The holiday season is just around the corner, and it's time to get your business ready for Christmas and the New Year. Here's a simple guide to help you navigate this festive period smoothly.
Cash Flow Management
Managing your money during the holidays is crucial. Here are some tips:
Plan ahead: Make a list of all your expected expenses and income for December and January. Even better – prepare a cashflow forecast.
Chase up unpaid invoices: Try to collect any money owed to you before the break
Set aside money for taxes: Remember, you'll have tax obligations in the new year – PAYE due 20th December and 20th January, GST and provisional tax due 15th January.
Consider delaying big purchases: If money is tight, wait until 2025 for major expenses
Staff Parties and Gifts
Celebrating with your team is fun, but there are some tax rules to keep in mind:
Christmas parties: These are usually 50% tax deductible
Staff gifts: If you spend less than $300 (including GST) per employee in a quarter, it's fully tax deductible.
Cash bonuses: These must go through your payroll system with taxes deducted.
Client Gifts
Giving gifts to clients can be tricky from a tax perspective:
Food and drink gifts (like hampers or wine) are 50% tax deductible
Non-food items (like books or flowers) are 100% tax deductible
Staffing and Time Off
Planning for staff holidays is important:
Sort out holiday schedules early to ensure fair coverage.
Remember that staff are entitled to public holidays off or be paid time and a half if they work.
Don't forget to take some time off yourself - rest is important!
Website and Inventory
Before you close for the holidays:
Check your website is working properly
Maximise the Christmas marketing opportunity
Publish your opening hours and days for the holiday period on socials, websites and phone messages.
Make sure you have enough stock for the holiday rush
Useful Links
For more detailed information, check out these official resources:
- Employment New Zealand: [Holiday and leave information](https://www.employment.govt.nz/leave-and-holidays/)
- Inland Revenue: [Entertainment expenses](https://www.ird.govt.nz/business-expenses/entertainment-expenses)
Remember, the holiday season can be busy, but with good planning, your business can thrive. If you're unsure about anything, especially tax matters, it's always best to ask an accountant or tax professional for help. Happy holidays!
