We are growing fast – and we are looking for just the right accountant to join our team.

Who we are looking for?

You will need to be up to speed in the CA industry right now with a “can do” attitude and at least two years recent experience in an NZ Chartered Accounting business.

And if you also have a partial accounting qualification – and knowledge of the Acclipse iFirm software, that would be a real advantage.

If this sounds like you, read on …

Who are we?

We are Chartered Accountants with a difference.   We are small enough to be nimble – and we are willing to take a risk to deliver better value and service to our clients.   We are a relaxed team – but highly focussed on providing fantastic value and service to our clients.  And we’re a very long way from the traditional accounting “factory”. We embrace innovation and change as a positive rather than avoiding it as a threat to “the way things are done around here”.  We have up-to-the-minute IT, we are marketing focussed, and are always looking for opportunities to connect our business clients with each other. If you’re completing PCEI or PCEII, we have a registered mentor on the team.

 What is the position?

This is a full time position based in our CBD Whangarei office, with plenty of client contact.  You’ll be preparing financial statements and tax returns from source documents – and playing a key role in managing our relationship with clients, other professionals and the IRD.

What to do from here?

If you have at least two years recent experience as an accountant in an NZ Chartered Accounting business – and you like what you see on this website, email your CV to goingUP@elevateCA.co.nz now.  We want to know about your CA experience, where you’re working right now, the kind of work you’re doing – and any questions you may have.  You will hear from us straight away to acknowledge receipt of your CV – and to arrange interviews where applicable.  Start date will be to suit – and you’ll be very busy from day one!

Thank you for taking an interest in joining the Elevate CA team!

 

Should company own the vehicle I use – or should I own it in my own name?

We often field this question. There is no one size fits all answer. The most tax efficient conclusion may differ depending on circumstances such as the value of the vehicle, the running costs, the availability for private use – and the actual private use.

I will provide two worked scenarios using a range of variables to illustrate some of the differences. In each example I’ll calculate the after tax cost for:

1. Owning the vehicle in the company; versus
2. Owning the vehicle privately and receiving a tax free reimbursement for business use.

In each of these scenarios, annual running costs of the vehicle is $8,500, depreciation on a straight line basis is 21%, the vehicle is used 80% for business and 20% privately by kilometre – and an FBT rate of 49.25% applies. 

Scenario One – A low cost vehicle ($28,750 inc GST) which is available two days per week for private use.

In company ownership, the cash cost net of tax in year one is $29,589. This reduces to $4,589 in future years. 

In private ownership, the cash cost net of tax in year one is $33,355 reducing to $4,605 in future years.

Under these circumstances, it is clearly more cost effective for the company to own the vehicle and pay FBT for the days the vehicle is available for private use.

 

Scenario Two – A higher cost vehicle ($97,750 incl. GST) which is available 7 days per week for private use.

In company ownership, the cash cost net of tax in year one is $94,092 reducing to $9,092 in future years. 

In private ownership, the cash cost net of tax tin year one is $99,109 reducing to $1,359 in future years.

Clearly under these circumstances owning the vehicle privately and receiving a tax free reimbursement of actual expenses would be the most tax efficient option.

As illustrated above, no two situations are the same.  The above examples assume a one shareholder employee situation.  However, the variables and outcome will change again with the introduction of a second, third or even fourth shareholder.  To get the best outcome you should sit down with your chartered accountant to evaluate the options.  If you would like to discuss your situation with Elevate CA we can work through your options to arrive at the most tax efficient structure for your vehicle ownership.

 

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The Elevate CA office will close for the Christmas break on Friday 19 December 2014 – and we will reopen on Monday 19 January 2015.

In the past we have reopened earlier in January, but we have found that with most of our clients, lawyers, bank staff and many in the IRD still on holiday well into January things were rather quiet.

Last year, we closed the office for a month over the holiday period and no-one seemed to notice.  So this year we’ll do the same. 

So we’ll be camping, sailing, swimming, fishing and relaxing right up to 18 January – and then back in the office fired up for 2015 on Monday 19 January.

If you do need to get in touch Dean, Rebecca and Fraser will be checking emails from time to time over the holiday period.

So wishing you a safe and enjoyable Christmas break.  Thank you for your support in 2014 – and we all look forward to working with you in 2015 to help bring your business goals to fruition!

Cheers … Rebecca, Fraser, Dean, Tim, Emer and Hayley.

 

On Budget Day, we’re all ears on the live stream as usual at Elevate CA as Bill English reads Budget 2014.  Here are our first impressions and some initial comment around the tax and business related aspects of Budget 2014 …

2:06pm

Bill English is introducing his sixth budget as part of his government’s programme to return to surplus – and then reduce debt.  We are, Mr English is telling us, enjoying a relatively strong upturn – with economic growth to average 2.6% over the next five years with falling unemployment. 

Our growth has been fifth highest in the OECD in the past year.  Treasury forecasts show an operating surplus of $86 million in the coming year.  This is of course wafer thin as a percentage of total government budget.

This return to surplus has been something Bill English has been banging on about since his first budget in 2009, so his credibility is on the line to deliver.  I’m sure that come heaven, hell or high water we would have seen a surplus forecast in today’s budget.

2:09pm

We’re hearing now about the importance of avoiding a repeat of the usual Kiwi economic cycles where increases in government spending and an appreciating housing market drive up interest rates then the exchange rate – which in turn nudges us back towards recession.

It’s hard to imagine our exchange rate much higher than it already is.  But I guess anything is possible if our interest rates increase out of step with the rest of the OECD making our currency ever more attractive.  Attempts to manage this cycle seem well intentioned – but are all rhetoric so far.  Most of the forces driving our economic cycles are more powerful than our government has the power to affect.

