Accounting, Taxation, Business Strategy and Advisory News Updates

Does your business idea have wings? 5-steps for starting a business

Sat, 14 Feb 2026 21:56:23 GMT

Got a great business idea but don’t know where to start? Follow this 5-step plan for setting up your new business and setting the best foundations for success.

When a great business idea pops into your head, it could mark the start of a whole new enterprise. But how do you know if your business has what it takes to conquer the market?

The key is to set the right foundations for nurturing your fledgling business – and that means planning out the business basics, and your core strategy, in the best possible detail.

Setting solid foundations for your new business

The majority of new Kiwi businesses fail within the first five years. This is a sobering thought, for sure. But by planning your new business idea in detail you can increase the chances of your new business finding a foothold and climbing to the top of the startup pile.

If you’re wondering how to achieve this, don’t worry. Thankfully, the New Zealand government has an excellent 5-point plan for starting a business.

Let’s look at each of the five steps and how they help you kickstart your business.

1. Make sure your idea is viable: Do everything possible to check that your business will find an audience, generate revenue and turn a profit.

2. Choose and secure your business name: Make sure you have a unique business name that represents your brand and also scores well for Search Engine Optimisation.

3. Choose a business structure: Your legal structure is important. Decide if you’re better off being a sole trader, limited company or partnership.

4. Register with government agencies: You will need to get a New Zealand Business Number (NZBN) and register for business taxes with the Inland Revenue via MyIR (we can complete this step for you).

5. Look into regulations: There may be industry-specific regulations that your business must comply with, so make sure to check the relevant rules for your sector.

Getting your new business of to the best possible start

Whether you’re an experienced entrepreneur on their fifth startup, or a brand-new founder who’s starting their business career, it pays to have an adviser who can help you iron out the issues.

Book some time with me to talk through your business idea. We will help you run the numbers, test the viability and get a workable business plan together.

Special starting out offer – from now until 31 August 2026 I am offering complimentary one-hour meeting to discuss new business ideas with current clients. This extends to any family or friends referred by clients. Please contact Grethen to make a meeting time.

Should you keep your family trust?

Fri, 13 Feb 2026 04:03:45 GMT

Changes to the Trusts Act 2019 have led to a swathe of Mum and Dad settlors and trustees rushing to wind up their trusts. Many clients have asked us what we think, and my response is always to go back to the reason the trust was first set up and whether these benefits still apply.

Some of the things you should consider are:

New requirement to make disclosures to beneficiaries

One of the changes that concerned many people is the requirement to make disclosures to beneficiaries. Children, their spouses and other beneficiaries in most instances must be provided with copies of the trust's annual financial statements, except in very specific circumstances.

Cost to maintain a trust

If your trust has a professional trustee, they will charge a fee for dealing with trust matters and ensuring compliance with obligations under the Act. The Act also requires you to keep financial statements to accurately record trust assets, liabilities, beneficiary accounts and more.

In many cases, the only trust asset is the family home, which does not earn income, so these fees come out of the settlors' own pockets. Naturally settlors and trustees will review these out-of-pocket costs and consider winding up their trust to avoid the annual fees.

Why did you set up the trust in the first instance?

Coming back to my initial point above, when clients ask us if they should wind up their trust, I ask them why they first set it up. Revisiting this initial decision will often give them a clear answer on how to move forward.

Here are some of the common reasons family trusts are set up:

Protection of personal assets from business creditors

If you have a business for which you have signed a personal guarantee to the bank or other creditors, you are risking exposing your personal assets to third party creditors if you wind up the family trust. In these current difficult economic times, this must be a consideration in your decision-making.

Keeping assets in the family

Unfortunately, not all relationships last. While it may not be a comfortable thing to discuss, it is the sad reality that relationships do break up. A trust can help provide protection in respect of relationship property claims.

You should also consider that a person’s will is able to be legally challenged, however this does not apply when a property and/or other assets are owned in a trust.

Finally, a trust can be a relatively simple mechanism for holding assets for the benefit of multiple family members at once, or for family members who face particular difficulties.

Residential Care Subsidy

This is a very important consideration. Keeping assets in a trust means they cannot be considered personal assets when asset testing for a Residential Care Subsidy (RCS) application. The caveat here is that you must have complied with the allowable gifting limits. Annual administration costs for the trust could be a small price to pay for the benefit of obtaining a RCS when the time comes.

These days there are many different opinions on family trusts, and it is important that you consider all angles before making decisions about the future of your own trust. Please contact us to make a time to discuss your options to ensure you make the best decision for your personal circumstances.

Renting out your bach? Beware of tax traps that could cost you.

Mon, 24 Nov 2025 10:11:10 GMT

As the summer holiday period approaches, many people with baches or holiday homes may be considering renting them out to generate an additional income stream. However, renting out a holiday home is not as straightforward as you may think. There are a number of tax rules which need to be carefully considered.

Adapted from IRD renting out a holiday home and NZ Herald 11 October 2025

When renting out a holiday home, you must pay tax on the income. To work out what tax you will pay, you need your gross rental income and your total allowable expenses, (for example power, cleaning, consumable supplies), along with:

any private use of the holiday home by you or an associated person
the number of days your holiday home was unused.

To complicate things further, you need to consider the mixed-use asset rules . It is not as simple as income less expenses equals profit. You need to be aware that different rules apply when a holiday home is used for both personal and income generating purposes. If the mixed-use asset rules apply, tax is calculated in a specific way, including classifying expenses into three different types - fully deductible, non-deductible and apportioned.

If your specific circumstances do not qualify for mixed-asset rules, then the actual cost method applies.

It is important you keep clear records for income and expenses, and private use days. We will then do the calculations for you when we complete your annual tax return and apply the mixed-use asset rules when required.

Do I need to consider GST?

A complication can arise if the annual rental income reaches the $60,000 threshold for GST registration. You would probably be renting it out more often than not to reach this threshold.

Sometimes this will also happen if the home is owned by an entity which undertakes other taxable activity already subject to GST. An example would be if a trust already owned a commercial rental and hence was already GST registered. If the same trust owns your holiday home and you then decide to rent it out, GST will need to be accounted for from the outset.

A version of GST rules specifically targeted at short term rental properties also now apply when you rent the property out on online sites such as AirBnB or Bookabach.

However, the real tax trap here is that if you sell your holiday home in the course of operating the holiday home "business", there may be GST payable on the sale for the portion of the residential property used for short-term rental, even if you never claimed it when you first purchased it.

You can successfully generate an additional income stream by renting out your bach or holiday home. We recommend that you contact us to discuss your specific circumstances, avoid surprise tax traps and make the most of the opportunity.

Are you heading away for a break from the business these holidays?

Sun, 23 Nov 2025 21:29:16 GMT

This time of year can be hard on small business, including sole traders. Your expenses continue and your cashflow can suffer when your debtors go on holiday.

Leading up to the holiday period, is your business cash flow in good health to carry you through? With a bit of pre-planning and being proactive, you can set yourself up for a financially stress-free holiday.

Planning your cash-flow over the holiday period

Invoice early - Send any invoices that you can, and in advance if possible. Perhaps consider whether you have any regular clients or customers that you could offer a retainer or similar deal to if they book services or make a purchase from you in advance.
Chase payment - Use this opportunity to chase up any outstanding payments. Strong communication and relationships matter - talk to clients and chase invoices.
Talk to suppliers - A little honesty can go a long way. Perhaps they can extend a line of credit for your payments to them. In most cases, a good supplier would rather offer a little flexibility to keep an ongoing business relationship.
Review your costs - Make sure you have a clear picture of your payroll, and any other planned expenses that will need to be accounted for. It’s also a good idea to do a general review of expenses. Business costs can creep up, and it’s a great idea to make a time to check on your expenses regularly, no matter what your financial situation. Review all of your regular payments and subscriptions as well as upcoming costs. There may be travel, functions or purchases which you can decide on an alternative approach to.
Talk to the bank or IRD - If cashflow is tight, make sure you have conversations early, so you have everything in place to see you through.

We can help you navigate the holiday period and help you alleviate cashflow worries, so you get a well-deserved break.

Protecting you and your business: using trusts

Tue, 11 Nov 2025 06:22:22 GMT

Have you ever wondered about the best ways to protect you and your business? In this series, we’ll look at the keyways to use trusts, insurance and risk-management techniques to protect both your personal assets and the future of your business. In this article, we’ll look at how you can use a trust to shelter your assets.

What is a trust?

Before we go any further, let’s explain exactly what a trust is and how they can be used.

A trust is a legal arrangement where a person (the settlor) transfers ownership of certain assets to another person or entity (the trustee) to hold for the benefit of one or more third parties (the beneficiaries). These assets could be money, property or shares etc.

It's essentially a separation of legal ownership from beneficial ownership.

These are the three main parties involved in a trust

Settlor: The person who creates the trust and contributes the assets. In this instance, the settlor is likely to be you, the small business owner.

Trustee: The person or entity (this could be an individual or a company) who holds legal title to the assets and manages them according to the trust deed. They have a fiduciary duty to act in the best interests of the beneficiaries. Trustees are likely to be you and your family members, or anyone in the business who you decide to make a trustee.

Beneficiaries: The individuals or entities who are entitled to benefit from the assets held in the trust. This will usually be the family members or other interested parties that you wish to be beneficiaries of the assets held in the trust.

What is a trust deed?

The rules for how the trust operate are set out in a legal document called a ‘trust deed’.

The trust deed is a legal document that formally establishes a trust. It outlines the trust's rules, names the settlor, trustees, and beneficiaries and defines the trustees’ powers and duties.

The deed also dictates how assets within the trust are to be managed and distributed to protect personal assets from business liabilities.

How can you use a trust to protect your personal assets?

Running a business comes with a certain amount of inherent risk. There’s potential for the business to go bust, for creditors to come after your assets, or for individuals and organisations to make legal claims against you and the business.

Setting up a family trust to shelter your personal assets allows you to separate your personal financial security from these inherent risks of running a business.

The trust creates a legal barrier between your individual wealth and any financial liabilities or claims arising from the business.

Here are the five key reasons why a trust is worth considering

1. Shield your personal assets from any business liabilities:

If your business faces bankruptcy, lawsuits, or significant debt, your personal assets can become vulnerable. This is especially true for sole traders or partnerships, where you don’t have the protection of limited liability as an incorporated company.

By transferring your assets to a trust, these assets are legally owned by the trustee, not you personally. This makes them inaccessible to the owner's personal creditors, in most cases.

2. Mitigate the risk of being an entrepreneur:

Being an entrepreneur involves taking on certain risks. Sales can plummet, businesses can fold and unexpected external conditions can scupper your well-laid plans as a business owner.

With your personal assets held in a trust, you can take calculated business risks knowing that your family home, savings and other personal investments are safeguarded. The family trust provides you with a crucial safety net to secure yours and your family’s future.

3. Enhance your estate and succession planning:

Protecting your personal assets is the key function of the trust. But a well-managed family trust can also help with the orderly transfer of your assets to future generations.

Having the family trust set up prevents your hard-earned assets from being tied up in your estate upon death. This is great for estate planning and helps your immediate family achieve a smoother transition and protects these important assets from potential claims against the estate.

4. Balance control vs. ownership:

As the business owner, once your assets are held in a trust you are no longer the legal owner. However, through a trustee or appointor role, you can still maintain a significant degree of control over how the assets in the trust are managed and distributed

Even though you no longer hold legal ownership of these assets, you can still balance a level of control over the assets, while also enjoying the benefits of reduced liability and risk.

5. Benefit from better tax planning, in some instances:

Asset protection is the primary driver of a family trust. But having the trust in place can also make it easier to distribute income among beneficiaries in different tax brackets. As such, there may be an opportunity to enhance the overall tax position of the whole family.

Tax planning within a trust structure is a complex area and you should always get professional advice from your tax adviser.

Helping you enjoy the protection of a family trust

Having worked so hard to create a profitable business, it’s vital to take every opportunity to protect your personal assets and the future prosperity of your family and loved ones.

Contact us about the key benefits of setting up a family trust, and the potential benefits you could achieve in your own specific business and family situation.

Should you buy or lease your business assets?

Tue, 11 Nov 2025 06:05:48 GMT

There are certain items of equipment, machinery and hardware that are essential to the operation of your business – whether it’s the delivery van you use to run your home-delivery food service, or the high-end digital printer to run your print business. But when a critical business asset is required, should you buy this item outright, or should you lease the item and pay for it in handy monthly instalments?

To buy or to lease? That is the question

Buying new pieces of business equipment, plant, machinery or vehicles can be an expensive investment. So, depending on your financial situation, it’s important to weigh up the pros and cons of buying or opting for a leasing option.

First of all, let’s look at why you might decide to buy the item.

Buying: the pros and cons:

Pro: It’s a tangible asset – when you buy an item, you own the item outright and it will appear on your balance sheet as one of your business assets. As such, by owning these assets outright you increase the perceived capital and value of your business. You can also claim the cost of the asset over time as depreciation for tax purposes.

Pro: It’s yours for the life of the asset – once you own the item, you have full use of the equipment for the duration of the life of the asset. Your use of the asset isn’t reliant on you being able to keep up regular lease payments, and if your financial circumstances change then you can sell the asset to free up the capital.

