We're as passionate about the success of your business as you are. Our focus is on helping you grow your business and wealth by understanding your needs at both a business and personal level. We’ll give you honest insights, and fresh thinking to help you overcome the unique challenges and opportunities that you face.
If you need someone who takes the time to get to know you and your business, someone that can turn your business challenges into opportunities, and offer fresh insights to help you grow, innovate and plan for your future, then contact us today.
Get some impartial advice from us before you consult the bank. A bank will want to see a strong business plan and organised records. Let us help you get ready for your growth plans.
As soon as you start to think about your business, we can help you take the next steps. We can discuss your financial structure, tax purposes and operations, along with target pricing and profit margins. We can also help with designing and implementing internal controls, system and processes which help your business to grow.
Does your accountant return your calls?
Do you feel comfortable asking them a question?
Do you feel heard?
Can they simplify your processes so you can save time can money?
With the right accountant, the answers should be a resounding "Yes!"
Our clients enjoy working with us because we are honest, practical and professional.
Please reach us at info@aurorafinancials.com if you cannot find an answer to your question.
If you are one of the many New Zealand businesses who are looking at changing the way you do business to survive the COVID-19 crisis there is help at hand.
Business.govt.nz has a number of tools and tips to help businesses who need to change direction. These include a 4-step plan consisting of identifying what your customers want or value, deciding on a new offering to appeal to your target market, assessing your business set up for the new direction, and developing your position in the market so you have the best chance of standing out. You can access these resources and advice here.
Business.govt.nz also has a ‘Funding Explorer’ interactive tool to help you explore funding options here.
You can also learn the digital skills to boost your business online here.
COVID-19 has had a significant impact on how we interact with others, go about our lives, our work, study and many other aspects of our lives. We know that a combination of stress and uncertainty can have significant and wide-reaching impacts on the mental wellbeing of people in New Zealand.
It is normal to not feel all right all the time – it’s understandable to feel sad, distressed, worried, confused, anxious or angry during this crisis.
Everyone reacts differently to difficult events, and some may find this time more challenging than others. The ways people think, feel and behave are likely to change over time – we all have good days and bad days.
During this time, you may be looking for new or additional ways to help you feel mentally well and get through. Below are some of the tools to support your own and others’ mental wellbeing and where to get help if you need it.
Getting Through Together - Practical tips, stories, and resources focused on things we can all do to maintain our mental wellbeing and look after our family during the COVID-19 pandemic
Digital mental wellbeing tools
Small Steps are digital tools to help you maintain wellness, find relief, or get help for yourself, friends or whānau
WorkSafe has information on staying mentally well when working from home.
Anxiety New Zealand provides a free national helpline as well as workshops, support groups and specialist medical assessment.
The IRD has announced that as part of its debt collection campaign, it will contact taxpayers with outstanding tax arrears under $10,000 from 1st June 2021 if:
It’s important to organise a payment plan within 60 days’ of the due date or the IRD will start taking recovery action.
We can assist you with making payment arrangements to address the debt, such as setting up instalment payments or arranging tax financing, so please get in touch with us before the debt due date.
You can find the key tax due dates on IRD's website here.
The Bright-line Test
The bright-line test period has been extended from 5 to 10 years for houses purchased on or after 27 March 2021.This means that if you sell in less than 10 years, you will pay tax on the gain in the value of the property. For new houses, the bright-line period will be set at 5 years.
Your main home is still excluded from the bright-line test if you live in it the entire time. But if your main house is also rented at any point then it may be subject to the bright-line rules
Short-stay accommodation will also be subject to the bright-line rules even though you are operating it as a business not a residential rental.
Interest Deductibility
If you’ve borrowed money to buy a residential rental property, you will no longer be able to claim the interest as an expense.
For residential rental properties purchased from 27 March 2021, the ability to claim interest as an expense will be completely removed effective 1 October 2021. For residential rental properties purchased before 27 March 2021, the ability to claim interest as an expense will drop by 25% per year.
