Provisional tax is IRD’s way to collect income tax in instalments throughout the year, rather than in a lump sum at the end. A lot of kiwi business owners struggle with this concept as they believe they are paying tax in advance, however what it means is you are paying tax as you earn the income.

Paying as you earn helps smooth out cash flow and ensures you're staying on top of your tax obligations before it becomes an unmanageable debt!

Working as a team on our planning process gives us ownership and accountability, ensuring that change and improvements happen and that everyone understands the why behind the changes. 

There is a misconception that if you are running a lean business using Profit First that you don’t have spare cash for a decent work car. And when I say decent, I’m talking muscle cars!  

Before your eyes start to glaze over…. There are two main strategies that can be simply explained as follows: Low Cost = Producing goods or services at a lower cost than your competitors and focuses on volume of goods sold. Differentiation = Producing goods or services that are unique and have a high value.

Having recently become a Certified Profit First Professional, and with business owners looking specifically for a Chartered Accountant that is also a Certified Profit First Professional, I thought it timely to explain why it’s important to work with an accountant that understands your Profit First journey.