Con: It’s an expensive outlay – paying for the item up-front is a large outlay for the business and will require you having the cash to cover this cost. Spending a large lump sum in this way may take cash away from other areas of the business, so you need to be 100% sure that this purchase is the right decision and a sound investment.

Con: You may require extra funding – if you don’t have the liquid cash available to buy the item outright, you may need to take out a loan. Asset finance is available from funding providers but does tie you into a loan agreement that will add to your liabilities as a business – reducing your worth on the balance sheet.

Leasing: the pros and cons:

Pro: Leasing has a cheaper entry point – if the item you need to purchase has a large price tag, leasing allows you to make use of the asset without the cost of buying it in full. For start-ups and smaller businesses with minimal capital behind them, this can make leasing a very attractive option. You may not own the asset, but you can make use of it – and this may be the difference between the success or failure of your business.

Pro: You can spread the cost – there is still an associated cost of leasing, but you can spread the cost over a longer period, making it easier to find the necessary liquid cash to meet your lease payments. With this money saved, you can then invest in other areas of the business, helping you to expand, grow and bring in more customers and revenue.

Con: You don’t own the asset – there are different types of leasing agreement. Under a capital lease, you do own the asset (once you’ve paid if off). But if you opt for an operating lease, this is a more short-term lease and you won’t own the asset at the end of the contract. Ownership does have its advantages (including being able to sell off the asset if required) so it’s important to consider what kind of leasing agreement you’re entering into and what the advantages/disadvantages may be.

Con: You may pay more in the long run – most leasing agreements will attract additional costs and interest on your agreement, so you may well end up paying more than the market price for your asset in the long term. If you can cope with the higher cost, this is fine but bear in mind that buying outright may have offered greater value.

Con: You may lose the use of the asset – if you can’t keep up your lease payments (due to poor cashflow for example) then the owner of the lease agreement may recall the asset. If this item is crucial to your business model, losing this key asset can have a profound impact on your ability to operate. In this respect, leasing is a more risky prospect, but also an easier option for businesses with less cash to splash.

Talk to us about whether buying or leasing is the best way forward

Whether you opt to buy or lease your equipment isn’t always a straightforward decision to make – so it’s a good idea to contact us early on in the decision-making process. We will review your current financial position, assess your available cashflow and look at your regular cost base to help you decide whether buying or leasing is the right thing for your business.

New pet rules for tenancies from 1 December 2025

Mon, 03 Nov 2025 01:49:07 GMT

If you are a landlord, make sure you know about the new pet rules for tenants. From 1 December 2025, tenants are permitted to keep pets and landlords must agree.

From 1 December 2025, tenants are permitted to keep pets and landlords must agree. They can only decline if there are reasonable grounds to say no. Reasonable grounds examples include the property isn't suitable ie needs fencing, or the pet is dangerous. Under the new rules, pet bonds can be charged of up to two weeks' rent. Pet bonds must be detailed in the tenancy agreement and lodged with Tenancy Services.

For pets permitted prior to 1 December 2025, the new consent rules do not apply, and pet bonds cannot be charged.

For more information, Tenancy Services has published a guide New Pet Rules for Tenancies . We recommend becoming familiar with the new rules to avoid any unnecessary disputes with tenants.

Understanding Christmas gift and entertainment tax rules for clients, customers and employees

Sat, 01 Nov 2025 15:12:30 GMT

Most businesses will give to employees, clients and often charities at Christmas time. From morning teas to elaborate Christmas functions, from cards and calendars to hampers and the latest gadgets, Christmas is a season of giving.

When it comes to claiming tax deductions this Christmas season, there are very specific rules that apply. We have put together this simple guide about tax on Christmas entertainment and gifts to help you through the festive season.

1. Entertainment

There are rules that apply to tax deductions for Christmas parties, year-end functions and other client/customer or employee entertainment expenses. Some entertainment expenses are fully deductible, while some are not. Here are some quick tips to help you:

50% deductible

If your client/customer, employees or anyone associated with the business has a greater opportunity to enjoy the entertainment than the general public, you can only deduct 50% of the costs. Some instances include:

100% deductible

These include entertainment expenses that are supplied for charity and entertainment enjoyed outside New Zealand. Some specific examples are:

0% deductible

2. Gifts

If you are planning to give your employees, suppliers, clients/customers, or prospective clients/customers gifts this season, you need to know that some gift items are not fully tax deductible as they are counted as entertainment expenditure.

50% deductible

100% deductible

Note: You may claim the full cost of your employee gifts if they do not fall within the business entertainment rules. However, you may have to pay Fringe Benefit Tax (FBT) if the cost exceeds more than the general employee exemption and maximum employer exemption - if you want to know more about FBT, please call us on (09) 576 4166.

This is just a quick guide to tax deductions on gifts and entertainment. If you are still unsure about your festive plans and expenses or want advice on your specific circumstances, please call us on (09) 576 4166 or contact us today.

Best wishes for a happy Christmas and prosperous new year!

Understanding provisional tax in tough economic conditions

Tue, 05 Aug 2025 07:26:14 GMT

If you had to pay tax of more than $5,000 in your last income tax return, you may have to pay provisional tax for the following year. Provisional tax is like making progress payments on next year's income tax.

If you had to pay tax of more than $5,000 * in your last income tax return, you may have to pay provisional tax for the following year. Provisional tax is like making progress payments on next year's income tax.

The amount you have to pay relates to your expected profit/income for the year. In practical terms, the amount of provisional tax you are expected to pay is based on the tax you were liable for on your profit/income in the previous year. This is often referred to as residual income tax (RIT) and your provisional tax will be based on RIT plus a standard percentage uplift as determined by the IRD.

Even if you are not required to pay provisional tax, you may still elect to do so, to spread your tax obligations over the year. This can help you manage cash flow and take away the pressure of having to find and pay a lump sum of tax at the end of the year.

Economic downturn and provisional tax

With the current tough economic conditions, many clients are rightly questioning the amount of provisional they should be paying at the first 2026 payment date of 28 August 2025 and asking us to re-estimate the payment amount down.

There is a catch with this, however. If you elect to pay less provisional tax and then your income picks up later in the year, you may be liable for penalties and interest for underpaying the first provisional tax payment. You will also possibly have larger payments to make later in the year which could impact your cash flow.

While the IRD does have some discretion to write off penalties and interest in the current climate, I strongly recommend to only re-estimate your provisional tax payment down for this first installment if you are facing a significant decrease in income. Given the uncertainty of the year ahead we recommend delaying this decision until the second and third installments in January and May. By then we will have a much clearer picture of profitability over the year and will be better placed to estimate your annual tax liability up or down as required.

It is important to keep your tax plan current. If circumstances change then we do need to discuss and adjust your plan accordingly so please do contact us .

Dealing with uncertainty - tips for business owners

Tue, 05 Nov 2024 00:36:37 GMT

Inflation may be down but there’s still real uncertainty for business owners.

We’ve been trading in challenging times for a number of years now. Knowing what step to take next is a key worry, we know you invest more than simply time and money into your business. It is more than a job but part of your identity.

So, how do you get more clarity for your future plans? And how do you work on the short-term future of the business, when sales, income and cash may be in short supply?

Focusing your efforts in the right places

As a business owner, you can always think of new business-critical issues – but the reality is that you CAN’T control all these elements. This sense of mounting uncertainty is likely to raise your stress levels and make you more anxious.

So, how do you overcome these worries and find a practical solution?

Try to focus on the things you can control:

Identify the things that matter to the short, medium and long-term success of the business

Find the things you can control and over which you have some influence.

It's too overwhelming to try and work on everything at the same time. Instead, try to focus on one major thing you can achieve each day to improve business performance.

Review your overheads and costs – one way to reduce your cashflow worries is to reduce your spending. Look at your controllable overheads and see if there are ways to negotiate better terms with suppliers, cut down on expenses or pause any subscriptions.

Talk to debtors and creditors – if you can bring down your aged debt, that will help your overall financial health. Talk to any late-paying customers and agree when these debts will be paid. And talk to suppliers about extending payment terms, if possible.

Consider alternative revenue streams – if your current business model isn’t working well, are there other services that you could diversify into? Any new revenue streams will help to bolster your income and cash position, working with partners could be a key way to grow your revenue.

Update your website and marketing – having a great online presence is vital, is yours up to date with all the changes we've seen over the last 4 years?

Encourage your team – maintaining motivation and nurturing team spirit is even more crucial in this more rapidly changing world. The more engaged your team is, the easier it will be to embrace change together.

Please contact us to review your current situation and make a plan for dealing with uncertainty in your business.

How the new Government and coalition agreements might affect owners of residential rental properties

paul@pmartinca.com (Paul Martin) — Mon, 04 Dec 2023 00:19:15 GMT

There were some key takeouts of interest to many of our clients from the recently signed coalition agreements between National, ACT and New Zealand First and the formation of the new Government. In particular there are a number of policies which will likely benefit landlord clients who own residential rentals. I have summarised some of these below.

1. Return of Interest deductibility for residential rental properties

Interest deductibility for residential rental property owners will return. It will be phased back in over three tax years:

• 2023/24 tax year: 60% of interest cost will be deductible.

• 2024/25 tax year: 80% of interest cost will be deductible.

• 2025/26 tax year: 100% of interest cost will be deductible.

2. Reduction in bright-line period

National signalled in their pre-election campaign that the bright-line period for residential rental property sales would reduce from 10-years to 2-years. While the exact implementation of this policy is not yet known, it is good news on the horizon for residential property investors.

3. Reinstatement of 90-day no-cause termination notices

The new government will reinstate 90-day no-cause tenancy termination notices. This will avoid many unnecessary disputes in the Tenancy Tribunal and gives landlords more confidence in letting to possibly “marginal tenants".

Many landlords have avoided what they considered to be risky tenants because eviction for anti-social behaviour was so difficult. With this reinstatement, landlords might be more inclined to give a marginal tenant a chance because they know that if the tenant misbehaves, they won’t be stuck with them.

If you would like more information on how these changes might affect your personal circumstances, please feel free to contact us to discuss further.

How to handle inflation as a sole trader

Tue, 18 Jul 2023 07:04:10 GMT

Sole traders have had an especially difficult few years as inflation surges. We have got three tips to help lighten the load for your sole trader business.

Reference: Adapted from business.govt.nz

As inflation began surging in early 2022, sole traders were initially able to offset the effects by charging their clients more. But their ability to keep up was limited: as of March this year, we appear to have hit a pricing ceiling. Only 28% of sole traders have recently raised their rates, as opposed to the 56% who did last June.

Recent research shows that many sole traders say they are paying more for suppliers and services, saving less, or eating into their savings. Half of all sole traders believe they have worked for less than minimum wage in their last year.

Here are three practical suggestions to help ease the strain of inflation on your sole trader business.

1. Automate everything you can

Research from October 2022 shows that sole traders are only spending around half of their working week (55%) on actual work. The rest gets taken up with things like administration and taxes (18%), finding work (15%) and travel (12%).

Freeing up some of this time could mean taking on more projects, or working bigger contracts, resulting in a boost to your bottom line.

To get some of this time back, start by identifying the boring, repetitive tasks that you would happily outsource.

For example, is chasing invoices taking up a lot of your time? Are you struggling to find new clients?

Good news – there will be a way to either streamline, automate, or use AI to take that task off your plate.

Once you know which tasks you no longer want to deal with, you can start finding the right solution for your needs.

That could mean anything from creating a new booking form on your website, to building an automatic sales pipeline in Excel, to working with an accounting software company like Xero, that automatically chases clients who are late paying their invoices (politely, of course).

Automating now can mean you save time later. If you can free up just 2 extra hours a week, you’ll save 104 hours per year – that’s the equivalent of creating an extra 2 and half working weeks a year. What could you do with that extra time?

2. Claim all the deductions you are entitled to

Claiming business expenses correctly can save you thousands of dollars each year. If you are not claiming everything you are entitled to, that’s essentially savings left on the table. Less than half of all sole traders in New Zealand say they claim all the tax deductions they are eligible for.

As a general rule, you can claim a tax deduction for a business expense as long as the expense relates directly to:

· Earning income, or

· Running your business.

This, however, is just a starting point. You should also know that:

· Not every business expense will be a valid deduction

· Not every tax deduction is a business expense

· Some tax deductions are industry specific, for example a tradesperson won’t be able to claim everything a contractor can.

So, how do you know that you’re claiming everything you should claim?

Read here on the IRD website for a good starting point for learning about expenses. For more tailored advice, please contact us .

3. Take care of your mental health

You are your business. Your business is you. If your mental health begins slipping, your business will suffer. From this perspective, taking care of your mental health isn’t just essential, it’s good business sense.

It is tempting to work harder and longer during challenging economic times, but this is often not a good long-term strategy. If you have to put in extra hours, do your best to create time and space elsewhere to recharge.

We have got practical tools and tips from experts that can help you create a mentally healthy approach to business and life.

Being a sole trader can be hard, especially when you’re just starting out. Don’t be afraid to lean on your networks and ask for help if you need it.

