a text message campaign aimed at taxpayers who have not paid their provisional tax instalments.

If you receive a text from Inland Revenue, please talk to us first before making any payments - we do not want you paying more tax than you need to! Inland Revenue base these automatic texts on the information they currently hold, which may not always be correct or up-to-date.

Email Jessie

Thinking of hiring? Find out what the hidden costs are

2016-08-23T09:00:00+10:00

We are midway through the year now and hopefully everyone in business is busy and productive. Perhaps you may even be fortunate enough to be too busy and you are contemplating hiring additional staff to ease some of the pressure.

While you may be considering the cost of the additional salary or wages and the initial costs involved with job advertising and screening, there may be a number of costs, both one-off and ongoing, that you have not allowed for. For instance:

your ACC Workplace Cover levy, employer KiwiSaver contributions, industry insurance and/or FBT may be impacted
recruitment costs, which may include agency fees and ability testing costs, as well as time spent interviewing
training (will your new employee require extensive in-house training?) and setup (will your new employee need a workstation, tools or a uniform?)
increases to overhead costs such as utilities, travel expenses and phone bills (will your new employee require a cell phone?)
employee benefits such as annual or performance-based bonuses, health insurance or staff food and drink

MBIE (Ministry of Business, Innovation and Employment) have a free online calculator which allows you to evaluate the annual fixed and discretionary costs involved in taking on additional staff. If the result indicates the costs are greater than you anticipated you can reassess and fine-tune the calculator to meet your requirements - for instance, reducing from full-time to part-time. This means you are informed and prepared before a single dollar is even spent!

You may also be eligible for grants, subsidies or incentives - talk to us today for expert advice on employment matters.

To use the calculator visit the MBIE website on the link below:

www.business.govt.nz

Income adjustments for student loan purposes

2016-08-11T09:00:00+10:00

Did you know …

That there are a number of income adjustments you are legally obligated to advise Inland Revenue about with regard to your student loan?

They use this information to calculate whether you are due to make a year-end repayment on your loan. These adjustments can amount to significant repayment obligations – which you may be unprepared for!

Inland Revenue's aim is to have employers deduct the correct amounts from taxpayers' salaries and wages. Any errors (such as over- or under-deductions) are corrected by the employer, at Inland Revenue's request.

Inland Revenue's focus is now on collecting student loan repayments from those who earn other types of income. This can result in a large student loan bill at the end of the year.

Inland Revenue use a lot of terminology regarding student loan repayment obligations, such as "income adjustments", "adjusted net income" or "liable adjusted net income". We won't go into the semantics but we will try to outline the basics for you:

If you earn $1,500.00 or more of "other income" (ie not from salary and wages) then you must pay Inland Revenue 12% on that income towards your student loan - if your annual earnings are over $19,084.00.

The main types of "other income" include:

dividends
interest received
overseas income
rental income
distributions from a trust (including non-taxable distributions)
profit left in a company (if you own 10% or more of the shares)
profit left in a trust (if you are a settlor)

If you expect your yearly earnings will be below the repayment threshold of $19,084.00 and you are working for wages, you can apply for a special tax code or a student loan deduction exemption. These mean your employer will not have to deduct student loan repayments from your wages. Talk to us about whether you qualify for these.

The actual calculations can be quite complicated so if you think you may have a potential issue we recommend you contact us for help in calculating your obligations - we would be happy to discuss any tax matters with you in greater depth.

The Construction Contracts Act 2002 is undergoing some changes

2016-08-11T09:00:00+10:00

The Construction Contracts Act 2002 sets out the process for dealing with payments and disputes under a construction contract. It covers both commercial and residential construction contracts.

The Construction Contracts Amendment Act 2015 amends the Construction Contracts Act 2002 (the Act) as follows:

from 1 December 2015, residential and commercial construction contracts are treated the same under the Act, and adjudication and enforcement processes are improved
from 1 September 2016, design, engineering and quantity surveying work is included in the Act
from 31 March 2017 retention money withheld under commercial construction contracts must be held on trust

If you entered into a construction contract on or after 1 December 2015, you will now need to include a notice (Form 1) with any payment claims you make.

