Grant Thornton Accounting
Scrubs is proud to be associated with Grant Thornton.
Grant Thornton offer a 15% discount on the fee to complete your first set of financial statements and income tax return. Please note that this offer only relates to compliance services provided and does not extend to any special advice, meetings or restructuring issues.
Scrubs members, wanting to know more, can gain expert advice with a one-on-one meeting with one of our business advisers. This introductory meeting will be free of charge and can take up to 1 hour. To avail of this special offer please visit our website to find details of your nearest Grant Thornton Office. Click on the link below for further information and contact details for this deal.
Grant Thornton is a leading financial and business adviser and a member of Grant Thornton International, one of the world's leading international organisations of independently owned and managed accounting and consulting firms. These firms provide a comprehensive range of business advisory services from around 520 offices in over 110 countries worldwide.
We have been offering practical and strategic business advice to healthcare professionals for many years and work closely with our clients to understand the issues they face. We provide an experienced and independent view - together with innovative and tailored solutions - to help our clients achieve their goals.
So as junior doctors, you are now earning good money and you realise that you should manage it responsibly. The following topics will give you a brief summary of things you need to be aware of.
Do you know what is good debt and what is bad debt?
Good debt is those borrowings that enable you to acquire an asset that either increases in value or produces income for you (or maybe both). Bad debt simply finances your lifestyle and day to day living costs. Borrowing to pay for an overseas holiday in Fiji is not a good move. Borrowing to invest in a rental property that will provide capital gains and net rental returns before debt servicing costs, in excess of the interest rate you are paying, is good debt.
If you want more advice about how to manage your debt before it manages you, contact Pam Newlove, Director.
Changes in the rules surrounding interest on student loans in recent years means that those with student debt need to carefully consider how and when they repay their student debt versus other debt they may have that is attracting interest. For students who remain in NZ, their loans currently do not attract interest so it makes sense to pay off other debt first. On the other hand, you may wish to contribute as much as possible to your student loan in order to receive the voluntary repayment bonus each year. The level of student debt you have will be taken into account when applying for a loan or mortgage to buy a house, so management of your student loan needs to be factored into your overall financial plan. If you want more advice on debt management and financial planning, contact Pam Newlove, Director.
The sooner you decide on your investment and saving goals it becomes easier to get investment advice and start creating your investment portfolio. Having a long term plan means that you do not change tack as soon as there is a temporary ‘blip’ in the markets as there will inevitably be from time to time. Do you need an income stream from your investments or do you need capital growth, or maybe a bit of both? Which investment types best suit your risk profile? Have you thought about Kiwisaver? You need to work through all of these questions so that you can develop your own personal investment strategy. There are wealth management specialists who can help you to do this. Why not contact Roger Sutherland, Director, Grant Thornton Wealth Management Limited.
Maximising Earning Potential
Your ability to earn an income is your greatest asset. Ever worked out the total income you potentially can earn if you work full-time until 65 without even investing? What if you were unable to work? How would you pay your expenses, pay your mortgage or feed your children? Do you have adequate income protection insurance to cover the worst scenario? How much is enough insurance?
Are your assets working for you while you sleep? A review of your investments and clarification of investment goals can ensure that your assets to work for you while you are asleep.
No spare cash to be able to invest? You can still maximise your earning potential by ensuring that your debts are managed in the best way possible to ensure your pay them off quickly and minimise unnecessary interest bills. To read more on investing, click here.
Locums can be eligible for tax benefits
If you are earning income as a Locum, you should get advice regarding the best structure for earning that income and find out what expenses you may be able to claim against that income. You may have to be registered for GST if gross turnover before expenses is $60,000 or more per annum, or it may be financially beneficial for you to voluntarily register for GST before earning $60,000. Grant Thornton chartered accountants can assist you to decide whether you should be registered for GST and give advice on what type of structure is best for you. If you want more advice on debt management and financial planning, contact Pam Newlove, Director.
A lot of heartache can be saved by getting advice on protecting your most valuable assets from claims that may be made against you arising from mistakes made at work. Whether working as a locum or on a salary, the asset protection issues are the same. Your accountant and lawyer can jointly advise you on how to protect yourself. Claims on your assets may not just arise from what happens at work, but can also arise from the breakdown of relationships. For more advice on Trusts and other asset protection mechanisms, contact Pam Newlove, Director.
The content for this page has been provided by Grant Thornton, Chartered Accountants and Business Advisers http://www.grantthornton.co.nz
This advice is general in nature and its brevity could lead to misrepresentation. No responsibility can be accepted for those who act on its content without first consulting us and obtaining specific advice.
© 2010 Grant Thornton. All rights reserved