Despite all the challenges, being a sole trader is intensely rewarding. The autonomy, freedom, satisfaction, balance – there are so many reasons why more and more people decide to start their own business.

10 ways to improve business perfomance

Tue, 18 Jul 2023 05:04:37 GMT

Supercharge your business with some simple tips. Eliminate distractions and bad customers, get a plan, use technology, deploy marketing and understand your business numbers. We have got lots more ideas to improve performance - talk to us.

Here are ten ways to make sure that you continue to drive through each business quarter with purpose, vision and the courage to super-charge your business.

1. Eliminate distractions : Time is the scarcest resource and biggest killer for most businesses. When we get busy we can also get distracted and focus too much time and energy on the wrong things. Be brave - slash standard meeting times, reduce unnecessary admin and delegate roles and responsibilities.

2. Say goodbye to bad customers : If possible in your business, get rid of ten time-wasters, bad payers, or customers who cause you pain. You will feel instant relief and spend your time better elsewhere.

3. Invest more : Having freed up time and headspace from deploying points one and two above, make sure you ring-fence time, key people, and money for some of the initiatives below. Redeploy with passion!

4. Get a plan : You don't go on a journey without a map or any idea of where you're headed - so why fly blind with your business? Have a planning process, create a kick-arse plan - and execute. We can help you get started.

5. Surround yourself with positivity : Make sure the people in your business understand and share your vision. Bring them onboard, listen to them and give them ownership. Don't let people who don't get it, or don't care, be a millstone around your neck. If they're not right, do them a favour and free up their futures.

6. Use technology : Technology can help you decrease administration, improve communications, improve reporting and accountability. Whether it is for team communication or cloud accounting, slash paper and automate where possible.

7. Keep on top of the numbers : Do you have enough information to monitor business cashflow and see emerging trends? We can help you identify the metrics to track on a regular basis, in order to run your business efficiently.

8. Be different : Break the mold and position yourself to attract ambitious, growing and engaged clients, and employees.

9. Deploy marketing : Create a simple marketing plan to increase reach and penetration. Set aside a budget to treat this seriously. Start by making sure you really understand your customers. Existing customers are prospects too, keeping them happy is your first step. The more you know about them, the easier it will be to attract more of the same.

10. Take a break : Do not underestimate the time you have away from your business. It can allow you to come back refreshed with new enthusiasm and inspiration for the way forward.

We can help you get started with improving your business performance. Please contact us today for an appointment.

Is it the perfect time to switch to an electric vehicle (EV) in NZ?

paul@pmartinca.com (Paul Martin) — Mon, 31 Oct 2022 04:12:11 GMT

Electric vehicles (EVs) are on the rise – we’ll soon reach a tipping point where sales outnumber those of internal combustion engine (ICE) cars. But you might want to make the switch sooner than that, for three reasons:

Resale value on your ICE car - As new restrictions come into place on ICE cars, demand will go down. If you’re still holding on to your petrol car, the resale value may fall through the floor. Selling it over the next 12 months could mean you still get a decent sale price. If you wait too long, it’s possible nobody will want to buy it.

Government incentives - Governments around the globe are making a big push toward decarbonisation, with incentives for buying and/or charging EVs. Why not take advantage of these incentives while they’re available? Once the uptake of EVs is high enough, governments will stop using the carrot and start using the stick – no more incentives, and penalties for manufacturers that import ICE cars.

Bonus - Inland Revenue pays the same rate for all vehicles - As a bonus, you’ll get the same tier 1 rate for business travel whether you’re in an EV or a petrol car: 79 cents per kilometre. Although the tier 2 rates for EVs are lower, for the first 14,000km you’re able to claim back at the standard rate, but your actual running costs should be lower.

Fuel prices - Energy instability has pushed fuel prices to new highs. Even if the cost of petrol and diesel isn’t at its peak, it remains a significant cost for most households and businesses. The cost of electricity hasn’t risen nearly as much – and massive investment in sustainable energy should help the cost of renewable energy to keep coming down.

EVs for your business

Why not analyse the cost of switching your business vehicles to EVs? For cars, it might be battery electric or hybrid options. You might be eligible for incentives on the purchase or on installing chargers at your home or workplace.

We can help you run a cost-benefit analysis, or let you know what subsidies might be available to you – just get in touch, we’d love to talk to you about your business vehicles.

Keeping your data safe as a remote worker

Mon, 18 Jul 2022 02:35:42 GMT

Using public WiFi in cafes, hotels and coffee shops is something we all do. It's convenient and gives you the benefits of working online wherever you happen to be. But are you aware of the data security issues of working from a public network?

In an age where remote and hybrid working are now the norm for so many employees and self-employed people, it's important to know the key ways to keep your data safe.

Secure ways to work from a public network

Remote working is a flexible approach to work that's increased in popularity hugely over the past few years. A recent study from Buffer found that 97% of people would like to continue working remotely, at least some of the time, for the rest of their career.

Working remotely is here to stay, it would seem. But what can you do to make sure you're applying the best possible security protocols? And what are the key dangers to look out for?

We have highlighted the important elements of cyber safety to be aware of:

Unencrypted public networks and their flaws – a public network isn't a safe environment when working. When you use your home network, only you and your family have access to the WiFi. If you log into a public network, literally anyone can join the network – and this can lead to all kinds of security issues and concerns.
Malware and other suspicious activity – hackers and those with malicious intent will see a public network as a potential backdoor to your data. Malware (malicious software), Trojan horses and other hostile programmes can be easily uploaded to your device, allowing hackers to access your programmes, hard drive and data.
Using a personal VPN to access the internet – if you're using a public network to work, the chances are that you have access to confidential information and customer data via your device. To protect your device, it's important to use a VPN (virtual private network). This creates a secure network for you, so you can safely share and access your important data, with fewer worries about hackers and malware etc.
Having proper security software on your device – it's a good idea to also have cyber security software installed on your computer or smart device. Providers like Norton, McAfee and Kaspersky all offer complete internet security suites that include firewalls, regular scans of your drive and other tools to keep your data safe and sound.
Keeping up to date with the latest threats – no security system is 100% safe. But you can do a lot to improve your internet security by being aware of the current threats. Keep an eye out for news stories about cyber breaches and read the updates and social posts from your internet security provider. The more you're in the loop about present dangers, the more you can do to update your security arrangements and keep your devices safe.

Start improving your internet security

We have all enjoyed the additional flexibility and time-saving benefits of working from somewhere other than the office. But as remote working becomes a standard working practice, it's vital to improve your internet security and be more aware of the potential threats to your data.

Concern bright-line property rules may catch some out

Wed, 04 May 2022 23:00:00 GMT

Reference: Otago Daily Times 12 April 2022 (condensed)

Homeowners could get a large unwanted tax bill if they do not do their homework on a new bright-line disclosure system, accountants are warning.

Last week, the Inland Revenue Department uploaded land transactions to its online system, myIR, with pre-populated data on the sale and purchase price.

It asked taxpayers who had recently sold a property to fill in details regarding the nature of the transaction and whether the bright-line test - the way of taxing financial gains on investment properties sold within a certain period of buying it - applied.

Main residential properties were exempt from the test and there were concerns people could make an incorrect disclosure.

A tax advisory expert was concerned it could trip up homeowners, who might not have "sophisticated" tax knowledge, leaving them with a large tax bill.

If people took the wrong position, they would have to go through a "massive" process to get it amended.

The new changes would not hit property investors because they were usually "switched on" when it came to taxes, but it could catch average "mum and dad" buyers out.

While the IRD was trying to make "life as easy as possible", it could end up having serious repercussions, as rules around land transactions were very complex.

The more correct information that ended up on myIR was generally good for taxpayers, but wrong information could cause a "great deal of stress and concern" and would catch some people out.

Chartered Accountants Australia and New Zealand tax leader John Cuthbertson said the current bright-line rules were "incredibly complex".

That meant there was a "real risk" the average New Zealand property seller could inadvertently get it wrong.

"The simple yes/no and drop-down boxes in the myIR form do not reflect the complexity of the rules," he said.

Selecting that bright-line applied when it might not could ultimately result in an unnecessary tax liability, Mr Cuthbertson said.

In response to queries from the Otago Daily Times yesterday, an IRD spokeswoman said it was the department's goal to raise people's awareness of the bright-line rule and help them work out if it applied to their situation.

The pre-population of property sale information was designed to help avoid the situation where non-disclosure of a bright-line sale led to unnecessary hardship down the line.

As it was a new system, IRD had been contacting customers who had a bright-line sale to talk them through the process.

For more information and to discuss your specific situation in relation to bright-line, please contact us .

Helping your business during the COVID-19 Omicron outbreak

Sat, 26 Feb 2022 22:00:00 GMT

In light of the current COVID-19 Omicron outbreak, the Government has announced three additional forms of financial support for businesses with cashflow pressures as a result of COVID-19. These are:

New targeted COVID-19 Support Payment (CSP) for the most affected businesses

This payment is aimed at the most affected business only and hence has strict eligibility criteria. Applications for the first payment opened on 28 February 2022 and it is expected that the second payment will open on 14 March 2022 and the third payment on 28 March 2022.

For information on eligibility criteria click here .

You apply for the new CSP through myIR. For more information on how to apply for the new CSP click here .

Top-up loan available under the Small Business Cashflow Scheme

The Small Business Cashflow Scheme (SBCS) was introduced to support small to medium businesses and organisations struggling with a loss of actual revenue due to COVID-19.

The SBCS base loan will be increased to $20,000 (from $10,000). This means the total amount that can be borrowed will be $20,000, plus $1,800 per full-time equivalent employee (up to 50 employees). The loan repayment period remains 5 years (60 months).

The first 2 years of existing loans will become interest-free provided the loan is not in default. Interest will apply at a rate of 3% per year on the remaining loan balance from the first day of the third year of the loan period.

These changes will be made to the SBCS by the end of March. More information will be available soon.

Flexibility on tax payment terms extended by Inland Revenue.

The IRD have advised they are offering some flexibility due to COVID-19 impacts, including remitting penalties and interest and providing instalment arrangements to pay off tax liabilities. You can enquire about these direct with the IRD through myIR.

For more information on the full range of business supports during this Omicron outbreak, please contact us more assistance.

How are cryptocurrencies taxed in New Zealand?

Mon, 18 Oct 2021 22:00:00 GMT

Around one in five Kiwis is either invested in cryptocurrency or plans to invest, according to a survey by the Financial Services Council. With so many of us jumping into cryptoassets, it's helpful to understand what our tax obligations are.

Last year Inland Revenue updated its guidance on how these assets are taxed; the IR treats cryptos as a kind of digital property, rather than like it would a traditional currency. You can read more about it here , and some of the basic information is summarised below:

When do you need to pay tax on cryptocurrencies?

When you buy or mine cryptocurrencies, there is no tax to pay. And while you hold cryptocurrencies, there is no tax to pay.

However, when you sell your cryptocurrency, you will likely need to pay income tax on any profit that you make. Tax needs to be paid if you bought your cryptoassets to sell or exchange, or if you are using them to carry on a profit-making scheme.

You also need to pay tax if the Inland Revenue feels you meet the criteria for trading in cryptoassets.

When can you sell cryptocurrencies without paying tax on any profits?

In theory, you would not have to pay tax on your profits if you did not buy your cryptocurrency with the intent to sell or exchange it later or make money from it. This is likely to be very difficult to prove. It might apply if, for instance, you inherited the cryptocurrency.

If you want to get rid of your cryptocurrency without paying income tax on the profits, you could spend it instead of selling it.

What if you sell at a loss?

If you sell your cryptocurrency at a loss, you may be able to claim the loss. To do so, you need to demonstrate that if you had made a profit, you would have been taxed on it.

How we can help

We can help you work out the potential tax you will pay on the sale of cryptocurrencies or make a claim if you sell at a loss. To discuss further contact us today!

Upsizing or downsizing? We can help with the forecasting

Fri, 06 Aug 2021 23:00:00 GMT

The post-Covid, globalised economy has created a number of challenges for the average business. Depending on your business purpose and strategy, you may need to either upsize, or downsize, to secure the long-term future of your company.

But what are the implications of scaling up, or scaling down, your operations? And how do you refine your business so it's fit for purpose and ready to take on your new aims and goals?

The answer is to look carefully at your forecasting and your future decision-making.

Looking at the ongoing needs of your business

Our experiences of the pandemic have demonstrated one very clear lesson – you never know exactly what lies around the corner for your business. But the more prepared you are, the better you can respond, as and when new threats and opportunities do appear.

With this in mind, forecasting and scenario-planning can be exceptionally important tools.

Rather than crossing your fingers and hoping for the best, you can plan for two, three or more different outcomes – with different strategies and tactics for each separate scenario. You can't bullet-proof your business, but you CAN make sure that you at least have a Plan B (or C).

Scaling up, or scaling down?

By making constructive use of forecasting, you'll be able to see the most viable path for your business. From here, you can make a decision on whether scaling up, or scaling down, is the most appropriate action for the long-term health of the company.

Some key questions to ask during your decision-making may include:

Knowing how much working capital you have available in the business is a vital piece of information. If you have a healthy balance sheet, a workable funding strategy and access to lenders, you'll be able to fund your growth. If your cash reserves are depleted and access to finance is limited, now may be the time to shrink the business and consolidate things down – helping you to survive to fight another day, even if it is at a reduced scale.

