Are You Paying the Right Amount of Tax?

As we enter a new financial year this April, it’s a great opportunity for business owners to take a step back and evaluate how their business’s financial performance aligns with the provisional tax payments they’ve made so far.

Provisional Tax Payments

By now, provisional taxpayers should have already made their first two instalments to IRD. The third and final instalment is due on 7th May 2025.

2025 provisional tax is calculated based on business results from 2024, with a standard 5% uplift applied to those results.

Increase in Business Performance

If businesses have experienced significant growth compared to last year, income tax obligations may also increase accordingly. While the IRD uses prior year’s earnings to calculate provisional tax, it’s possible that  actual income has exceeded this estimate. In such cases, businesses may owe more tax at the end of the year.

If your business is outperforming expectations, it may be a good idea to adjust your provisional tax payments for the final instalment to avoid a large tax liability at year-end.

Decrease in Business Performance

Alternatively, if businesses have faced challenges or a downturn – perhaps due to market conditions, reduced sales, or other factors – then provisional tax obligations may seem excessive. The IRD’s standard uplift method for provisional tax assumes you’re still on track for the previous year’s profit, which may no longer reflect your current situation.

Cashflow restrictions?

If you’re unable to meet your tax obligations in full by the due dates, it’s essential to take action sooner rather than later. There are options available to help manage payments and prevent unnecessary financial stress. Provisional tax payments may be able to be adjusted to better reflect the current financial situation or set up a payment plan with the IRD if cash flow is tight.

Now is the Perfect Time to Plan

With the financial year just finished and the third provisional tax payment due soon, now is the ideal time to plan ahead. If you'd like to gain a better understanding of your tax position and explore options for adjusting your payments, book a time with us. We’ll help guide you through the process and ensure your tax obligations align with your current financial situation.

Mel Smith

Company Taxation Specialist

Sole Traders, Save Now for Stress-Free Tax Payments Later

Being a sole trader in New Zealand is awesome – you're in charge, you set your own hours, and you get to do what you love. But there’s one thing you need to remember in between the hustle: taxes. It might sound boring, but if you don’t plan for your tax bill, you could end up in a bit of a pickle when the time comes to pay. Here’s why setting aside money for tax is super important for sole traders in NZ and how you can do it without breaking a sweat.

Tax Is Inevitable (But Not a Crisis)

As a sole trader, you’re responsible for your own taxes. Whether it’s income tax or GST (if you’re registered), you’ll need to pay your share to the government – it’s just part of the deal.

Now, we get it – taxes aren’t the most exciting thing to think about. But here’s the thing: if you leave it until the last minute to worry about your tax, you might end up scrambling to find the cash. And let’s be real – that’s stressful. Instead, a little planning now can save you a heap of stress later.

Avoid the ‘Oh No, I Forgot About Tax!’ Moment

We’ve all been there, right?  You’re trucking along, doing your thing, and then bam! – tax time hits, and you realise you didn’t save enough. That’s when the panic sets in.

But guess what? It doesn’t have to be like that. By saving a little bit each month for tax, you’ll avoid that dreaded moment when you check your balance and think, “How am I going to pay this?!”

A simple rule is to put away a percentage of what you earn each time. Just set it and forget it – you’ll thank yourself when tax season rolls around.

Get Ahead with a Separate Savings Account

One of the easiest ways to save for tax is by setting up a separate savings account. You don’t need to overcomplicate it – just pick an account that’s separate from your day-to-day spending, even better if it’s one you cannot access easily.

Every time you make money, stash a chunk of it in this account. If you’re unsure how much to save, a good starting point is 20-30% of your income. It sounds like a lot, but remember, the sooner you put it away, the easier it’ll be when it’s time to pay.

And don’t worry about not being able to access it – that’s the beauty of a separate account. You’re still in control, but the tax money is safely tucked away, ready for when you need it.

A Little Effort Now = A Lot Less Stress Later

We get it – there’s always something more exciting than thinking about taxes. But trust us, saving for tax doesn’t have to be painful.  In fact, it’s one of the easiest ways to reduce stress, keep your business running smoothly, and avoid any surprises when the tax payments come due.

It’s a simple step that leads to a big payoff – less stress, more control, and no surprises. Because let’s face it – taxes are part of life, but they don’t have to ruin your day.

Contact Carley

sole Trader Cash Management

Systems & Efficiency

"If you can’t measure it, you can’t improve it." – Peter Drucker 

Optimize your workflows and systems to increase productivity. Automate, delegate, and refine processes. 

