Further 4% Penalty applied on 15th January 2015 Unpaid GST

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Last Thursday, 15th January 2015, for many entities (read our post about what an entity is) was the GST Due Date for the GST Period 1st October 2014 to the 30th November 2014. If you were you unable to pay the GST due then please note that: –

  • An initial 1% late payment penalty has been charged on the day after the due date.
  • A further 4% penalty will be charged if there is still an amount of unpaid tax (including penalties) at the end of the 7th day from the due date.

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How to always pay GST on time, every time

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It would be very remiss of me not to address my previous post Unable to pay GST? Take Action Now without offering a solution on how to ensure that you always have funds available to pay your GST in full when it is due so as not to end up being unable to pay your GST.

I start by asking the question “Why is it that any Payments Basis Entity is unable to pay the GST Due on time?” Read More »

Unable to pay GST? Take action NOW

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The 28th of this month is the GST Due Date for the GST Period 1st June 2015 to the 31st July 2015. If you are unable to pay the GST due then please note that: –

  •     An initial 1% late payment penalty will be charged on the day after the due date.
  •     A further 4% penalty will be charged if there is still an amount of unpaid tax (including penalties) at the end of the 7th day from the due date.
  •     Every month the amount owing remains unpaid, a further 1% incremental penalty will be added.
  •     As well as the penalties above you will be charged interest on tax that remains unpaid until it is eventually paid.

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What is an Entity?

An entity is any one of the following: –

A Sole Trader – a person who decides to start a business by trading on his or her own. Typical sole traders include trades people, such as painters and decorators, electricians and repair technicians. Being a sole trader doesn’t stop you from employing people to help you in the business

A Partnership – a business agreement between entities – rather than a business that exists as a separate legal entity – in which all the profits/losses, responsibilities and liabilities are shared according to a deed of partnership contract.

A Company – a business that is a separate legal entity from the people who have a financial interest in the business, who are known as shareholders and are taxed separately from the company on the income they receive from it.

A Trust – another very popular entity in New Zealand is a trust. Trusts are particularly useful for asset protection and estate planning, and so are commonly used for owning private and investment assets rather than for operating businesses.

For a complete overview of structures go to Business.Govt.NZ

Disclaimer: This publication has been carefully prepared, but it has been written in general terms only. The publication should not be relied upon to provide specific information without also obtaining appropriate professional advice after detailed examination of your particular situation.

Yippee!!!! Today is our Quarterly Distribution Day.

Profit First Book Cover

We are about to take our quarterly distribution cheque. That’s right, our business is serving us, now and we take a distribution cheque every quarter, every ninety days profit is shared to us.

An important aspect of the Profit First Methodology is for the business owner on the first day after the end of a quarter, to take a Quarterly Profit Distribution.

Let me explain: By implementing Profit First on the first day of each new quarter (or the first business day after), you, will take a profit distribution. This is done by adding up the total amount of profit in the Profit Account, taking 50% of the money as a profit distribution with the other half remaining in the Profit Account, as a reserve.

Not paying a quarterly distribution and want to start? Find out how

 

Who or what had the greatest influence on your business in 2014?

As 2014 has drawn to a close and I reflect on the question “Who or what has been or had the greatest influence on our bookkeeping business in this last year” I would have to answer “the introduction to my now good friend Gabrielle Fontaine”. Gabrielle is the founder of The Freelance Bookkeeper (TFB) and I was introduced to her and the Premium Training at the beginning of the 2014 year. Read More »

Are you taking a Quarterly Profit Distribution?

Profit First Book Cover

An important aspect of the Profit First Methodology is for the business owner on the first day after the end of a quarter,to take a Quarterly Profit Distribution.

Let me explain: By implementing Profit First on the first day of each new quarter (or the first business day after), you, will take a profit distribution. This is done by adding up the total amount of profit in the Profit Account, taking 50% of the money as a profit distribution with the other half remaining in the Profit Account, as a reserve. Read More »

What is profit first?

Profit First Book CoverOne of the best small business thinkers today, Mike Michalowicz recently released his third book, called Profit First. This book solves one of the biggest problems most entrepreneurs have: how do they actually get paid to run their business!

