Now is a great time to check if the accounting income method (AIM) is the right option for your business says New Zealand’s leading accounting experts Tutbury & Associates Limited.
Described as a cash flow game changer, with AIM if you don't make a profit then you won't have to pay provisional tax, says New Zealand’s first choice accounting experts Tutbury & Associates Limited.
If you’re a small business with an annual turnover of less than $5 million then with AIM you can pay your company tax on a "pay as you go" basis. This means you can pay either every month or every two months. “This is a great alternate option to having to estimate up to a year in advance about how much tax you should pay through provisional tax,” says Kelly Tutbury, Accountant and Managing Director at Tutbury & Associates Limited.
AIM will be integrated through some accounting software services such as MYOB, Reckon or Xero which means it can seamlessly calculate the amount that needs to be paid. Businesses can then file their tax straight from the accounting software.
As AIM automatically calculates tax on what is earned, “it's fantastic for businesses that are new, experiencing growth, have changing profits, have irregular income or find it difficult to correctly forecast their income,” adds Kelly.
“AIM will also help you avoid cash flow problems because if businesses pay tax in full and on time, they won't be charged use of money interest,” advises Kelly. If businesses make a loss or overpays, they will be able to get a refund straight away.
Another benefit of AIM being able to seamlessly calculate tax, means the hard work is already done so you can spend more time on things that matter, such as your business, rather than working out tax.
About Tutbury & Associates Limited:
Tutbury & Associates Limited has worked hard to build their reputation of excellent customer service by working interactively with their clients and making sure that their clients get value for money. They are ideal for ideal for trades people, or anyone who wants to grow their business.
Contact Tutbury & Associates Limited:
Phone: 07 576 2194
Address: 23 Myres Street Tauranga
Phone: 0274 587 724