We recommend that you discuss this service with your Beany accountant before purchasing

Helping you set business goals & developing and implementing strategies to achieve them

Preparing budgets and input into Xero so you can track how you're going

6 meetings annually to help reach your goals

Financial benchmarking with your competitors

Success pack

We will provide you with guidance and support on what you'll need to do to establish and commence running your new business

We can provide advice on the best business structure for your needs and take care of establishment and registrations

Set up your Xero file so it's optimised for you and give you initial training so you start off in the right way

Preparation of a budget tailored to your business and input into Xero so you can track how you're going

Starter pack

We set you up with the right Xero subscription and manage your payments.

Xero monthly subscription

We set up your Xero file so it is optimised for you and your business.

Xero setup

We prepare your GST returns ready for you to review and pay. We also remind you of when and how much to pay, and even send an alert if you forget! Requires Xero.

Prepare GST

If you would rather be doing something else, let us do your bookkeeping for you. We love coding and checking and you can relax knowing it's all done right, and on time. Requires Xero.

Bank reconciliation

An hour of training on how to use Xero to it's full potential.

Xero training

We'll set up your Xero file from scratch, then give you the training you need to use it to its full potential.

Xero setup & training

We dive into the GST applied to remote services by overseas suppliers, its impact on GST-registered businesses, and practical steps to ensure compliance and avoid unnecessary charges.

This blog delves into the GST applied to remote services by overseas suppliers, its impact on GST-registered businesses, and practical steps to ensure compliance and avoid unnecessary charges.

What is ‘Netflix Tax’

The landscape of taxation is ever-evolving, and New Zealand is no exception. With the rise of digital services and the global marketplace, the New Zealand government has implemented GST on remote services supplied to its residents by overseas businesses. It’s commonly known as the ‘Netflix Tax’.

Remote services are a service that, at the time of the performance of the service, has no necessary connection between (a) the place where the service is physically performed; and (b) the location of the recipient of the services”.

supplies of digital content, such as e-books, movies, TV shows, music and online

online supplies of games, apps, software and software maintenance

legal, accounting or consultancy services

The purpose of the legislation is to affect consumers rather than businesses. It stipulates that international suppliers should consider a New Zealand resident to be unregistered for GST unless they have been given a GST number by the customer. This means a business supplying remote services to a New Zealand GST-registered business should not be charging them GST. 

If your business is registered for GST, you must provide the supplier with your GST or IRD number to ensure you’re not inadvertently charged GST. In other words, this means you should be paying less to the oversea supplier as you’re not getting charged the extra 15%.

If a non-resident supplier inadvertently treats a GST-registered business as an individual consumer and charges the business GST, there are two solutions:

The GST-registered recipient should seek a refund from the non-resident supplier;

They cannot claim the expense in their GST return.

If the value is NZ$1,000 (including GST) or less, based on the value of the supply in New Zealand dollars at the time of supply: 

The supplier can choose to provide a tax invoice to the NZ business rather than issue a refund;

The supplier must provide a full tax invoice, even if the payment for the supply (including GST) is less than $50. The new "Taxable Supply Information" rules don’t apply;

Only with the full tax invoice, can the NZ business make an expense claim in their GST returns to get the GST back.

Read more: Changes in tax invoices for 2023: what you need to know

Understanding the nuances of GST can help small businesses owners navigate the tax landscape more effectively and stay compliant. For other GST guides for small businesses, including registration, record-keeping, and tax invoicing, head to our resource library to read more.

Beany Resources delivered straight to your inbox.

Stay informed on the latest trust tax rate changes effective from 1st April, 2024. Learn more about specific exemptions that could benefit your trust.

INDUSTRY NEWS  •  4 APRIL 2024  •  1 MIN READ

The Trust Tax Rate Has Increased to 39% From 1st April 2024

From the 1st April 2024, the trust tax rate has increased from a flat rate of 33%, to a flat rate of 39%. This is on any income retained in the trust and not distributed to beneficiaries.

