Charitable donations may be tax deductible – here is what you need to know

Donating to charity not only supports the vital work of an organisation but also has positive side-effects when claiming tax deductions.  

Donating to charity not only supports the vital work of an organisation or group, but it can have positive side-effects when it comes to claiming tax deductions. To be eligible for a tax credit, you need to make sure that your contributions meet certain conditions, and that you’re making a legitimate claim.

In general, when a charity is an approved donee organisation or registered as a ‘deductible gift recipient’ (DGR), and you donate over a certain amount, you can claim a tax deduction. You can find out if a charity is a DGR organisation by checking their website, calling them, or searching the register for charities.

But, be careful. There’s a difference between making a donation and making a contribution. When you’re making a donation, you must be doing so willingly, without receiving any ‘material advantage’. This means that you can’t be getting anything in return for your cash. So no chocolate bars, no raffle tickets, no movie tickets and no fancy dinners. If you receive anything after handing over your cash, then this is considered a contribution, and you should not claim this as a tax deduction.

Other situations which are commonly misunderstood to be donations are membership fees, expenses incurred by providing volunteer work (or the value of the time spent doing that work), donating gift vouchers, or money donated through a will.

The last two things you need to know are that a tax deduction for most gifts is claimed in the tax return for the income year in which the gift is made. However, in some circumstances, you can spread the tax deduction over five income years. And, just like any other tax deduction you’re hoping to claim, you’ll need to get and keep the receipt for your donation.

The tax department sometimes demands repayment for ineligible deductions. So, as with all things tax, it’s best to avoid penalties by checking in the with the experts.

Talk to us about your charitable donations and ensure you keep receipts for the payments you have made.

GoFi8ure able to help with Xero training for the New Financial Year

GoFi8ure able to help with Xero training for the New Financial Year

It is generally accepted that preparation for the financial year can start from as early as February, to as late as July or August. Getting a head start can help businesses avoid rushing and making miscalculations.

The end of a financial year is a great time to take a look at business from a broad perspective, and see what worked and what didn’t. Companies have the chance to do activities such as segmenting expenditures and revenues into separate groups. Reviewing tax returns and other related processes is also a great step toward getting prepared for the new financial year.

Creating a calendar is also a common tactic to help businesses flourish instead of flounder at critical turning points. This includes creating deadlines, and sorting tasks by their priority. Such tasks could include creating a system for dealing with batch emails, creating templates for sending replies or inquiries, and delegating bank processes to automated accounting software.

Another great practice is to settle the cash flow system early. As one of the most important facets of a business, keeping a healthy cash flow is important, in order to avoid funds bottlenecking at a time a company needs them the most. Xero training can help a company’s employees track and manage their cash flow better.

Budget checks are another important stage for monitoring business’ finances. After designing a cash flow stream, companies need to allocate their resources intelligently. Creating a budget plan for the business will ensure that a lot of important sectors of the business are covered.

Technology is ever-changing, and a good business should stay up-to-date. Budget plans usually include spending for good software and new technologies, like digitising their transactions and accounting processes. It could also be used to purchase new hardware for accounting software – investing in this is a big help to companies in taking their business to the next level.

Let GoFi8ure help you set up new processes like Xero training to get ahead! Visit our website at https://gofi8ure.co.nz/ and find out how!

 

Are you executing your business strategy?

Are you executing your business strategy?

Execution is an easy concept to talk about, but it can be a hard one to… well… execute. The main problem is that it is a real challenge to measure and manage a concept.

If we are honest about it, “Gut-level” decision making is a practice of the past. With so many amazing tools and software resources available, you can now have access to all the organisational data you would ever need to inform and guide your decision-making process.

When Warehouse Stationery asked their BizReward customers what they wish they had known about before going into business, almost half of the respondents said accounting and finances (49%).

This was followed by:

  • Marketing and advertising (39%);
  • Business development (38%);
  • Technology (33%), and;
  • Relevant regulations (25%).

Interestingly, when people were asked what they wish they knew more about now, the same top five appeared, just in a slightly different order; however, accounting was still number one.

There are two components that help with executing your business strategy:

  1. Having the right accounting software – set up, and working, and;
  2. Having the financial knowledge and information available to help make informed business decisions.

The better you understand your business, the easier it is to make decisions – therefore, the easier it will be to make more money. Management decisions rely on a sound understanding of the financial implications for a business. GoFi8ure offers a service which helps enable business owners to fully understand and interpret their numbers, so they have a strong foundation on which to grow their business.

How many of these questions can you answer, with confidence?

  1. How much profit have I made this year?
  2. Why has my profit increased, but I have no cash?
  3. Is my cash level increasing, or decreasing?
  4. What is affecting my cash level?

Any time is a good time to improve your understanding of your financial reports to improve business performance.  The sooner you start executing your plan, the sooner you will have a better understanding of financial results and their implications, and the more control you will have over outcomes.

Are you confident you have the right software and tools in place to help you achieve your strategic goals? Today’s technology provides advanced reporting and business analysis capabilities, to help you gain a deeper understanding of business performance, customer preferences and market trends. Your executives and business managers can access performance metrics and analytical reports, enabling them to use this information to work together to set or redesign strategy.

