Starting a business in New Zealand can be an exciting adventure, one filled with ups and downs, great joy and occasional frustrations. Figures from Statistics New Zealand show that the country is home to more than half a million individual enterprises, each of which is in some way unique.
Whatever field you are launching your new business into, you will always need to make sure your company's accounting practises are under control and above board. There are many possible financial matters you will need to keep track of, but knowing your tax obligations should be your first port of call. So how can small business accounting software help you when it comes time to pay the taxman?
Business taxes in New Zealand
While there are some taxes that may not apply to your new business - employee allowances if you don't actually have any staff, for example - you should at least be aware of them all to ensure you are not missing any of your obligations. Income tax is likely to be your most pressing concern, as anyone who earns money in New Zealand has to pay a percentage.
You will also be expected to pay an annual ACC work levy, used to finance compensation for any work-related injuries. As the business owner, you will also be responsible for deducting ACC contributions from the salary of any employees you might have.
Another major tax you will need to stay on top of is GST, which you will need to register for if your business brings in more than $60,000 over 12 months. Here is where CashManager can be of greatest benefit - once you complete the initial set-up, the software automatically creates a GST return, and can produce a report in just three steps.
GST is perhaps the most persistent taxation concern for many New Zealand companies, so the automation offered by smart small business software can be a huge time-saver.