Exemption 1: if your trust income is less than $10,000

If your trust earns $10,000 or less in a tax year, and this income is retained in the trust and not distributed to beneficiaries, you will only pay tax at 33%. However, if your trust earns any more than $10,000, you need to pay at a rate of 39%.

Exemption 2: the estate of someone who has died

If an estate continues to earn income while it’s being wound up, that income will continue to be taxed at 33%. This rate will apply for all estate’s income during the tax year the person dies and for the next 3 years. After 3 years, any income will be taxed as though it is a trust at 39%.

If you settled your trust to care for disabled beneficiaries, then it will continue to pay tax at the 33% tax rate, no matter how much it earns. 

The IRD characterises a 'Disabled beneficiary' as an individual who, within a given tax year, is the recipient of one or more of the following governmental support payments: the Disability Allowance, the Child Disability Allowance, the Supported Living Payment (because of restricted work capacity), or the JobSeeker Support Health and Disability (if this has been paid for at least 6 months).

Disabled beneficiaries also include anybody over the age of 65 who would have met the ‘disabled beneficiary’ definition in the year they turned 65, or the tax year before that year.

Your trust can qualify for this 33% tax rate if it cares for more than 1 disabled beneficiary, but not if it has any beneficiaries who do not meet the definition.

Exemption 4: Energy Consumer Trusts or Lines Trusts 

These are a special type of trust that deals with electricity distribution. These are taxed at 33%.

Exemption 5:  Legacy Superannuation Funds

Some superannuation funds pay tax at 28%.

If you’d like to read more on this topic, you can read IRD’s fact sheet, or contact us at support@beany.nz for more information.

Industry news

Stay informed and learn the new rules on the latest GST regulation updates for businesses using digital apps/platforms to list their services and/or short stay accommodation.

INDUSTRY NEWS  •  3 APRIL 2024  •  1 MIN READ

GST Regulation Updates for Businesses Listing Their Services via a Marketplace App

New GST rules have been implemented from 1st April 2024 that impact businesses that utilise an online marketplace to sell or provide their service. For example, short-term accommodation providers like Airbnb, ridesharing services like Uber, and food delivery like Uber Eats.

Under previous rules, end service providers (e.g. property owner or driver) who are GST-registered were responsible for collecting and returning GST to Inland Revenue for any provision of a service in New Zealand. Under the new rules, this is not the case. 

Under the new rules, the electronic marketplace is responsible for collecting and returning GST to the IRD when a listed service on their platform is provided or received in New Zealand, regardless of whether the provider of the service is GST registered or not.

What this means if you use an online marketplace to sell your services and you’re GST registered

The new rules make it quite simple for you. 

Since the digital platform that facilitates the sale of your service is now responsible for collecting and returning the GST on your behalf, payments you receive from the platform will be the ex-GST amount. This means that any income you earn via these platforms can be treated as zero-rated income in your GST returns. You can still claim the GST on any expenses like normal and if you have income that is earned from other means you still need to account for this as normal too.

What this means if you use an online marketplace to sell your services and you’re not GST registered

You can continue as normal. However, there are a few critical things you should be aware of.

With the changes, your pricing may be impacted if the listed prices are deemed inclusive of GST by the online marketplace. Since they now have to return GST on behalf of all providers on their platform, this will eat into your listed price.  There is a credit scheme (see below), but these changes mean you will no longer receive the full amount of your listed price when a service is booked and provided.

This credit scheme reduces the amount of GST that the marketplace has to return for non-GST registered providers. 

Marketplace operators will still collect GST at 15% from your customer who has requested the service (i.e. the person who booked a stay at your accommodation, a driver or food delivery), but rather than returning the full 15% GST to the IRD, they only have to return 6.5%. The remaining 8.5% will be passed onto you as the end provider.

This 8.5% is intended to recognise the GST that unregistered sellers have on the costs for supplying the listed services.

