If you’re one of the many small to medium businesses operating in New Zealand, you’ll know how difficult and time-consuming provisional tax compliance can be, particularly if trying to make the calculations without accounting software or help from a financial advisor. Business owners are often left frustrated knowing their time and efforts could have been spent elsewhere.
However, as of April this year, Inland Revenue has developed a new provisional tax payment option for small businesses. It’s called AIM – Accounting Income Method – and is a provisional tax payment method for businesses that have a turnover of less than $5 million a year. So what does that mean for you and your business? Glad you asked. We teamed up with MYOB to get the lowdown on what changes are happening and how that affects you.
From the start of the next financial year, you’ll be able to choose to use AIM through MYOB to pay tax as you go, matching the way your business receives its income. This will be particularly beneficial for new businesses and those with fluctuating revenue or that are impacted by seasonality. It will also offer you more certainty around provisional tax, reduce those annoying compliance costs and avoid use of money interest charges.
The Benefits of AIMBetter accuracy when provisional tax is automatically calculated by accounting software.No more guesswork when provisional tax is calculated against the income you actually earn.Better budgeting for your business' cash flow with pay as you go provisional tax. You won’t have to hold onto funds for large tax bills.No more interest as the use of money interest won’t apply to businesses using the AIM method for provisional tax.AIM is a fourth option for calculating and submitting provisional tax, it doesn’t replace the existing methods, it’s optional.Perfect for new businesses, those that are affected by seasonality or have fluctuating income It’s a really cost-effective solution
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hereAnd, if you’re considering using MYOB but still not quite sure, here’s 8 great reasons we’ve come up with to help give you that final nudge;Easy to use – no accounting experience necessarySupport when you need it - online and over the phone, including after hours, 7 daysOne of the most affordable accounting systems availableDiverse range of products to suit different businessesFlexible and upgradeable as your needs and requirements change and growOngoing commitment to improvements with updates, and enhancementsConvenience of MYOB mobile apps1.2 million MYOB business users can’t be wrong