If your market share has dropped, you may need to downsize your team. And if you've hit a winning streak of sales, you may need to upsize your workforce to meet demand. Look at what resourcing you need and the types of skills, capabilities and long-term knowledge you need from your team in order to meet your new goals and targets.

If your business purpose has evolved, or you're moving more into the online or digital arena, you may need to train up your staff. Upskilling your people helps to bring them more in line with modern digital business practices, software and online customer interactions, all of which helps to increase your operational capabilities and your customer service levels as a business.

If you've instigated remote working or hybrid working, you may not need so much office space for your people. And if you've moved a lot of your business to online selling, fewer bricks-and-mortar outlets will be required. Cutting building lease costs and/or commercial mortgage expenses can be a serious cost-saver for the business. Conversely, if you're aiming to scale up, it's likely that larger premises will be needed – resulting in higher property costs, but increased income from your scaled-up operations.

Knowing what tangible assets you need in the business is an important part of your new business plan. If you're expanding your operations, new equipment and/or vehicles will be needed to meet the new demand. This is likely to mean taking out third-party finance, or digging deep into your cash reserves. If you're downsizing, there's potential to sell-off existing equipment and assets and to free up this equity for other projects in the business.

Talk to us about scenario planning and decision-making

If you're in the process of evolving or changing your business purpose, please come and chat to us. We can help you review your existing business plan, run scenarios and forecasts, and look at the long-term future path of your business.

Fees on utes - three things you need to know

Wed, 04 Aug 2021 23:00:00 GMT

Plenty of Kiwi businesses buy utes as company vehicles. If you're in the trades, for instance, a ute can be the perfect way to haul everything around and promote your brand at the same time.

However, the recently announced EV feebate scheme is likely to hit ute buyers the hardest, since these vehicles tend to have some of the highest emissions of any on our roads.

Here are three things to know if you're buying new utes in 2022:

The fee depends on the model

Only the highest-emission models will require you to pay the highest fees. For example, the Nissan Navara is a relatively low-emission ute model and the fee on a new Navarra is forecast at $810. That is considerably lower than the fee of $5175 expected to be incurred by the highest-emission Toyota Hilux model.

Use Driven's Clean Car Calculator to compare models.

Hybrid utes are expected to arrive in 2025

Four years from now, in 2025, it's expected that plug-in hybrid utes will be available in New Zealand. These are likely to be followed by fully electric utes. So if you want to avoid the fees, with careful maintenance, your current fleet of utes might last that long.

Electric vans are already available

Plug-in hybrid electric vans are eligible for rebates. For instance, a new Ford Transit PHEV looks set to qualify for a $5220 rebate. Ongoing running costs for electric vans should also be lower than for utes. And while they may be less fashionable, vans have the additional benefit of being more secure – Kiwi tradies often have tools stolen from their utes.

Talk to us about tax on company vehicles

You can claim some car expenses against your business, and company vehicles may incur fringe benefit tax. We can talk to you about how various claims and taxes apply to your car or fleet – just get in touch . We're here to help!

The Man on the Moon Principle

Mon, 21 Jun 2021 23:00:00 GMT

In 1961, President John F Kennedy famously announced his goal of landing a man on the moon and returning him safely to Earth before the decade was out. As we know, in July 1969, Neil Armstrong and Buzz Aldrin became the first people to walk on the moon, and were brought back to Earth safely, achieving JFK's goal.

At a time when most people hadn't even been on an aeroplane, landing on the moon would've felt unachievable and overwhelming. However, such a massive goal united people with a purpose; the story goes that even a cleaner mopping the floor at the space station said his job was to help put a man on the moon.

So, how did they make the goal achievable? They broke it down into milestones, with each one taking them closer and closer to achieving their ultimate goal.

The first milestone was to achieve lift off. So, they set about resolving this challenge. The next milestone was to reach orbit, so they had a team working on this milestone. Then, they had to reach the moon's atmosphere, land safely on the moon, take off from the moon, enter Earth's atmosphere and land safely back down to Earth.

You can see how breaking the goal down into milestones gave everyone a more achievable objective to focus on which was less overwhelming. Those milestones were then broken down into the actions which needed to be completed. Each action was essentially a small step towards reaching the ultimate goal.

We can use this principle in our business planning.

Start with a 12-month goal, then break this into milestones on your way to achieving the goal. What milestones will you reach in the next 90 days? What actions do you need to complete each week to reach them?

You might have a longer-term goal you'd like to achieve within 5-10 years. Follow the same process of identifying the milestones and the actions you need to get there. What's an important goal that will unite your team in a common purpose? When you've identified your goal, break it down into milestones and actions. Don't forget to celebrate when each milestone has been reached.

If you need help making a plan for your business or breaking your goals down into milestones, please contact us . I regularly work with a range of business and individuals to map out their goals and how to achieve them.

"The journey of a thousand miles begins with one step." - Lao Tzu

How are costs for meeting the Healthy Homes Standards for residential rental properties claimed in my tax return?

Wed, 20 Jan 2021 22:00:00 GMT

Most residential rental property owners should be well aware of the Healthy Homes Standards which became law on 1 July 2019.

The healthy homes standards introduce specific and minimum standards for heating, insulation, ventilation, moisture and drainage, and draught stopping in rental properties.

Costs incurred in meeting these standards can be claimed in your tax return, as described below.

Costs of a revenue nature are generally deductible in the income year they are incurred, and these may include the costs of:

Capital costs will generally result in a deduction for a depreciation loss unless they are for something that is part of the residential rental building.

The cost of items that are part of the building are added to the building's cost and depreciated at the same rate as the building. Generally, this is zero percent. Items that are likely to be part of the building include:

Capital costs for some items acquired that are not part of the building will be either:

Items able to be depreciated include:

For more information and advice on how costs for Healthy Homes compliance are claimed, please contact us .

Source: IRD

When life gives you lemons, pivot

Mon, 21 Sep 2020 23:00:00 GMT

Bringing home the bacon

Pop-up restaurant founder Stacey Jones from Mount Maunganui describes time in lockdown as a 'tale of two halves' for her business Kitchen Takeover . "It was hard because my seven events sold out in 24 hours before lockdown and they all had to be cancelled. But this was good because it forced me to pivot and move really quickly into something new, which would never have happened if I hadn't had my hand forced."

Stacey decided to package up her pop-up restaurant night into a dinner party box - a fine-dining experience delivered to your door.

"One of the challenges of the pop-up restaurant is that I spend months developing menus with chef Shane Yardley and experiences that are completely unique," she explains. "The boxes are great because they allowed me to scale up and get the edible experiences into more people's hands."

Stacey is a big believer in the 'innovate or die' saying and views each one of her business ideas as a big prototype.

"You're always moving forward and changing things to get a better end result. We're in the very early stages of Kitchen Takeover - At Home , but it's going really well. We sold out of all our boxes in the first and second round so I think that's a good sign of market validation."

Top businesswoman Theresa Gattung, who was involved in the conception of My Food Bag , is a fan, and one diner described it as "having a five star restaurant in your home".

Kitchen Takeover pop-up restaurants are now back in full force in the Bay of Plenty. Stacey's future plans include a physical food innovation space and a food festival to celebrate local producers.

Metal Art finds silver lining during lockdown

"Around 50% of our regular business dropped away so we knew we had to change our focus fast," says Managing Director Carl Longstaff. "We developed a new product line of hand sanitiser stands and manufactured and supplied gel.

Thankfully we have managed to maintain full employment for our 35 staff and I'm confident these products will continue to see strong demand by companies, government departments and organisations dealing with the public face-to-face."

He says COVID-19 emphasised the importance of supporting local businesses where possible.

"Our steel is produced less than 50 metres down the road from us and we outsource where we can - be it powder from Dulux or sandblasting from Seaview Blasting . We try to get things as close to home as we can because at the end of the day we want to deal with locals and with people we trust."`

Provisional tax - how does it work?

Fri, 17 Jul 2020 23:00:00 GMT

The amount you have to pay relates to your expected profit for the year. In practical terms, the amount of provisional tax you're expected to pay is based on the tax you were liable for on your profit in the previous year. This is often referred to as residual income tax (RIT) and your provisional tax will be based on RIT plus a standard percentage uplift as determined by the IRD.

With the current tough economic conditions, many clients are rightly questioning the amount of provisional they should be paying at the first 2024 payment date of 28 August 2023 and asking us to re-estimate the payment amount down.

There is a catch with this however. If you elect to pay less provisional tax and then your income picks up later in the year, you may be liable for penalties and interest for underpaying the first provisional tax payment. You will also possibly have larger payments to make later in the year which could impact your cash flow.

While the IRD does have some discretion to write off penalties and interest in the current climate, I strongly recommend to only re-estimate your provisional tax payment down for this first installment if you are facing a significant decrease in income. Given the uncertainty of the year ahead and the fact that many clients we've spoken to are actually not experiencing the downturn in business they anticipated during the lockdown period, we recommend delaying this decision until the second and third installments in January and May. By then we will have a much clearer picture of profitability over the year and will be better placed to estimate your annual tax liability up or down as required.

Business owners - how healthy is your working capital?

Mon, 24 Feb 2020 22:00:00 GMT

We all know that cash is king when it comes to business success, but what exactly is 'working capital' and how does this financial metric help measure the health of your business?

Working capital is made up of the cash and assets that are available in the business to fund your operations and keep you trading. It's worked out by taking your current assets (the things you own) away from your current liabilities (the things you owe to other people).

So, why is working capital such a critical metric?

It's possible for your business to be busy, successful and profitable, but for your cash position to still be in poor health – and that can have a serious impact.

If you can't readily convert your assets into liquid cash, it's a struggle to meet your cashflow goals, pay your bills and fund your day-to-day operations. But with the optimum level of working capital, you strengthen your balance sheet and put the company in a solid financial position.

Proactively manage your cashflow – cashflow feeds your working capital by pumping liquid cash into the company and keeping the balance between assets and liabilities in a strong position. But to achieve this, it's vital to achieve a positive cashflow position, where your cash inflows are greater than your cash outflows. This means getting paid on time, lowering your outgoings and keeping a close eye on your ongoing cash position.

Monitor and forecast your financial position – running regular financial reports helps you stay in control of your finances. With careful monitoring and forecasting of your cash position, you can ensure you don't end up in a negative cashflow position, without the requisite working capital to trade and fund the next stage in your business plan. Cloud accounting software and business intelligence apps have made it easier than ever to create up-to-date, real-time reports and run dashboards that show your key metrics.

Use additional finance when required – if working capital is looking thin on the ground, then additional funding may be needed to bolster your balance sheet. Short-term finance options (such as overdraft extensions or invoice finance) and longer-term business loans can be needed to keep working capital on an equilibrium.

Talk to us about optimising your working capital

Working closely with your accountant is vital if you want to promote the ideal level of working capital in the business. We can help manage your cashflow, monitor your financial metrics and provide access to additional finance and funding when your capital needs a boost.

Please contact us today to start maximising your working capital.

Essential tax tips for rental property investors

Wed, 22 Jan 2020 22:00:00 GMT

When you own a residential rental property, the tax you pay depends on whether you are an investor or dealer in residential rental property as dealers are taxed more heavily.

Rental property investors generate ongoing rental income, without any firm intent of resale, while property dealers/speculators buy property intending to sell it and have established a regular pattern of buying and selling property.

In this article we focus on the first category – rental property investors .

1. Residential rental property

Residential property expense deductions

If you have rental property that is not used privately at all, you can deduct expenses from the rental income you include in your tax return. Not all rental expenses can be deducted.

Expenses you can deduct from your rental income are:

You can also deduct interest on money you have borrowed to buy your rental property. You cannot deduct this if you have used some of the money:

Expenses you cannot deduct from your rental income are :

The difference between repairs and improvements can be complex. If you are unsure about whether work done on your property is repairs or improvements, please contact us for further advice.

2. Renting out a holiday home

There are different rules if you rent out a holiday home, depending on your situation.

If you have a holiday home that you rent out, use privately and it is unoccupied for 62 days or more the mixed-use asset rules apply.

If the mixed-use asset rules apply, you can choose not to declare rental income from the property if the rental income is:

If you choose not to declare the rental income you will not be able to claim expenses for the holiday home.

If the mixed-use asset rules do not apply, you must declare all rental income from your holiday home. Rental expenses can be deducted from this income. Some expenses may be fully deductible. If you use the holiday home privately, some expenses will only be partly deductible.

3. Jointly owned rental properties

If you own rental property in partnership with one person or more, you may need:

All joint owners will also need to file an IR3 tax return for their share of the rental income with the IRD.

4. Renting out your house or a room

Payments you get from people renting your home or a room are taxable. This includes payments from:

If you provide this type of short-stay accommodation, you may have different options for working out your tax:

If you use the standard cost option, there are set amounts you can claim as deductions. You only need to declare the rental income in excess of the set amounts.

If you use the actual cost option, you must declare all the rental income. The deductions you can claim are based on your actual costs, apportioned based on floor area and number of rental nights.