Essentially, this means if you do not review or update your current pricing, you won’t be receiving the same net income as you used to due to the 6.5% being deducted from your list prices.

It’s important to note that if your total income is over $60,000 in a 12 month period, or goes over that amount, you will need to register for GST as normal and advise all platforms where you have your listings of the change so that they are aware to follow the rules for GST-providers instead.

There is an opt-out available for large GST-registered accommodation hosts if they want to retain responsibility for collecting and returning their own GST.

Make more than NZ$500,000 in taxable supplies in a 12-month period; or 

Have more than 2,000 nights of accommodation listed on 1 electronic marketplace in a 12-month period).

Businesses who meet the first criteria can notify the online operator that they are opting out, but those who don’t make more than $500,000 but meet the 2000 night threshold must enter into an agreement with their operator to opt out.

What this means for marketplaces/platforms

The new rules make it more complicated from the platforms viewpoint as they now have to keep accurate information on all their suppliers and if they are GST registered or not.

We are already hearing of some platforms refusing to allow non-registered suppliers, or only working with those who are large enough to be exempt from the new rules.

Marketplaces/platforms will need a good accounting system and process in place to keep track of credit amounts for non-registered providers, and setting up bank rules in Xero to help with reconciling will be crucial.

In summary, if you’re a GST-registered service provider who uses a third party marketplace to facilitate the sale of your services, your life just got a bit easier.

If you’re non-GST registered, the main takeaway is to consider reviewing your prices so that you aren’t wearing the 6.5% that these platforms now need to pay on your behalf to the IRD. 

If you operate an online platform or marketplace that facilitates the listing, sale and provision of services, then please consult with your accountant for some advice around the new rules and ensure your accounting software is optimised to do the heavy lifting.

GST regulation updates for businesses listing their services via a digital marketplace

Getting payroll right is crucial for businesses, from legal compliance to employee retention. Learn how integrated HR and payroll systems can streamline processes.

FINANCIAL LITERACY  •  27 MARCH 2024  •  2 MIN READ

Ensure compliance and employee satisfaction with accurate payroll practices

Paying employees correctly and on time, and ensuring they get their entitled leave and holidays, plays a huge part in keeping them happy and motivated.

For most people, earning money is a principal reason to go to work each day. It’s also one of the easiest ways for them to measure themselves and their achievements.

While this can all sound obvious, there are many Kiwi businesses that don't get this right. Back in 2016, the Ministry of Business, Innovation, and Employment (MBIE) estimated that payroll underpayments could affect more than 700,000 New Zealand employees and add up to more than $2 billion. In the years since, there have been a slew of high-profile cases of large organisations getting employee pay wrong, including Woolworths, McDonalds, the Ministry of Education, Te Whatu Ora Health NZ, and MBIE itself. 

Business owners and management are ultimately responsible for any pay mistakes and their consequences. At best, you may have to repay your employees. At worst, you could face prosecution and fines by MBIE or the Inland Revenue Department (IRD), as well as any interest and potentially expensive legal fees.

Having integrated payroll and HR systems that pull directly from the same data will go a long way towards making sure your people's leave, pay, and tax calculations are accurate, timely, and compliant with the law. It will also make it quicker to identify and resolve any issues.

Let's look at the top reasons why it’s so important to get payroll right for your employees.

Every employee must be paid at least the minimum wage for every hour they work.

It doesn't matter if the person is full-time, part-time, fixed-term, or works casually, or whether they are paid by wages, salary, or commission. The minimum wage is the lowest that a worker can be paid (you and your employees can agree to any wage rate higher than the minimum).

You also need to adhere to the provisions agreed to in the employment agreement around how much someone is paid, how their pay is calculated, and how often they are paid.

Then there are other legal requirements around tax and other deductions (e.g. KiwiSaver),
annual leave entitlements, and correctly calculating and paying public holidays.

