Author Archive | Mike Pirovich

What records should I keep?

 What business records do I need to keep? Most business owners understand what records they need to keep for tax purposes, and that documents, including copies of invoices for monies received and bills for monies paid, need to be kept for seven years. However you need to know much more about record keeping than this. […]

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How much should I put aside for tax?

 How much should I put aside for tax?Most business owners ask us how much they should put aside to meet their tax obligations. It’s easy when you follow our simple guidelines! The first thing we need to do is identify what type of tax we’re talking about. The two taxes you need to put money aside […]

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KiwiSaver for the self-employed

 KiwiSaver for the self-employedKiwiSaver is not just for employees. If you’re self-employed, you could still be eligible to receive $542.43 free money! Not many self-employed persons realise they can pay into their own KiwiSaver. You don’t need to be an employee, you can start your own account or contribute to an account set up from […]

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What should I do about cash jobs?

Cash Jobs As a general rule, a cash offer means the customer is asking for a 15% discount off the quoted price. How you decide to deal with this is something you should be very clear about when you start your business. While there is nothing wrong with asking for a discount, asking you to […]

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Quid Pro Quo Accounting

Quid Pro Quo “The exchange services and goods for services and goods in return.” Quid pro quo is a very interesting part of accounting; we see it happen and we get asked about it, but what’s the stance on it from a tax perspective? For example, let’s say you’re a plumber, your mate Dave is […]

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Main types of tax explained

What are the different types of tax? How you pay tax is dependent on how you earn income. The main tax types are Provisional, Terminal, Withholding (IRD calls it Scheduler, just to confuse everyone!), and PAYE. Terminal Tax If you own a business, and you and your partner are the shareholders, it may be beneficial […]

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ACC CoverPlus Extra

ACC CoverPlus ExtraA flexible alternative to ACC CoverPlus, ACC CoverPlus Extra enables you to negotiate your level of lost earnings cover. You know exactly what you’ll receive if you’re injured and can’t work – and it doesn’t matter whether the injury is work related.At a glanceACC CoverPlus Extra is available to self-employed and non-PAYE shareholder-employees […]

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Financial Benchmarking

Financial Benchmarking Financial benchmarking is comparing an organisation’s financial information to other businesses in the same trade to assess competitiveness, productivity and efficiency. Financial benchmarking can be used to: Determine what and where improvements are called for. As the great baseball coach, Yogi Barra once said, “If you don’t know where you’re going, you might not get […]

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How to prepare & use a budget

Budgeting 101 A budget is an estimate of income and expenditure for a set period of time and can be used to: Ensure actual revenues and expenditures adhere closely to a financial planProvide accountability for the people responsible for ensuring the budget is achievedProvide guidance and a sense of direction for a businessPredict cash flow […]

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AIM statement of activity & payments

Understanding your Statement of activity and payments for provisional taxOnce you’ve chosen the Accounting Income Method (AIM), you’ll only pay provisional tax when your business makes a profitAbout AIM From April 2018 small businesses with turnover under $5 million a year can work out their provisional tax using the accounting income method (AIM). AIM uses new functionality included in […]

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