Small and micro businesses have been called the engine room of our economy, but what's stopping you from getting in that room?
I work with a lot of people who dedicate full time or a near full time effort into their business, and employ people, but I rarely see anything that resembles a part-time operation anymore. Anything less than 20 hours is rare.
It used to be that this was the first step for a lot of people to taking the plunge completely into a business, or something that they ran alongside another job or to fit in with their lives. Now, not so much.
I had to ask myself why.
I thought it could be us, accountants, because of the cost involved in keeping your paperwork in order, or the perception accountants have as not being the most fun to hang out with. But if you want free advice you will find most if not all accountants will meet with you for a free, no-obligation initial consultation. So that can't be the case.
I also thought it could be the work that has happened around the restriction of losses over the years.
IRD can question, assess and potentially deny the loss-making of a business. That could mean you end up having to pay when you didn't expect to — many small businesses don't turn much of a profit, if any, for the first few years.
IRD can appear scary for most people when it comes to filing a tax return, child support or working for families, let alone self-employment.
It could also be that anything less than 20 hours in a business is not enough work to profit, not enough time to wear all the hats, not enough without another source of income to ensure bread and butter is paid for. Perhaps in a time of low unemployment, people are opting for the perceived safer route of being employed.
While on the horizon we see more compliance coming I hope it doesn't become all we do. We need to nurture and encourage people into business — you don't need to be a million-dollar start-up to be successful and to make a difference.
Jeremy Tauri is an associate at Plus Chartered Accountants.
Phone: (09) 438 3322
Fax: 438 8455
134 Bank Street, Whangarei
If we had to sum up Brent and the team at Plus CA it would be - humorous, efficient, professional with a real focus on making your money work to its best ability for you...we will continue to deal with them even though we are moving overseas as we know they have our best interests at heart.
Jeremy thank you for your patience, assistance and general chit chat over the years. I would have absolutely no issue in recommending your services to everyone and anyone – in fact, I do.
We recently employed Jeremy Tauri of Plus Chartered Accountants and have been thrilled with the improved service we have received. Jeremy is really approachable and always available to answer queries. At his instigation we have set up quarterly meetings so that we are regularly reviewing our business and avoiding any ‘end of year surprises’.