By coupling your payroll processes with the oversight of a good HR team, you’ll ensure you're always meeting all your legal requirements and obligations to your employees.

Why getting payroll right is so important for employees

Financial literacy

From the 1st of April, employers across New Zealand need to be prepared for the upcoming minimum wage increase.

INDUSTRY NEWS  •  19 MARCH 2024  •  2 MIN READ

From the 1st of April, employers across New Zealand need to be prepared for the upcoming minimum wage increase. We've outlined everything employers need to know to get ready for this transition.

Minimum wage is increasing from 1 April 2024

From the 1st of April, employers across New Zealand need to be prepared for the upcoming minimum wage increase. This change will impact businesses of all sizes, from sole traders to large corporations. To ensure compliance and avoid potential penalties, it's essential to understand the details of the minimum wage hike and take appropriate action. We've outlined everything employers need to know to get ready for this transition.

On April 1st, 2024, the minimum wage in New Zealand will increase

The new minimum wage rates will apply to all employees aged 16 and over

The new minimum wage rates will vary depending on the employee's age and whether they are starting out or training

For adult employees (aged 16 and over) not starting out or training, the new minimum wage rate will increase from $22.70 to $23.15 per hour

For starting-out and training employees, the minimum wage rates will also increase from $18.16 to $18.52 per hour

These rates represent gross wages or gross income, which are the amounts earned by employees before any taxes or deductions, such as PAYE tax, student loan repayments, or child support. Employers need to ensure that their employees receive at least the minimum wage rate to comply with employment law. 

If you haven't already done so, now is the ideal time to consult with your Beany accountant. We also suggest taking this opportunity to review your employment records, processes, and systems to ensure they are all up to date.

As the minimum wage increase approaches, it's important for businesses to be proactive. The upcoming minimum wage increase may pose financial challenges for businesses, particularly those with a significant workforce. Now is the time to evaluate how the higher wage rates will impact your budget and financial projections.

Here are three steps you should take to ensure a smooth transition:

Advise any employees on minimum wage that the rate is changing, inform them of the increase they will receive and update contractual agreements as needed. 

Conduct a thorough review of your payroll systems to ensure you can accommodate the updated wage rates. Take the time to check for any necessary adjustments or updates needed to accurately reflect the new minimum wage in your payroll processes.

Planning ahead is key to mitigating any potential disruptions to business operations. Factor in the increased labour costs into your budgeting and forecasting to maintain smooth operations and avoid any unexpected challenges as a result of the minimum wage increase.

Employers must ensure compliance with the new minimum wage rates effective from April 1st onwards to avoid penalties and legal consequences associated with failing to pay employees at least the minimum wage. It’s necessary to promptly update employment contracts and payroll systems to accurately reflect the new wage rates and ensure adherence to legal requirements. You can learn more about the minimum wage increase here.
If you’re unsure of what steps to take, or have questions, please contact our support team at 0800 755 333, or support@beany.nz. 

We’re an online accounting firm that is always right here for you, your accounting pain relief. The most advanced technology lets us work way more closely with you than a normal accountant would. ​We have a dedicated team of certified accountants and a support team to take care of your business no matter where you are, so you can focus on growing your business. We take out the ‘fluff’, break down the barriers and get things done. Looking out for you is what we are all about. Get started for free today.

We're excited to share that we won silver at the SME London Business Awards

BEANY NEWS  •  9 FEBRUARY 2024  •  1 MIN READ

We're excited to share that we won silver in the Best New Business category at the SME London Business Awards 2024 overnight 🎉

This is an awesome achievement for Charlotte and the rest of the Beany UK team.

Beany wins silver in the SME London Business Awards 2024

Beany news

Accountants are typically responsible for financial reporting, analysis, tax planning and compliance while bookkeepers handle the day-to-day record-keeping. Learn more about the difference between accountants vs. bookkeepers in our article.