To view Form 1, click on the link below:

Form 1 - Information that must accompany all payment claims

Contracts covered by the Act

If you have entered into a contract for construction work, your contract is covered by the Act.

Construction work includes work on:

buildings and other structures that form part of land, including temporary structures
fittings in the building, such as heating, lighting and fire protection
infrastructure that forms part of land, such as roads, utilities and land drainage

Construction work includes constructing or installing, altering, maintaining and removing the building, fittings or infrastructure. It includes work integral to the construction work, such as excavation, scaffolding and prefabricating components.

Further information about the changes can be found in the link below:

www.building.govt.nz

Rental property insulation grants

2016-08-05T09:00:00+10:00

Recent changes to the Residential Tenancies Act mean that all rental properties will be required to have underfloor and ceiling insulation, where it can be practically installed, by 1 July 2019.

There are currently grants available for insulating rental properties occupied by low-income tenants, however these grants are limited so you will need to act fast.

To find out if your rental property is eligible for this funding visit the EECA energywise website on the link below:

www.energywise.govt.nz

CAANZ Northland Presidential Dinner 2016 staff photos

2016-08-02T09:00:00+10:00

Our staff recently attended the Chartered Accountants Australia and New Zealand's Northland Presidential Dinner 2016 in support of team member Vicki Cozens, who was being awarded her Chartered Accountancy certificate - a massive achievement after several years of study. Congratulations Vicki!

Below are some great photos from the evening:

From left to right: Flynn O'Meara, Jessie Alison, Bonny Rowson, Andrea Allen, Vicki Cozens, Barbara Collinson and Sally Adams

Absent: Ean Brown (director) who was unfortunately unable to attend

Vicki receiving her certificate from Darren Scammell, President of Chartered Accountants Australia and New Zealand

From left to right: Rick Cozens, Vicki Cozens, Trish Campbell and Rob Campbell (Vicki's parents)

From left to right: Flynn O'Meara, Jessie Alison, Barbara Collinson, Sally Adams, Bonny Rowson, Andrea Allen

From left to right: Flynn O'Meara, Jessie Alison and Sally Adams

From left to right: Sally Adams, Barbara Collinson, Flynn O'Meara, Bonny Rowson, Andrea Allen

IRD transformation - Changing for You website

2016-07-19T09:00:00+10:00

Inland Revenue are transforming to try and make it faster and easier for New Zealanders and businesses to pay their tax and receive the entitlements they should.

As part of this transformation Inland Revenue have created a website called "Changing for You", where they share their vision for the future of tax with small businesses and provide an opportunity for you to tell Inland Revenue your opinions. Inland Revenue are keen to hear your ideas for making tax easier.

Click on the link below to let them know what you think!

"Changing for You" website

Commercial property update

2016-06-20T09:00:00+10:00

Commercial property yields are currently about 1.5 percentage points above bank rates, making investing in commercial property attractive to investors. There is a strong occupier demand in Auckland and Christchurch, however many developers have chosen not to invest as the rent they would need to charge to make a return would be unaffordable to potential tenants.

New Zealand economy is expected to slow down in 2018, which may mean higher vacancy rates in lower grade buildings.

Reference: Westpac Industry Insights June 2016

Has an employee abandoned their job?

2016-06-17T09:00:00+10:00

Employers often make the mistake of thinking an employee has abandoned their job simply because they did not turn up for work.

The employer then assumes they can dismiss the employee. However, employers need to establish whether the employee has any intention of returning to work and needs to make every effort to contact the employee before any decision is made on ending the employment.

If an employee intends on coming back to work, any unexplained/unapproved absence should be treated as a disciplinary matter, not abandonment, and an investigation should be commenced on their return. The investigation should give the employee an opportunity to explain their absence before any conclusion is made.

Before treating the position as being abandoned, the employer must make every effort to contact the employee and to determine the status of the employment relationship and whether the employee intends on returning. Employers will need to try to:

Phone the employee
Phone friends or relatives of the employee
Write to the employee and preferably have the letter hand delivered by management or couriered
Email the employee

Employers will need to prove that they made every reasonable effort to communicate with their employee during the abandonment period.

If you have an employment or payroll related matter you would like to discuss, email our expert:

Email Vicki

Xero is moving to a new cloud storage platform

2016-06-15T09:00:00+10:00

Xero is moving to their new AWS hosting platform.

