Smart Logic - Winter 2009 Edition
Walsh & Associates are not your everyday Chartered Accountants.   We are business professionals with real world management experience that means we don't just know accounting - we know all aspects of business and what it takes to become successful.  How can your business benefit from smart accounting contact us today - first consultation is FREE!! ACCOUNTING MADE EASY...  improving business performance  maximising profit potential  financial accounting & management  develop realistic business plans  trouble free taxation & accounting services VAUGHAN WALSH  P 06 833 6295  M  027 450 4475 portfolio valuations  |  subdivision developments indemnity & replacement insurance purchasing & sale |  mortgage   matrimonial  |  compensation Lawson & Associates Limited is an owner operated valuation and property consultancy practice focussing on the valuation of residential and rural residential properties throughout the greater HB. MIKE LAWSON P  06 870 9857   |   M  021 730 199  LYNNE GIBSON   |  P 06 834 3533  E admin@dynamics3.co.nz   |   www.dynamics3.co.nz   TROUBLE FREE TAXATION It is very important that all profits derived from a business activity are treated in such a way so as to charge against income the maximum allowable deductions.  We do this by looking at all the issues under the following:    INCOME TAX   GST & FBT   TRUSTS   TAX DISPUTE   PAYE  DO YOU HAVE A REFERRAL? At Walsh & Associates, we are expanding our database and as such we are seeking to expand our customer base and we would be pleased to hear of anyone you think we should be talking to.... IT'S SIMPLE, SMART AND SECURE Xero is an online accounting system designed for small businesses and their advisors.  For trouble free taxation call us today and sign up for Xero.    TAX CALENDAR May 28th 1st instalment of 2010 Provisional Tax (December balance date) May 31st Deadline for Fringe Benefit Tax Return July 28th 3rd instalment 2009 Provisional Tax (June balance date) August 28th 1st instalment 2010 Provisional Tax (March balance date)			Interest rates, like the temperature is falling, so why is my cost of funding not falling to the same degree as the Official Cash Rate (OCR). Good question, and one to which we all struggle to answer, however the Reserve Bank (RB) does not supply the money for Banks to lend out to fund mortgages or items of plant. The RB exists for Banks to balance their books at the end of the trading day, so its function is to lend to Banks to do this and as we understand it, Banks are quick to repay this money. During the last few weeks, overseas investors have shifted the focus of their assets from interest assets to shares. So what does this mean, it means the costs for Banks to borrow offshore has increased again, which is over and above the premium already being paid for funds. In short, don’t expect any substantial interest rate drops over the next few months and if you are a borrower, perhaps waiting to fix, you might be best to fix at 6.75% for 3 years which is about 1.4% below the average over the past 5 years. Debtors Collections This is a struggle for a number of businesses, but have you heard about the New Zealand Blacklist. It is an online debt recovery service – www.nzblacklist.com. Let us know what you think. Reduce Risk with Family Trusts You can put your home in a family trust to help protect it from business risks.  Do this by selling the house to the trust and then forgiving the debt over several years.  The sooner you start the sooner the trust can own the house.  The maximum permissible gift per year by any one person, without incurring gift duty is $27,000.  Therefore a couple can gift a total of $54,000 per annum.  Note:  If you are in a relationship breakdown, the family trust is separate and does not become part of matrimonial property.  The only formula to determine who gets what in a trust is the trust deed.  It is unlikely to cater for a breakdown in the relationship. Talk to us today if you have further questions or wish to establish a Trust. Directorship!  A Serious Matter Company directors can be sued personally if they have not taken care when the company is borrowing money.  They need to know at the time they borrow, they could repay the debt, according to the arrangement made.  For example, a builder has just had a major customer fail and there is considerable doubt whether he will be paid.  If his worn business is now shaky and he orders some more materials on credit, he would be personally responsible for the debt.  Company law requires him to know at the time of placing the order, the goods can be paid for when payment is due and the assets of his business exceed the liabilities.  This determines whether his business is solvent.  In the event of trouble, the director could be asked to show why he believed his company was solvent at the time the order was placed. Introducing your Business! By accepting this newsletter you are part of a community of Walsh & Associates contacts and for some time now we have served that community by introducing other businesses to the wider group.  We see this service as even more important during these times when everyone needs a little help to get through.  If you would like us to introduce you to our business contacts in this way please contact me? Similarly if you think someone would be interested in receiving our newsletters and access to our web site library we would be glad for you to pass this letter on to them or go to www.walshassociates.co.nz and subscribe to our newsletter. This month I would like to introduce to to you two businesses who understand why their clients don't regret paying for their expert quality advice and services. Mike Lawson of Lawson & Associates Limited, Registered Valuer, knows that with property values falling since their peak in September 2007 it is crucial to get independant expert advice when buying or selling property.  Property investment, be it the family home or rental property is a long term investment with value gains and losses throughout the term of ownership.  Value losses can be minimised and value gains maximised by buying or selling at the right price and at the right time.  By tracking price trends and diligent analysis of sales virtually as they occur, Michael Lawson is able to give up-to-date expert advice on property values and trends so his clients can make a prudent and informed decision when buying or selling property.    With sales volumes increasing and agencies reporting a shortage of listings, is now the time to buy or sell your property?? For a free 15 minute consultation call Michael Lawson today  P 870 9857  |  M 021 730 199   USE CONTRACTORS & KEEP GOOD STAFF HAPPY! To get the work done, employers are opting for the flexibility of contractors, although where they are trying to build or maintain effective teams their preference would normally be to find the perfect new team mate.  Sometimes they can fluke the best of both worlds by having a contractor who would also prefer a longer term role, so the investment in the relationship will pay dividends once the employer is financially confident to make that long term commitment. My main message is to look after the good people and let them know that is what you are doing.  That might mean getting contractors in to help them get through their workloads over the winter. Call Lynne Gibson today 06 834 3533   E   admin@dynamics3.co.nz | www.dynamics3.co.nz