Back to Blog

10 Tips for keeping track of business expenses

It’s surprising how small stuff adds up: dashing into the dairy on the way to work because the lunchroom’s out of milk. Scrambling out of the taxi at the airport to catch an early flight for that business meeting. Things you can forget about as you do the important stuff. Big or small, they’re all business expenses. They’re tax deductible so retain the records for the business’ income tax return. And, as a small business owner, understand what your business expenses really are, big and...

Is your cost of sales affecting your gross profit?

Do you know how much it costs you to produce each product or service in your range?The better you can understand this cost of sales – or cost of goods sold (COGS), as it’s more commonly known – the more ability you have to control your company’s profitability. When you know your COGS, you can set the right price point, control your profit margins and ensure that you’re maximising your gross profit.But to do this, you need to understand COGS and how it impacts on your financial manageme...

Second Resurgence Support Payment & Wage Subsidy #3

We hope that you are enjoying some of this lovely spring sunshine, even if there are a few rain clouds lurking.   This is a quick update to let you know about the financial support currently available. Please take note of closing dates around the wage subsidy, as we've had a few situations where organisations have missed out on applying.  We understand that these uncertain times may be causing some turmoil in your world. If you need some mental health and wellbeing support, then c...

Four tips to get you started with better debtor management

Think of great debtor management as the flip side of great customer service. Great customer service makes it easier for your clients to buy what you sell, nurtures strong customer relationships, and helps your bottom line.Great debtor management makes it easy for clients to pay what they owe, maintains good customer relationships, and helps your cash flow.Unlike great customer service, most people in business don’t enjoy following up with customers about unpaid debts. And perhaps because they ...

The perfect time for planning?

Being in lockdown is frustrating. There’s so much you can’t do.But is it the perfect time to do some business planning?Business planning constantly gets bumped to the bottom of the to-do list. It never feels urgent, especially when sales are strong and you’re dealing with challenges like finding new staff, or product shortages.However, a business plan can really pay dividends in the long run. It can not only be a fantastic decision-making tool, but it can also help you get your priorities ...

Covid-19 Wage Subsidy #2

We are almost at the end of another week in lockdown. We hope that you are coping with these strange and challenging times. The view from our home offices certainly are a bit different to usual! Today applications for the Wage Subsidy #2 payment opened. However, there are a fewthings to know before you apply. The first of which is that if you've already applied for the previous COVID-19 Wage Subsidy August 2021, you need to wait until two weeks after you applied before y...

Lockdown leave, pay cuts, reduced hours: what’s allowed?

We’ve been getting quite a few questions from our clients during Level 4 lockdown about the responsibilities of employers. We’re not HR specialists or employment lawyers, so we don’t have all the answers. Luckily, the Ministry for Business Innovation and Employment (MBIE) has been busy setting out all the information you need.Two of the most commonly asked questions are:...

Introducing Daniela Olsen

We'd like to extend a huge welcome to Daniela who has recently joined the team at Shelley Tweedy & Associates. Daniela was born in Romania and lived her childhood years and part of her early adulthood under the communist era. Having had an entrepreneurial minded dad, made it fairly easy to survive those years, being self sustainable on the family farm. Daniela's passion for business and accounting was kindled after the Romanian Revolution, when her dad went on the path of having his own business...

The Resurgence Support Payment

As we cope with another lockdown in NZ, the Government are updating support measures for businesses and workers. The Resurgence Support Payment assists small businesses to cover expenses such as wages and fixed costs, when there is a move to Alert Level 2 or higher for a week or more. Applications for the alert level increase announced on 17 August are now open.Applications will remain open for one month after all of New Zealand returns to alert level 1. ...

Covid-19 Support for Business

This is a quick overview of the support available for businesses following the rise in alert levels announced by the Prime Minister on 17 August 2021. We understand that this can be a unsettling time, surrounded with uncertainty. If you are finding it challenging to meet your IRD obligations due to cash flow over this time, please be sure to contact us to work through the options available to you....

Understanding your revenue drivers

For your business to make money, you need to generate revenue.You produce revenue through your usual business activity, by making sales, getting your invoices paid, or taking cash from paying customers. So, the better you are at selling your products/services and bringing money into the business, the higher your revenue levels will be.But what actually drives these revenue levels? And how do you get in control of these drivers?...

Claiming home office expenses

If you do some of your work from home, you may be entitled to claim a tax deduction for household expenses related to earning income. These include: ElectricityRatesInsuranceMortgage interest/rentRepairs and maintenanceTelephone rental  The amount you can claim is based on the area of your home used for the business, expressed as a percentage of the total area of the home. It is not necessary to set aside a specific room for business purposes, nor is it necessary for you tophysically change...