GST and residential rent

GST is not charged on residential rent. This means you do not include residential rental income in your GST return even if you're registered for GST.

When you deduct rental expenses in your tax return - use the GST inclusive amount.

Please contact us to discuss your specific circumstances to ensure you make the most from your residential rental from a tax perspective.

Reference: IRD

Creating a winning business plan

Wed, 25 Sep 2019 23:00:00 GMT

Is your business plan up to scratch? Is it really doing its job as the blueprint to lead your business into the future? Let's look at some of the key points to be included.

The Mission
Upfront you need to describe what your business does and the goals and objectives you wish to achieve in your business – let's face it, you've got to have a dream or a mission and this is the place to state it.

The market
Researching your market and your competitors is important before you go into business. Information about market size and growth and whatever 'intelligence' you can find about competitors should all go into your business plan. This information can then help plan your marketing strategy – what segment of the market will you target?

A SWOT Analysis helps you work out the strengths and weaknesses of the business and what opportunities and threats you are facing. You should be looking to maximise your strengths and opportunities and develop strategies to overcome the weaknesses and threats.

Once you've looked at the market, the competitors and done the SWOT Analysis, you can put together your marketing plan – a key section of the business plan. The marketing plan considers the four Ps of marketing – having the right product, how you will price it, the place you will sell it and what forms of advertising and other promotional activities you will use to promote it.

The people
No business can operate without an effective human resources plan. The long term vision for your business has to give thought to who is going to help you reach your goals and how you are going to help them do this. You need to plan the training and professional development you will offer, the way you will communicate, your style of leadership and how you will appraise performance and give feedback.

The financials
Now you can prepare a budget which will give you an idea of the trend and seasonal fluctuations of both sales and expenses and will indicate the viability of the business in both the short and medium term. From here you'll have to work out what capital expenditure will need to be undertaken to achieve the budget forecast.

It should now be possible to prepare the cash flow forecast on a detailed monthly basis, taking into consideration the current trading terms for such items as debtors, creditors and wage payments. You'll also need to consider 'seasonal' trends, especially relative to sales and stock purchases, as well as the arrangements negotiated with banks and financiers relative to loan repayments, owner's drawings and income tax payments.

The contingency
A prudent section of any business plan should be a sensitivity analysis. This is a 'what if' study to test your ability to react quickly to incidents affecting your business. The planned action of this analysis is the contingency plan that can immediately be put into effect when called upon. It's much easier to have a plan in place rather than react irrationally to sudden events.

The action
Finally, draw up an action plan – a detailed list of all the work to be completed as listed in the business plan. Assign each task to a person and write down the deadline for when the work should be completed. Review the plan periodically to discuss progress.

These are just some of the key points to think about when drafting your business plan. At Paul Martin Chartered Accountant Ltd we can help you put together the various aspects of your plan through our business planning service . Call us today on (09) 576 4166 for assistance or request an appointment online .

Deductibility of clothing and items relating to personal presentation as business expenses

Fri, 23 Aug 2019 23:00:00 GMT

Below are guidelines on claiming clothing and personal expenses:

Claimable:

Not claimable:

To quote the IRD, claimable clothing "only includes uniforms or specialist clothing that isn't reasonably suitable for private use and is necessary and peculiar to a particular occupation.

Finally, in close, consider the possible consequences of flouting the law. One personal trainer was given home detention and hundreds of hours community work for claiming exercise clothing (among other things) as a business expense. The case against this trainer involved tax evasion beyond just the clothing but it is a timely reminder of the importance of sticking within the rules.

If you are unsure and would like more guidance on this area, in particular how you can legitimately claim clothing expenses, please contact us today for assistance.

Don’t break the (piggy) bank! Why your current account matters, especially if it is overdrawn

Sun, 28 Jul 2019 23:00:00 GMT

Tucked away toward the back of your annual financial statements you will find details of your shareholder current account. It might be in credit or it might be overdrawn, and you might ask does it really matter?

The answer to this question is yes – it does!

We find current accounts is an area that is not well understood, and therefore the consequences of overdrawn balances can come as a shock to clients. Below we have outlined what a current account is and key things you need to know.

What is a shareholder current account?

In simple terms, your shareholder current account is like your own bank account with the company. When you put funds into the business, it gets recorded as a deposit in your current account. When you take money out (drawings) it gets recorded as a withdrawal from the current account. Your balance at 31 March each year is recorded in your financial statements – you will either be in funds or in 'overdraft'.

What happens when the shareholder current account is overdrawn?

If you take more money out of the business than you have put in, this is called an overdrawn current account. The IRD consider this to be a loan from the company to the shareholder and hence they require interest to be charged. The IRD set the rate for this interest which is currently 5.77%.

When interest is charged it is recorded as income for the company and further drawings to the current account. This causes the overdrawn current account to increase further and left unattended, the problem will continue to escalate and grow.

But it is my company, my money so why does it matter?

You might be the director, shareholder and brains behind the business but it is important to remember that the company and you personally are separate legal entities, with separate IRD numbers and separate tax obligations. You cannot treat the company and the shareholder as one and the same and the current account is the place the interactions between you and the company are recorded.

This distinction is very important to understand. Recently we had a client sell part of their business and withdraw the sale proceeds to repay personal mortgages and purchase rental properties. They had not considered the money actually belonged to the company and there were interest, tax and other consequences they had overlooked. The end result was a very large and unexpected tax bill. The moral to this story is to always speak to us first before making final decisions, especially when large amounts of money are involved.

Steps required to address an overdrawn current account

Left unattended, the overdrawn current account with continue to grow as interest increases and compounds on the balance. To address this, common steps you could take are:

1. Repay the "loan" to the company – introducing funds back into the business will reduce the debt you owe.

2. Declare a shareholder salary. This will need to be accounted for in the shareholder's personal tax return.

3. Declare a dividend.

Options 2 and 3 above are only available if the company is solvent and making a profit.

As every situation is different, it is imperative you discuss these issues with us before deciding which path is best to follow. For further questions regarding shareholder current accounts and to make sure you don't break the (piggy) bank, please contact us today.

Are you prepared if the IRD audited you?

Thu, 25 Jul 2019 23:00:00 GMT

Have you considered what would happen if you were subject to an audit by the Inland Revenue Department (IRD) ? You may not have ever have considered this, knowing you keep good records and work with us each year to prepare and file your annual tax return. However, even we don't know when the IRD might come sniffing and start asking questions. Often the outcome is that everything is in order, however, getting to this point comes at a cost.

That's why we offer clients the option to purchase Audit Shield Accountancy Insurance .

Fundamentally, Audit Shield covers you for professional fees that are incurred as a result of us responding to post lodgement queries from the IRD and other government authorities in New Zealand. 'Audit' is broadly defined under the policy to include any official enquiry, review, investigation or audit (including phone enquiries) instigated by the government authorities in relation to lodged returns.

We fully understand that many people do not appreciate the value of accountancy insurance, seeing it as costly and unnecessary. However, we have had a number of clients who have been audited by the IRD recently and have claimed on their insurance. The IRD is currently quite active so anyone could be audited at any time.

It can happen to you!

In one case we have heard about from Audit Shield, the IRD initially undertook a Client Risk Review of a financial services business. Later, this expanded into a full audit in respect to Income Tax and GST compliance matters. The total accountancy fees of $17,850 were fully covered by Audit Shield.

As Chartered Accountants and business advisors , we can discuss with you anything you need to know about accountancy insurance. Just call us on (09) 576 4166 for more information, or book an appointment online .

We can help you have a peace of mind.

Audit Shield is offered by Accountancy Insurance - tax audit insurance specialists who assist over 1800 accounting firms throughout New Zealand and Australia. Established in 2003, Accountancy Insurance currently employ over 60 members of staff across both countries with each and every team member passionate about providing the market with a tax audit insurance product that is simple and effective - Audit Shield. The team at Accountancy Insurance has the depth of knowledge to ensure Audit Shield covers accounting firms and importantly, you, when it matters.

Understanding Fringe Benefit Tax and when you are liable, especially motor vehicles

Mon, 24 Jun 2019 23:00:00 GMT

To help you better understand this area, below is an overview of the types of activities subject to FBT, with a particular discussion on use of motor vehicles which is the most common scenario our clients face.

Broadly speaking, FBT may apply to any situation where you provide benefits to employees, shareholders, or other people associated with your business on top of their salary or wage.

In the case of cash benefits though, FBT does not apply on a cash payment to an employee. Instead, you treat the cash payment as part of the employee's salary or wage and make normal employee deductions, such as PAYE.

Types of FBT

1. Fringe benefit tax on employer contributions

Special rules apply to FBT on employer contributions to some benefit funds, insurance policies and funds, superannuation schemes and funeral trusts.

2. Fringe benefit tax on goods and services

There are some situations where you need to pay FBT on goods and services, such as if you pay in full for an employee's private home telephone, internet or mobile phone.

3. Fringe benefit tax on low-interest loans

If you give an employee a loan at an interest rate that is lower than the rate you would offer the public, you may have to pay FBT.

4. Fringe benefit tax on motor vehicles available for private use

You must pay FBT if your business makes a vehicle available for employees, their associated persons and shareholder-employees to use privately – even if they don't actually use it. The vehicle is exempt from FBT during any period when it is not available to be used for at least 24 hours, such as if it has broken down or is being repaired.

Sole traders and partners in a partnership do not pay FBT on business vehicles they use. Instead they make income tax and GST adjustments for private use.

Exemptions from FBT on motor vehicles

1. Work-related vehicle exemption

FBT does not apply to a vehicle if it meets all of the following conditions:

• It is drawn or propelled by mechanical power (this includes trailers)
• It has a gross laden weight of 3,500 kg or less
• It is not principally designed for carrying passengers. Please note, driving a ute does not automatically exempt you.
• It has prominent company branding that cannot easily be removed
• You tell your employees in writing that the vehicle can only be used for travel between home and work, and for travel related to the business, such as stopping at the bank on the way home from work.

You should regularly check logbooks, petrol receipts etc to make sure employees are using the vehicle appropriately. You should also keep a record of these checks.

2. Emergency calls exemption

If an employee uses a vehicle to attend an emergency call, FBT will not apply for that whole day when the employee travels from their home. This includes emergency calls related to operation of plant or machinery for you or a client and emergency services relating to health and safety of any person.
The visit must take place between 6pm and 6am during the work week, or at any time on a Saturday, Sunday or statutory public holiday. There are no time restrictions in the case of health or safety of a person.

3. Business travel

If an employee regularly travels with a vehicle, FBT may not apply when:
• They stay away from home overnight with the vehicle
• They are away for more than 24 hours, and
• They need the vehicle to perform their work

Fringe benefit tax and various scenarios related to it can be quite complex, but it is an important area. We can help you understand your obligations based on your own business circumstances and can also prepare and file the returns for you. To discuss FBT or other accounting and tax matters, please contact us for an appointment today.

Source: www.ird.govt.nz

Do you know your break-even point?

Fri, 17 May 2019 23:00:00 GMT

All business owners need to be aware of their break-even point - that is, the number of units they need to sell in order to cover their operating costs.

Once you've reached your break-even point, it's time to celebrate: your business is no longer in the red, and you are officially earning a profit.

This article will show you how to calculate your break-even point so you can make wise business decisions that support greater growth.

What are your fixed costs?

Try this simple break-even formula

Final thoughts

To ensure you're always making business decisions based on the most accurate, up to date information, make it a habit to update your break-even analysis regularly.

Now that you know your company's break-even point, think about what you do to increase your small business's profitability today.

We offer a range of services to help you set business goals, monitor your business performance for profit and unlock achievement of your goals. Click here for more information and contact us to arrange an appointment.

How to turn your hobby into a business

Sun, 17 Mar 2019 22:00:00 GMT

Thinking about turning your passion into a paying gig? These steps will help you avoid some common mistakes as you set out to earn an income from your favorite pastime.

Do you have what it takes?

Unless you've run a business before, it's easy to get carried away with the idea of how perfect it will be to get paid for doing what you love. Reality check: the stress of needing to earn an income from your hobby can quickly take all the pleasure out of it.

Running a successful business isn't all hobby indulgence. Unless you can afford to hire someone to take care of the bookkeeping, marketing and sales, expect to spend a lot of hours on necessary tasks completely unrelated to your true passion.

Before you start investing in your hobby-to-business idea, take this online quiz to see if running a business is right for you.

Do your market research

If you've been gifted with the entrepreneurial spirit, you're ahead of the game. It's definitely a plus to be able to combine business know-how with your passion.

The question is, will people pay you for your great idea. If you love to garden, for instance, who will buy your herb garden kits, custom flower arrangements, or green thumb e-books?

One of the biggest mistakes home-based solopreneurs make is not doing their market research.

In a nutshell, market research is the process of:

· identifying potential markets

· understanding what your customers most want and need

· matching up your products and services to those needs

· examining the competition and

· creating a marketing plan.

As a pro tip, focus your efforts on a niche that isn't currently being filled to increase your chances of success. You'll minimise the competition and cut out unprofitable possibilities by creating a must-have solution designed for a highly specific customer.

