AUGUST 2008 NEWSLETTER

"Freedom begins between the ears" – Edward Abbey

Question: Why is it taking so long to prepare our end of year financial statements and tax returns?

This could well be a question that you are wanting to ask.

We have a PEAK PERIOD between May and November where job turn around time may stretch out to 3-4 months or more, as every one wants their work done in this period. Every chartered accountant in NZ is in the same boat. We appreciate your patience during this period. We understand that issues may arise that necessitate a quick turnaround. Please let us know when this need arises and we will do our best to accommodate you. We are considering scheduling your work next year to reduce the bottlenecks that we face every year. When we meet throughout this year let us know what your thoughts are on this matter.

In the OFF-PEAK PERIOD between December and March turn around time drops back to a few weeks.

We address this and other questions on our website. Click here.

 

The Smart way to pay your professional fees

Astute cashflow management is essential for operating a successful business. In today’s competitive environment many businesses prefer to spread their professional fees over the year rather than paying as a single lump sum just like rent or insurance premiums.

feeSmart is a monthly payment options available to our clients who prefer to fund their professional fees over a six or twelve month period. A feeSmart loan is

Sensible – existing cash or credit lines (e.g. Bank overdraft) are retained for other business needs.

Simple – a feeSmart agreement and Direct Debit authority are all that is needed

Stress Free – avoid becoming an overdue debtor with your professional advisors

Smart – the small credit charge is also a deductible expense to your business

We know that clients using feeSmart are generally quite capable of paying their professional fee as a lump sum but often they simply prefer to manage their cash more effectively.

If you wish to explore this option either contact us today or visit www.feesmartdirect.co.nz for details.

In the future our invoices will give you the feeSmart payment option.

 

Provisional Tax

For our clients who are provisional taxpayers (see tax facts on our website) the provisional tax provision dates were changed with effect from the 2008/09 income year

If you ... have a standard 31 March balance date

Then your provisional tax due dates will be ... 28 August, 15 January, 7 May

Some clients may have made an election to pay their provisional tax and GST on the same form and at the same time. If this is you please would you let us know.

You will shortly receive your provisional tax reminder letters.

Provisional Tax dates are inflexible and don’t always take into account the cash flow cycles of your business. Having to make tax payments can cause financial pressure when money could be better invested in things like stock or other productive assets.

We have been in discussion with Provisional Tax Finance Ltd. This company provides an alternative way to finance your provisional tax payments for up to 20 months. In most cases, their finance charges will be competitive with your overdraft rate. No financial information, no complicated application forms and no personal guarantees or security are required, so your other methods of finance such as a bank overdraft remain available to support your business. We have arranged for Provisional Tax Finance Ltd to provide total finance for 28 August 2008 provisional tax of $200,000 for our clients. Information will be enclosed with your provisional tax reminder letters.

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Although every effort has been made to ensure the accuracy of this newsletter, the information is necessarily generalised. Clients are therefore requested to seek specific advice and not rely solely on the above, if they are interested in any matters mentioned.

Paul Enoka Chartered Accountants Ltd , PO Box 31-348 Lower Hutt ,New Zealand.

Phone (04) 939-7977