They will be doing this over the next month on Sunday mornings during the hours of 6am - 8am.

Please note you may experience minor interruptions if you are working in Xero during these hours.

Click the below link to see the full announcement from Xero:

Xero announcement

Changes to Health and Safety Act

2016-06-01T09:00:00+10:00

The Health and Safety at Work Act 2015 came into force on 4 April 2016

The Act works to focus effort on what matters, based on business risk, control and size, with the key emphasis being everyone in the workplace being responsible for health and safety.

There is a duty imposed on employers to engage with employees on an ongoing basis on matters concerning health and safety such as:

identifying hazards and assessing risks
eliminating/minimising hazards and risks
considering the adequacy of facilities
any proposed changes to systems and procedures

For many businesses this will be facilitated through health and safety representatives and committees. All large businesses (regardless of risk) and small businesses with fewer than 20 employees in high risk sectors will be required to have a health and safety representative, only if an employee asks for one. One individual may represent all employees, or the workplace can be divided into separate workgroups, each with an individual representative. A health and safety committee must also be established on request of the representative or five or more employees.

Small businesses (fewer than 20 workers) in lower risk sectors will be excluded from this requirement.

The confinement to high-risk sectors is aimed at simplifying compliance in businesses where the nature of the business or the number of employees makes it difficult to justify the cost of enforcing more formal workplace procedures. Although the classification of high-risk industries was initially confusing, regulations have been drafted which more clearly set out the captured sectors. These are:

• Aquaculture (excluding onshore aquaculture)

• Forestry and logging (excluding gathering kauri gum, native orchids, pine cones, resin or mushrooms)

• Fishing, hunting and trapping

• Coal or other mineral mining or quarry operations

• Food product manufacturing (excluding bakery products)

• Water supply, sewage and drainage services

• Waste collection, treatment, and disposal services

• Building construction

• Heaving and civil engineering construction

• Construction services (excluding installation of curtains or fly wire screens)

• Any businesses relating to:

- Adventure activities

- Major hazard facilities

- Mining operations

- Petroleum exploration

The above sectors are classified as high-risk due to their persistently high fatality and serious injury records. Notably, farming is not included.

The functions of the representatives and committees include: investigating complaints of employees, inquiring into any apparent risks, monitoring measures taken by the employer, inspecting workplaces, making recommendations, promoting the interests of employees, and representing any individual worker in relation to any health and safety issue.

Employers have a duty towards representatives in ensuring they are consulted with on any relevant matter, allowing them as much time and information as necessary to perform their functions, and, adopting any reasonable recommendation made by the representative. Employers must also allow representatives to attend initial (as prescribed by NZQA) and ongoing training. This is paid leave, and employers must also pay for any training fees and reasonable expenses incurred e.g. travel/accommodation. The maximum total number of days' paid leave an employee is allowed in a year is based on the number of employees working for the business:

• 1-5 employees - 2 days

• 6-50 employees - 6 days

• 51-280 employees - 1 day for every 8 employees

• 281+ employees - 35 days plus 5 days for every 100 employees

Whether or not your workplace is high-risk the obligations under the Act, and penalties for breaching those obligations, will increase for all employers across a broad spectrum of issues.

Vicki Cozens is our expert on anything employment related. If you have any queries:

Email Vicki

Changes to the Residential Tenancy Act (RTA)

2016-06-01T09:00:00+10:00

Changes to the RTA aim to reduce fire-related injuries and deaths and to make homes warmer, drier and safer for the million New Zealanders who live in rental accommodation.

Some of the proposed changes are:

Smoke Alarms

From 1 July residential rental homes will need to have working smoke alarms installed. Any replacement alarms installed after that date will need to have long life batteries and a photoelectric sensor. Hardwired smoke alarms are also permitted.
Tenants will be responsible for replacing worn-out batteries in the smoke alarms and informing their landlords of any defects.

Insulation

All residential rental homes in New Zealand will be required to have insulation. Social housing (where tenants pay an income related rent) must be insulated by 1 July 2016 and all other rental homes by July 2019.

