Take AIM

Business, News, Topical Tax Issues, Xero

Take AIM (accounting income method)

It’s sometimes rare for the public and private sector views on business (and tax!) to align.

However, Beany, Xero and the NZ government acknowledge the importance of small business to the NZ economy and also the technology changes that small business is adopting.  Here’s an excerpt from the recent IRD discussion document:

The AIM measure announced by the Government proposes that, accounting information prepared by a taxpayer for a period, be used as a basis for calculating the tax liability of the business for that period. The resulting amount would be payable by the taxpayer as a provisional tax instalment.

AIM payments will be generated by the accounting software and authorised by the user, whether a business or its advisors. The user will confirm the amount to pay and then activate the payment for both GST and provisional tax. The calculation and payment of provisional tax will become part of running the business instead of an extra process.” Continue reading “Take AIM”

What’s happening out on the farm?

Business, News, Xero

What’s happening out on the farm?

And how is it affecting everyone else?  

Like it or not, New Zealand depends heavily on its farming sector for export earnings and to keep the flow of money passing through our economy.  Unlike many other industries, the money earnt on the farm passes out quickly into the regional economy and flows like water from farmer to contractor or service provider to shops.  

When the dairy sector is in the dumps, rural spend declines massively and the regions suffer disproportionately.  It’s not just about the money either.  Farmers go from being saviours of the nation to near bankruptcy depending on factors entirely outside of their control.  World commodity prices and the weather are not easily influenced by the farmer on the land. Continue reading “What’s happening out on the farm?”