The importance of tax planning for directors

The importance of tax planning for directors 

Paying tax is something you are likely to see as a necessary (but not hugely enjoyable) part of running your business. But are you doing enough to plan your own personal tax liabilities?

As a director, you will pay your income tax annually on a self-assessment basis. But there are plenty of ways to make this a less costly and onerous task to complete.

Planning ahead when it comes to tax

By taking a forward-looking approach to your own personal finances, and working with an experienced advisor, you can start to minimise your tax costs and maximise the value you enjoy from your own earnings and company profits.

Working closely with us helps you:

  • Know your future tax liabilities – by looking at factors like expected dividend payments, pension provision and additional income to determine what you will owe.
  • Set up an annual tax plan – with provision for when payments should be made and when to set aside the funds needed to pay your income tax bill.
  • Make use of any tax reliefs – so you can claim the relevant reliefs and tax initiatives that are available, to bring down the amount of your overall tax bill
  • Maximise your earnings – by taking your earnings in the most efficient ways and managing your own personal wealth in a proactive manner.

Talk to us about your personal tax planning

If you are a director looking to achieve the best results from your earnings, come and talk to us. We can review your tax situation, create a robust tax plan and make sure you are getting the maximum value from your business earnings,

Want to achieve the best results from your earnings as a director? Come and talk to us. We will review your tax situation to ensure you are getting the maximum value from your earning.

Your leadership style matters more than you think

Your leadership style matters more than you think 

Your leadership style is made up of strengths and traits. Understanding your style and that of others can be incredibly helpful, not to mention strategic. Doing so gives you an edge and it enables you to work in a complementary manner with those around you in order to achieve your goals.

Research conducted by Gallup® summarises Four Domains of Leadership. People from one domain may have some of the strengths in another too, but Gallup found that these four distinct areas of strengths existed amongst leaders. Your leadership style is defined by how concentrated your strengths are in one of the four domains:

1. Executing: People with dominant executing themes know how to make things happen. They are consistently hard working and focussed. People with these traits are disciplined and responsible.

TIP: Working with an Executor? Talk to them about timelines and who will do what, how, and by when.

2. Influencing: These people are self assured and good communicators. People with dominant influencing themes know how to take charge, speak up, and make sure the team is heard. This is helpful when you need to reach a wider audience.

TIP: If you need to influence an Influencer, discuss your concerns with them so they can share them with the wider team.

3. Relationship Building: This group are all about connectedness, empathy, positivity and inclusiveness. They have the ability to build strong relationships that can hold a team together and make the team greater than the sum of its parts.

TIP: If you are working with Relationship Builders, then be sure to focus on establishing a strong relationship first, before you try to get anything else from them.

4. Strategic Thinking: People with dominant strategic thinking themes help teams consider what could be. They absorb and analyse information that can inform better decisions.They can take an idea and come up with the best way to take it forward. They are analytical, strategic and think outside the box.

TIP: If you work with someone who’s domain is a Strategic Thinker, make sure you present data or research to help present your business case.

The Gallup Research is useful for understanding work dynamics. Think about the leadership domain you fall into. Being aware of your own style may help you in your work with others. And you can aim for a mix of qualities within leadership teams, or when you’re hiring new leaders in your business.

 

GoFi8ure’s BKED Training Courses to Support Business Owners Manage Financial Matters

GoFi8ure’s BKED Training Courses to Support Business Owners Manage Financial Matters

Business owners who need assistance with their accounting tasks and financial statements can take GoFi8ure’s BKED and training course. The company has designed a series of business courses to help company owners focus on their business while GoFi8ure can take on the other time-consuming accounts.

Designed to suit every business, the Bookkeeping Education and Training Courses include important topics such as:

Bookkeeping for Business Owners 101

Business owners will learn how to reconcile all of their balance sheet accounts and get an introduction to understanding financial reports. They will also learn about the 12-step bookkeeping process; checking their own data; knowing where their money goes; and learning the difference between cash flow and profit.

Business Owner Duties & Responsibilities 101

The course will delve into the Companies Act 1993, compliance, governance, Inland Revenue, and an introduction to tax legislation and responsibilities.

