August NewsLetter

August Newsletter

The month of changes

Calenders and important dates


	28 August - 2012 Provisional tax - 1^st instalment 30 September - Deadline for existing LAQC’s

To start off we would like to introduce to you our new employee Alana Musson.

Alana joined Balance accounting in March 2011 as the Receptionist.

Alana, whose background is in retail and customer service, is a happy new face and a great addition to the Balance Accounting team.

Alana’s role includes:

Company Secretarial Administration
Front-line reception
Editing of website

Outside of work, Alana spends time with her friends and family. She enjoys socialising in the weekends and mountain hiking.

Something to look out for!

IRD Scam – Be very aware!

We have had a number of our clients who have received the following email.

If you get an email that looks like this – do not open it.
It is not from the IRD.

Subject: Inland Revenue – GST return (GST 101)

Dear valued customer,

After the last annual calculations of your fiscal activity, we have determined that you are eligible to receive a tax refund of 254.90 NZ Dollars. Please submit the tax refund request and allow us 2-3 days in order to process it.

Click link below to submit your tax refund request.

http://ird.govt.nz/income-tax-individual/refundForm/

Note: A refund can be delayed a variety of reasons, for example submitting invaild records or applying after deadlines.

Inland revenue

PO Box 39050

Wellington Mail Centre

Lower Hutt 5045

For more info on government services go to newzealand.govt.nz

Copyright 2011 Inland Revenue

I repeat – do not open anything that looks like the email above. Everything goes through our office before being sent out to you, therefore you will never be contacted directly from Inland Revenue about a tax refund.

Earthquake

Business interruption insurance claims

If you are having issues preparing your insurance claim and feel like you are making little progress getting together or you have a loss adjuster giving you a hard time, bring you claim to us. We have a very experienced team who are getting results for clients and the fee is probably covered by the policy itself.

Please phone us today to make an appointment (03) 339 - 7260.

Xero mobile just got better

Xero has a new mobile verson of Xero – Xero Touch – it is available from the Apple App Store for the iPhone, iPad and iPod touch.

You will love the features for running your business on the go:

Create and send invoices
Add receipts (the App Store version will let you take a photo of receipts to upload)
Check your balances and mange your debtors
View contacts, check the exact location with integrated Google Maps, add notes

Watch this video to see how it works:

Business is almost Booming

How to get your share of the Christchurch economic boom

Christchurch businesses seem to be in three modes:

1.     Those who are having record trading through astute strategic management or just good luck (maybe due to the move of consumer demand from the CBD to outlying suburban areas)

2.     Those that are poised to take full advantage of the changed economic and market conditions in the city. They are ready for the avalanche of potential new business but know it is still weeks or months away; and

3.     Those who are backed against the wall, have still got earthquake trauma, dealing with insurance issues and don’t know where to even begin or how to adapt to the new business environment

Here are some ideas for those in the latter group (and maybe some ideas for those in the second to last group to assist in moving their game forward to shorten the time gap for the arrival of new business):

Summary of Future Business of Christchurch

Where is it heading?

There is approximately $20 - $30 billion, mostly new money, coming into the city over the next five – ten years. Other than council rates and government funding, most will come from insurance claims and subsequently no debt. Every insurance payer in the world is contributing to our city’s rebuild. The cost is spread very wide around the world. All this money is for less than 400,000 people mostly within 10 kilometres of Cathedral Square.

Never in the history of New Zealand will so much funding be available for so few people, to be spent in such a compact area. That equates to $50,000 - $75,000 per head of capita in Christchurch. That is equivalent of high value minerals and oil being found under the Canterbury Plains!

Example:

Are you in the hospitality business? If so, you’re not going to rebuild Christchurch yourself but a large proportion of those who are will need either your raw materials (loaf of bread) or hot coffee and a sandwich once or twice a day. Around the city there are some great examples of pop-up coffee shops right where the demand is. Great thinking.

Business is all about “Finding a need and filling it”. Go out and find a need that you can fill. You can only find the need by brainstorming all the possibilities. To help with the process, get two or three of your family or business associates together and whiteboard every idea you can come up with. Refine the list down to a handful that you can test in the market place.

There is also a more cynical statement that says “find a fill and create the need” – work backwards. Consider the iPad. I suspect many people never knew they needed one. However Apple has invented an entirely new product (a fill) and through astute marketing has created a worldwide need that is a sales and marketing phenomenon. Apple now has more cash than the American Government!

Your business will only thrive in Christchurch if you can adapt to the new environment. Many businesses are already booming. As previously alluded to, they were either lucky or very astute.

Apart from your immediate need for cashflow, there is no need to rush out and re-invent your business overnight. This boom is only just beginning. It will last for 10 or more years. If you can afford the time, plan your adaptation well and test the market. And be prepared for your business to adapt and change several times as the boom options will change as the city moves through many phases of the rebuild over the coming decade.

If you need any assistance with this process, please don’t hesitate to call us.

TAX TIP

What the IRD are focused on this year

Each tax year the Inland Revenue turn their attention to particular areas of possible tax evasion or avoidance. For the 2011/2012 year for small and medium sized businesses, the Inland Revenue are going to target:

Aggressive tax planning
The diversion of personal income
The misuse of charities
The use of off-shore bank accounts to misrepresent income or assets to evade tax

Arranging your affairs to minimise tax is perfectly justifiable but some tax payers and their advisors are tempted to go too far and expose themselves, their business and family to overly close scrutiny by Inland Revenue. Once you are under Inland Revenue spotlight, your life will be disrupted for a long time and it could be mostly of your own making.

Business Hours

As of 1 August 2011, we have altered our office hours slightly:

Monday - Thursday 8.00am - 5.00pm; and
Fridays 8.00am - 1.30pm.

Should you require to contact us outside of our office hours please leave a message on our answer machine and we will endeavour to return your call once we are back in the office. If your matter is urgent you can contact Nicole on (0274) 388-081.