Topic: Accounting - Kiwitax - Small Business & Rental Property Accountants

What is Depreciation & How Does it Work?

As a business owner or property investor you’re entitled to make a tax claim for depreciation – but what exactly is depreciation? It’s best described as the devaluation of your assets over a number of years and different assets have different life spans so that’s why the depreciation rates differ. An asset is defined as an item costing over $500 which will be used on an o... More

Topics: Income Tax Claimable Expenses Depreciation Accounting Business

Posted 23/07/2017

Increased IRD Mileage Rate

The IRD's mileage rate has been increased to 73 cents per km (up from 72 cents) effective for the 2017 financial year. This applies to both petrol & diesel fuel vehicles. The increase is largely due to higher average fuel costs and a slight increase in fixed vehicle costs during the 2017 Financial Year. For the first time, they have also set mileage rates for hybrid & electric cars. These... More

Topics: Claimable Expenses Rental Property Accounting Business Inland Revenue Vehicles Contractors

Posted 19/05/2017

100% Claimable Exercise Programmes

IRD have teamed up with the Exercise Association of New Zealand with an initiative called SMEAEP: Stress Management Exercise Association Endorsed Programme. The idea behind the initiative is that exercise and lifestyle changes play a huge role in managing stress levels in the workplace. If you are an employer, there is no FBT adjustments on SMEAEP endorsed programmes which you provide to your emp... More

Topics: Claimable Expenses Accounting Business Employing Links

Posted 20/03/2017

What Does "Loss Carried Forward" Mean?

When a business or rental property makes a loss for the year (so expenses are higher than income) it results in a loss for income tax purposes. For Sole Traders, Partnerships or LTC Companies this loss can be offset against wages or other personal income for the year. It reduces the taxable income which reduces the amount of tax needed to pay. If a loss is made in a Trust or an Ordinary Company it... More

Topics: Income Tax Accounting

Posted 18/05/2015

Claiming Website Development Costs

There is a distinction between what is an asset and what is an expense when it comes to your business website. The costs of obtaining the domain name and the initial build of the website are an asset - so can't be claimed fully in the year that the costs were incurred. There is depreciation claimable on the website meaning the tax expense claims get spread out over a few years. Any on-going costs ... More

Topics: Claimable Expenses Depreciation Accounting Record Keeping

Posted 16/10/2014

Calling Trade Me "In Trade" Badge Traders

With the new Trade Me "in trade" badge coming into effect for sellers on 17 June 2014 - it will become very easy for IRD to identify which traders are "in business". These people are required by IRD to keep proper records and prepare business accounts and file income tax and possibly GST returns. If unsure about this or not already set up we highly recommend discussing how best to go forward with... More

Topics: Income Tax Accounting Business Tax Compliance

Posted 12/06/2014

Important - Financial Year End is Very Soon

31 March is quickly approaching - please note... Annual income tax returns for NZ tax payers with income from self employment, business and rental property need to be filed with IRD by 31 March 2014 - for financial year ended 31 March 2013. Last chance to have your 31 March 2013 annual accounts prepared - be in quick and we'll do our best to meet the deadline for you but time is very short. I... More

Topics: Accounting Tax Returns Due Dates Client Care

Posted 17/03/2014

Any Accounting System is Kiwitax Compatible!

With so many accounting systems available today we're often asked which is the best accounting system for what I do? The answer is usually pretty straightforward... "The one you like, use the accounting system you're comfortable with" At Kiwitax we're happy to work with whatever you work with, from online solutions like Xero or MYOB's Live Accounts, to desktop software like MYOB Accounting a... More

Topics: Accounting Kiwitax News Accounting Software

Posted 4/05/2011

End of Financial Year - A Quick To Do List

With the end of the financial year coming up (on 31 March) now's a good time to do a bit of preparation work towards having your annual financial reports and tax returns prepared. By doing these few things now it can save a lot of back tracking later. Over the next week or so please take action with... Debtors - make a list of everyone that owes you money at the 31st March 2011 - review this list... More

Topics: Accounting Business Record Keeping Guides

Posted 24/03/2011

Choosing a Record Keeping System?

With so many fantastic options available for small business owners to keep track of their financial transactions we're often asked which is the best way to go. The key is to work through the options and find the most suitable solution for both the business activity and the person or people responsible for keeping things up to date. Often the best answer is to go for one which is easy to understand... More

Topics: Accounting Record Keeping Kiwitax News Accounting Software

Posted 15/09/2010

How Kiwitax Can Reduce Your Tax Compliance Costs

For the most part small business and rental property owners don't have the time, expertise or inclination to look after their own tax compliance. The usual solution is to employ the services of an Accountant or Tax Agent to take care of these matters. The main reasons for doing so are to... Reduce the amount of tax to pay and to ensure correct taxation Ensure everything is done correctly i.e. ... More

Topics: Accounting Tax Compliance Kiwitax News Promos

Posted 20/07/2010

Financial Year End Tax Tips

With the 31st March coming up, here are a few things you can do to make things go smoother for your annual accounting and income tax returns. Debtors - review the people that are owing you money, are there any on your list that are unlikely to pay? If so there is no use paying tax on them! Write off all bad debts prior to 31 March so they don't show up on your debtors list. You can still chase th... More

Topics: Claimable Expenses Accounting Record Keeping Guides Client Care

Posted 23/03/2010

How Do I Record Or Keep Track Of My Financial Transactions?

There are several ways you can record and account for your business income and expenditure transactions on a regular basis. These include... Writing up a manual cashbook (or doing an spreadsheet) – this records all the expenditure in a column layout formula – you have headings across the top of the page that relate to your costs – like vehicle expenses, printing & statione... More

Topics: Rental Property Accounting Business Record Keeping Guides Accounting Software

Posted 14/10/2008

What Records Do I Need To Keep?

Inland Revenue require you to keep all documents relevant to running your business or rental property – it is wise to do this because if ever they choose to do an audit on your activities – the more documentation you have to substantiate income and expenses the less stressful this process will be. These include... Bank statements, cheque and deposit books Tax invoices & receipt... More

Topics: Accounting Business Record Keeping Tax Compliance Guides

Posted 14/10/2008