The Inland Revenue Department are calling it “the cash flow game changer for small businesses” – but what is AIM?
AIM, or the Accounting Income Method is a way to pay provisional tax installments based on income levels. If you don’t make a profit, you won’t have to pay Provisional Tax.
There is a catch, you’ll need accounting software such as MYOB, Xero or Reckon to be able to do this. You’ll also need to make period end adjustments.
AIM is designed for businesses with less than $5m turnover that want to have more certainty about their tax during the year by having payments match their cash flow.
Check out the IRD website here for more info.
You can talk this over with us to better understand your options and find out if AIM may be right for you.
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