to contact us call
0800 11 33 99
jamie@e3accountants.co.nz
Office: 10 Oxford Terrace, Christchurch, NZ
Invitation
If you're still paying your accountant for how long it takes to do your work, you're not paying for the efficient production of your accounts.

For an accounting quote or free business advice, please call me on
(03) 379 2343 or email jamie@e3accountants.co.nz

Would you like a copy of the booklet "The business owner's guide to choosing the right accountant for your business"? Just email me with your name and postal address and it will be in the post the same day.
Jamie Tulloch
Managing Director
Budget Impact Workshops - coming soon
We've had a huge response from business owners wanting to attend and learn how to adapt to the budget changes and how to get the best out of the new tax deal the government has put in front of all business owners.
We'll keep you informed of time and place.

TAX TIP
ZERO DEPRECIATION IMPACT
Look carefully at your classification of assets in a residential rental property. Anything which ought to be part of a building structure will have nil depreciation from the beginning of the next financial year.  This is a good time to review your depreciation schedules to see you are getting it right. 

Pay special attention to knowing what is repairs and maintenance and what is capital expenditure. Now that there is no depreciation on residential fixed assets that are part of the building, the temptation to want to call everything possible R and M to get full deductibility is greater than before. 

If you are in doubt, check with us first. You don't want the IRD catching you out. 

TAX TIP
TRUST AND PERSONAL TAX ALIGNMENT
Now the trust tax rate is going to be the same as the top individual marginal income tax rate, the tax advantage of having a family trust as a shareholder in a company has been reduced. However, the leader of the opposition has already announced his intention to increase the top individual tax rate when Labour is re-elected as the Government. Therefore, you may wish to keep your existing structures in place and carry on as usual. You may also wish to continue setting up company shareholdings involving trusts in anticipation of a possible future increase in the top tax rate. Get your salary patterns set up while there’s no tax advantage in doing so. It may help in the future.

BUSINESS TIP
EMPLOYEE MOTIVATION
Does money motivate employees? No. Money rewards motivated employees. Motivation comes from within. Money does not reach inside a person and turn them into a motivated person.

I've recently had some stimulating discussions with business owners looking to up their company's performance which also brings in the need to have competent and motivated staff. 

The clear consensus is that pay and conditions above average should be a reward for being motivated, NOT the motivator itself. If you believe that upping someone's pay will re-create a person's motivation, then disappointment will follow as it will only result in a short term fix.

BUSINESS TIP
CAN A BLOG BE BAD FOR BUSINESS?
Do not start a blog if…
You only plan to blog about your company and its products or services.
It’s boring and people won’t engage with it. The whole point of a blog is to add value through content so a reader is inspired or they learn something new. It’s about education and entertainment, not plugging your business.

You can’t commit to posting at least three times a month.
You should update at least once a week - even worse than not having a blog is having one and not updating it. You don’t have to write every post yourself, but make sure whoever is writing your company blog understands why you’re blogging and posts need to sound human.

Your blog isn’t part of a larger social media strategy.
A blog is a crucial part of a social media strategy - you should be on Twitter, Facebook, and YouTube as well. This can be hard work, but at a time when businesses are looking for creative and low cost ways to get their messages out, blogging may well be worth your time. Without consistency, however, it can also be a waste of time. (Thanks to The Main Report)
TRIVIA

The Washington Post's Mensa invitational once again asked readers to take any word from the dictionary, alter it by adding, subtracting, or changing one letter, and supply a new definition.

Here are the 2009 winners:

1. Cashtration (n.): The act of buying a house, which renders the subject financially impotent for an indefinite period of time.

2. Ignoranus: A person who's both stupid and an asshole.

3. Intaxication: Euphoria at getting a tax refund, which lasts until you realize it was your money to start with.
         
4. Reintarnation: Coming back to life as a hillbilly.

5. Bozone (n.): The substance surrounding stupid people that stops bright ideas from penetrating. The bozone layer, unfortunately, shows little sign of breaking down in the near future.

6. Foreploy: Any misrepresentation about yourself for the purpose of getting laid.

7. Giraffiti: Vandalism spray-painted very, very high

8. Sarchasm: The gulf between the author of sarcastic wit and the person who doesn't get it.

9. Inoculatte: To take coffee intravenously when you are running late.

10. Osteopornosis: A degenerate disease. (This one got extra credit.)




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