Inflation is coming: should you increase your prices?

Inflation is currently running at 1.5%, but experts are forecasting that it’s likely to increase over the next year or two. The rising cost of goods and services has been driven by local labour shortages as well as higher shipping costs and product scarcity worldwide.The result of all these higher prices is that it is becoming more expensive to run your business.Should you increase your prices?...

Fees on utes - Three things you need to know

Plenty of Kiwi businesses buy utes as company vehicles. If you’re in the trades, for instance, a ute can be the perfect way to haul everything around and promote your brand at the same time.However, the recently announced EV feebate scheme is likely to hit ute buyers the hardest, since these vehicles tend to have some of the highest emissions of any on our roads.Here are three things to know if you’re buying new utes in 2022:...

Profit improvement and productivity

Do you already track your gross and net profit but are at a bit of a standstill on how to increase profitability? Think about the relationship between business profit and productivity. You can increase profitability if you produce more and pay less for what you need to produce and sell your goods or services. It's not about cost cutting. It’s about looking closely at the value you get for what you spend and how you can best create value for your customers. Start with your fixed costs. You must...

Paying tax on your shares

There’s been a boom in direct share investments since the lockdowns of 2020 with platforms like Sharesies, Hatch and InvestNow seeing thousands of Kiwis join up to buy shares. These straightforward platforms have democratised share market investment, helping New Zealanders grow their wealth and save for the future.One question though: If you’re directly investing in shares, are you paying the right amount of tax?...

Increases to Sick Leave

Sick leave is paid time off work if an employee, their spouse, partner, dependent child, or other person who depends on them is sick or injured.From 24 July 2021, employees will be entitled to 10 days of sick leave per year instead of the current five days.Employees will received the additional five days when they reach their next entitlement date. That could be once they reach six-months of employment or on their sick leave entitlement anniversary.Employees who already received 10 or more ...

2021 Herd Scheme Values

Inland Revenue have recently announced this year’s livestock Herd Scheme Values and we think this is a great opportunity to update you on the latest movements. The Herd Scheme Values are the National Average Market Values as determined by a process involving a review of the livestock market as at 30 April....

5 ways to improve your cashflow

Cash is the lifeblood of any business – once the cash dries up, problems quickly begin to multiply. Keep the cash running freely and you can continue to grow your business.Here are five tips for improving your cashflow:...

Do you feel like a slave to your business?

Feeling like a slave to your business implies the loss of control; thinking that you need to be available to your customers 24/7 and that your team can't cope without you. It can also imply a victim mentality - that this is just what it's like to be a business owner and that it's not something you can change. Maybe Covid had a huge impact on your business and you're playing catch up.There are lots of reasons why you feel like a slave to your business. In other words, lots of excuses. The OARBED ...

Self-employed? Get the full KiwiSaver contribution

When you’re self-employed, you’re the one in charge of your KiwiSaver contributions. Without an employer to make contributions on your behalf, you need to decide how much you want to commit to your retirement fund, if anything....

Should you buy or lease your business assets?

There are certain items of equipment, machinery and hardware that are essential to the operation of your business – whether it’s the delivery van you use to run your home-delivery food service, or the high-end digital printer you use to run your print business.But when a critical business asset is required, should you buy this item outright, or should you lease the item and pay for it in handy monthly instalments?...

Slow payers cost you real money

Like any relationship, timely communication between creditors and debtors goes a long way to avoiding trouble. One of those tools for small businesses is the financial web. The financial web describes the growing electronic connectivity between small business, accountants and financial institutions, particularly when coupled with cloud computing. The continued expansion of the financial web helps small businesses make smarter decisions, improve cashflow, get paid faster and access capital quickl...

The 10 ways to lift your margin

Improvements can always be made at the margin. Small tweaks to your processes or systems can make a massive difference to the end result. It’s the same with your business margin - a 1% increase in your gross margin on $500,000 of sales is an extra $5,000 on your bottom line.The best part about improving your margin is that you increase your profit without needing to lift your sales....

Talk to us now about Provisional Tax

The final provisional tax payment for the 2020/21 financial year will be due on May 7. Cashflow issues? If you’re worried about paying your provisional tax, it’s important to work with us and Inland Revenue (IR) to find a solution. You may be able to use: Instalments – we can work out a payment plan on your behalf with IR.Tax pooling – once it’s set up, tax pooling lets you manage provisional payments effectivelyCovid relief – re-estimations of provisional tax, removin...