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Free Tips & Traps

Estimating and Forecasting

Our minds are not calibrated for making estimates in the face of uncertainty. There seems to be some truth to that given the number of companies that inexplicably opt to try and wait out the economic downturn. People who get into accidents the most tend to be overly cautious or overly confident. For business, it's the same. People in the middle are at risk if they always assume the past can accurately help us forecast the future. It cannot.

 

Failing to do the Dirty Work

Tasks such as making sure there are adequate supplies, preparing and mailing invoices and tracking outstanding payments, and dealing with employee issues (assuming you have employees) are all things that must be done on a consistent basis. Failing to keep current with these administrative tasks can lead your business to almost certain failure.

 

Giving up in business can be all too easy.

Treat failures as lessons – not reasons to quit. To paraphrase Einstein, all your mistakes are not failures – they are simply new ways you have learned not to do things.

 

INSURANCE CLAIMS

Visit http://www.claimsinformationspecialists.co.nz/ for facts relating to insurance and making claims. The Director of this site is a NZ lawyer offering unbiased information.

 

Have you seen our Bugeting Template?

We have a budgeting template for free download that you may find helpful. It’s applicable for any year so just ignore the 2009 dates. Instructions are included with the spreadsheets. http://www.businessadvisor.co.nz/wawcs0143104/budget_spreadsheet.html

Thank You                        Financial & Business Advisor

"Your product & service is highly recommended to anybody in business"

I wish to say thank you for your excellent and informative periodicals and a special thank you for the excellent question and answer service you provide.
Your service helps me make informed decisions regarding the ever changing tax rules. 
Your product & service is highly recommended to anybody in business, as well as those thinking about being in business as you provide easy to understand information.

Grant Briffault Accounting

 

Employment Law Reforms

From IRD In Brief

International tax - top 10 tax misconceptions for
individuals

New Zealand has a large migrant population as well as ex-pat executives, many of whom come from countries with quite different tax systems. International tax compliance can be complex and difficult. To help you get it right, the IRD has compiled a list of commonly misunderstood tax facts relating to individuals:

1. New Zealand residents aren't just taxed on the income they earn in New Zealand; they're also taxed on their worldwide income.

2. If you leave the country but maintain a permanent place of abode here, you're still a New Zealand resident for tax purposes.

3. Foreign income including investments (even if deposited in an offshore account or left on a foreign credit card) is taxable in New Zealand even if it's not repatriated to New Zealand.

4. Equally, the fact that withholding tax may have been deducted on foreign income doesn't mean that this income is no longer taxable in New Zealand.

5. A foreign tax credit may be available but only where the tax involved is not subsequently refunded (even in a later income year), it's substantially similar to income tax and can't exceed the tax otherwise payable on the underlying income in New Zealand.

6. Not all overseas pension payments are tax-free, certain ones may be fully taxable in New Zealand.

7. Special taxing regimes (controlled foreign company and foreign investment fund rules) apply to gains on certain foreign shareholdings, retirement schemes and life insurance investments.

8. Additional disclosures are required in respect of controlled foreign companies and foreign investment funds.

9. Allowances that may be treated as tax-free in other countries (for example, living-away-from-home allowances) are generally fully taxable in New Zealand.

10. The temporary tax exemption on foreign income for transitional residents expires after 48 months and there's no entitlement to Working for Families Tax Credits during the period of the exemption.

It's important to keep the above in mind when preparing tax returns for individuals with international investments.

for more information try some of these links:

IRD

 

Interest News

 

NZ Herald

 

Dominion

 

TV3

 

TVNZ

 

 

Knowlege is Power

 

"The subscription pays for itself many times over for me with the excellent services"

I have been a very satisfied subscriber to “Financial & Business Advisor” for the past six years.
The subscription pays for itself many times over for me with the excellent services: the two monthly publications covering a range of business matters from business planning to building wealth, the annual Quick Reference Guide “Knowledge is Power” and the Question & Answer service which saves me time and provides a valuable outside opinion for me on tax questions.

In summary: knowledge really is power in that I am able to provide an improved service for my clients from the knowledge that I consistently gain from your publications and services. I am more than happy to recommend your services to new subscribers.

John Packham, John Packham Chartered Accounts Limited

14 - 17 APRIL: TELLING WEEK FOR WORLD STOCKMARKETS

 

Apr 14 - Apr 17:  Markets have rebounded dramatically since early March.  Is this a bear market correction or have we turned the corner?  The following article is worth reading to help you judge for yourself where the market is likely to be headed next:

International Stock Markets - What Next?