By 1 April 2025, you will not be able to claim any interest.
Property developers will not be impacted as they already pay tax
Businesses with loans secured against residential property will also not be impacted.
There is still some additional detail to be worked through in the coming months which may include interest remaining deductible if you have purchased a new build.
What does this all mean for you?
The tax changes will mainly impact investors with sizeable mortgages or those looking to sell. If you have a rental property with no mortgage and don’t intend to sell it anytime soon, then it’s pretty much business as usual. However, if you have borrowed money to purchase a residential rental, then over the next four years your tax bill is going to get increasingly larger. That means you’re going to need to consider your options.
Where a company owns a residential property and this is either subsequently set up as a Look Through Company (LTC) or disestablished as a LTC, this is considered by the IRD to be a bright-line disposal and repurchase. It could therefore trigger bright-line profit and will definitely create a new start date.
Get advice – tax implications of decisions around residential properties just got significantly more complicated. If you are planning on buying or selling property please get advice before you make decisions to avoid any unintended tax issues.
Goods and services tax (GST) is added to the price of most products and services. If your business is GST registered, you collect GST from customers (by adding 15% to your sale price) and you pay this to the government, less any GST that your business has paid on goods or services purchased.
If your turnover (sales) was more than $60,000 over the past 12 months, or if you expect your turnover in the next 12 months to be more than $60,000, you must register for GST. When you reach this threshold, you need to register within 21 days.
But if your turnover is under that $60,000 threshold, you can choose whether to register or not.
There are a few things to consider when making the decision to register. Get in touch with us if you are unsure.
Yes, but only if you have setup your accounting systems to capture data correctly.
Real time reporting has the following benefits:
Early warning of any financial issues – so you’re aware of any cashflow holes, late payments from customers or unplanned declines in revenue.
Planning ahead to avoid future problems – by running forecasts, monitoring your cashflow position and aligning your strategic budgets with your business-wide KPIs.
Taking action and gaining control – using the financial insights from your accounting system's dashboard to adjust your strategy, control spending and make better decisions quicker.
Give us a call and we'd be happy to assist you. You can also find some guidance on IRD's website.
Give us a call to discuss your specific requirements.
Below is a general list of deductible expenses:
You can find out more on IRD's website here.
New Zealand has a law called the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (the AML/CFT law).
The purpose of this legislation is to:
1. Detect and deter money laundering and the financing of terrorism (ML/FT);
2. Maintain and enhance New Zealand's international reputation by adopting, where appropriate in the New Zealand context, recommendations issued by the Financial Action Task Force (FATF); and
3. Contribute to public confidence in the financial system.
The Act was widened (via the Anti-Money Laundering and Countering Financing of Terrorism Amendment Act 2017) to include lawyers from 1 July 2018 and accountants from 1 October 2018. Real Estate agents also became subject to this legislation on 1 January 2019.
Before providing services, accountants are required to verify the identity of clients and conduct customer due diligence if certain services are being provided - known as "designated activities".
Accountants must take reasonable steps to make sure the information they receive from clients is correct, and so they need to ask for documents that show this. We will need to obtain and verify certain information from you to meet these legal requirements. This information includes:
To confirm these details, documents such as your driver's license or your birth certificate, and documents that show your address, such as a current bank statement may be required.
For existing clients where we provide "designated activities", or there is a material change in the services we provide, we will contact you to collect the required information.
If you are engaging us for work involving companies or trusts, we will need information about the company or trust including the people associated with it (such as directors and shareholders, trustees and beneficiaries).
We may also need to ask you for further information, such as the nature and purpose of the proposed work you are asking us to do for you. Information confirming the source of funds for a transaction may also be necessary to meet the legal requirements of the Act.
If your situation changes, we may need to contact you to update engagement letters and verify your identity. The level of detail and proof we need will be determined by the services we provide to you and whether you engage with us as an individual, company or family trust.
We will work as hard as we can to streamline the process for you.
Aurora Financials Limited
PO Box 11030, Manners Street, Wellington 6142, New Zealand
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