07.12.2015

The Six Characteristics of Successful Entrepreneurs

Entrepreneurs love to try new things, show the world they are ready to take it on and are proud to say that they don’t follow the crowd. While being unique is definitely a characteristic of many successful entrepreneurs, Xero has found out that they have done many things the same too.  According to a research report published by Xero, there are five things which every successful entrepreneur has done to help move them to where they are today.
 
Successful entrepreneurs spend money
Ever heard the old cliché, ‘to make money you have to spend money?’ Well it turns out that successful business owners have. [Read More…]

21.10.2015

Why NZ Small Business Owners Should Care About Networking

Helping other New Zealand businesses is one of our main priorities here at Calculated Advantage. That’s why we are members of Network NZ, the most widely recognised business networking brand in New Zealand. But not only are we members, we are also their endorsed service provider for both accountancy and bookkeeping services.

Networking with other small to medium sized businesses is an incredibly powerful tool we use to gain new clients. [Read More…]

28.09.2015

ACC CoverPlus Extra: Safety Net for the Self Employed

What is ACC CoverPlus Extra?

ACC CoverPlus Extra is tailored ACC Cover for the self-employed.  It is a flexible alternative to standard ACC CoverPlus that self-employed persons are automatically assigned to. You negotiate with ACC your level of cover, meaning if you are injured you can rest assured knowing everything is taken care of.

Why should I care?

Your income for compensation purposes is the taxable profit on your tax return.  By the time you have added in expenses for home office and fixed costs this profit may well be lower than the compensation you would need to live on if you couldn’t run your business.  CoverPlus Extra is an agreed value so there is no need to prove your income, which is great if your income fluctuates or you have just started in business and have no income history.

Alternately you can opt for a lower levels of compensation and thereby reduce the levies you need to pay.  This is great because you can use the money saved to take out a private policy which will cover you for both sickness and injury.  You might also like this if you don’t need the full compensation because your business will continue to generate income while you are unable to work.

How does it work?

CoverPlus Extra pays 100% of the sum you agree with ACC as opposed to 80% of last years profit with the standard CoverPlus . Your injury will also be covered whether it occurred at work or not. There is a 7-day stand down period, but as the sum is  pre-agreed there is no waiting on paperwork, as soon as your claim is approved you will start to be paid, which could be as soon as 8 days after your injury.

Who qualifies for ACC CoverPlus Extra?

► If you’re Self-Employed, or a non-PAYE Shareholder-Employee.
► Working 30 Hours per week or more, or working part time earning over the ACC CoverPlus Extra Minimum ($23,712 at 2015).
► If your Income fluctuates from year to year.
► If your business would continue generating income while you couldn’t work.
► If you’re starting out in your own business and have no income history.
► If you want a guaranteed level of lost earnings compensation.
 
 
How much does CoverPlus Extra cost?

ACC CoverPlus Extra levies are calculated based on the levy rate specific to your business or occupation together with your chosen level of cover.  You can use ACC’s online calculator here: www.acc.co.nz/calculator. 
 
If you need help just ask for it.  You are the expert in running your business; we are the experts looking after the  accounting and tax for your business.  We’re passionate about small business and we’re here to help
 
Calculated Advantage Limited
 

20.05.2015

What % of my Sales should I Set Aside for Tax ?

 
People often ask me to tell them how much money they should be putting aside to cover their GST and tax bills.  I find this question difficult to answer because every business is different and I would hate for someone to be relying on something that didn’t fit for their particular business.  However, it is such a common question that I’m going to take a stab at a rule of thumb answer.  Please let me know whether this works for you if you try it.  Please don’t shoot me if it doesn’t.

 
The first thing we need to do is to work out your net profit margin and for that we need a recent Statement of Profit or Loss for your business.  If you rummage around in the pile of stuff your accountant sent you when s/he told you how much tax you have to pay this year, you should come across a set of financials statements and within that will be a page headed either Statement of Profit or Loss or Statement of Financial Performance, that’s the page we need.  If you don’t have one from an accountant then you should be able to print one from your accounting system.
 
Near the top of the page will be the figures for your sales, possibly fees received or other income and hopefully a line saying total income.  At or near the bottom will be a line saying net profit.  Take the net profit amount and divide it by the total income and multiply by a 100.  This is your net margin.  For a service business this might be 50% or more but for a food business perhaps 10% or less.  It really depends on what industry and what environment you are operating in. [Read More…]

09.05.2015

Beginners’ Guide to Filing Your Own Small Business Tax Return

We’re pretty lucky here in New Zealand.  Our tax system is rated as one of the easiest in the world to navigate and comply with.  And accountants are expensive right?  So when you only have a small business it makes sense to keep your costs down by filing your own tax return.  Here are a few tips and reminders to help you get it done right.

1. Include all your income – don’t forget to add in your cash sales (if you used the cash to pay expenses don’t forget to put those expenses in as well).  If you’re GST registered then your sales income is the GST exclusive amount.  If you’ve sent out invoices before the 31st March that weren’t paid until 1st April or later you need to include those too. [Read More…]