Accounting Principles into Practice

The course will cover Accounting principles, Accounting practices, reconciliations, balance day adjustments, knowing the difference between management accounting and financial accounting, problem solving and learning how to run a practical health check on their ledger.

People Courses: Employers

People courses that focus on employers will touch on employer duties and responsibilities, payroll training, payroll audits, compliance, legislation, contracts, recruitment, profiles and testing, culture creation, and getting the most out of your team.

People Courses: Leadership

The leadership focused people course will teach business owners how to get the right person, in the right job, and do the right thing. It will also cover fundamentals of leadership – “I have a business, I have staff, now what?”

People Courses: Management

People Courses focusing on Management will cover topics on Attraction; Promotion; Selling a solution; Call to action; Marketing; Relationship building; Networking; CRM; Onboarding; and Process for creating a raving fan.

Business Strategy Course

The course will discuss Marketing and promotion, IT (infrastructure), Financial, HR (balanced scorecard), and Organisational structure and culture.

Strategy Implementation Course

The Strategy Implementation Course will revolve around motivation, communication, leadership and growth, efficiency, effectiveness and enablement.

Business Finance Course

Last but not the least, the Business Finance Course will discuss in detail what financial literacy is, how to budget and forecast, how to prepare documents for a loan, how to read and understand reports and explain what the figures really mean.

Maximise Xero’s Capabilities through Customised Training

Maximise Xero’s Capabilities through Customised Training

Wellington’s trusted accounting firm, GoFi8ure, wants businesses to maximise the use of Xero to further their business operations. The mobile accounting company is offering Xero training to save businesses from time-consuming work, in order for them to focus on other important business tasks.

GoFi8ure aims to help business owners save more time and resources by helping them optimise Xero’s capabilities. As an official partner of Xero, GoFi8ure can expertly train businesses to efficiently use the software to their advantage.

Using Xero without fully understanding it could potentially lead businesses into spending just as much on administration as they would without it. It’s important to know how to wield your tools. Rather than hiring more staff to achieve greater efficiency, you can save money and time in the long run by training existing staff.

GoFi8ure provides one-on-one or one-to-many Xero training for individuals who are interested in making the most out of the accounting platform. The team can travel to varying locations, right to their customers’ doorstep. Whether it may be in Wellington, Hutt Valley, Wairarapa, Auckland or Dunedin, GoFi8ure can come to them to carry out the training.

What makes GoFi8ure’s Xero training special is that they have developed a tailor-made training programme using real-life data, for boosted efficiency. They also utilise a 12-step “best bookkeeping” checklist that will guide clients on the right track.

Furthermore, GoFi8ure also provides customisable Xero training, which can attend to the specific needs of each business. Business owners can discuss which company-specific topics they would like to cover, and GoFi8ure will tailor the training session to suit the business’ needs.

To learn more, visit the GoFi8ure website at https://gofi8ure.co.nz/

Getting more meaningful data for your business

Getting more meaningful data for your business

Data is only powerful with context, it needs to be accurate and organised and you need to be clear on the necessities vs the niceties.

Three steps to ensuring data is meaningful for your business

Raw data describes the facts and figures that a business processes every day. Over time, every business hoards a certain amount of data and it only becomes meaningful to a business after it has been processed to add context, relevance and purpose.

For example, in a restaurant, every order will be recorded. However, a restaurant won’t learn much by looking at each one in isolation. Analysis of the orders will reveal trends and patterns, such as peak dining days or biggest-selling menu or bar items. Knowledge of the business comes from the relationship between the singular pieces of information. That restaurant owner may know to do their biggest stock order on a Wednesday by analysing their covers and establishing that sales increase by 38% on Thursdays.

The pace of business in today’s technological times requires businesses to be able to react quickly to changing demands from customers and environmental conditions. The ability to be able to compile, analyse and act on data is increasingly important. In some instances, a high volume of data may need to be accumulated and analysed before trends and patterns emerge, like a particular season’s most popular dish.

When you aren’t compiling accurate business data, you can only rely on gut feel and assumptions about past performance to inform your future business decisions.