Strategic marketing ideas

If you're just starting up, odds are you'll be running your business on a shoestring. You'll need to be very selective about how you spend your marketing dollars-which is why it's so important to know exactly who your customers are off the bat. Then it's all a matter of making it as easy as possible for those people to find you.

A website and social media presence are essential for any small business. Consider craft fairs and trade shows, sponsoring a community event, joining a local business association, or partnering up with a compatible business as low-cost ways to get the word out.

Final thoughts

If turning your hobby into a business seems right for you, test the waters for six months to a year before diving in. Running a small, no-pressure side business at first will show you whether your idea has the potential to become a sustainable full time business-before you quit your day job and invest all your savings.

Drafting a simple one page business plan early on is a great way to help you think through and evaluate your idea, step by step, as you set goals and identify strategies to achieve them.

Business planning may seem like a lot of work for a small part time business venture, but unless you have a plan, how will you know when you've achieved your benchmark for success?

We assist many entrepreneurs and companies with their business planning and strategy and would love to talk with you about turning your hobby into a business. Contact us today to make an appointment.

Attention: If you are planning on buying or selling property, “bright-line” might catch up with you…….

Sun, 24 Feb 2019 22:00:00 GMT

Like most property owners you have probably heard about the bright-line test but not necessarily understood how and when it could apply. We have been noticing an increase in queries from clients about how this property rule applies to their own situation.

Put simply, bright-line says people who sell a house in New Zealand within a specified number of years of buying it, must pay income tax on any gains, unless it's their main home or another exception applies. Originally this period was two years and since 29 March 2018 this has increased to five years.

The bright-line rule is a clearly defined rule that leaves no room for interpretation. You can think of it as someone drawing a line in the sand. It's clear when you cross that line.

To help you understand and navigate this relatively new area of property tax rules, below are a range of questions and answers as provided by the IRD.

1. What does "bright-line rule" mean?
The bright-line property rule says you'll pay tax when you buy and sell a residential property within five years, unless an exception applies. It's easy to know if this rule applies in your situation.

All existing property tax rules still apply. So even if the bright-line rule doesn't apply in your situation, that doesn't necessarily mean you won't need to pay tax on your property profits.

2. When does the bright-line rule apply from?

The bright-line rule applies to the sale of any residential property you've bought on or after 1 October 2015 as follows:

But whenever you buy a property intending to resell it, you'll need to pay tax on any profit you make when you sell that property.

3. When does the bright-line period start?

Generally, the bright-line period starts on the date the property title is officially transferred to you, which is the date the property transfer is registered with Land Information New Zealand (LINZ).

If the property is in another country, the bright-line period starts on the date the transfer was registered under that country's laws.

Different dates apply if you sell the land before your purchase was registered with LINZ or if you bought the land as a result of a subdivision of property (for example as a sale "off the plan").

4. What types of property does this rule apply to?

The bright-line rule only applies to residential property.

A property isn't residential if it's mainly used for business or as farmland.

That means when you sell farmland or business property, the bright-line rule won't apply. But you'll still need to follow existing tax rules.

5. What if I sell my property after the relevant bright-line period has ended for me? Do I have to pay tax?

If you sell a property outside of the relevant bright-line period for you, the bright-line rule won't apply to your property sale. But the intention test may still apply.
The intention test says you must pay tax on property profits if you originally bought a property with the intention to resell it. The intention test isn't a new rule. It's been around for a long time.

6. What happens if I make a loss on a property sale, instead of a profit?

If a residential property that the bright-line rule applies to was sold at a loss (and no exceptions apply), these losses would be "ring-fenced".

If you owe income tax on another residential property sale in the future, you can subtract these "ring-fenced" property losses from the income you earned on this later sale. That means you'll pay less tax on the later sale.

7. What if I sell overseas property? Do I have to pay tax in New Zealand?

New Zealand tax residents pay tax in New Zealand on their worldwide income.

If you're a New Zealand tax resident who earned income selling a property in another country, you may need to pay tax there. You'll also include it on your New Zealand income tax return and pay any tax.

There are some exceptions to the bright-line rule (aka when the bright-line rule won't apply to your property sale):

1. What is the main home exception to the bright-line rule?

If you buy and sell your main home, the bright-line rule won't apply. It's an exception to the bright-line rule. It means that you generally won't have to pay tax when you sell your main home.

But you can only use the main home exception twice over any two-year period. You'd have to pay tax on any profit you make from the sale of a third property in two years because you wouldn't be eligible for the main home exception.

You're also not eligible for the main home exception if you show a regular pattern of buying and selling residential property.

2. What does "main home" mean under the bright-line rule?

You could think of your main home as your "family home". Your main home is the property you have the greatest connection to.

To be eligible for the main home exception to the bright-line rule, you need to have used a property as your main home for 50% or more of the time that you've owned it.
You also need to use more than 50% of the area of the property as your main home. (The area that counts as your main home generally includes things like your yard, gardens and related buildings like the garage.)

This is an important point if you rent out a granny flat attached to your house or part of your house is used as a business. As an example, if you use 40% of a property as your home and 60% as a rental property, you can't use the main home exception if you sell that property.

If you live in more than one property, you'll need to decide which is your main home. To decide if a property you own qualifies as your main home, think about:

3. Who decides if the main home exception applies to me?

The person selling a property decides if it's their main home. You'll do that based on the criteria listed above.

4. Can I have more than one main home?

No, you can only have one main home.

If you live in more than one house, your main home is the one that you have the greatest connection to. You'll find the criteria for deciding which property is your main home listed above.

5. My main home is held in trust. Am I eligible for the main home exception if I sell it?

Residential properties held in trust can use the main home exception under the bright-line rule if:

6. What if I inherit a property? Does the bright-line rule apply to me?

The bright-line rule does not apply if you sell a property you inherited.

7. What if I received a property as a part of a relationship break-up? Does the bright-line rule apply to me?

If you receive a property as part of a relationship settlement agreement, you won't need to pay income tax on the property when it's transferred to you.

However, if you go on to sell this property within the bright-line period for this property, the relevant bright-line rule will apply.

Reference: IRD website

As indicated by the IRD, many aspects of bright-line depend on your personal circumstances and hence it is very important that you discuss these with us so we can advise you appropriately. For more information and to discuss whether bright-line applies to you, please contact us for an appointment today.

Are you who you say you are? Is that really your money?

Mon, 28 Jan 2019 22:00:00 GMT

Sound like silly questions? Not any more!

New anti-money laundering legislation is now in place and Chartered Accountants (along with lawyers, banks, real estate agents and other professionals) must meet stringent new rules to verify clients are who they say they are (including fellow company directors, trustees and beneficiaries who are not even our clients), as well as having to hold proof of source of funds for investments and more.

There is too much detail to go into via a short article. This is just to let you know what the new legislation is about and why we might ask for further information when completing future transactions.

For any questions on this new legslation, please contact us and we will happy to discuss it with you.

Does "mindfulness" have a place in business?

Sun, 13 Jan 2019 22:00:00 GMT

According to Google, which offers employees a course on mindfulness meditation , and Lululemon, a company that keeps a Director of Mindfulness on staff, the answer is a resounding yes.

Mindfulness, as American scientist Jon Kabat-Zinn defines it, is simply "paying attention in a sustained and particular way – on purpose, in the present moment and non-judgmentally."

Research has shown that practicing mindful meditation can lead to reduced stress, lowered blood pressure, increased brain activity, and improved immune response. It's also been shown to have measurable value for companies when their leaders and employees practice mindfulness, too.

Here are a few ways taking a more mindful approach to running your business can lead to greater success.

The power of positive thinking

A simple shift toward a more optimistic outlook can help increase receptivity and lead to more creative problem solving. In an article in the Harvard Business Review , emotional intelligence expert Daniel Goldman states that "pessimism narrows our focus."

What if instead of coming quickly to "no"-or making decisions on auto pilot – your organisation spent more time ruminating on "maybe"?

By staying open to possibility you may just notice a remarkable improvement in how innovative your small business can be.

Improve your culture

Businesses led by entrepreneurs who are personally committed to self-improvement tend to nurture healthier, more desirable work environments, which is absolutely vital to attracting top talent.

Research has shown that millennial workers (who will number 86 million by 2020) are interested in work that creates positive change . They want more than a pay cheque from a company; they want support for their personal and professional development as they strive to make a difference in the world.

In addition to attracting top talent, it's been shown that a healthier, happier work environment results in a more motivated and productive team .

Enhanced leadership skills

Megan Reitz and Michael Chaskalson -professors at Hult International Business School-found three leadership capabilities were enhanced in those with mindfulness training. Those capabilities include resilience, the capacity to collaborate, and the ability to lead in complex conditions.

Reitz and Chaskalson also discovered the key to more mindful leadership comes down to three crucial "meta-capacities": metacognition, allowing, and curiosity.

Metacognition means being able to observe what you are thinking, feeling, and sensing with detachment so you can make better decisions;

Allowing is simply "letting be"-by approaching situations with openness, without judgement or criticism, you can see a situation for what it really is;

Curiosity is vital because it requires sustained interest and inquiry-a desire to deepen an awareness of the moment, sidestep assumptions, and "go deep".

Reitz and Chaskalson found that with practice, leaders became more responsive than reactive in their decision making-and that difference led to valuable change for their organisations.

Final tips

In business a mindful approach can helps you maintain active attention on what really matters in the moment, and avoid reactive decisions that may not be in your company's best interests.

Check out the Potential Project for some free online mindfulness training materials including a guided audio session, practice manual, and app.

If you're ready to discover what greater mindfulness can do for your business, try practicing mindfulness for ten minutes each day-and mind the results.

For assistance with you business advisory and accounting needs, please contact us today.

“The IRD has a way of finding out….”

Tue, 20 Nov 2018 22:00:00 GMT

While the one liners such as Drew referring to his tax audit as "….. jumping through pedantic Government hoops so drones like Gerry can justify their jobs" will never be as famous as Dr Ropata's "We're not in Guantemala now", as Chartered Accountants we have found the tax man episodes highly entertaining.

Drama aside though, there are some very useful lessons highlighted by the scriptwriters' take on tax matters, including the importance of record keeping and taking proper professional advice from a qualified Chartered Accountant.

Here is Jo's commentary on Dr Drew McCaskill's IRD audit woes:

Jo tells me the storyline is still unfolding so I am sure I will hear the final outcome of Drew's tax woes at some stage in the future. However, to close I must dispel a few of the mistruths and stereotypes presented on Shortland Street in the interests of drama and entertainment:

The timeframe and process for a tax investigation/audit is many months to many years, depending on the complexity of your affairs. It would never be compounded to a couple of days!

If you are concerned you may have made mistakes with your record keeping, you are aware you forgot to declare something, or you would like help improving the way your store and organise your financial affairs, please contact us to make an appointment. We can guide you through the best approach to take for your specific circumstances and, if necessary, negotiate with the IRD on your behalf.

Know your tax obligations before landing in the Airbnb world

Mon, 24 Sep 2018 23:00:00 GMT

What is Airbnb?
Put simply, Airbnb connects people online wanting to rent their property (entire property or a set space within a property), with people who are looking for accommodation. Hosts and travellers from over 190 countries worldwide participate in this online global marketplace.

Key issues to consider when entering the Airbnb world as a host

1. Impact on your income tax

Any income earned in a business that intends to make a profit is subject to tax under New Zealand tax laws. Income earned from services like Airbnb must be declared like any other income you earn.

From this you are entitled to deduct costs incurred, much like you would when managing a rental property. Direct costs such as advertising or Airbnb fees are usually fairly obvious, but you can also claim a portion of costs relating to the entire property as well. Some of the factors to take into account when seeking to apportion costs include:

As with any income generating activity, it is very important that proper records including invoices and receipts are kept. Not only does this allow us as your Chartered Accountant to correctly complete you tax return, it also ensures that should you be subject to IRD query or audit, you have all the relevant information on hand. The IRD are currently targeting activity in the black economy, which is partly made up of those providing short-term accommodation.

2. Mixed-use asset rules

If Airbnb is the first time you have entered the short-term accommodation marketplace, you may not have previously heard of the mixed-use asset rules. These rules apply where the property is used for income generating activity for only a portion of the year, with the owners using it themselves during other parts of the year.

Where mixed-use is present, deductions available are impacted in that the expenses need to be apportioned between business and personal use, which can have a significant effect on income tax calculations.

These mixed-use rules apply to the full range of ownership structures under which Airbnb ventures can be operated – individuals, trusts, partnerships, companies and look-through companies.

3. Don't forget GST…….

GST consequences are often overlooked. If you are not GST-registered, income you earn from Airbnb, whether in conjunction with other income you earn or on its own, may take you over the $60,000 threshold for mandatory GST registration.

When GST registered, money received from letting through Airbnb will need to have GST accounted for. Further, when you sell the property, you may need to account for GST on the sale.

These are just a few of the GST considerations – there are many more which can get quite complicated. It is best to seek our advice from the outset to ensure you are GST compliant.

4. Other less obvious considerations

We really stress the importance of pre-planning your Airbnb activity and working with us to ensure your structure is correctly set up from the start. There are many benefits you can derive from utilising services like Airbnb, however overlooking the issues we have outlined can cause significant problems down the track.

