The word “audit” can send shivers down the spine of even the most diligent business owner. But tax audits aren’t as mysterious—or as terrifying—as many people think. Let’s bust some common myths and clarify what’s really true. Myth 1: Only Businesses That Do Something Wrong Get Audited Truth: Audits aren’t always triggered by wrongdoing. The IRD uses random selection, data matching, and risk profiling to choose audit candidates. Even businesses with clean records can be audited. Myth 2: If You Use Accounting Software Like Xero, You’re Safe From Audits Truth: Using software like Xero helps keep your records organised, but it doesn’t make you immune. The IRD still expects accurate data entry, proper categorisation, and supporting documentation. Myth 3: Audits Are Always a Nightmare Truth: Audits can be stressful, but they’re manageable—especially if your records are in order. With a good accountant by your side, audits can be handled efficiently and professionally. Myth 4: You’ll Be Fined Automatically If You’re Audited Truth: An audit doesn’t automatically mean penalties. If errors are found, the IRD may issue reassessments or request corrections. Penalties typically apply only in cases of negligence or intentional non-compliance. Myth 5: You Don’t Need to Keep Records If You’re Not Making Much Money Truth: All businesses—regardless of size—must keep accurate records for at least seven years. This includes invoices, receipts, bank statements, and payroll records. Final Thoughts: Tax audits aren’t something to fear—they’re part of a healthy tax system. The best defence is good preparation: accurate records, timely filings, and a trusted accountant who knows your business. A Timely Reminder: Consider Audit Shield Insurance Even with the best preparation, audits can still happen. Audit Shield Insurance provides peace of mind by covering the professional fees associated with responding to an audit, review, or investigation instigated by the IRD. It’s a smart way to protect your business from unexpected costs and ensure you have expert support when you need it most. If you haven’t already considered Audit Shield, now is a great time to talk to your accountant about whether it’s right for you.

In today’s digital world, tools like Xero have made managing business finances easier than ever. With automated invoicing, real-time bank feeds, and sleek reporting dashboards, it’s tempting to think you can handle it all yourself.  But here’s the truth: Xero is powerful—but it’s not a replacement for an accountant. Let’s break down why. 1. Tax Compliance and Strategy Xero tracks your income and expenses, but it doesn’t know your business like an accountant does. An accountant ensures: You’re claiming all eligible deductions GST and income tax are filed correctly and on time You’re not overpaying or underpaying tax They also help you plan ahead , so you’re not caught off guard at year-end. 2. Business Advice You Can Trust Xero shows you the numbers. Your accountant helps you understand what they mean. From cash flow forecasting to budgeting and pricing strategies, accountants offer insights that help you make smarter decisions and grow your business with confidence. 3. Handling the Complex Stuff Running a business isn’t always straightforward. If you’re dealing with: Trusts or multiple entities Asset purchases or sales Payroll and employment compliance An accountant ensures everything is done correctly and in line with IRD requirements. 4. Peace of Mind Even with Xero, mistakes can happen. An accountant reviews your records, corrects errors, and ensures everything is audit-ready. That’s peace of mind you can’t put a price on. 5. Time Is Money Your time is best spent running your business—not buried in spreadsheets. Let Xero handle the day-to-day and let your accountant handle the big picture. In Summary Xero is a fantastic tool, but it works best when paired with a knowledgeable accountant. Together, they help you stay compliant, make informed decisions, and grow your business with confidence.

Are you keeping up with your communications from Inland Revenue? Do you regularly check your myIR portal? Now is a good time to log in and ensure that your contact details are accurate.

In today’s fast-paced business world, many entrepreneurs and leaders are turning to business coaches/advisors for guidance. But is it worth the investment? Yes—if you want clarity and accountability. A good business coach/advisor can help you define your goals, sharpen your strategy, and stay accountable. They bring an outside perspective, challenge your assumptions, and help you see blind spots. For new business owners, this can be invaluable—especially when navigating growth, leadership challenges, or market shifts. Yes—if you’re stuck or scaling.

Human Resources (HR) is essential to building a productive, compliant, and an engaged workforce to achieve business objectives. Here are the core HR functions every business should understand: 1. Recruitment & Hiring Attracting and selecting the right talent is critical. This includes creating accurate job descriptions and conducting structured interviews to ensure a good fit for both the role and company culture. 2. Compliance & Policies HR ensures the company follows labour laws and regulations, from minimum wage requirements to anti-discrimination laws. Clear, well-communicated policies help protect both employees and the organization. 3. Remuneration & Benefits HR manages payroll, benefits, and reward systems to ensure fairness and competitiveness, which are essential for employee retention and satisfaction. 4. Training & Development Continuous learning is vital. HR coordinates training programs to upskill employees and develop leadership within the organisation. 5. Performance Management Regular feedback, performance reviews, and goal-setting help drive productivity and align individual efforts with business objectives. 6. Employee Relations HR addresses workplace issues, promotes open communication, and helps build a positive organisational culture. Strong HR practices are key to long-term business success—because when people thrive, so does the business. Whether you're running a small business or a growing company, investing in HR is investing in your people—and your future.

The Small Business Cashflow (Loan) Scheme (SBCS) was designed to assist small to medium businesses and organisations that faced revenue loss due to COVID-19. The repayment period for the loan is five years (60 months) starting from the date the loan was issued. Since the scheme opened on 12 May 2020, businesses that took advantage of this loan early on are nearing or may already be at their repayment deadline.  If the loan is not repaid by the due date, the Inland Revenue Department (IRD) will consider you in default and may impose penalty interest. If you are uncertain about your status or need to discuss this further, please feel free to reach out to one of our advisors.

Do you know what eInvoicing is? Have you heard about? eInvoicing is the digital exchange of invoice information directly between buyers’ and suppliers’ financial systems. The invoice passes through the invoicing network where it validates information like NZ Business number (NZBN). Once the invoice is in the buyer's financial system it is reconciled against purchase details and ready to be paid. The NZBN number is the key to ensure that this invoice reaches the correct destination. The use of eInvoicing means businesses no longer need to generate paper-based PDF invoices to supply to their customers, and the customer no longer needs to manually load these details into their financial system. eInvoicing improves accuracy, efficiency, security and proven to speed up payments. Benefits - Faster payment and improved cash flow Reduced admin Reduced processing costs Direct and secure information Universal connection Improved financial visibility Available to any business Improving our economy Inland Revenue introduced new laws which took effect 1 April 2023 on minimum records required to support figures in your GST returns, this was to support the move to eInvoicing. Before long eInvoicing will become the new standard. For most businesses, getting set up only takes a few minutes, for step-by-step guides to get set up, follow the link below. https://www.einvoicing.govt.nz/einvoicing/what-is-einvoicing Find out who is registered by following the link below https://www.einvoicing.govt.nz/peppol

Today marks the beginning of a new financial year! We understand that the end of the financial year is a busy time. As you gather the information discussed in our previous blogs, please remember to conduct some final checks—such as reconciling your GST with your balance sheet. To avoid any unnecessary late GST adjustments when we review and complete your financial statements, feel free to contact one of our advisors if you'd like us to review your file before you submit your March GST return to the IRD.