Cloud programs help you keep up

Keeping up with technology has always been an issue for small businesses.


As a rule, it’s worth having the latest and the best you can realistically afford. This ensures you are at least level, and possibly ahead, of your opposition and your clients who expect you to be keeping up. 


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Understand your term investments

When you invest money on a term deposit, you’ll find a perplexing number of options, which are hard to assess. 


A client put $100,000 on a term investment for five years with interest at 6% payable at the end of each quarter. A few months later, another $100,000 was invested, also at 6%, but payable at maturity. The first yielded $27,887.52 interest after tax and the second only $24,750.


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The Dominion Post reports…

New health and safety legislation has forced Sir Peter Jackson to resign as a director of Weta Workshop, The DominionPost has reported. The article says directors can be personally responsible for the health and safety of their staff. This can be an untenable situation. Look carefully at your directorships and assess the risks.  Many small companies have husband and wife as directors. Maybe there is a case for having only one.

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New tax rules coming

From 1 April 2017 there are going to be a number of significant tax changes. Proposals include the following:


Use of Money Interest (UOMI)

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Time to Sell?

We are all going to exit our business one day.


An exit plan is as important as a business plan. Ideally your business will be saleable shape all the time so that if the unexpected happens you still maximise the price you receive – a just reward for your years of love and labour in your company.


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Changes to closely held company tax rules

In New Zealand, companies are often the preferred vehicle when setting up a new business. They are well understood, underpinned by well-functioning legislation, flexible, and liability is generally limited to the amount of a shareholder’s investment.


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Sources of Capital

Whether new or existing, every business requires capital. New or start-ups require capital to buy assets and provide working capital until they break-even, while existing businesses often seek funding for expansion or diversification. 

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Attribution of personal services income

Many people aren’t aware that specific tax rules exist that can deem income derived by a company or trust to be derived by them personally. The rules were first introduced when the 39% tax rate was introduced to stop people getting a tax advantage by trading through a company or trust to access the lower 33% tax rate. Although the top personal marginal tax rate has been reduced to 33%, the company rate is lower at 28%, and hence the rules are still active and need to be kept in mind.


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