Remember: Failing to plan is planning to fail, and it is vital to plan-ahead to have a successful business. Contact us to book in your complimentary meeting, to discuss how GoFi8ure can proactively help you stick to your plan and achieve business success.

 

Learn how to use Xero to run your business

Learn how to use Xero to run your business

There are various stages of what we call the “Xero journey”. The Xero journey is a pathway of learning about how to use Xero and the Add-On software products available so businesses can streamline their processes.

So, where are you on your Xero journey? What do you need to learn now?

1. You have never heard about Xero and currently spend hours entering data into a spreadsheet or other accounting software.

2. Heard of Xero but not confident about how “the Cloud” works but you do not want to be left behind.

3. You have recently started using Xero & are loving it! You are telling all your friends & feeling confident you can do this!

4. You have been using Xero for a while and have started looking at reports regularly, but things just do not look right and the numbers are not making sense. You need someone to help you understand the numbers and check your Xero to make sure it is accurate and up to date.

5. You have found an Add-On solution that you believe meets your business needs but you do not know how to implement it or use it.

6. You are telling all your friends about how Xero and the Xero Add-On’s have changed your life!

Getting the absolute best from your accounting software helps to make everything else in the business run like clockwork. Learning the best tips and tricks for using your Xero account to its true potential is a great way to improve your accounting, cut out a big chunk of admin and get a better view of your business health.

If you would like to talk about booking in some Xero training get in touch by emailing us on enquiries@gofi8ure.co.nz or call us on 0800 463 488 today.

 

Become Financially Aware in 2018

Become Financially Aware in 2018Become Financially Aware in 2018

The better you understand your business, the easier it will be to make more money. Management decisions rely on a sound understanding of the financial implications for a business. It is important when you choose an Accountant that they support you in other ways, not just preparing and filing your annual Tax Returns. At GoFi8ure we help to empower business owners so they can fully understand and interpret their numbers. This gives them a strong foundation on which to grow their business.

 

Who would benefit from Financial Awareness Coaching?
If you are passionate about your business and want to better understand your numbers so you can answer questions like:
• How much profit have I made this year?
• Why has my profit increased but I have no cash?
• Is my cash level increasing or decreasing?
• What is affecting my cash level?

 

So, when should you begin Financial Awareness Coaching?
Any time is a good time to improve your understanding of your financial reports in order to improve business performance. The sooner you start Financial Awareness Coaching the better your understanding of financial results and their implications, and the more control you will have over outcomes.

 

Interested to know what the benefits of Financial Awareness Coaching are?
It will…

• Enable you to better understand your business
• Iron out any existing errors to ensure accuracy in your financial reports
• Help you better manage and monitor your cash-flow
• Customise your reports to ensure you capture the right information
• Allow you to format your reports in a way that makes decision making easier
• Help you gain better understanding of the financial implications of decisions
• Give you the ability to make better informed decisions
• Allow you to review your reports and record actions to be achieved before the next meeting
• Help you be held accountable so you can achieve progress between meetings
• Identify any burning issues that need to be addressed
• Access the collective wisdom of our accountants, our systems, products and services
• Phone support to address any burning issues between meetings

 

Call us now on 0800 463 488 to further discuss how Financial Awareness Coaching can help you and your business.

 

 

 

Lisa Martin – Member of the Accountants + Tax Agents Institute of NZ (ATAINZ)

GoFi8ure ATAINZ MemberAt GoFi8ure we pride ourselves on being Members with Accounting Associations. A big congratulations to Lisa who become an official Member of the Accountants + Tax Agents Institute of NZ (ATAINZ) this week.

The Accountants and Tax Agents Institute of New Zealand (ATAINZ) exists to promote the welfare and professional development of its members and to represent members’ interests in New Zealand. It is unique in the New Zealand tax and accounting market because of its grassroots contact with members.

Being a Member of ATAINZ means each Member must comply with our Code of Ethics, which covers four main areas: integrity; trust and confidence; standards of service; and professional conduct. If you are looking to worth with a professional accounting firm come and talk to us. We take our our services and the quality of our work seriously. Email us to find out more.

 

 

 

 

 

 

A beginner’s guide to cashflow management – Featuring GoFi8ure

It’s the stuff of nightmares for business beginners: customers not paying on time; never enough cash in the bank; unexpected tax bills. Where does it end?

To help you sleep easier, NZBusiness, GoFi8ure, Ontrack Bookkeeping and Lock Finance presents a short guide on cash-flow management.

Read this valuable article by clicking here.

GoFi8ure – Excited to be part of Xero’s new Advisors Directory

Trusting who you work with is important, along with knowing that the company you are dealing with is professional and knows what they are doing. That is why we are so excited to be on the Xero Advisors Directory as your go-to professional bookkeeping advisor. Visit our profile by clicking here.

Happy Financial Year from the Perfect Bookkeeper

When Xero asked our Executive Director Lisa Martin to participate in their new Happy Financial Year campaign we leaped at the chance. We love working with Xero so it was pretty exciting to see this show up on billboards, bus stops and in the paper! To chat to us about how we can help with your bookkeeping send us a message – we would love to hear from you.