Author: Support

It’s hard to believe, but the end of the financial year (EOFY) is just days away.

With only one week until the 31 March deadline, there are a few tactical moves we can make to optimise your tax position.

Bank & Loan Statements

Please ensure these are kept for EOFY, as we will request them alongside the End of Year Questionnaire.

Accounts Receivable

Review your outstanding invoices and write off any bad debts (invoices not expected to be paid). Ensure your report is accurate and up to date.

Accounts Payable

Prepare a list of any bills your business owes that are dated 31 March or earlier. If you use Xero, make sure the report is correct. Some bills may not be received until a few weeks later but can still be included.

Stocktake

If you hold inventory, schedule a stocktake for the close of business on 31 March. If you use an inventory system, remember to print the inventory report as at 31 March—especially if you operate a perpetual system.

Work in Progress

If you have work in progress as at 31 March, please provide the details so we can account for any unfinished work.

Fixed Assets

Review last year’s depreciation schedule and let us know if any assets need to be scrapped.

If you’ve bought or sold fixed assets during the year, please provide the relevant invoices. If these were financed, include the loan or finance documents as well.

Prepayments

If you have prepaid any expenses (such as insurance, rent, or professional subscriptions) before 31 March, please provide the details.

Getting these items sorted now will help ensure a smoother preparation of your financial results for the year. If you have any questions, feel free to get in touch.

The best accountants can do much more than just tax and compliance work for your business. They’re troubleshooters and strategic advisors for the business. Basically, having an accountant means that you can operate your business with more clarity and confidence.

Whether you’re working to get a startup off the ground, or taking the reins of an established business, you’ll see value from making an accountant part of your team. When you have the right accountant and a good relationship, you’ll see their influence impacting all the moving parts that make up your business.

Accountants can support you from startup to business exit.
Read more about how accountants support your business and help you achieve your goals here.

Q: What expenses can I claim as a business? And what’s the financial advantage of claiming for business expenses?

When you’re running a business, there’s a multitude of operational costs and business expenses that you’ll incur in the everyday running of the company. But which of these costs are classed as business costs and are therefore tax-deductible at year-end?

A: The short answer is that you can claim for any expenses which are wholly related to the day-to-day running of your business.

By claiming these expenses against tax, you can directly reduce your overall tax liability – and that means a smaller tax bill at year-end.

As the owner of the business, you may be able to claim for:

• Vehicle expenses, transport costs and travel for business purposes
• Rent paid on business premises
• Depreciation on items like computers and office furniture
• Interest on borrowing money for the business
• Some insurance premiums
• Work-related journals and magazines
• Membership of professional associations
• Home office expenses
• Work-related mobile phones and phone bills
• Stationery
• Work uniforms
• Accounting fees

Helping you claim all eligible business expenses

There’s more information about claiming expenses on the business.govt.nz website.

If you’re unsure what you can and can’t claim, come and talk to our team. We’ll be happy to run you through the eligible expenses and how you claim them against tax.

We’re used to the prevailing motto in business being ‘bigger is better!’. So much of the strategic thinking and entrepreneurial ideas we’re surrounded by talk about the need for growth as the key driver of success, longevity and healthy profits.

But that tide may be turning. Professor Rod McNaughton, Professor of Entrepreneurship, University of Auckland, Waipapa Taumata Rau, argues that ‘strategic smallness’ may actually be a real business benefit for many New Zealand enterprises.

Let’s look at five key reasons why staying small and agile could be the perfect way to achieve the business goals you’ve set for your Kiwi company.

1. Productivity through AI-driven automation

Adopting AI in a more proactive way helps you automate routine tasks, making it easier to deliver high productivity without the overhead of additional staff. By staying small and automating these low-level processes, you can compete with much larger global entities.

2. Staying operationally agile

Agility is a core strength for smaller businesses, allowing you to rapidly adapt to fluctuating market trends. This speed and responsiveness make it easier to grab the fast-moving opportunities that larger, bureaucratic organisations often miss out on.

3. Digging deep into your specific niche

Strategic smallness is great when you’re looking to focus on high-value, specialised products rather than low-margin mass production. By digging deep into a niche, and prioritising quality over volume, you can maintain premium pricing and build stronger, more authentic brands.

4. A reduction in risk

Modern anti-scale entrepreneurs use digital tools to manage large, international supply chains efficiently. This allows you to stay lean and resilient, while avoiding the financial risks and complexities that are commonly associated with traditional scaling.

5. A more resilient and attractive business model

Smaller firms often have greater social and environmental resilience. The compact nature of your business model makes it easier to align with community values and sustainable practices, positioning your brand as a good option when compared to large, global conglomerates.

Ready to explore strategic smallness?