Landlords will be required to provide a statement on the tenancy agreement about the location, type and condition of insulation in the rental home.

Tax Pooling

2016-05-24T09:00:00+10:00

Have you got high tax bills? Have you got fluctuating profits? Are you paying too much interest on your taxes?

Talk to us about using Tax Pooling to minimise your interest costs and maximise your interest returns.

When you are in the provisional tax regime, Inland Revenue require you to pay tax on what you estimate your future year profits to be. Getting the estimation correct can be difficult, costly, and sometimes impossible. If you under pay your tax, Inland Revenue will charge you interest at a rate much higher than the standard bank rates. If you overpay your tax, Inland Revenue will pay you interest at a rate much lower than the standard bank rates. Unless your tax estimation is 100% correct, you may be penalised whichever side of the equation you fall on.

Inland Revenue recognises the provisional tax regime can be unfair and allowed the establishment of Tax Pooling as a way to lessen the burden for tax payers.

Tax Pooling is where you pay your provisional tax to a "pool" as opposed to Inland Revenue, and the tax is only transferred to Inland Revenue once your actual results are known. This enables tax payers to buy and sell under or over paid provisional tax with each other. The interest rates charged and paid by the tax pool are much better than Inland Revenue's rates and therefore costs you less.

Tax Pooling intermediaries are recognised by Inland Revenue and your tax payments are held by Public Trust.

This method of paying provisional tax is suited to taxpayers with Residual Income Tax obligations of $60,000.00 or more, and those entities with fluctuating profits.

Please phone our office if you would like to talk through whether Tax Pooling could be right for you. Jessie Alison is our Tax Pooling expert and her contact details are below.

Email Jessie

Major changes to tax system

2016-05-24T09:00:00+10:00

Inland Revenue are in the process of overhauling the tax system which include major changes which could affect you.

To find out more, click on the link below:

Making tax simpler - summary of better business tax

Keep your bank account updated

2016-05-24T09:00:00+10:00

Bank account details must be maintained with Inland Revenue

Please be aware Inland Revenue will deposit your tax refunds directly into a bank account if they hold one on file for you. This can lead to issues when the bank account is old, closed or not even your own!

We will liaise with Inland Revenue on your behalf to keep the details updated and correct.

Please let us know the bank account you would like to use for tax refund deposits by e-mailing the details to our office at accounting@ebp.co.nz.

Residential land withholding tax (RLWT)

2016-05-24T09:00:00+10:00

The Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 received Royal Assent on Friday 13 May 2016.

From 1 July 2016 this introduces a requirement to have residential land withholding tax (RLWT) withheld from a sale/disposal of residential land where:

the property being sold/disposed of is located in New Zealand and meets the definition of "residential land"; and
the vendor acquired the property on or after 1 October 2015 and owned it for less than two years before selling (i.e. it? taxable under the bright-line test, ignoring the „ain home exclusion?and all other land sale tests); and
the vendor is an offshore RLWT person. (Note: this is a newly defined definition and differs from the definition of offshore persons for IRD number applications)

The sale/disposal will be excluded from having RLWT deducted when:

the property is being transferred upon the death of a person to the executor or administrator of the estate, or
it? an inherited property transferred to, or sold/disposed of, by a beneficiary.

If your client holds a valid certificate of exemption (COE) from RLWT then no RLWT will be deducted. A COE from RLWT can be applied for if the sale involves the disposal of your client? main home, or by those in the business of developing land or dividing land into lots or erecting buildings.

RLWT tax credit

If your client? income tax return includes a taxable property sale that has had RLWT deducted they are entitled to claim a tax credit for this amount. If their only on-going tax obligations relate to their annual income tax return then they can file this before the end of the year.

If your client has on-going tax obligations with New Zealand they can apply for an early repayment of excess RLWT before the income year ends if, using the correct RLWT calculation, they can show that the RLWT deducted exceeds what their tax liability will be on all property sales for the year-to-date. Your client will still be required to file an annual income tax return for the year.

See here for more information, such as who is required to withhold the RLWT.

Loren Theobald
Performance and Optimisation
Inland Revenue - Tax Agent Comms Issue No 9

2016 Westpac Northland Business Excellence Awards

2016-05-24T09:00:00+10:00

Entries for the 2016 Westpac Northland Business Excellence Awards are now open.

