Are you financially ready for the holiday season?

Are you financially ready for the holiday season?

The holiday season is a hard time financially for businesses, so what can you to avoid being financial stress?

Get your Bookkeeper to calculate your GST as early as possible. Don’t risk a late payment (and penalties!) or stress of having to find the money just because you are unprepared.

Make sure you have a budget and cash flow forecast in place. This will help you cover costs and expenses over the holiday period and into the New Year without the worry of running out of money.

Make sure you are claiming right.  An important thing to remember is some expenses are 100% deductible while others are only 50% deductible.

Cash Bonuses for Staff – These must be included in the employee’s wages for the week and PAYE paid on them.

Gifts of Food and Wine to Associates or Clients – The cost of gifting food and wine to associates or clients will normally be 50% deductible for tax purposes.

Gifts to Staff – Each quarter there is a fringe benefit tax (FBT) exemption of $300 per employee – as long as your gifts are under $300 the costs will be 100% deductible. If they are over the $300 then FBT will be payable to Inland Revenue, however, the costs can still be claimed.

Other Gifts to Associates or Clients – The cost of gifts (other than food and beverages) to associates or clients will normally be 100% tax deductible for tax purposes.

If you would like to know where you could be financially on the 31st March 2016, GoFi8ure can help you with easy to understand cash flow forecasting and budgeting reports from one of our top reporting packages Spotlight Reporting. Find out more by emailing enquiries@gofi8ure.co.nz or call us on 0800 463 488.