FINANCIAL LITERACY  •  11 JANUARY 2024  •  4 MIN READ

Accountant vs. Bookkeeper: What’s the Difference

The terms ‘accountant’ and ‘bookkeeper’ are often used interchangeably, but there are important differences. Both play critical roles in managing a business’s financial records, but the responsibilities of each serve different and complementary purposes.

In this blog, we’ll answer the key questions about Accounting vs Bookkeeping, including:

While anyone can call themselves an accountant, most people are looking for a qualified or chartered accountant when looking to engage or work with one. A qualified or chartered accountant has spent many years training, studying, sitting exams and carrying out continuing professional development to become an expert in the accounting field.

Accountants are typically responsible for financial reporting, financial analysis, tax planning and compliance.

Financial reporting - preparing financial information which includes profit and loss statements, balance sheets, cash flow statements and more. 

Financial analysis - reviewing financial information and identifying trends, anomalies, inefficiencies or opportunities. Accountants can help convey what financial data means and therefore assist with decision-making.

Tax planning - Tax legislation is lengthy, complex and constantly evolving. Accountants stay on top of the ever-changing tax landscape in order to minimise tax liabilities for their clients while remaining compliant. By knowing the tax rules, reliefs and credits, accountants are always looking for ways to improve tax efficiency for their clients, and help them preserve cash for investing back into their business. 

Compliance - compliance with the IRD is a key role of an accountant. All businesses have statutory responsibilities in terms of filing financial statements and tax returns with the IRD. Accountants are responsible for correctly preparing these documents and ensuring they are filed in the right place at the right time. 

Aside from these core areas, accountants can also provide a broad range of services related to audit, assurance and tax advisory with many accountants specialising in particular areas.

Bookkeepers focus on the day-to-day record-keeping of a business. They are responsible for maintaining good financial records which are then used by accountants for preparing financial statements, management accounts or tax returns.

Some bookkeepers will have formal education and qualifications, but it is not a necessary requirement for the role. 

A bookkeeper's key responsibilities include data entry, reconciliation of accounts and managing accounts payable and receivable. 

Data entry - the key daily task of most bookkeepers. Most bookkeepers will now maintain a business’s financial records in software such as Xero, MYOB, or Quickbooks. The software will reflect all transactions the business has been involved in and will ‘code’ these transactions to a particular income, expense or balance sheet code. Bookkeepers are responsible for ensuring these transactions are recorded accurately and completely.

Reconciliation of accounts - Reconciling bank accounts and credit card statements is a method of checking that the record-keeping has been carried out correctly and ties back to the ‘real world’ i.e. ensuring that what the accounting software thinks the bank balance is matches what the bank says the bank balance is. This process helps ensure the accuracy and integrity of the business’s records.

Accounts payable and receivable - this refers to the entities that the business owes money to (accounts payable) and from (accounts receivable). Some bookkeepers may be responsible for chasing late payers and managing payments to suppliers but this depends on the agreement between the business owner and bookkeeper. A bookkeeper may also prep payroll/wages, but not all bookkeepers will carry out these tasks.

1. Do I need both an accountant and a bookkeeper for my small business?

The majority of businesses need an accountant as they will likely need support in filing financial statements and tax returns with the IRD.  Meanwhile, some businesses may not require a bookkeeper if the business owner feels confident in carrying out the day-to-day record-keeping themselves, especially if the number of transactions is low.

For larger or growing businesses, having both an accountant and a bookkeeper is incredibly beneficial. An accountant will ensure you are staying compliant, minimise tax liabilities and advise on the performance of the business, while a bookkeeper will look after the day-to-day record keeping. Having both frees up the business owner to focus on running the business.

2. Can a bookkeeper perform the same tasks as an accountant?

We don’t recommend that you use a bookkeeper to carry out the tasks of an accountant unless they are also a qualified or chartered accountant.

An accountant has a much greater understanding of more complex financial matters. Qualified or chartered accountants have undergone extensive education and training in order to perform the more complex tasks and responsibilities required in the profession.