If embracing strategic smallness sounds like it should be part of your ongoing business strategy, come and talk to us. Our team can help you understand the financial, operational and strategic implications of staying small — and the potential impact for your future success.

Working for yourself or running your own business?

Set up robust systems for expenses & tax requirements so you can focus on your important tasks. We can help take the headaches out of your business accounting.

Contracting or freelancing requires you to wear a lot of hats: relationship-building, keeping track of your time, marketing your skills, and actually doing the work. But one of your priorities should also be establishing how you handle your money and setting the groundwork for good habits.

Understand your deductions

Before you start, it’s essential to understand what expenses you can and can’t claim. This means you’ll keep the right receipts and track the right expenses. Figuring out what’s what can be a little confusing, as everyone has a different working setup and what you can claim for can vary between industries and occupations.

Talk to us about your business expenses from the beginning. This will also help you plan for any bigger work-related purchases that you may need to make.

Get a system sorted

You’ll thank yourself later for setting up a good system now. Getting your expenses recorded and your invoices collated means you’ll be able to spend more time doing the important stuff in your business. It’s not just about saving time – keeping on top of your cash means you’re more likely to succeed.

Do your research and choose a system that will work for you. Consider choosing a software platform that allows you to record your time spent on projects – it’ll make sending those invoices that much easier!

Stash that cash

When you’re running your own business or working for yourself, it’s important to always keep your tax obligations top of mind. Make sure you have money set aside in a separate account or consider entering into voluntary instalments.

One way to budget and stay on top of your business tax is to pay yourself a wage. Keeping your accounts separate also prevents you from thinking of all your business income as spending cash! Remember to also put aside a little extra to cover your holidays and any quiet periods.

We can help make this process easier, so talk to us about setting up systems that take the headaches out of your finances.

Are you undercharging for your services?

It can be hard to tell, particularly if you’re in a niche industry or working as a contractor. Costs have been rising, so it may be time to rethink your own pricing.

Five signs you might be undercharging:

• Nobody ever questions your quotes – Do all your new clients accept your quotes or charges without asking any questions, requesting a breakdown, or wanting a discount? It’s possible they’re delighted to be getting such a great deal.
• You’re run off your feet but can’t afford to get help – When you’re working yourself to the bone, but there’s not enough money left over to employ someone to help you, your prices are too low – or something else needs to change.
• Your prices haven’t changed in two years or more – In most industries, prices increase slightly each year. Leave your prices flat for too long and you’re not keeping up with the market. Make sure you review your fees annually.
• You’re overbooked – When business is booming and there’s no room for new clients, it’s time to raise your prices.
• Clients don’t treat you as well as they should – When clients think they’re paying peanuts, they’ll often take you for granted. They don’t see your time as valuable, so they feel free to mess you around.

What should you be charging?

Finding your pricing sweet spot could take a little time. You’ll need to do some research, ask around, and find out where your competitors are pitching their rates.

We can help too – if we have clients in similar industries we might be able to give you some indication of typical fees, so give us a call or drop us a note. We’d love to hear from you.

Major changes to KiwiSaver were announced in Budget 2025.

The KiwiSaver voluntary savings scheme is aimed at helping New Zealand workers save for retirement, or buy a first house. But with the rising cost of living, action was needed to make KiwiSaver fit for purpose and more fiscally sustainable as a savings scheme.

How will these changes affect your employees and your small business?

Let’s take a look at the details of these KiwiSaver changes.

Changes affecting your employees

First off, let’s outline how the initial changes announced in Budget 2025 will affect your employees and other Kiwi workers:

From 1 July 2025:

1. Younger workers will qualify for government contributions: People aged 16 and 17 will qualify for government contributions, so long as they meet other eligibility requirements. Prior to 1 July 2025, members must be 18 or older to qualify.
2. Government contributions to halve: The government KiwiSaver contribution will halve, reducing the maximum government contribution from $521.43 to $260.72 each year.
3. High earners to lose government contributions: People who earn more than $180,000 of taxable income in a year will no longer qualify for government contributions.
4. No change to 2025 government contributions: There’ll be no change to government contributions for the year ending 30 June 2025. These will be paid in July and August at the current government contribution rate.

Changes affecting your small business

Next, let’s lay out the KiwiSaver changes that will directly affect your business:

From 1 April 2026:

1. Employer contributions will rise to 3.5%: From April 2026, the default KiwiSaver contribution rates for both employers and employees will rise to 3.5% – up from 3%.
2. Employees can choose to remain contributing at 3%: Employees who are members of the KiwiSaver scheme will be able keep their contributions at the current rate. They can apply for a temporary rate reduction from 1 February 2026, if they want to continue contributing at 3% from 1 April 2026.
3. Employers can match the rate reduction: As an employer, you’ll be able to match your employee’s temporary rate reduction. Once your employee moves to a higher contribution rate, you’ll need to increase your employer contributions to the default 3.5% rate. Inland Revenue will notify you of this change.
4. Younger workers will qualify for KiwiSaver contributions: People aged 16 and 17 will qualify for employer contributions. If they contribute to KiwiSaver from their wages, you will need to start making employer contributions.

