January Newsletter 2012

January

BUSINESS TIP

Setting Your Prices For Profit- Key Profit Making Strategies

Move your prices up until you get told no

Move your prices down until you get acceptance

BAD DEBT DEDUCTIONS

Need To Do Before 31 March 2012

The decision to "write off" the debt is a genuine commercial decision. It is not necessary to show that legal or collection action has been taken to recover the debt in circumstances where this action would be futile.

To support the decision to "write off" the debt there is a director's resolution or an authorisation by a senior employee.

The required accounting/journal entries made to write off the debt in the books must have occured before balance date.

TAX TIP

IRD Audit Activity

IRD audit activity has continued in earnest, with renewed focus on property transactions, losses, and the cash economy. The IRD have completed significant amounts of research prior to their first contact with the taxpayer, and because of that, taxpayers should take special care in relation to any notices they receive from the IRD as it is possible the IRD have more information than you, the taxpayer, may think.

NEW GRANT FOR SMALL BUSINESSES EFFECTED BY THE QUAKE

The New Zealand Red Cross 2011 Earthquake Commission has approved a new grant of up to $750 for small businesses to assist with payment of professional services relating to post quake recovery.

The Grant is avaliable for small businesses with fewer than ten employees that have been hit by the earthquakes and has a genuine need for further financial assistance for professional advice. Contact us to enquire how this grant can assist you in your accounting advise.

Click on this link to find out more!

Your

iPhone

and Tax

The Tax Toolbox by Wise Advise, is the first app in NZ to incorporate GST, PAYE and income tax calculators with due date reminders in one easy to use iPhone application. Download for free from the Apple app store.

Tax In

Gold

There's tax in gold. The IRD reminds us all that if you buy gold and then sell that gold at a profit (which is obviously the intention when investing in gold) then factor in paying tax on any gain. On the other hand, you also have a case for claiming any loss on the sale shoud gold go back down.

BEWARE April 7th

Start budgeting now for terminal tax due on this date if your balance date is March, April, May or June.