2:14pm

We’re hearing Mr English allude to an exercise in KiwiSaver auto-enrolment for non-members.  Around 80% of working age Kiwis are currently enrolled in KiwiSaver.

I’m a fan of getting the national savings rate up.  But I have little faith in the funds management industry, so the idea of every Kiwi being compelled to have a relationship with a KiwiSaver provider doesn’t sit well with me. 

2:18pm

Mr English reiterates that the government’s goal is to use surpluses to reduce debt until it is down to 20% of GDP – which he predicts will be achieved by 2020.  We are also hearing that the government has options around increased investment in government services or reducing tax.

No details on these options so far.  Let’s keep listening.

 2:23pm

We’re hearing about funding for NZTE to expand their presence in China, South America and the Middle East – as well as $110 million more funding for research in science and innovation – and centres of research excellence.

 All good for New Zealand Inc.

2:25pm

This is good:  Loss making start-up companies will be able to cash out all or part of their tax losses from R&D expenditure.  And all businesses will be allowed tax deductibility for R&D black hole expenditure that is currently neither depreciable nor deductible.

 At last.  Thank you.

2:27pm

Predictably another $132 million is pledged to the IRD to fund intensified chasing of unfiled tax returns.  This is forecast to return an extra $300 million in tax revenues over the next five years.

No surprises here.  Every year since 2010 the budget has included significant extra funding for the IRD.  And every year that extra funding has paid handsome dividends in extra tax from the hidden economy, the property sector, aggressive tax planners and fraudsters.  Over half a billion dollars of extra tax revenue thus far – as I understand it.  So every extra dollar of funding for the IRD is a good investment for the government.

2:29pm

Mr English tells us that we cannot afford another doubling of house prices as occurred between 1999 and 2008.  To make a difference going forward, he is right now announcing that duties and tariffs will be removed from building materials.

Nice one Mr English.  But I think you’re missing the real reason building materials are 30% higher in this country than they are in Australia.  We are overpaying by international standards because the market cannot operate competitively while dominated by just two companies.  No need to name them.  Tinkering with duties and tariffs is not going to sort this. 

2:32pm

Free doctor’s visits for under 13 year olds will be introduced.  More money to support sexual violence services.  More money for Whanau Ora.   The duty free allowance for tobacco dropped from 200 to 50.  And an additional $878 million for education over four years.  More money for early childhood education.

Targeted early intervention equals better outcomes, which means fewer social problems and a better quality of life for all of us.  Yup, I get all of this.

2:35pm

We’re hearing about new funding of $16 million over four years to support the repair and rebuild of rural housing and the development of Maori social housing providers.  We’re also hearing that reviewable tenancies will be rolled out for social housing tenants.

Families who have no hope of getting their basic needs met (eg warm, dry housing) are unlikely to be able to participate in the New Zealand dream.  There will be the usual libertarian arguments like “my tax dollars shouldn’t be spent on helping those who won’t help themselves” – but it makes sense to me that the most vulnerable in our population is housed properly.   This looks like a nod by Messrs Key and English to the Maori Party.  

2:42pm

The Christchurch rebuild is the topic now.  We’re hearing about a $3,000 payment to each beneficiary who can come up with a full time job offer in Canterbury on the proviso he or she is ready and willing to move there and start working.  There is enough in the budget to pay this amount to 1,000 beneficiaries.

Still in the cause of rebuilding Christchurch, apprentices (preferably in the construction trades) can apply for a subsidy of between $1,000 and $2,000 with employers eligible for an equal payment.  There is enough funding to cover 20,000 apprentices and their employers.

Yes.  We have young Kiwis and beneficiaries without employment or training – and we have a need for a lot more tradespeople.   Unfortunately the first group is not always easily transitioned into the second group – but the Christchurch rebuild is a golden opportunity to get those who are motivated to improve their situation into training that leads to real work.  It seems simple to me:  Getting people trained and employed equals better outcomes for the wellbeing, health and education of the families involved – which equals a more inclusive society with fewer social problems and a better life for everyone.  This in my humble opinion is a no brainer – although I’m sure there will be successes and failures on an individual level along the way.

 So what?

All in all, this seems a moderate budget – especially compared with Tony Abbott’s 2014 Budget in Australia two days ago.  I’m sure many in the media will call it boring or lacking in vision.  That’s probably a bit unfair:  I think the financial vision has been well spelled out over the years with the mantra “back to surplus then repay debt”.  Under a Key and English watch, it seems clear that spending will be constrained and targeted – and increasing surpluses will be used to reduce debt. 

The cynic in me sees a fair dose of election year politics in this budget with Messrs Key and English seeking to perhaps steal the thunder of one or two of Messrs Cunliffe and Norman’s pre-election policies.  In contrast with Tony Abbott’s budget across the ditch, this budget looks rather left leaning.

 

 

It has been five years since we first opened our doors at Elevate CA.  Much has happened, and we have gathered together a great portfolio of clients in Northland and around New Zealand who are doing interesting things in a wide variety of sectors.

So its time to celebrate and to say thank you to our clients and the business and professional community that has supported us and allowed us to thrive.

All our clients and business and professional friends are very welcome to join us on Wednesday 30 April from 5:30pm at the Elevate CA offices – level 4, 35 Robert Street, Whangarei.

Entertainment will be by Tutukaka Coast musicians Dave Meredith and Claudia McLauchlan, and the Elevate CA signature cocktail will be mixing on the door.

Just email party@elevateCA.co.nz if you’d like to join us on 30 April.

Cheers in advance – and thank you for your support over the past five years.