Review: Compliance and Legal Stuff

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Key Points

1. Financial Literacy
   • Make informed financial decisions.
   • Understand tax obligations and measure financial success.
2. Business Structures
   • Sole Trader: Easy setup, full control, full profit.
   • Partnership: Shared responsibility, specialization, shared costs.
   • Company: Limited liability, ability to raise capital, separate legal entity.
3. Resources
   • Business.govt.nz: Offers tools and advice for starting and managing businesses, compliance, and financial planning.
   • Bizezi: - The app we created to gamify the front end of the business plan.
4. Meeting Obligations & Managing Risk
   • Taxes: Understand income tax, GST, and provisional tax. If necessary, speak to a professional.
   • Expenses: Properly record and manage business expenses, vehicle costs, and home office expenses.
   • Insurance: Ensure coverage for liability, professional indemnity, and business continuity.

Practical Tips

• Keep Financial Records: Use tools like Receipt Bank or Hubdoc for receipts.
• Separate Business and Personal Finances: Maintain separate bank accounts.
• Utilise Digital Tools: ONECheck, Employment Agreement Builder, Compliance Matters (business.govt.nz).
• Get Professional Help: Consult bookkeepers or accountants for complex areas.

Practical Work (Homework)

1. Set Up Financial Tracking:
   • Create a system for tracking income and expenses (e.g., spreadsheet, accounting software).
   • Ensure all receipts and financial documents are organized and easily accessible.
2. Choose Your Business Structure:
   • Evaluate and select the most appropriate business structure for your situation.
3. Register Your Business:
   • Complete necessary registrations (e.g., IRD number, NZBN) if not already done. Remember, it does not have to be a company. and unless you have revenue (sales over $60,000) you do not need to register for GST.
4. Review and Organize Insurance:
   • Assess your insurance needs and ensure you have the necessary coverage.

Outsourcing Weaknesses

• Hire or Outsource: Identify areas where you lack expertise (e.g., accounting, legal matters) and hire professionals or outsource these tasks to ensure compliance and efficiency.​

By focusing on these practical steps and leveraging available resources, you can effectively manage the financial and legal aspects of your business and ensure a solid foundation for growth and success.

Disclaimer: Bizezi Ltd, in providing this information, cannot guarantee the success of a business. The information provided, correctly implemented, will actively support the business owner to build a deeper understanding of their finance obligations and business model and importantly - Always seek professional advice.

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