To find out more, click on the link below:

www.northlandbusinessawards.co.nz

8 Ways To Get People To Take You More Seriously

2016-05-24T09:00:00+10:00

Powerful Ways To Get People To Take You More Seriously.

Getty photo

Do you ever feel like nobody takes you seriously at work?

Dr Travis Bradberry - Co-author Emotional intelligence 2.0 and President at TalentSmart.

Willing Workers on Organic Farms (WWOOF)

2016-05-20T09:00:00+10:00

This is an arrangement in which overseas travellers volunteer 4 to 6 hours labour per day in exchange for food, accommodation and the opportunity to learn about sustainable living.

Immigration NZ see these arrangements as paid work and as such require participants to hold an 'open' work visa. The value of the food and accommodation should be treated as wages for the volunteer and PAYE returned. The PAYE would most likely be at the no notification rate as many WWOOFers will not have an IRD number.

If you require further information on these topics please contact our office.

Taxation of shearers

2016-05-20T09:00:00+10:00

When employing a shearer or shed hand the two tax codes to be declared on the tax code declaration form (IR330) are CAE or WT.

The casual agricultural employee (CAE) tax code is used when a person is employed on a day to day basis for up to three months (any longer they are a standard employee).

Tax is deducted using the current PAYE calculator.

Withholding tax (WT) is required to be deducted if a shearing contractor is employed. This deduction is not required if a current certificate of exemption is presented.

Withholding tax is deducted at the current rate. At present this is 15% if a tax declaration form has been provided or 30% if not.

In both cases the employee must complete an IR330 Tax declaration form.

Ean Brown Partners Blog

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www.ebp.co.nz

Subsidies available for quad bike crush protection devices

Recent new rules for hazardous substances and wastes

Home office expense claims - the new square metre rate for the 2019 year

(a x b) + (c x d)

We're hiring! Are you up to the challenge?

Changes to how Inland Revenue sends your mail

What does this mean for me?

How do I check who gets my mail?

How can I find out more?

Penalty increases proposed for NAIT non-compliance

Changes to ACC CoverPlus levy invoicing for self-employed customers

If you are on CoverPlus Extra

If you have ceased trading

If you are an employer

2019 herd scheme values have been released by Inland Revenue

Tax refunds paid in error - check with us before you spend them

UPDATE! Post-dating IRD cheques? Why you should make the switch to electronic payments

Open Day - FREE accounting, tax and business advice consultations

Who are we?

How can we help you?

DON'T DELAY, BOOK YOUR FREE APPOINTMENT TODAY!

0800 367 425

accounting@ebp.co.nz

www.ebp.co.nz/contact_us/

request_appointment

The Provincial Growth Fund - what is it, and how to apply

He Poutama Rangatahi

Whenau Maori

Te Ara Mahi

Top Ten Tax Tips - get sorted before 31 March!

Top ten tax tips

Fill your drawers:

Staff expenses:

Can you fix it?

Turn fun into savings:

Look at your fixed assets:

While you're at it, check your stock:

Income boost:

Logging car use?

Home office:

Saving time saves money!

Writing off bad debt?

Keeping it simple - IRD streamline tax obligations for individuals

End-of-year tax assessments

Claiming donations tax credits

Other Inland Revenue changes coming on 1 April 2019

Inland Revenue key services unavailable

WDC adopts Easter Sunday shop trading policy

Employment changes coming in 2019 - a broad overview

11 March 2019

ir-File

1 April 2019

KiwiSaver

Minimum wage rates

Payday filing

6 May 2019

Restored rights to rest and meal breaks

90-day trial periods restricted

Livestock NSCs for 2018/2019 have been released by Inland Revenue

5 simple things you can do every day to build your business's brand equity

1. Smile!

2. Forgive others for not smiling

3. Go the extra mile

4. Follow through / follow up

5. Show gratitude

In closing ...

BLOG COMMENTS

BREAKING NEWS! Minimum wage set to increase 1 April 2019

Season's greetings (and announcing the winner of our Christmas prize draw)

Our December "hot desking" date at The Orchard

Public holiday scenarios - do you know how to treat them correctly for wages?