Our Services

Auditing

Auditing is the process of providing an independent opinion over someone else's work. Auditing comes in many forms such as operational audit and financial statement audit. Operational audit looks at the day to day operations of the company while financial statements audit is concerned with the financial statements.

Financial Audits

Financial statements are prepared by sole traders, partnerships and companies. All financial statements aim to give the readers: a view of the financial performance (income less expenses) for the period; balances of assets, liabilities and equity; statement of movements in equity; and notes to the accounts.

A partnership, sole trader or a company can be audited by an independent party, usually by a Chartered Accountant. The auditor looks at the financial statements and performs auditing procedures to give an opinion as to whether they truly and fairly represent the financial operations of the entity for the period.

Material Misstatements

It is a misstatement whether due to fraud or error that is likely to change the view of the readers of the financial statements. A misstatement of $100 in a multi-million dollar company is likely to be immaterial while a $100 misstatement in a company that makes $1000 a year is likely to be deemed material.

What is a Control Environment?

The control environment is the process, procedures and policies that are in place by a company that ultimately lead to the numbers of the financial statements. For example, the company may have a policy that all purchases must be approved by a manager before they are paid.

What do Audits NOT cover?

1. Audit procedures are not designed to detect fraud. 2. An audit does not provide 100% assurance that the financial statements are correct — they provide reasonable assurance they are not materially misstated. 3. It is the responsibility of the directors to ensure the financial statements are prepared without errors. 4. Auditors do not prepare accounts for which they are auditing, as it would impair their independence.

How can we help?

We have several years of experience in auditing coming from Big 4 (Deloitte and PwC) environment. We have dealt with many different industries from charities, pharmaceuticals, manufacturing, financial services, retail and many more. We can perform audits on almost all types of entities from non-profit to companies and sole traders.

Are you in for an IRD audit? No worries! We have around two decades of experience in handling IRD audits.

GST

GST is a tax levied on goods and services consumed in New Zealand under the Goods and Services Act 1985. It is calculated at 15% on the cost of the item. GST is collected on goods and services sold (output tax) and paid on goods and services purchased (input tax).

You can choose to register for GST if your annual gross income is below $60,000. It is optional if the gross income is below $60,000. If your gross income is above $60,000, then you must register for GST.

We have been doing GST returns for small businesses for about two decades.

Income Tax — Individuals

Any income that you earn over $200 each year is subject to tax. If you are a wage earner, your employer will most likely deduct the tax from your wages or salaries and will be paying PAYE tax on your salary on your behalf.

However if you have other sources of income such as rental properties or self-employment income, then you will need to file a Personal Tax Return (IR3). Depending on the individual situation, we have helped to get a refund from the IRD.

Income Tax — Companies

If you operate as a company, then you are subject to tax on the net profit. The tax rate is 28%. There are several deductions you can claim such as rent, home office, vehicles expenses, professional association fees etc. Your company will have to file a tax return annually, usually before the 7th of July for the preceding income tax year.

PAYE

Pay As You Earn (PAYE) tax is automatically deducted from your salary and wage income by your employer and paid to the IRD on your behalf. Whilst we no longer provide PAYE services, we can help you set up and file the returns yourself using simple to use software.

Fringe Benefits (FBT)

Fringe Benefit Tax is payable on any fringe benefits paid to your employees. These could be various benefits such as motor vehicles given to your employees for private use or gifts valued more than $300 in any quarter. We can help assess your FBT requirements and provide solutions to meet your tax obligations.