3. How do I choose between an accountant and a bookkeeper?

Consider what you need support with. If you’re struggling with day-to-day record keeping then a bookkeeper is what you need. In almost every case, but especially if you need support with financial statements or tax returns, tax planning or financial analysis then an accountant is what you need.

4. Are accountants more expensive than bookkeepers?

Typically accountants do charge a higher rate than bookkeepers, due to their qualifications and their ability to support clients with technical expertise. However, accountants and bookkeepers both play an integral role in running a successful business, with each bringing a specific skill set. They complement each other, with bookkeepers handling the day-to-day financial operations and accountants supporting higher-level strategic decision-making. 

We’re an online accounting firm that is always right here for you, your accounting pain relief. The most advanced technology lets us work way more closely with you than a normal accountant world. ​

We have a dedicated team of certified accountants and a support team to take care of your business no matter where you are, so you can focus on growing your business. We take out the ‘fluff’, break down the barriers and get things done. Looking out for you is what we are all about. Get started for free today.

From the 6th of January, the Worker Protection (Migrant and Other Employees) Bill will come into force to protect vulnerable workers in New Zealand. We look at what some of the changes are.

INDUSTRY NEWS  •  29 NOVEMBER 2023  •  2 MIN READ

Migrant worker visa documentation changes

From the 6th of January, the Worker Protection (Migrant and Other Employees) Bill will come into force to protect vulnerable workers in New Zealand. This aims to ensure employers are compliant with immigration and employment laws, and deter non-compliance and worker exploitation.

In early November, the Labour Inspectorate ran a large-scale operation that checked on compliance with minimum employment standards across 85 businesses in Auckland. Some were non-compliant with lower-level breaches such as poor record keeping, while there were also instances of serious breaches.
From this three-day operation alone, about 12-15 infringement notices are expected to be issued.

This recent operation is just one example of why the changes are being introduced. You can read more about this particular compliance check here.

If you’re an employer who has supported a migrant worker’s visa application, you could be asked by a labour inspector or immigration officer to supply employment documentation for the worker. Under the new law you must comply immediately or if not practicable, within 10 working days from when the request was made.

This applies to businesses that are considered a ‘supporting employer’.  A supporting employer means you have one or more employees that meet EITHER of these criteria:

The employee was required by immigration to have an offer of employment in order to be granted a visa and had an offer from your business; or

The employee’s work-related conditions of their visa specify they can only work for your business and no other employer.

The Bill also provides an amendment to the Companies Act 1993, allowing the Court to disqualify directors if convicted of an offence under the Immigration Act 2009 (exploitation of unlawful employees and temporary workers) or Crimes Act 1961 (trafficking in persons).

Most employers who are meeting their obligations won’t need to do anything. However, there are a few checks you can do to ensure you’re prepared should you receive a request to supply documentation.

Ensure you have correct and complete employment documentation for every person that you are currently employing. While this is even more crucial for workers on a temporary visa, you should have accurate employment records for all your workers.

Check all the documentation you have on file is up to date and easily accessible. You don’t want to be jumping through hoops trying to retrieve the information if, or when, it’s needed.

Review your business’s hiring and employment procedures. Check that there are concrete steps in place to ensure the correct completion of all documentation when hiring a new migrant worker.

Review employment agreements and ensure you’re complying with minimum employment standards including minimum wage, holiday pay, and leave entitlements.

For more information, visit Employment New Zealand's website.

We’ve bundled everything you need into our core package which covers all of your year-end compliance, tax minimisation and support as one fixed cost split over 12 months. You’ll never get a surprise accounting bill again, that’s a promise. 

Your package includes financial statements, tax returns (company and 2 shareholders), Companies Office annual fee and filing, tax planning, management and minimisation, and unlimited advice and support (including for Xero).

Completing and filing your entity tax returns, plus returns for 2 shareholders

Completing and filing your annual Companies Office returns

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