Systems & Efficiency are the backbone of a well-run, scalable business. Without efficient systems, even the best strategies can become chaotic and overwhelming. This mindset focuses on streamlining processes, optimising time, and eliminating waste to maximize productivity and profitability. 

1. Why Systems & Efficiency Matter 

Saves Time – Automating and structuring tasks frees up time for high-impact work. 
Reduces Errors – Standardized processes minimize mistakes and inconsistencies. 
Increases Scalability – Strong systems allow for seamless business growth. 
Boosts Productivity – Focus on what truly moves the needle, not just being “busy.” 
Improves Work-Life Balance – Efficiency reduces stress and prevents burnout. 

Example: A business owner spending hours manually sending invoices switches to an automated invoicing system, saving time and ensuring payments are never missed. 

2. Creating Efficient Business Systems 

To improve efficiency, identify key areas where systems can be implemented or optimized: 

Operations & Workflow: How can tasks be streamlined? 
Time Management: How can you prioritize high-value work? 
Automation & Delegation: What can technology or your team handle? 
Customer Experience: How can you create seamless interactions? 
Financial Management: How can you simplify tracking and budgeting? 

3. Steps to Build Efficient Systems 

A. Identify Repetitive Tasks 

Start by listing all the tasks you do daily, weekly, and monthly. Identify those that: 
Take too much time 
Are prone to errors 
Can be automated or delegated 

Example: Manually responding to FAQs can be replaced with a chatbot or automated email sequences. 

B. Standardize & Document Processes 

Creating Standard Operating Procedures (SOPs) ensures consistency and efficiency. 

Write step-by-step instructions for common tasks. 
Use checklists or templates to streamline work. 
Train your team to follow structured processes. 

Example: A content marketing SOP could include a template for social media posts, so every post follows the same quality and branding guidelines. 

C. Automate Where Possible 

Leverage technology to reduce manual effort and improve accuracy. 

Email Marketing Automation – Auto-send welcome emails, follow-ups, etc. 
Appointment Scheduling Tools – Clients book without back-and-forth emails. 
Accounting Software – Automate invoicing, payroll, and expense tracking. 
Project Management Tools – Organize tasks in platforms like Trello, ClickUp, or Asana. 

Example: Instead of manually tracking leads, use a CRM system (like HubSpot or Salesforce) to manage follow-ups and customer interactions. 

D. Optimize Time Management 

Batch similar tasks (e.g., create content for the month in one sitting). 
Use the 80/20 Rule – Focus on the 20% of tasks that generate 80% of results. 
Eliminate unnecessary meetings and prioritize clear communication. 
Use time-blocking to dedicate specific hours for deep work. 

Example: Instead of checking emails all day, set two time slots for email responses (morning & afternoon) to stay focused on other tasks. 

E. Delegate & Outsource 

Identify low-value tasks that take up too much of your time. 
Hire team members, freelancers, or virtual assistants for admin, design, or marketing tasks. 
Empower employees with decision-making capabilities to reduce bottlenecks. 

Example: A business owner hires a virtual assistant to handle customer service, freeing up time to focus on strategy and growth. 

4. Measuring & Improving Efficiency 

Efficiency is an ongoing process. Regularly assess and optimize your systems. 

Set Key Performance Indicators (KPIs) – Track productivity, response times, revenue per hour, etc. 
Ask for Feedback – Employees and customers can identify inefficiencies. 
Continuously Improve – Adapt systems as the business grows and technology advances. 

Example: A business notices that customers abandon carts often. They implement automated cart recovery emails, leading to increased conversions. 

Contact Natalie

BUSINESS MINDSET

Supercharge Your Business with eInvoicing: The Smart Choice for Business Owners

Ready to take your business to the next level? With eInvoicing, you can transform how you manage your invoicing process—saving time, reducing costs, and improving cash flow. In today’s fast-paced digital world, eInvoicing is a no-brainer for business owners who want to stay ahead of the curve and make their operations more efficient.

Why eInvoicing Is a Game-Changer for Your Business

Save Time, Every Day
Invoicing can be a time-consuming, tedious task. eInvoicing automates the entire process, eliminating the need for manual data entry and the risk of errors. Spend less time on paperwork and more time growing your business. With automated invoicing, you can focus on what really matters!

Get Paid Faster
Delayed payments can be a huge drain on your business cash flow. With eInvoicing, your invoices are processed quickly and accurately, leading to faster payments. You’ll get paid sooner and have more control over your cash flow, allowing you to reinvest in your business and drive growth.

