Tag: Tax
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Reducing Business Costs Without Cutting Quality: A Practical Guide for Sustainable Growth
Every business, at some point, faces the challenge of reducing costs while maintaining or improving the quality of its products or services. It’s a delicate balancing act. Cut too deep, and you risk damaging the very value that keeps your customers returning. But when approached strategically, cost reduction can improve profitability without compromising standards. This…
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Why Some New Zealand Businesses Receive Larger Tax Refunds Than Others
If you’ve ever compared notes with a fellow business owner and wondered why they’re receiving a much larger tax refund than you, you’re not alone. It’s a common scenario we see every year: two businesses with similar revenue, but vastly different tax outcomes. So, what’s the difference? Proactive tax planning and advisory support. Let’s break…
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Why Strategic Tax Planning Matters for You
When most people think about accountants, they often think about filing tax returns and meeting deadlines. While that is certainly part of the job, the real value of working with an accountant comes much earlier, through strategic tax planning. As someone who works closely with individuals and businesses every day, we can tell you that…
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What You Can and Can’t Claim Back from Supermarket Shopping
As a contractor or sole trader, it’s easy to assume that anything you buy while “on the job” is fair game for a GST claim, especially those regular supermarket runs for fuel, food, or supplies. But the truth is, Inland Revenue draws a firm line between personal and business expenses, and not knowing where that…
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The Effects of Tariffs on Global Trade: Understanding the Impact
Tariffs, essentially taxes imposed on imported goods, play a significant role in shaping international trade dynamics. By influencing prices, tariffs impact not just trade volumes but also economic relationships between countries. Here’s a comprehensive exploration of how tariffs affect global trade, illustrated by detailed examples from New Zealand. How Tariffs Influence International Trade 1. Increased…
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Understanding Tax Credits vs. Tax Deductions in New Zealand
When managing your tax obligations in New Zealand, two powerful tools can help reduce the amount you owe: tax deductions and tax credits. Although they both result in tax savings, they work in fundamentally different ways. Understanding these differences is essential whether you’re an employee, a self-employed contractor, or a business owner. Below, we break…
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Good Debt and Bad Debt: What Should You Pay Off Before the Financial Year Ends?
As the financial year draws to a close, business owners and individuals alike begin reviewing their financial standing to optimise tax benefits, improve cash flow, and plan for the future. One crucial aspect of this review is managing debt – specifically, deciding which debts to pay off and which ones to retain. Not all debt…
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Maximising Tax Deductions: Commonly Overlooked Deductions for Small Businesses in New Zealand
Many small business owners unknowingly miss out on tax deductions, leaving money on the table. Every dollar saved is a dollar reinvested. From home office expenses to depreciation and loan interest, knowing what you can claim can reduce taxable income and improve cash flow. This guide covers key deductions you might be overlooking, helping you…
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Avoid These Accounting Red Flags: Protect Your Business from Costly Mistakes
Every business owner aims for financial stability, but accounting red flags can signal hidden issues that threaten profitability and compliance. Poor financial management can lead to cash flow struggles, tax penalties, and even legal risks. Recognising these warning signs early can help protect your business from costly mistakes. Below are key accounting red flags to…
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10 Common GST Claim Mistakes Businesses Make in New Zealand
Claiming GST on business expenses can help reduce costs, but it’s important to know what you can and can’t claim. Many businesses unknowingly claim GST on ineligible expenses, which can lead to costly mistakes. Here are some common errors to avoid when filing your GST returns. 1. Purchases from Non-GST-Registered Suppliers If you buy goods…