While not to discourage you in your quest to utilise your property to generate profit, it is important to remember that the thing that makes it easy for you to rent a property on Airbnb is the same thing that makes it easy for authorities such as the IRD and local councils to monitor your activity. Please don't get caught out – contact us for assistance before it is too late!

Can my dog be claimed as a security expense and other curly home office questions…..

Fri, 10 Aug 2018 23:00:00 GMT

Unfortunately for these clients, none of these items were able to be claimed as home office expenses. The rules are very clear regarding what you can and can't claim. However, making a home office claim if you conduct some or all of your business from home is still an effective and legitimate way to reduce your tax liability.

When and how can I claim home office expenses?

Which expenses can be included in a home office claim?

You can claim a portion of rates (this includes water), insurance, power and mortgage interest/rent based on the percentage calculated above.

You may claim a 50% deduction for telephone rental if you actually run your business from your home, as well as business-related toll calls. If you have a separate commercial and domestic line rental, you can claim the full cost of the commercial line for both income tax and GST, but none of the domestic rental. If you make any private calls on the business line and you are charged for them, you will have to make an adjustment for them.

Home internet costs will generally be a private expense of the household and not claimable. However, if you run your business from home you are likely to use the internet as part of carrying on your business. This portion may be claimable as a business expense. How this portion is claimed depends on the type of internet plan you have.

What records do I need to keep?

The responsibility for keeping invoices and records for a home office is the same as for any other business expenses you are claiming. Often clients tell us to claim their home office as per the previous year, without providing any documentation. This is not the best approach for several reasons.

Firstly, amounts charged for rates, utilities and mortgage interest or rent do change each year, often up. Not providing current year expenses means you are likely to be missing out on some of your home office claim and paying more tax than you need to.

Secondly, home office expenses are really no different to any other expenses and you will need proof should the IRD ask questions and request a full record of the expenses being claimed.

New square metre rate option

A new method for calculating the expenses you can claim for using your home as an office has been introduced by the IRD for the year ended 31 March 2018. This method uses rates set annually by the IRD based on the average cost of utilities per square metre of housing, but excluding mortgage interest, rates and rent.

The square metre rate for utilities for the 2017 - 2018 income year is $41.10 per square metre.

You can then claim a portion of the mortgage interest, rates and rental costs as well by the usual method - the percentage or estimate of floor area being used for business purposes.

For more information on how to make the most of your home office claim, please contact us to discuss further.

10 quick growth tips for your small business

Fri, 20 Jul 2018 23:00:00 GMT

1. Utilise new technology

Modern technology can save you time, improve productivity and reduce your operational costs. Make use of Facebook, Twitter, Google+ and other social media tools to market your business.

Dropbox is a cloud-based service that can be used for document creation and sharing, while Skype is commonly used for calling or video conferencing.

2. Communicate better

Always take a friendly but professional approach to any form of customer interaction including written invoices, quotes and emails. Create guidelines for dealing with customers in writing and over the phone. Reply to messages as soon as possible. If you take too long to return a call or email, you may lose a potential customer to a competitor.

Try writing a blog or column about your chosen industry. Think about sponsoring an event or gifting your products or services to a local sports team, community group or school.

3. Become more innovative

Even if your products and services are selling well, always look out for new ways to refine your business. Organise regular brainstorming sessions and invite staff to share their ideas on ways to improve products or services.

4. Tighten up your credit policies

For any orders, make sure your customer completes a credit application and that they understand your terms of trade. Encourage your customers to clear payments quickly by emailing or posting invoices and giving clients a clear time frame to pay. Revisit your terms of trade and make any necessary changes if need be.

5. Improve your record keeping

If you're selling products, keep a record of every product sold and ensure you're aware of how much stock you have. There are free or low-cost point-of-sale (POS) computer programs that can manage stock inventories and provide a record of each product sold. Create a database for future follow-ups by recording clients' names.

6. Join business associations and organisations

Business associations and organisations give you access to industry leaders about current innovations and developments within your chosen market for an annual membership fee. They hold regular events, seminars, short courses and networking evenings which can be incredibly valuable for meeting business owners, identifying investors, and learning more about your industry.

7. Develop a website

If you're a well-established business, potential customers will be searching for you on the Internet – often before they pick up the phone or walk through your door. An effective website needs to be functional, communicating what you offer and your point of difference.

8. Manage your time more effectively

Take note of where your time is going each day. Some tasks could be consolidated, or completed at a dedicated time each week. There are free or low-cost time management tools such as Toggl and Google Drive that monitor your daily workload and can generate weekly reports.

9. Buy good quality business cards and use them

Take any opportunity to hand out your business card when you meet new people – even outside of work.

10. Generate referrals

There are many ways to create referrals and grow your business. For example, you could pay for them per lead, write a blog, attend trade shows, or simply advertise through various media.

Your small business will need to harness a variety of methods for it to grow sustainably, so take the time to plan ahead and try some new approaches. For assistance to create and implement your growth plan, please contact us for a meeting time.

Good luck and let me know how you get on.

Protect Yourself and Your Data - Proactive Steps for Living Safely in the Digital Age

Mon, 25 Jun 2018 23:00:00 GMT

You can no longer afford to be blasé about your data security - if you are not taking proactive measures to prevent the use of your personal information, you are opening yourself up to all kinds of problems. Here are some tips you can use to protect yourself and your data in this age of data breaches.

Check Your Privacy Settings on Social Media

There is an old saying in the tech world - if the service is free, you are the product. Nowhere is this more true than in the world of social media. Avoid the Facebook may be getting all the headlines, but other social media companies operate in the same manner, selling your personal data to advertisers and serving up targeted marketing messages.

While there is nothing inherently evil in targeted advertising, it can become obtrusive when bad actors get involved. If you want to protect your data from the next Cambridge Analytica, you can start by adjusting your privacy settings. Controlling the type of data that is shared, and who it is shared with, can go a long way toward protecting your privacy.

Designate an Online Shopping Card

Shopping online is convenient, but it is important to stay safe. With so much credit card data being stolen, it has never been more important to be proactive about protecting yourself and your money.

You can start by designating a single card for all your online shopping. Use that credit card whenever you shop online, then check your statements carefully for signs of fraud and unauthorized use.

Avoid Saving Your Credit Card Data at Shopping Sites

It may be convenient to save your payment information, but it is also risky. Avoid the temptation to save your credit card information and instead take the time to enter it each time you shop.

This proactive measure will protect you in two ways. First, it will prevent your credit card information from being revealed in the next data breach, but it will also reduce the impulse purchases that might otherwise wreck your budget.

Use Strong Security on All Your Devices

Your online security is only as strong as your weakest link, so make sure all your devices are well protected. From your tablet to your smartphone to your laptop, make sure you have strong antivirus and malware protection on every device you use.

Implementing strong security and keeping it updated is one of the best things you can do to protect yourself from the next data breach. Think of your online security as a chain, one that requires the robust participation of every link along the way.

Data breaches are inevitable, and the bad guys keep coming up with new ways to steal your personal information. If you want to protect yourself in this dangerous digital world, you need to take a proactive approach, and that means building security into everything you do online.

Tax residency status requests from financial institutions

Tue, 29 May 2018 23:00:00 GMT

Further to the previous article about global sharing of offshore bank accounts and investments with the IRD (click here to read this), please be aware that banks and other financial institutions here and offshore are currently requesting that customers complete tax residency status declarations as part of this global initiative. As we have been receiving many enquiries about these tax residency status declarations, we wanted to assure you that these are legitimate and further, they are now mandatory to complete. Failure to complete the declarations will result in you being brought to the attention of the relevant worldwide tax authorities. This is a complex new area of international tax law, and if you have any concerns please contact us to make an appointment to come and see Paul.

Global sharing of offshore bank accounts and investments with the IRD

Sun, 20 May 2018 23:00:00 GMT

Source: Ministry of Business, Innovation and Employment (NZ) www.business.govt.nz

Do you have overseas accounts and investments?

If you have an account with an offshore financial institution, including banks and accounts maintained with certain offshore trusts, upcoming changes will see information about your overseas investments being shared with the IRD.

What you need to know

New Zealand is one of 105 countries and territories that has committed to sharing financial account information to combat global tax evasion. These laws have been in place since 1 July 2017.

From August 2018, the government will receive information about New Zealand tax residents with offshore financial accounts from other countries' financial institutions.

If you have an account with an overseas financial institution (including certain offshore trusts) you'll be required to confirm and disclose your tax residence status and tax identification number (TIN) with the overseas financial institution. This financial account information will be exchanged and will help the IRD verify that everyone is paying the correct tax on these overseas investments.

What you need to do

You have an opportunity to make sure your tax affairs are in order before the IRD receives the first automatic exchange from August 2018 onwards.

If you think there is an error in your tax affairs, the IRD encourages you to voluntarily disclose it before they identify the error. You make like to consider taking out audit insurance if you are concerned.

Things to think about

International tax laws are complex, and the way they are applied can depend on your specific circumstances and the different jurisdictions involved.

If you're a tax resident in New Zealand and another country or territory, or you earn foreign sourced income, you're subject to the tax laws of each. If both of those countries or territories tax their residents on worldwide income, or withhold tax on income earned, you could be taxed twice on the same income.

Double tax agreements (DTAs) have been negotiated between New Zealand and many other countries and territories to decide which country or territory has the first or sole right to tax specific types of income.

The fact that the income is taxed in the source country doesn't necessarily mean you'll avoid paying tax on that income in New Zealand. Income from overseas is calculated applying the New Zealand rules, not the rules of the country where the income came from.

There are cases when you need to attribute foreign company income before a dividend is declared by the foreign company.

A distribution/gift from an offshore trust might be taxable in New Zealand even if that distribution/gift isn't subject to tax in the source country.

If you pay interest offshore, eg on offshore bank/credit card/mortgage accounts, you need to pay non-resident withholding tax (NRWT) in New Zealand. You might also need to account for foreign exchange profits/losses on foreign mortgages annually, rather than when that mortgage is repaid.

This is a complicated area and we strongly recommend you contact us if you fall into any of these categories. You may not have previously realised the implications of offshore investments on your New Zealand tax return. This being the case, it is important that you voluntarily declare it before the IRD receive this information directly, otherwise you are likely to be subject to IRD investigations in the future.

Paying down debt

Mon, 14 May 2018 23:00:00 GMT

Debt can be a crippling problem for small businesses wanting to grow or just break-even during difficult times. By reducing debt you'll improve the value of your business, its financial situation, and its ability to continue operating into the future.

Assess your debt situation

Take a detailed look at all of your debts – both current and long term. Evaluate which ones are more urgent and which can be parked until some progress is made.

Also list your debts from smallest to largest. Maybe some of those smaller debts can be paid off quickly without much hassle to enable you to focus on the larger ones. Consider consolidating all your loans into one payment if possible.

Cut costs and free up cash

Try to cut any unnecessary costs and free up some cash in the process. Think about how much you spend on each of your daily expenses – is there room to cut some of those costs?

For example, building firm may shout takeaway coffees for its workers a few times a week. Maybe a cheaper way can be found to continue providing coffee, such as instant coffee on site with hot water from a thermos, rather than expensive takeaways.

Early payment discounts could work well but make it clear on each customer's invoice. Alternatively, tighten up invoice periods so there are less days for your debtors to pay before penalties. Make sure you let them know about any changes and the reasons for those changes.

Reassess funding

Have a look at how you're using funds to pay off your business's debt. Do you have funds available that could be better used to reduce debt further? Perhaps you have money in a current account that isn't being used optimally – lowering debt and hence future payable interest could be a wiser choice.

Sell your assets

Another option for freeing up funds to reduce your business's debt might be to sell some assets. What do you have money tied up in, but don't use often enough to justify?

Make sure you've calculated depreciation correctly

For example, a company vehicle will need to be accurately depreciated in relation to its usage over time. We can help you calculate depreciation correctly and also check whether you're entitled to any tax rebates.

We can help your business develop and implement a debt reduction plan. Contact us today to make an appointment to get started.

10 Daily Habits of the Rich and Powerful

Sun, 11 Mar 2018 22:00:00 GMT

It's the little things that make up the big things. Here's a list of ten traits of some of the movers and shakers in the world today (and from the past).

1. They Stay Healthy
Health is make-or-break. If you have it, your life will take on meaning like you couldn't otherwise know; but if you don't have it, you will only accomplish a comparatively small percentage of what you otherwise would be able to. Like a dedicated runner who sees the need to count calories, log miles, and track their monthly progress when it comes to hitting the pavement, a good leader has to stay on top of their health to unlock those higher abilities to make good business decisions and wise choices. It all starts with managing your health.

2. They Value Down Time
The greatest leaders have always known how to make time for themselves. They went home after work and enjoyed time with their families. They understood priorities being properly managed. They perfected the art of relaxation and were thus able to push forward much harder, despite their imperfections and vices. If you are constantly running out of steam, you won't be able to build a solid, long-lasting business.

3. They Tend to Their Finances Each and Every Day
You may or may not be a whiz when it comes to money, or you may have someone who manages it for you (most wealthy people do), but if you don't regularly watch your bank balance somehow, you can hardly be called prudent. Track your finances and monitor your cash flow every single day. Stay on top of your business and your business will put you on top!