Boost Accuracy and Eliminate Errors
Manual invoicing often leads to mistakes—missed payments, incorrect amounts, or mismatched information. These errors can delay payments and affect your relationships with clients. With eInvoicing, everything is automated, reducing human error and ensuring your invoices are accurate, every time.

Stay Ahead of the Competition
In today’s digital world, businesses that adopt modern technology are more efficient and competitive. By switching to eInvoicing, you’ll position your business as forward-thinking, innovative, and tech-savvy. This can help attract more clients and partners who value efficiency and reliability.

Lower Your Costs
Paper-based invoicing can add up—printing costs, postage fees, and the time spent on manual tasks all contribute to your expenses. eInvoicing is not only faster, but it’s also more cost-effective. Save money on printing, mailing, and storage, and redirect those funds into growing your business.

Enjoy Seamless Integration
Xero offers eInvoicing capabilities. This means you can integrate eInvoicing with your existing system, ensuring a smooth and easy transition with minimal disruption to your business operations.

What Does This Mean for You, the Business Owner?

1. Control and Flexibility
   eInvoicing gives you more control over your invoicing process. No more chasing down overdue invoices or dealing with slow payments. Your invoices are processed automatically, giving you peace of mind knowing your finances are in good shape.

2. Stay Organized and Streamlined
   Managing paper invoices can lead to clutter and confusion. With eInvoicing, everything is stored digitally, making it easy to track, access, and organize your invoices at the touch of a button. Say goodbye to lost invoices or messy filing systems.

3. Improved Relationships with Clients and Suppliers
   By offering eInvoicing, you demonstrate your commitment to efficiency and professionalism. Clients will appreciate the speed and accuracy of your invoices, while suppliers will benefit from quicker payments, strengthening your business relationships.

4. Compliance Made Easy
   eInvoicing is not just efficient; it’s also secure and compliant. By adopting eInvoicing, you’re ensuring that your invoicing processes meet regulatory standards, keeping your business on track with any future requirements.

Ready to Start? Contact Mandy at Pulse Today!

Getting started with eInvoicing is easy, and Mandy at Pulse is here to help you through every step of the process. Whether you’re ready to dive in or just want to learn more, Mandy will guide you through the setup, ensuring a seamless transition that maximizes your business’s potential.

Don’t wait any longer—contact Mandy today to begin setting up your eInvoicing system and experience the benefits of faster, more efficient invoicing. Make the smart move and future-proof your business now!

Contact Mandy

Bookkeeping Compliance

Debt Etiquette – Seven Tips To Reduce The Crappiness

Have you noticed the debtor days (the time it takes clients to pay) has slowly crept up in the last 12 months? Definitely a sign of the times as small businesses feels the pain of environmental and Government impact on the economy. I think it’s time to introduce some overdue debt etiquette..... Here’s my top 7 tips for debt etiquette.

1. Mindset is key! Yes, it’s uncomfortable and for some there’s shame and embarrassment, however, we’re all in this together. Focus on what you can do...muster your resilience and take action.

2. Communicate – There is nothing worse than wondering when or if a client is going to pay. Be pro-active and call people to let them know where you are at, especially if you’re not paying before the due date.

3. Make a list of who you owe and prioritise. From a mindset point of view, prioritising the smallest bills is good as it gives you quick wins by reducing the size of the list and reducing the number of people you need to call! From an operational point of view, prioritise based on the suppliers you work with the most especially the ones that supply you with stock (or parts and services) to make sales.

4. Consider proposing a payment plan with your suppliers. Calculate how much you can realistically pay them and over what time period, then give them a call and propose your plan. When you do this, you are providing an easy solution because they hate dealing with this as much as you do! Follow up the call with an email to make sure everyone is on the same page.

5. Check if your account is overdue before emailing a supplier demanding faster service, extra services or more product. You’re not likely to get what you want, and you end up putting them on the spot because as much as they want to support you, they also have a small business that supports their family and it’s likely you’re not the only one that is overdue with them.

6. Think about offering contra services or goods, it’s not illegal if it goes through accounting software on both sides and to be honest, it’s better to get something that you use, than nothing at all.

7. Keep your promises! If you promise to pay by a certain date but you can’t, ring your supplier straight away with a good reason and a new date. If you break trust with people you deal with in business, it takes a long time to recover the trust and get back to a good working relationship.

Contact Gail

certified Profit first Specialist