From 1 April 2028, the default contribution rates for employers and employees will rise again to 4% (up from 3.5%).

Getting ready for the KiwiSaver changes

These amendments to KiwiSaver could have a significant impact for your small business.

Increased employer contributions will increase your payroll costs and stretch your cashflow, as will making contributions for younger workers in the 16 to 17-year-old age bracket.

You’ll also need to update your payroll software and processes, to ensure you’re making the correct contributions for the right people, at the right rates.

Come and talk to the team about preparing for the KiwiSaver changes

It’s a tough time to be in business. And especially so if you’re a mature, established business that’s finding it hard to keep pace in the rapidly changing and evolving market.

As a mature owner, you have experience and knowledge on your side. But you’re also faced with the new realities of transformative AI technology, the threat of climate change and a global economy that’s increasingly unstable and unpredictable.

Why are these challenges so problematic? Let’s look at the potential impact.

A new business reality

When you started out, the business world was a more predictable beast to tame.

Technology was here to assist us, not replace us. Markets were more stable and supply chains were reliable. Weather wasn’t a major factor in your business plan, or your insurance policy.

But that cosy existence has changed – and it’s making it much harder to do business.

That’s bad news if you’re aiming to:

• Grow the business and increase sales revenue.
• Sell the business and get a good return on your investment.
• Hand the business to the next generation in good shape.

The challenges for mature businesses

Trading, when the world around you is changing, is difficult. It throws up some specific challenges that could have a major impact on the future of your business.

A) Staying competitive and efficient:

Cloud tech, automation and now artificial intelligence (AI) have changed the technological landscape. If you aren’t abreast of this technology, you can quickly lose your competitive edge.

B) Protecting your business:

Dangerous weather events, widespread flooding and the ongoing threat of the climate emergency are making it difficult to trade and protect your business.

C) Planning your strategy:

The business landscape is no longer stable. Global events can change the economic outlook and the validity of your strategy in a heartbeat, making it hard to plan ahead.

Three ways to optimise your business in 2025

To overcome some of the potentially negative impacts, it’s important to remain agile.

Let’s look at three ways you can help to embrace the new reality.

1. Champion AI, automation and digital technology

Get on board with AI and digital tech. AI can either be your worst enemy or your biggest asset. Fall behind the technology curve and your competitors will overtake you. Embrace the best elements of AI and it could transform your operations and productivity.

When used well, and with a proper strategy behind it, AI has the potential to make your business more efficient and make it cheaper to run.

2. Focus on human skills and talent

Technology is brilliant for speeding up the running of your operations. But it’s also vital to recognise the contributions of key human skills and the talent of your team and workforce.

Your people are the face of the company and a large element in defining your brand. They’re the creative centre, the ideas hub and the humanity that brings your business to life. Never underestimate the impact of real, genuine, human customer service.

3. Balance your use of AI and human skills

AI can help to run the business, but you also need a talented team driving the company.

The sweet spot is to balance these two different factors making sure you have human oversight over your AI. Maximise your use of AI, software automation and digital technologies, but also invest in people, raw talent and the capabilities that a human team brings to the table.

Talk to us about optimising your business

If you’re feeling like the business landscape is speeding past you, leaving you trailing in the wake of technological, environmental, political and economic change, you’re not alone!

Many experienced business owners are feeling the same way – and have the same concerns around how they’ll be able to sell their business, or pass it on to their successor.

Come and talk to the team and we’ll walk you through some simple, straightforward steps to help you change course, optimise your business and embrace the new reality.

As part of Budget 2025, the Minister for Finance, Nicola Willis, introduced Investment Boost– a new way for Kiwi businesses to reduce the cost of investing in new assets and equipment.

Investment Boost is expected to lift NZ GDP by 1% and wages by 1.5% over the next twenty years, with half these gains in the next five years.

Let’s look at the benefits of the scheme and how it could help your small business.

What does Investment Boost offer?

Investment Boost is a new tax deduction that’s available to all Kiwi businesses, whatever the size of your business or your business type.

From 22 May 2025, you can claim 20% of the cost of new assets as an expense, then claim depreciation as usual on the remaining 80%.

What can you claim?

To claim Investment Boost, the asset you purchase must be:

• New or new to New Zealand
• Available for the business to use on or after 22 May 2025, and
• Depreciable for tax purposes.

You can also claim for:

• new commercial and industrial buildings
• improvements to depreciable property (but not residential buildings)
• primary sector land improvements
• assets arising from petroleum development expenditure and mineral mining development
• expenditure incurred on or after 22 May 2025 (except rights, permits or privileges)

What can you NOT claim?

