2022 - it’s been a year… And now we are looking ahead to Christmas, the summer holidays and making the most of our sunny slice of Aotearoa.
Get Your Finances in Order It may seem like a long way off, but before we know it, it will be Christmas. So it’s important to get your financial and business admin in order in the lead-up to this busy time.
Invoicing: Make a note to get your December and January invoices out early so that customers can pay on time (and no excuse to pay late!) especially if they’re closing for the holiday season.
Cash Flow: The period after Christmas and New Year tends to be more quiet so make sure you have some cash in reserve to see you through the quieter times.
Budgets: Now is a great time to review your budgets to see where you can make cuts. Are there any expenses that aren’t generating the results you want? Are there any cheaper alternatives that you can swap to that will still provide what you need?
Suppliers: If you want to start 2023 with a fresh outlook then take a look at your supplier contracts. Are there any that are ticking over that could do with an update? See how you can negotiate better terms, conditions, cheaper prices or if they can add value for the same price.
Prepare for the Holiday Rush Selling to the public? Make sure your team is ready for silly season and the Christmas rush! You’ve got this!
You might need to invest more in staff resources to ensure you have enough members of team to help with the extra customers.
Boost your marketing to promote your products or services to your loyal customers and potential new customers.
Ensure your online presence is up to date so that customers can easily purchase your products online but also find the relevant information such as opening dates.
Annual Leave and Public Holidays
Summer is on the horizon and with that means the holidays! Many businesses close down over Christmas and this time is made up of annual leave and public holidays. Over the summer holiday period there are four public holiday days.
Christmas Day - Sunday 25th December or Tuesday 27th December
Boxing Day - Monday 26th December
New Year’s Day - Sunday 1st January or Tuesday 3rd January
Day after New Year’s Day - Monday 2nd January
Here’s what happens if:
The public holiday is a working day for an employee: they get a paid day off.
The employee works the public holiday: they are paid time and a half and may get an alternative day off.
When public holidays are recognised:
If the public holiday falls on a Saturday or Sunday and the employee doesn’t normally work these days then the public holiday would be recognised on the Monday or Tuesday, if they normally work these days.
If an employee works Saturdays to Tuesdays then the public holiday would be recognised on the day they actually fall i.e the Saturday or Sunday.
Tax Considerations We know that the best present of all would be not having to think about taxes….but unfortunately that’s not the case. So the next best thing? Knowing where expenses can and can’t be claimed so you don’t get caught out!
Christmas Parties A Christmas party is a great way to boost team morale, celebrate the successes and lessons learnt, and raise a toast to 2023! What you can claim for: - Food, drink and entertainment: you can claim half the cost.
- General set-up and venue hire: is fully claimable.
Half your holiday party expenses may be claimed in your income tax return if the expenses relate to your business. GST may also be claimed – this would require a tax adjustment.
Christmas Gifts Showing your clients (and staff) your appreciation for them - a gift or token of thanks, can go a long way to ensure they don’t just feel like another account. In most circumstances you can claim the costs of gifts as a business expense. However if the gift is food, drink or entertainment (or vouchers for these) then you can only claim half the cost. When it comes to gifts that include these items along with other gifts, such as a hamper, then you may need to separate out the costs.
Giving to Charity
Looking to make a donation to a charity this Christmas? If you’re providing entertainment to members of the public for a charitable purpose such as donating food to a party at a hospice, then you can deduct 100% of the cost.
And finally and most importantly, take some time to recognise that you have navigated a tricky year. It’s not been easy but you’ve done it, so make the most of a well deserved holiday! Need help with business planning, taxes, calculating holiday pay or another aspect of accounting get in touch with us at Grace Team Accounting. Call us on 07 578 5416