If your business is already using cloud software for accountancy, project management system or CRM, it’s likely that you’re sitting on a goldmine of data. If properly utilised, this data can greatly aid running a successful business. You’ll have valuable insight into your sales, expenses, profit and staff efficiencies that can help you answer critical questions and drive smart business decisions.

Every business is unique, but here are three quick tips to help you drive data in your business.

1. Data is only powerful if there is context – can you stop to answer these questions?

  • What is your primary objective (business or personal)?
  • What is happening in the business?
  • What isn’t happening?
  • How can you influence what happens?

Figure out what you’re currently trying to achieve before anything else. It’s important to periodically go back and ask yourself these questions and what goals develop from the answers, as answers evolve over time. You may have started out with your primary objective as running the best restaurant in your area. However as time has passed, your primary objective might now be to take time away from the business to spend more time with your children.

2. The only way your data can help you drive your business is if it’s accurate and organised appropriately – ask yourself:

  • Are your financials up-to-date?
  • Do you have any unreconciled transactions?
  • Are you tax compliant?
  • Are your staff trained on what systems and processes to use for different parts of your business?
  • Are your cloud systems being correctly utilised?

The worst thing you can do is to attempt to analyse incorrect data and attempt to make decisions for the business based on it! Tools like Spotlight Reporting can help you with the reports you need for business decisions.

3. Understand what the data necessities are and what the niceties are.

  • What would you most like to understand about your business?
  • What figures pinpoint success for you?
  • What are your objectives over the next six to twelve months, and two to five years?

Remember, to focus on what truly matters and build from there. If you want help with the process, we can accumulate, analyse, report and advise on your data; or show you the tools to use.

Want more profits? Profitability a key business goal for this year?

Want more profits? Profitability a key business goal for this year?

Making a profit isn’t something that happens overnight – to create a good return from your business you need a clear focus and a well thought-out strategy for increasing profitability.

This means reviewing your business model and looking at every area of the business, to see where you can cut costs, increase margins and maximise revenue.

Focus on your key drivers

Having surplus cash at the end of the year allows you to invest back into the business, fund your growth plans and increase the size of your own dividends and drawings as the owner.

To achieve these profits, it is important to focus on the key financial drivers in your business.

To drive profits:

  • Boost sales – the more sales you make, the bigger your net revenue, so investing in marketing, sales activity and business development will be key to a better bottom line.
  • Increase prices – by setting a higher price point, and keeping your ‘cost of goods sold’ number low, you create a larger profit margin on each sale – upping your profitability.
  • Cut costs – operational costs and overheads eat into your potential profits. So spend management and cost reduction are vital to creating a more profitable model.
  • Reduce taxes – tax liabilities will be one of your biggest costs, so sensible tax planning and use of tax reliefs will help to reduce your taxes and ramp up your end profit.

Talk to us about boosting your profits

If your business goal is to increase profitability, we will help you review your business model, identify your key financial drivers and proactively drive your profit performance.

Get in touch and let’s start boosting your profits.

What does an Accountant really do?

What does an Accountant really do?  

Not sure what an Accountant can do for your business? Well, the right accountant will do a lot more than just help with your tax returns! Your Accountant should be a trusted business advisor, helping you lead with more confidence.

The best Accountants can do much more than just tax and compliance work for your business. They are troubleshooters and strategic advisors for small business. Basically, having an Accountant means that you can operate your business with more clarity and confidence.

Whether you are working to get a startup off the ground, or taking the reins of an established business, you will see value from making an accountant part of your team. When you have the right Accountant and a good relationship, you will see their influence impacting all the moving parts that make up your business.

Accountants can support you from startup to business exit. Read more on what accountants do to support your business and help you achieve your goals.

Teaching your kids about money

Teaching your kids about money 

Teaching kids about money is all about finding the right moments to have a conversation. Each time this happens, you will be helping to strengthen their financial literacy and build their ability to make good decisions with money.

The money we spend each day tends to be invisible. When was the last time you withdrew your cash for the week and used it to make purchases? Rather than dealing in notes and coins, we tend to reach for our cards or shop seamlessly online. It’s entirely possible to spend money without even reaching for your wallet.