There are some limitations on which assets you claim for under the Investment Boost scheme.

You cannot claim for:

• second-hand assets that are sourced from New Zealand
• residential rental buildings
• most fixed-life intangible assets (such as patents)

How can you make a claim?

You can claim the Investment Boost in your income tax return for the financial year in which you purchase a new eligible asset.

For instance, if you buy a new asset on May 23, 2025, include the Investment Boost amounts in your 2026 income tax return (which covers the financial year ending March 31, 2026).

How to maximise this tax incentive

So, that’s the lowdown on how the Investment Boost scheme works. But how can you use this tax incentive to make a tangible difference for your small business?

Here are five ideas to get you started.

1. Invest in technology and AI to boost your productivity:

Use the 20% tax deduction to buy new machinery, software (including AI tools) and equipment. This direct cashflow benefit makes modernising your operations more affordable and, with new, cutting-edge equipment and tech, you can give yourself a real competitive edge.

2. Increase wages and attract new talent:

By investing in new assets that boost productivity, your business can generate more revenue and improve profitability. This financial uplift helps you offer competitive wages and benefits, making your business a more attractive employer in the currently tight labour market.

3. Upgrade and future-proof your business:

In an unstable economic climate, the Investment Boost encourages proactive investment. By replacing aging equipment, upgrading commercial buildings, or investing in new infrastructure you’re better prepared to weather the economic ups and downs that lie ahead.

4. Investment in sustainable assets to assist with climate change threats:

Use the tax savings from the Investment Boost to invest in environmentally friendly assets. This could include purchasing electric vehicles for your fleet, installing energy-efficient machinery, or investing in renewable energy solutions for your premises.

5. Reinvest in growth and new revenue streams:

The lower tax bill from the Investment Boost frees up more capital. Reinvest these savings into areas that fuel growth. This could include expanding your product lines, entering new markets, increasing marketing efforts, or providing advanced training for your team.

Talk to us about making the most of Investment Boost

If you’re looking to invest in new assets and equipment, Investment Boost has come along at exactly the right time. Come and talk to the team about maximising this tax incentive.

We’re trading in uncertain times, where changes to the global economy can happen overnight.

This creates a real challenge for your small business, making it difficult to plan ahead and understand the short to medium-term future of your financial strategy.

But by monitoring and analysing your business data, it is possible to get back in control of your financial management, and to reduce some of the financial uncertainty.

Good business decisions are based on solid and reliable information. That’s why it’s so important to track and monitor your business performance.

Using the metrics and data from your business dashboard, you can follow your progress against budgets and financial strategies – and see when fast, evasive action is needed.

Here are five ways performance monitoring can ease your uncertainty

1. Real-time sales and revenue dashboards:

Set up Sales Dashboards to monitor sales figures, revenue streams and customer acquisition costs.

This makes it easier to spot dips or surges in demand, giving you time to adjust your marketing strategies, inventory levels or pricing. When the market changes, you’ve got the data in front of you to help you respond and remain agile.

2. Track KPIs for operational efficiency:

Key performance indicator (KPI) dashboards help you monitor crucial operational metrics like production costs, delivery times and resource utilisation.

By monitoring and analysing these KPIs, you can look for the inefficiencies that are most affected by economic instability. When metrics show poor performance, you can take swift action to deal with rising operational costs, or poor utilisation of your resources and workforce.

3. Monitor customer behaviour and trends:

Tracking your customer data helps you spot patterns in customers’ purchasing patterns, website engagement and social media interactions.

When you have data that demonstrates clear customer preferences and trends, you have the evidence needed to change strategy. The business can adapt its offerings and marketing efforts to remain relevant and competitive, even while dealing with erratic economic conditions.

4. Review financial forecasts regularly:

Create detailed financial forecasts, including cashflow projections, revenue forecasts and profit and loss forecasts. Use your software tools to compare your actual performance data against these forecasts, so you can see the variances and where action is needed.

This helps you anticipate potential financial challenges and economic instability, with enough time to react and refine your future tactics and strategy.

5. Analyse profitability by product and service:

Use your software’s performance metrics and tracking to understand which products, services and customer segments are most profitable – and also which are proving to be most resilient during the current economic uncertainty and upheaval.

When you know which products and segments are the most stable, you can adjust your sales and marketing strategy to focus on these specific targets. You can also pivot away from more vulnerable offerings or customer groups, helping you generate more stable revenues.

Making your financial future clearer and easier to navigate

Today’s forecasting tools and KPI dashboards give you all the data and metrics you need to stay one step ahead of the current economic uncertainty and market instability.

Come and talk to us about setting up the most useful dashboards and metrics for your business – and find out how we can guide you through these uncertain times.