Cashflow is King

Have you ever thought about where your business will be this time next year? Cashflow forecasting is one of the most important exercises you can do in establishing the future financial viability of your business. In the tough economic climate we face today, running a business has never been more challenging. Shortly after the US…

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Trusts and the Abolition of Gift Duty

The government is in the process of passing legislation abolishing gift duty in respect of gifts made on or after 1 October 2011.

Gift duty will still apply to gifts made prior to 1 October 2011 (in excess of $27,000 per person in a 12 month period).

Gifting is often associated with the sale of assets to a Trust.

Under current practice assets are typically sold to a Trust (often a family trust) at market value with the Trust recording a debt back to the donor (the seller of the assets to the Trust). To avoid the imposition of gift duty the donor is currently restricted to gifting at the rate of $27,000 a year until the debt has been forgiven in full. (Husband/wife each at $27,000pa).

If the proposed legislation is passed it will mean that assets can be transferred to a trust without the need for implementing a gifting program.

A Deed of Forgiveness is still required for existing debts, and a new Deed of Acknowledgement is required for fresh advances to the Trust.

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Backing Up Your Electronic Data – Best Practices

There are three essential elements in backing up and protecting your data:

  1. Actually doing backups, most businesses don’t seem to see the need;
  2. Testing or running a regular backup to ensure it works;
  3. Keeping a copy of a current backup offsite away from the office; fire, earthquakes tsunami’s need more be said.

If you don’t see the importance of taking a regular backup you might be interested in the following:

  • 60% of companies that lose their data will close within 6 months.
  • 34% of companies fail to test their backups, of those that do the failure rate is 77%.
  • 6% of PC’s will lose data every year.
  • Every week 140,000 PC hard drives fail (USA)
  • Drive recovery can cost upwards of $7,000 per drive.

Source – Boston Computing Consultants

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Events Round up

As notified in previous newsletters a number of events have taken place in West Auckland over the past month or so where UHY Haines Norton has had an involvement here is a wrap as to how they all went. Waitakere Business Club After 5s The first event off the block was the Waitakere Business Club…

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