Business culture, and how it affects profits

frontpageDid you know that company culture has long been linked to company performance? While a strong culture doesn’t guarantee business results, it does provide a foundation for them. Conversely, a poor culture can actually damage your business.

In this issue, we focus on some aspects of business culture that could play a part in the success of your business. Enjoy!

Business culture tied to business performance

While it’s easy to think of business culture as a bit soft compared with, say, achieving sales, in fact it’s anything but. A 2014 study reported that public companies named in a “Best Places to Work” list in 2009 outperformed the S&P 500 by 115 percent in the following five years.

The Glassdoor study suggests that a culture that engages and motivates employees helps the bottom line. But the reverse isn’t true: A company’s success isn’t enough to produce a positive culture, and companies that succeed without a positive culture are likely to see performance decline.

So if your business is performing well, great. But if it’s doing so at the expense of employee satisfaction and happiness, chances are that your current success is unsustainable – especially in economically tougher times.

So how do you address that? Read on for four things you could look at. (more…)

New Zealand a digital standout, but is your business?

New Zealand is a “standout nation” according to the latest Digital Evolution Index, released by Tufts University in Boston in July.

The report, by the university’s The Fletcher School, identifies New Zealand as among the digital elites, having high levels of digital development and a fast rate of digital evolution.

Has your business contributed to this result? (more…)

GST made easy

Do you hate it when GST return time rolls around? If so, you’re in good company. For many business owners, the pain isn’t so much having to hand money over to IRD, but having to prepare and file a return.

But that pain is easy to avoid. (more…)

New Zealand trust law to be overhauled

Parliamentary plastic surgery is in store for the Trustee Act, to make trust law easier to access and understand.

On 1 August, Justice Minister Amy Adams introduced the Trusts Bill to Parliament. This will be the first significant change since the introduction of the Trustee Act 1956. (more…)

Government ponders taxation error correction solutions

diaryRevenue Minister Judith Collins recently said that correcting simple tax errors and sending that information to Inland Revenue was still largely manual and may be costing business.

Here’s some good news. Inland Revenue proposes integrating PAYE into normal business activity. For example, by allowing employers to use payroll software to make corrections to returns.

(more…)

Business Health check

Things to do this month

  • If you don’t have an office intranet, you can set one up to encourage your staff to make suggestions and give feedback. It will also facilitate project work, and can store useful templates, like leave application forms. It can be as basic as a shared Google Drive folder. Or you can get as detailed as a custom-designed system on SharePoint.

(more…)

Tax is payable on rental income . . . mostly

If you receive income, you must pay tax. So if you have rental income, you have to pay tax on it, right?

Maybe, maybe not – if you get rent from boarders or homestays. (more…)

Must I pay tax on holiday home income? That depends

If you rent out your holiday home sometimes, you may have to pay tax on that income.

The IRD says you have a “mixed-use” holiday home if, during the tax year, you use it for:

  • Private use, and
  • Income-earning use, and
  • It’s unoccupied for 62 days or more.

(more…)

Boats and aircraft may generate a tax liability

Sometimes boats and aircraft are used for private and commercial purposes. In such cases, the income from their use may be liable for tax. (more…)

Airbnb usually a tax case on its own

If you use Airbnb to provide short-term accommodation in your house in which you also live, the IRD’s “mixed-use asset (holiday home)” rules don’t apply and guests are not classed as boarders. Except when you list a whole house which is vacant for 62 days each year, mixed-use asset rules do apply and calculations differ from those for homes where the hosts also live. (more…)

Tenants must be informed of insulation status

It’s been compulsory since 1 July last year for any new tenancy agreement to include an Insulation Statement. That means landlords must record if rentals have insulation, where it is, the type of insulation and its condition. That allows tenants or potential tenants to make more informed decisions about renting. (more…)

Creditors get more protection from indebted businesses

A threshold for reportable tax debt is now in effect, giving creditors greater protection from businesses owing debts of more than $150,000. (more…)

Business Health Check

Things to do this month:

  • Are your records for rental income and expenses together for us to do your tax? One way of doing that is to get your hands on a good Rental Questionnaire template. Contact us if you would like one. Some rental situations can be complex, so talk to us if you’re unsure.

(more…)

Keep cash crowned as king


If you want to succeed in business, understand that Cash is King. Your business can’t survive without cash.

(more…)

Cashflow is not profit – and vice versa

The purpose of a business is to make money, and that means you have to know the difference between profit and cashflow. (more…)

Fairer tax rules affect cashflow

A tax bill passed in May made changes that affect cashflow.

(more…)

IRD AIMs to please – next year

A key principle of the tax system is taxpayers should pay tax as income is earned. That doesn’t work well for businesses with seasonal or volatile incomes, and is why the Government announced, early this year, a new method for paying provisional tax. (more…)

Several ways taxpayers can get caught out

Taxpayers who earn income from various sources may get caught short if they don’t plan ahead. This could come about in various ways:

  • Airbnb
  • Overseas investment
  • Shares in an overseas company

(more…)

Contractors get more tax choice

The way contractors pay tax changed on 1 April, giving greater choice, and making it easier to get tax right.

(more…)

R&D tax credit changes can boost cashflow

Changed Research and development (R&D) tax credit rules, which came into effect at the start of the 2016 income year, can help business cashflow.

(more…)

Business health check

Get a clear cashflow picture before third quarter.

Cashflow forecasting is important because if your business runs out of cash it won’t be able to operate. You now have one clear month before the third quarter to get the best possible clarity around cashflow.

(more…)

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This was Francis’s way of recognizing how he elevated others, one of his greatest traits. The team made a big financial commitment to two of the three this offseason, but the risk has paid off so far. Jakub Voracek averages 19 minutes of ice time per game. They have an over under record of 11 and they are 8 against the spread. Hitting Statistics As a team Atlanta batted .255, good for 19th in the league while putting together a .249 average away from home.

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The end of June marked the quarter point for this financial year, making it a good time for a business health check.

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Case studies: Debt management frees up six-figure sums

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Do large businesses really call the shots?

Large companies are ‘killing’ New Zealand’s small businesses by making them wait too long for payments.

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You can now use PAYE for employee share schemes

Since 1 April this year, new tax rules have applied to share purchase benefits provided by an employer to an employee.

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Ideas wanted about employee share schemes for start-ups

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The Government is trying to figure out a fairer tax regime for employee share schemes in start-up businesses.

An officials’ issues paper released on 30 May, ‘Taxation of employee share schemes: start-up companies’, outlines possible deferral rules for start-up companies in this position. The paper expands on a proposal raised last year.

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Do you run a business from home? Then this affects you

The tax deductibility rules around running a business from home changed on 1 April this year.

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