Taxation can have a big impact on any company's bottom line. While large conglomerates may be able to swallow up any unexpected outlay, small businesses don't have the luxury. Naturally, then, there's a need to ensure that everything financial is being processed and filed correctly, in line with the guidelines set out by the Inland Revenue Department (IRD).
Issues with tax compliance may seem like minor bumps in the road, but they can lead to huge financial fallout. In fact, a study by AUT and Canterbury University, as published by the NZ Herald, showed that the burden on small and medium-sized enterprises (SMEs) can be far more pronounced than the strain put on big business.
A helping hand
Fortunately, the government is exploring a number of ways in which it can help small-business owners get their affairs in order, while also reducing the time and effort it takes to deal with existing tax compliance services.
In fact, the government set itself a target of a 25 per cent reduction in the costs to businesses in dealing with official agencies by 2017. So far, their statistics suggested the authorities are over half way there, at 16 per cent.
"By reducing the time and effort that business owners spend on administration, the government is helping the private sector to focus on growing their businesses and the economy," explained Minister for Economic Development Steve Joyce.
Getting compliance right
Alongside best practices, such as using small business accounting software like CashManager from Accomplish to keep track of company funds, the government has its own tools for helping SMEs stay on top of the legalities.
The Compliance Matters portal allows business owners to carry out functions such as searching for compliance issues by sector and specialty, and even complete certain tasks online.
While compliance can be a bit of minefield if tackled blindly, a little background knowledge and a helping hand from the appropriate tools can set small-business owners along the right path.