This can give kids some confusing messages about how money is spent. The danger here is that they won’t develop financial literacy and will struggle to manage their own money later on. One way to help them to build their financial management skills is to choose moments to talk to them about money and why you’re making certain decisions.

These moments could include:

Shopping at the supermarket – If you’re taking your kids on the weekly shop, get them involved in the process. Involve them in drawing up your shopping list and talk through your budget. Have them help you to find items, and weigh up differently-priced options. As a bonus, helping them to understand how a food budget works might just cut down on all those requests for treats!

Withdrawing money from the ATM – Getting out money does seem a little magical. So it’s important that kids can make the connection between the money you go to work for, and what they see coming out of the wall. Talk to them about where the money you’re withdrawing will go and help to understand the importance of knowing what’s in your bank account.

Letting them make choices – When it comes to pocket money or money from a birthday or Christmas, it can be helpful to let your children experience the consequences of their financial decisions. It’s tempting to tell them what to do with their money, but once they discover that they can only spend their precious cash once, take the time to talk with them about what they are feeling and how they might use their money differently in the future.

Choosing activities – When you choose what to do as a family, don’t forget to talk through the costs of different options. Kids will appreciate balancing an expensive trip to the movies with a free picnic in the park or will be amazed when they compare the cost of an icecream at a parlor versus a whole tub at the supermarket. Encourage them to brainstorm and research low-cost ideas and get creative!

Business Owners Can Take Charge of Their Own Finances Through GoFi8ure’s BKED Training Courses

Business Owners Can Take Charge of Their Own Finances Through GoFi8ure’s BKED Training Courses

Business owners who want to understand what being a professional accountant is like can now take GoFi8ure’s BKED Training courses. Designed specifically for business owners, the training courses will enable entrepreneurs to tackle their company balance sheets and other financial matters.

Bookkeeping Education & Training Courses are a series of business courses to help business owners focus on their company. Hiring GoFi8ure’s professional services to attend to other time-consuming elements of a business increases overall productivity, and helps businesses succeed.

The courses offered includes:

Bookkeeping for owners 101. This course covers bookkeeping fundamentals that will ease entrepreneurs into the world of bookkeeping. Business owners will learn how to reconcile all balance sheet accounts. They will also gain insight on the 12-step bookkeeping process, dive deep into GST reconciliation, and more.

Business owner duties & responsibilities 101. This is an introductory business law course. It covers shareholders responsibilities, strategic decision making, and more. This is the course ideal for business heads that want to learn about the basics of business law.

Accounting Principles into Practice. This course is designed for business owners who have already mastered the basics of bookkeeping, and are moving on to the next level – accounting. This will allow them to master practical accounting solutions, and learn how to apply accounting principles and practices.

For GoFi8ure, the BKED courses are meant to equip companies with the right tools they need to prosper. Many other courses are available, depending on specific business needs. There are people courses that focus on Employers, Leadership, Management, and courses on Business Strategy, Strategy Implementation, and Business Finance. GoFi8ure can also help clients in choosing the right course for them.

To learn more, visit the BKED page. 

Is my Accountant a cost or investment?

Reducing your overheads will help #GrowYourBusiness. So, are accounting fees a cost that should be cut or a sound business investment?

Accountants tell their clients to reduce their overhead costs as one of the seven ways to grow your business. One of your overhead costs is your accounting fees. So, is what you spend with your Accountant an expense, or is it an investment?

An expense is a necessary evil. It can’t be avoided and is a grudge purchase with very little value add.

An investment is about the return on your spend – what you get back as the benefits of the service; more cash, more discretionary time, or simply peace of mind that everything is done as it should be.

The true purpose of an Accountant is to provide enduring value to you and your business. It’s no longer just about annual accounts and tax. Accountants who live into their true purpose provide services such as:

  • Tax planning and minimisation
  • Wealth creation
  • Helping you create a plan to realise your goals – including profit and cashflow improvement strategies
  • Working alongside you to realise the plan – by combining our expertise with yours
  • Ensuring your compliance and tax obligations are met in the most cost-effective way

If you consider what you spend with your Accountant to be a cost, then cut that cost; if you consider it an investment, you need to invest now more than ever.

“The biggest expense is an opportunity cost.” – Anon