Claiming expenses when away on business
You can claim for a lot of daily expenses when you're travelling for work. In general you can claim for:- Flights- Taxi's- Accomodation- Meals and SnacksOverseas travel expenses You can also claim for overseas travel expenses if...- You're away on business trip but take a free half-day to enjoy exploring a new city, the personal part of the trip is incidental. You can claim all of your travel expenses. If you combine a business trip with a holiday, you must split out your expenses and only claim the portion that relates to the working part of the trip. The best way to do this is to keep an itinerary or diary. It should provide enough information to calculate all your costs and make a reasonable split between personal and business expenses. Travel to buy assets or equipmentIf the purpose of the trip is to buy business assets, then these travel expenses are usually treated as part of the cost of the asset - they're a capital expense and can't be claimed. If it is valued at more than $500, has a useful life of more than one year then it can't be claimed in full as a business expense. Have a look here at the full article to see what you can and can't claim in general and what records you should keep if Inland Revenue asks for proof. If you still have any queries over what you can claim get in touch and call us on 033795338.
It's a good idea to make an early start on tidying and preparing your information. As we start to wind up for the year and put plans in place for our business resolutions for 2018, it’s important to look at what worked last year and to start putting everything in order, if it's not already.This checklist from Xero should help. 1. Decide on employee bonus payments and the withhold the tax required. 2. Pay your vendors and contractors in full by year end.3. Prepare all of your records. 4. Scrutinise your balance sheet and P&L.5. Check your income statement for profitability. 6. Understand your cash flow There are more steps on the checklist that can be found here at Xero. If you're not sure how to get your books in tip top shape to start the new year organised make sure to contact us and we can help call 033795338.
How to deal with seasonal staff
Let’s just say you’re a manufacturing and logistics business specialising in toys for every good girl and boy, and you need seasonal staff to get you through a large order this month…How do you go about it?This may be a magical time of year for boys and girls around the world, but behind the scenes it’s a mad dash to the finish line for many businesses.As we approach the Christmas season many businesses are gearing up for their busiest time of year, so hiring extra helping hands for the workshop may be on the agenda.How do you best do this to make sure you’re not understaffing or overstaffing? What do you need to do to make sure you can concentrate on what you do best?Plan ahead…If you’ve been a good boy or girl over the past year, you’ve kept sales and staffing records from the last year.There’s a reason why more data is on the Christmas wish list of every business owner big or small.If you know what happened last Christmas and how you dealt with that, refine the process for this year.If you don’t have this data, you’re pretty much putting the blinkers on Rudolph. His red nose may usually guide the way, but he may not know where he’s going.To read full article please click here. Article sourced from MYOB.com
Make informed decisions about who you do business with: Business credit scores
Every business has a credit score, which tells lenders and suppliers how good you are at paying debts. Find out how to use credit scores to your advantage, and how to keep yours healthy. What does a business credit score say?A good credit score means that you're quick to pay bills and debts so everyone is happier to do business with you. Suppliers will probably give you more favourable payment terms. Lenders will give you better access to credit and capital. Accounting software and credit scores You can get business credit scores from credit scoring companies and through accounting software. When making out an invoice to a business in Xero, the software will show you their business credit score according to Equifax - a global credit scoring company. It's a good way to screen businesses before entering a contract with them. If the credit scores really low it helps to know so you can make steps to protect your business. Want to know more? Have a look at the full article here. Good invoicing systems and accounting payable practices are vital to a good credit score, if you need a bit of help to get yours in shape give us a call on 033795338.
Two Factor Authentication: Cyber Security
The last few years it has become obvious that having a single password for some applications is not secure enough, especially with increased hacker attacks and scams. It’s easy to add an extra layer of security to your accounts and devices by turning on two-step verification — also known as multi-factor, two-factor or two-step authentication. It takes just a few minutes to set up.Why you need itPasswords can be guessed or stolen. With two-factor authentication, even if an attacker gets your password, it won't be enough to sign into your account. We can never be too relaxed about security. This is especially important for protecting business data, financial records, and client information. Want to learn more about two-factor authentication? Read the full article here. Xero offers two-step authentication. If you haven't already set this up ask us for help on 033795338 or check out Xero's instructions here.
Cash Flow Planning for Christmas
The festive season can be a challenging time for many businesses, particularly as a service based business, you will probably be bracing yourself for a quiet month in January. It’s also around this time that spending and splurging is unavoidable with Christmas parties, client gifts and staff bonuses clearing out the cash tank.Here are some business accounting tips to help you see through the silly season and avoid January bookkeeping blues. 1. Send out invoices quickly, be proactive with your invoicing. If your normal process is to wait until the end of the month, try doing it at the end of each job until Christmas.2. Reduce spend now where you can to save up for the slower period.Use last year’s projections to help. Xero gives you an instant snapshot of your incomings and outgoings. Then prioritise the bills you need to pay.3. Chase late payments. Approach customers who are traditionally late payers to ensure they have received your invoice and are ready to process the payment. If they have cash flow problems, get them to pay at least part of the debt. Some cash is better than none. Alternatively, if you find you’re busy during the end of November and the start of December as everyone wants it done before the end of the year, consider getting us to help collect your debts.5. Don’t raid the tax piggy bank. Your provisional tax and GST may fall on the 15th of January, so you’ll need the funds to cover it. But if you think paying provisional tax will be a problem, talk to Inland revenue before then. We offer accounting knowledge at bookkeeping prices so we can help you with managing your payments, invoicing and even your financial statements. To find out more give us a call on 033795338.