FAQ’s
Let us help answer your questions.
What can I claim as a business expense or tax deduction?
Generally, if an expense helps you generate income for your business, there’s a good chance it may be tax deductible. Common examples include accounting fees, software subscriptions, vehicle expenses, office costs, equipment and professional development.
The key is understanding whether there’s a genuine connection between the expense and earning business income. It’s not always black and white, which is why getting advice before claiming can save headaches later. At JAS, we help clients understand what’s claimable and make sure they’re not missing legitimate deductions.
How do I choose the right accountant for my business?
Your accountant should have the expertise and resources to support your business today and as it grows. That includes everything from tax advice and compliance through to business planning, software support and strategic decision-making.
Just as importantly, choose someone you trust and enjoy working with. The best accountant relationships are about more than annual tax returns — they’re about having someone you can pick up the phone and call when opportunities or challenges arise. At JAS, we see ourselves as part of our clients’ team, helping them make confident decisions throughout the year.
When is my tax return or GST return due?
Your tax and GST deadlines depend on your business structure and filing arrangements. If you’re working with a tax agent, your income tax return will generally have an extended filing deadline compared to filing yourself.
GST returns are usually due 28 days after the end of your GST period, although there are some exceptions throughout the year. Missing deadlines can result in penalties and interest, so it’s important to stay organised and understand your obligations. At JAS, we help clients stay ahead of key dates so there are no last-minute surprises.
How much tax should I be putting aside?
The answer depends on your income, business structure and individual circumstances, but our general advice is simple: put aside more rather than less.
It’s much easier to have money left over after paying your tax bill than to find extra cash when the payment is due. One of the biggest benefits of working with an accountant is understanding what your likely tax obligations will be before they arrive. At JAS, we regularly help clients forecast their tax position so there are fewer surprises and better cash flow planning throughout the year.
Do I need to register for GST?
If your business turnover exceeds $60,000 in a 12-month period, GST registration is generally required. If you’re below that threshold, registration is optional.
Whether you should register voluntarily depends on your business. For example, if you’re incurring significant setup costs or working primarily with other GST-registered businesses, registering early may make sense. On the other hand, if you’re selling directly to consumers, remaining unregistered may be more beneficial. The right answer depends on your circumstances and future plans.
What does an accountant actually do for a small business?
A good accountant does far more than prepare tax returns.
We help business owners understand their numbers, improve cash flow, make informed decisions and plan for future growth. We also provide a sounding board when you’re weighing up opportunities, challenges or major financial decisions.
The reality is that most business owners don’t know what they don’t know. Having an experienced adviser who has worked with hundreds of businesses can help you avoid costly mistakes and identify opportunities you may not have considered.
What's the difference between a sole trader, company and trust for tax purposes?
The right structure depends on your goals, risk profile and plans for the future.
A sole trader structure is generally the simplest and lowest-cost option, making it popular for businesses just getting started. Companies provide limited liability and can offer more flexibility around retaining profits within the business. Trusts are often used for asset protection and can provide additional flexibility when it comes to managing and distributing income.
There’s no one-size-fits-all solution. The structure that’s right for a tradie starting out may be completely different to a growing property investor, medical professional or family business. Getting the structure right from the beginning can save significant time, cost and stress down the track.
How can I improve my business cash flow?
Cash flow starts with profitability, but good systems are equally important. Invoicing promptly, following up outstanding debts and keeping a close eye on expenses can all help improve your cash position.
Regular cash flow forecasting can also help you identify potential issues before they become problems, giving you more control and confidence when making business decisions.
What accounting software should I use (Xero vs MYOB vs QuickBooks)?
The best accounting software is the one that fits your business, not necessarily the one that’s most popular.
Xero is a great fit for many small and medium-sized businesses because it’s cloud-based, easy to use and integrates with hundreds of other business applications. MYOB and QuickBooks also have their strengths, and some industries may benefit from more specialised software altogether.
Rather than choosing software based on what someone else uses, it’s worth considering your business size, reporting needs, industry requirements and future growth plans. We regularly help clients select and implement software that supports where they’re heading, not just where they are today.
How do I build a budget and plan for my business finances?
A good budget starts with understanding your expected income and expenses. From there, you can build a profit and loss forecast that includes sales targets, operating costs, loan repayments, drawings and planned investments.
Once you understand what your business should make, the next step is understanding when cash is likely to come in and go out. That’s where cash flow forecasting becomes valuable. A well-structured budget doesn’t just help you manage today’s finances — it helps you make better decisions about hiring, investing and growing your business in the future.
How can I reduce my business tax legally?
The best tax planning starts long before your tax return is due.
Reducing tax legally isn’t about finding loopholes — it’s about understanding your options, claiming legitimate deductions and making informed decisions throughout the year. Your business structure, investment decisions, asset purchases and timing of transactions can all influence your tax position.
The earlier you start planning, the more opportunities are usually available. At JAS, we work with clients proactively throughout the year so they can make tax-smart decisions rather than simply looking backwards once the financial year has ended.
Am I pricing my products or services correctly?
Pricing should reflect your costs, the value you provide and what the market is willing to pay. Many business owners underestimate the value of their expertise and end up underpricing their products or services.
Regularly reviewing your pricing, profit margins and competitor positioning can help ensure your business remains profitable and sustainable.
Should I hire an employee or contractor — and what are the obligations?
The right choice depends on the type of work being performed and the relationship you’re creating.
Employees and contractors have different tax, ACC, KiwiSaver and legal obligations. While contractors can offer flexibility, they aren’t always the right solution, and incorrectly classifying someone can create compliance issues down the track.
Before making a decision, it’s important to understand not only the cost implications but also the responsibilities that come with each arrangement. Getting the structure right from the beginning can help avoid unexpected costs and provide greater certainty for both you and the person you’re engaging.
How do I know if my business is financially healthy?
A financially healthy business can pay its bills on time, generate consistent profits and provide a return that reflects the risks involved in running the business.
It’s also important to have sufficient reserves to withstand unexpected challenges, whether that’s a downturn in revenue, the loss of a key staff member or an unforeseen expense. Financial health is about resilience as much as profitability.
How can an accountant help my business grow?
Growth often requires making big decisions — hiring staff, expanding premises, investing in equipment, improving pricing or entering new markets.
A good accountant helps you understand the numbers behind those decisions and gives you confidence to take the next step. At JAS, we work with clients on everything from cash flow forecasting and profitability to business structures, investment decisions and long-term wealth creation.
Growth isn’t just about increasing revenue. It’s about building a stronger, more profitable business and making smarter decisions along the way.