The story goes like this: The owner works really hard to sell and pay all their bills every month. When they go to pay themselves last, there is no money left! Mike’s new system proposes to change all of this and pay the owner first. Read how…

New Zealand’s Only Certified Profit First Professional

We are the only firm in New Zealand to have received certification as a Profit First Professional.

certNot only do we have direct access to Mike Michalowicz (mi-‘kal-o`-wits) the author of the book Profit First and the Profit First Professionals Team, we also have access to all the global Certified Profit First Professionals, who are all working with clients using the Profit First Formula.

What does this mean for you? As you can see we have access to a wealth of knowledge and experience, through the Profit First Professionals network, to be able to address any situation you find yourself in. We are able to guide you using the Profit First methodology to greatly increase the profitability of your business.

Of course, we are able to help you with your books, manage your accounts and do your tax returns – but any bookkeeper can do that.  Where we differ is that we also provide the most important financial factor – helping you make more profit.

Insights from your Profit and Loss Account

Most small business people would agree that their Profit and Loss account (now more correctly called a Statement of Financial Performance) is among the easier – if not the easiest – financial document to understand. It’s typically presented in two parts.

The top half of the statement reveals the various sources of Income the business has received for the period covered, such as a month, a quarter, half year or full financial year. After subtracting the cost of producing your goods or services, commonly referred to as the Cost of Goods Sold, it shows your Gross Profit figure.

The bottom half of the account lists all the relative fixed running costs (business overheads) such as rent, power and communication costs you need to pay each month regardless of sales levels. When these costs are subtracted from the Gross Profit the result is a Net Profit figure (before tax).

So far, so simple, but you can learn more. Read More »

Freedom Print & Design – Palmerston North

A couple of weeks ago we had a requirement to have Business Cards and Letterhead designed and printed. Not knowing a printer we did a Google search on Printers Palmerston North and two stood out for us. One was Freedom Print & Design who we went with.

What impressed us with Freedom Print & Design was:

  • The quick response to my initial email request that was shown by Kylie Burch, Customer Service
  • The design, which evolved from a vague idea in my head, produced by Gabrielle Giles, the Graphic Designer
  • I was able to correspond and do everything by email
  • The total cost of the job  was reasonable
  • The time taken to do the job exceeded my expectation
  • The philosophy of Dan Wheeler the Company Director which is summed up in their radio ad “On time, every time or it’s free”.

We could not let this experience go by without paying tribute to Dan, Kylie and Gabrielle for an amazing experience. Bless you all. http://www.freedomprint.co.nz/ Read More »

Workable New Year Resolutions

New Year Resolutions –  we’ve all made them, and broken them − often before the end of January. There’s something about New Year celebrations that makes us yearn for a fresh start, so do not be dismayed, remember that every day begins a new year if you count 365 days forward. Therefore why not make today the day that you set your goals for the next twelve months and to help you there is a way to make that desire for change more permanent.

Here’s a twist that can make your resolutions more durable, more beneficial and less prone to that embarrassing quick fade.

Align goals to your business

Try aligning personal goals to your business goals. This can deliver more benefits than you might have anticipated. For example, suppose your goal is to take a month’s holiday in September of this year – perhaps the first real holiday you’ve had in years.

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Five simple steps for crisis survival

It’s surprising how much value the average business now stores in digital form.

Imagine what would happen right now if you lost all your computers and servers through a fire, flood, or other extreme event. How long would it take you to get up and running again? Think of your accounting records, customer history and databases, emails, templates, spreadsheets, tenders and quotes, project management records, software programs and many more digital assets.

Just a few years ago, it might have taken days, weeks or even months to restore everything. Now, thanks to the latest technology, you can keep running seamlessly. You might lose other assets in a disaster, but there’s no longer any need to lose valuable digital assets. Read More »

Storing taxpayer electronic records offshore – Xero Limited Approved

Inland Revenue advised on 21 October 2013 that the following organisations have been approved under s 22(8)(a) of the Tax Administration Act 1994 to store taxpayers’ electronic records outside of New Zealand:

  • • CargoWise NZ Limited
  • • MYOB NZ Limited, and
  • • Xero Limited.

Taxpayers who store their business records with these approved organisations do not need to obtain approval under s 22(2BA) to store their business records outside of New Zealand.

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