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The Commissioner of Inland Revenue conducted a review and has released on 30th May 2025 their Operational Statement in relation to the Kilometre rates for the business use of vehicles for the 2025 year. The rates actually relate to the 2024/2025 financial year and are used to determine a business tax deduction for motor vehicles used by a self employed business owner or close company.  They can do this by…  Read more

Most business owners receive plenty of well-intentioned advice and ‘helpful opinion’ from family and friends… and social media. However, good business advice spoken from commercial experience is another matter entirely. That’s not to say it’s hard to find, but finding a reputable source in the Internet age is sometimes less than straightforward – especially if you have specific problem to solve and time is limited. This is why, for good…  Read more

1st April always see’s changes for payroll. Below is a summary of the 1 April 2025 updates: ACC Earners Levy – updating to 1.67 cents ACC Earner threshold – updating to $152,790.00 Minimum Wage – Adult Min Wage increasing to $23.50. Starting Out/Training Wage increasing to $18.80 Extra pay Tax in Termination Pays – Updated method for calculating Extra Pay Tax on Termination Pays Tax Codes – No change this…  Read more

New Zealanders on salary or wages may find that once their income tax assessment has been calculated automatically, they end up having tax to pay – and suddenly it’s panic stations! (Don’t worry, this happened to me, and I did the same!). There may be a reason for it! If you get paid on a Monday, this year there are 53 weekly pay periods, as opposed to 52 weekly pay…  Read more

Parliament has been debating the merits of the Wage Theft Bill since April 2023. The Bill progressed to the final stages of the parliamentary review process recently and will now move to its third and final reading before receiving royal assent and being enacted into law. This bill clarifies that it is considered theft when an employer does not pay an employee their full legal entitlements, which may include unpaid…  Read more

Sales and profit are two very different things – as a business owner, you can find yourself without the cash to pay bills despite making sales you knew were profitable. You may also be startled to discover that strong cash flows from sales deliver little profit. What exactly is cash flow? A cash flow forecast tracks cash flowing in and out of your business. The timing of these flows enables…  Read more

This year, Christmas Day falls on Wednesday, with Boxing day on Thursday.  The same with New Years Day and The Day After New Years Day (they so need a better name for this day!).  So no Mondayising of any of these public holidays this Christmas. Here is what you need to know about rights for employees and obligations for employers. Payment for working a public holiday Employees must be paid…  Read more

Most people are not aware that technically, legislation says that annual leave payments need to be paid, in full, before an employees leave is taken. Thinking about why this is, takes us back to the days of being paid with a little brown envelope fill of cash, and the fact the employee won’t be here the following pay day to collect that cash.   Yes, that legislation is outdated like a…  Read more

There is nothing in the Act to determine when a payment must be made when an employee’s employment is terminated. There is so much to do for a final pay, and it can become a rushed activity on the final day of employment with the potential to get it wrong. If agreed between the parties, then it can be paid on the next pay day after termination or on the…  Read more

With Christmas coming up fast like a freight train without any brakes and the payroll team are working hard to manage all the extra payroll changes over this time.  One of the biggest questions this year is “When do I have to pay my staff?”   With Wednesday and Thursday both being public holidays, and popular days for payment of wages, what happens now that we have 24 hour banking? There…  Read more

Drawing up the right financial documents matters to your small business’ success more than you think they do. They can give you a clear view of your financial health and can help you make sound decisions. Below are the six most useful financial documents that you can benefit from: Income statement – This shows your revenue and expenses and indicates if your business is profitable. Cash flow statement – This…  Read more

If you’re a contractor, it can be challenging to manage a hectic schedule and complex projects, all while ensuring your paperwork, documents, and contracts are in order. It’s important to keep a paper trail of your work and practice due diligence. Keeping all your working documents in order shows that you treat your business, customers, and subcontractors responsibly. This is not only a mark of professionalism but can also help…  Read more

Selecting the right accounting software is a crucial decision for your small business’s financial health and accuracy. With numerous options available, this process can seem daunting, but making an informed choice is essential to streamline operations and mitigate risks such as financial fraud and regulatory non-compliance. Introduction The challenge of choosing appropriate accounting software stems from the need to balance functionality, ease of use, and cost-effectiveness. As cloud computing continues…  Read more

Financial models are invaluable tools designed to help you understand and project the financial health of your business. By simulating different scenarios and examining potential outcomes based on various inputs like sales growth, margins, and cash flow, these models provide a comprehensive picture that aids in informed decision-making. Practical steps for leveraging financial models: 1. Planning and forecasting Start by creating a base financial model incorporating your current financial data.…  Read more

Employees are one of the biggest costs, and the most important asset to a business, and annual holidays are a really important part of your teams health and wellbeing.  Ensuring your team are getting what they are entitled to is your responsibility as their employer.  If you don’t get it right, it can cause frustration for the employee, friction in the workplace and could land you in hot water with…  Read more

Setting the ESCT rate for the next tax year is a 1 April activity that Payroll are responsible for.  As part of your payroll checks and balances, you must check your payroll system is doing as expected. If you are processing payroll manually, you will need to set the ESCT yourself.  Understanding how ESCT is essential to getting this right for anyone involved in payroll. What is ESCT? ESCT (Employer…  Read more

If you’re like many business owners, you may find yourself struggling to understand what your finances mean or how you can use your financial information to make decisions for your business. Often we get into business because we love a product or service we want to provide. It’s not as common that we love managing the financial aspects of our business.  As a business owner, you have your best chances…  Read more

When you run your small business, you have a lot on your plate. That makes it tempting to let some tasks slide, especially tasks that are related to finances, which can be challenging and is often outside your preferred skill set or experience. There are some tips you can follow that keep your finances healthy and enable you to thrive. Here are some financial best practices for managing your business,…  Read more

Paying overtime to salaried staff has many consequences that a lot of employers are not aware of. The purpose of a salary is to pay an all-inclusive rate that is a fixed, regular payment to an employee for the work they perform. It allows a business to plan and forecast labour costs on an annual basis and can also provide concise data for business planning over the coming years, as…  Read more

Remediation of your payroll system can seem extremely intimidating.  There is a lot involved in the process of checking payroll for Holidays Act 2003 compliance.  This information comes from the FAQ section of the Labour Inspectorate website so we thought we would share some of this here. How far back should re-calculations go? Once non-compliance with the Holidays Act 2003 is identified, the expectation of the Labour Inspectorate is that…  Read more