Frequently Asked Questions

Why it is important to register for Gst & Pay your taxes on time?
Legally when your income is expected to reach the threshold it is compulsory to register however you can register volunterirly if your prices include Gst & you want to claim back Gst on your purchases & expenses. Please read instruction on ATO ( Australia) & IRD ( New Zealand ) websites for more information.

Not registering or not paying taxes on time can attract heavy penalities and may jeopardise the operation of a business.

How can I ensure that my small business will survive the transition into the next generation?
Staying up to date with Changing trends in latest technology ,consumer demands  and different laws regulating New Zealand & Australia will ensure a business to be more viable in rapidly changing environment. 
What should I include in a business plan?
A business strategic plan defines goals, objectives, and targets for a company and outlines its resources will be allocated in order to achieve them. When a strategic business plan is in place, it allows each generation an opportunity to chart a course for the firm. Setting business goals as a family will ensure that everyone has a clear picture of the company’s future.
A strategic plan is long-term in nature and focuses on where you want the business to be at some future date.
What legal requirements might affect a home-based business?
There is a different critera under which you can claim home office expenses while you are running business from home. Therefore you must check from ATO or IRD website or consult with your accountant before claiming any home office expenses. 
How can I avoid running into cash flow problems in my small business?
They say Cash is a King, Businesses do not go bankrupt by not making profit though they do fall if they can not meet day to day expenses or can’t pay their suppliers on time. Therefore to avoid that every business should try to negotiate with their bank for business overdraft facility, business credit cards , consider options like consignment stock, asset finance to avoid blocking money in stock. Negotiate payment terms with supplier and unless their are favourable early payment discounts try to pay close to due date.Budgeting and planning helps a lot to avoid getting into any unfavourable situation. 
Why Company is a better structure than sole trader?
A company  is a separate legal entity and a structure which provide a shelter to someone personal assets even in cases of business going bankrupt .

Where as in sole trader operations since the business is conducted on owner/operator name therefore all his/her debts become his personal debts and will be paid off by selling his/her personal assets in case he/she has no money to pay business debts.  

Is it important to keep business record like invoices etc?
Yes you can be asked to provide record even in couple of years down the track in New Zealand you need to keep record for 7 years for Inland Revenue Department, however in Australia its 5 years. Though it can be different for different situations please consult your tax agent or concerned tax authorities to get specific advice.

What else can we ask?
Regardless you are in Australia or New Zealand , you can contact us and discuss your financial situation. We can provide first free consultancy and guide you how can you meet your legal obligations. It is your responsibility to meet your tax and other obligations & ensure your business record is kept up to date.
Phone: 098136266
Auckland New Zealand