4. They Stay in Control of Their Emotions
Good leaders know at all times how to manage their emotions. They know that anger never accomplishes anything when it is not directed forward properly

5. They Say 'Thank You!' to Someone Each Day
The best managers know how important maintaining relationships are, and so even if its just a passing: 'You did great! Thanks!', they never go light on justified praise. Entrepreneurs far and wide understand the need for perfecting the art of daily encouragement. This motivates their employees and builds company morale. Without sufficient praise, no one will really want to work hard and strive to do better.

6. They Constantly Hunt for Minor Improvements to Make
As a daily regimen, the successful look for ways to improve their performance, not only in their own daily tasks, but also in the work of those around them. They value improving and augmenting skill-sets. They know that the smallest of changes you make in the person of today make a better person tomorrow, which will lead to more and greater successes

7. They are Humble and Listen to Feedback
Good leaders know they don't know it all. They mine for feedback, and when they get it, they respect those who they got it from more so than before. Why? Because that's how you self-improve and how you lead and direct more effectively. The results are better results in every area.

8. They Seek Out Counseling/Mentoring
No one company has ever been built without the visionary behind it seeking out counsel. No one can be an expert in every area, which is why it is important to seek out expertise in areas where it is needed. Seek out a top-game mentor. Grow in knowledge, and in time, you will learn how to grow your company by leaps and bounds.

9. They See Failure as an Experiment
A failure is an experiment that didn't yield results; a mistake is an experiment that didn't yield results that ran too long. You learn from failing, but you don't make mistakes. You fail (learn) and then move on (don't keep going with what is not working) = no mistake! The mega-successful embrace failure because they know it will make them ten times better than they started out to be. No company can change, develop, or grow without the refining fires of failure. Do you see failure in the same light?

10. They Welcome Adversity
When difficulties arise in any company, it is no surprise to the successful since they went in banking on it! If you are wise, you go in prepared for setbacks to come. Adversity is what motivates the great. It defines them - and refines them - to carve out their potential. Does adversity push you forward or drive you backward? You can easily tell from your answer how successful you will be from this.
How many of these traits have you found characteristic of yourself?

At Paul Martin Chartered Accountant Limited, we can help ensure you have positive daily habits. In addition to annual compliance, we offer a range of services to add value to you and your business, including financial forecasting and monitoring. We also offer financial awareness coaching to help you stay on top of your business goals and performance.

To find out more about how we can help you create successful daily habits, call us on (09) 576 4166 or request an appointment today.

3 reasons personal budgeting is brilliant, not boring!

Sun, 14 Jan 2018 22:00:00 GMT

If a business owner said to you that they run their business without a budget, what would you think? You'd think they were incompetent. Or perhaps lazy? Or both?

But what do most families do?

When you think about it, a family is actually a mini business. There is income, there are expenses and there is, hopefully, something left over to invest and to enjoy.

So why don't most families operate to a budget?

After all, a personal budget helps you to see your financial direction and helps you stay (or get back!) on track. It's a great comfort.

One reason some people don't put together a budget is the feeling of being overwhelmed, of being too busy, of feeling like life is too complex to keep track of all that.

Well the good news is we can handhold you through the process and make it easy for you.

But before we look at the 'how' aspects, let's consider 3 more reasons why a personal budget is such an important tool to help you achieve your financial goals and dreams.

The money you earn has already been promised to keep the electricity on, make the loan repayments and pay for the insurance. Most of what many people think of as budgeting is really honouring the commitments you have already have.

Now since we are all honest people and plan to pay these bills, the first step is to track these bills and see what is left over for your day-to-day living.

Some of your day-to-day living money is in the bank. Some is in your purse or wallet. Some is with your partner or children if you have them.

You need a simple system that allows you to track day-to-day expenses such as fuel for your car, shopping and your discretionary spending expenses.

We suggest you don't attempt to keep track of every cent of your day-to-day living money. It's not worth the effort for the benefit you'd get out of that level of detail.

Instead, you need to identify your main day-to-day expenses and make allowance for all other minor day-to-day expenses as a total expense.

Here's a key: You need a system that is so easy to use that you keep using it.

You can track these day-to-day expenses by entering them into a spreadsheet, or better yet, use a tool such as Pocketsmith or Pocketbook that can automatically pull in bank feeds to save you a lot of data entry.

It's ALL in the attitude!

Have you ever attempted to budget and given up in frustration? What is the reason your budgeting attempt failed? What will make you stick to it?

Think about this…

One of the top reasons-if not the top reason-so many people give up at budgeting is attitude. If you think of it as a penny-pinching sacrifice instead of a means for achieving your financial goals and dreams, how long are you likely to stick with it?

It's like the difference between going on a diet and eating healthily. One is negative and restrictive; the other is positive and allows you to indulge every now and then and yet still achieve your goals.

To increase your chances of success, work on your attitude first.

Many people refuse to budget because of budgeting's negative connotation. If you're one of them, try thinking of it as a 'spending plan' instead of a 'budget'. Once you've attempted to budget and failed, the bad feelings associated with any type of failure can keep you from trying again. Don't give up!

Let's face it. Money is a tool that enables you to reach your goals in life. But the cold hard reality is that until you know where your money goes, you can't make conscious decisions about how to use this tool effectively.

A budget (or spending plan!) shows you exactly where your money goes and provides a clear plan that lets you save for the things that are important to you: a new house, a new car, a comfortable retirement, a tertiary education, high quality health care, travel, or whatever your particular goals and dreams happen to be.

And that's exciting.

Whatever YOU decide you want to save for and achieve, you can. With the right attitude, a focus and a (spending!) plan.

There are several universal budgeting concepts that every successful budget will include, but one of the most important features of a successful budget is for it to be easy to use and suitable for your needs.

Don't try to use a generic, complex, one-size-fits-all budget. A simpler approach makes it easier to stay committed. If you stick with a realistic, effective budget long enough, the rewards will keep you motivated. In the meantime, do whatever it takes to keep yourself going.

Once you start budgeting with a positive attitude, you will see the difference a budget or spending plan can make in your life.

Your next step ... Call us on (09) 576 4166 or book an appointment online to make a time to meet. We'd love to discuss this with you and help you to get on track towards achieving your financial goals.

Small Business, Big Decisions: Why Savvy Business Owners ‘Rent’ CFO-Level Experience

Tue, 05 Sep 2017 23:00:00 GMT

Larger businesses have a Chief Financial Officer (CFO) on staff. But what can small and medium sized businesses do in this regard?

Clearly, larger businesses can afford an in-house CFO. But it goes beyond an affordability issue: Large, successful businesses also understand how crucial the CFO role is to their business performance.

The CFO in a business:

This is management input that all businesses require regardless of their size. But how can small and medium sized business access CFO-level input and guidance?

The answer: You out-source it. You get a part-time, out-sourced CFO until you can afford one full-time.

That's where we play a role for many of our business clients.

Our 'Turbo Boost' service has been developed with input from our clients to make sure it's the ideal mix of support services and affordability.

As your CFO we roll our sleeves up and work with you in management meetings throughout the year on:

As business owners we all need to measure and monitor Key Performance Indicators (KPIs). That is, the handful of numbers that really matter in running our business.

It is also important that you have a 'KPI dashboard' to display your KPI targets compared with your current KPI performance. This helps tremendously in monitoring and managing your business' performance and, ultimately, hitting your targets.

As your outsourced CFO, we will bring to each meeting that we conduct with you clear financial reports, easy-to-understand KPI information, as well as our commercial experience to interpret the information, make suggestions and help guide your decision making.

Items we'll discuss each meeting include:

By helping with your forward planning for achieving the next period's targets, and by being a sounding board for you as you strive to meet your targets, our 'Turbo Boost' service and support gives you a crystal clear focus for what needs to be done to achieve the goals of your business.

Your next step ... Call us on 09 576 4166 or email us on info@pmartinca.com for a no cost and no obligation meeting to discuss how we can work with you as your outsourced CFO. We'll outline for you what's included and what costs are involved so you can see how the service can be comfortably included in your budget.

Why are Business Plans Important – And How Do You Start Writing One?

Tue, 18 Jul 2017 23:00:00 GMT

Well, our last two blogs discussed financial forecasting – in particular, how to get where you want to go and measure your progress along the way.

However, before you can start using them as a guide, there are two important things you need to know:

1. Where are you now?

2. Where do you want to be?

How do we answer these questions? We write a business plan.

Try Googling the term business plan. You'll get thousands of hits on hundreds of different templates for creating your own business plan.

It's easy to download one, fill it out, feel good about that, then stick it in the top drawer and never look at it again.

Worse still – you download one, feel it's taking too long to complete (or you're bored or don't like facing the truth about your business!) and stop. And you never to look at it again.

What a wasted opportunity!

Quitting so easily means that you probably haven't considered the question of why business plans are important in the first place.

The free templates tend to lack a very important ingredient – the input of an independent facilitator who can guide and challenge you, the business owner. Writing and implementing a successful business plan is a process that requires more than an owner spending half an hour filling in boxes.

Who is the best facilitator to help with your business plan?

It's usually your Chartered Accountant – the person who knows your numbers inside out and wants to help you achieve success and reach your goals.

The business plans that we help clients write are one-page documents that not only describe where the business is now, but establish your 12-month goals and 90-day goals, as well as the actions required to achieve those goals (amongst other essentials).

In short, your business plan needs to be action- and outcome-focused.

Additionally, a business plan should not be written just once . It needs to become a standard part of the annual business cycle: just like preparing your financial statements for the year just gone – but instead of focusing on what just happened, it looks at what you want to happen in the future.

Our most successful clients know that their updated business plans might raise cash flow issues that need to be addressed in the coming year, so it is often teamed with a budget or, even better, a three-way cash flow forecast.

This highlights the path they need to steer to get where they want to go - and where the potholes might be along the way. It therefore helps them prepare a plan to mitigate them or avoid them altogether.

That's why a business plan is important!

3 Reasons Your Business Needs a Budget Now

Thu, 08 Jun 2017 23:00:00 GMT

For many, the word 'budget' is about as appealing as the word 'diet'.

It seems to imply what you will go without , rather than what you will achieve .

To a successful business owner, however, the word 'budget' has a very different meaning.

It's more like a map than a diet. It's an outline of where you want to take the business, and what you need to achieve to get there.

Running a business without a budget is like a ship's captain setting off on a voyage without a map. Sounds ridiculous, doesn't it. Who would do that?

Yet this is, figuratively speaking, what many business owners do.

Successful business owners, on the other hand, not only set clear targets and budgets each year, they monitor them closely each month, even each week, and adjust them as they go throughout the year.

Here are 3 compelling reasons your business needs a budget, now:

One: If you don't know where you're going, how do you know you're not already there?

If you're not satisfied with how your business is performing, unless you set clear goals for where you want to take it, it's probably as good as it is ever going to get. At best, it will just meander along, subject to the whims and vagaries of the economy and general market conditions.

The good news is that your business doesn't need to meander along.

The first step in charting a clear course for growing and developing your business is objectively measuring 'where it's at' right now.

And the numbers do tell a story.

For some, they act as a wake up call. For others, they just confirm the journey's starting point.

It's paradoxical that a large part of the value in a business budget is not in the numbers themselves. It's in the realisation and acceptance of where you are and where you want to be.

The numbers are just the signposts for the journey.

A factual look at the numbers that describe where your business is right now takes away all the subjectivity, opinions and 'reasons' (often excuses, disguised as reasons).

This is the naked truth.

In fact, it is like standing on the scales, naked, looking at yourself in a full length mirror. That may or may not be a pretty sight!

For your business, these factual numbers are the sales, the variable costs, the margins, the overheads, and, lastly, the profit. After all your work, this is the reward you're left with.

Then comes the first of a series of 'hard questions'...

Answer those questions, and you've just described where you want to be. Congratulations! You have charted your course, which is the first step to ensuring your success.

Two: What's more important to treat? Symptoms or causes?

As you well know, sales don't just happen. Costs don't drop just because you want them to. Sales and costs are a result of other underlying factors. Put another way, they are symptoms of causes.

The business budgeting process quantifies the symptoms, and by asking a series of 'What leads to this number?' questions, it also identifies the underlying causes.

For example, underlying factors contributing to a sales (revenue) figure could include:

These are all called drivers . The sales figures are simply a result of these drivers. Costs are no different.

For example, the rent paid may be a result of the storage you need for your stock levels. Wages costs may be blowing out as a result of overtime paid but underlying that may be inefficient staff. Or a lack of clear processes. Or both.

So in reality what came first was not the sale or the cost, but their underlying drivers. The budgeting process forces you to name and to quantify these underlying drivers.

That's one of the most valuable aspects of preparing your budget. Not the budget itself, per se, but identifying your business' drivers.

Why?

Because then you can focus on improving them.

That's what will produce the improved results in your business. Not focusing on last quarter's figures. That's history.

It's more fun to create history. And that is, in essence, what you are doing when you are in your own business. You are captain of your own destiny, and you can steer it in any direction you want.

Note that word ... direction . A key point is to have one .

You will enjoy how effectively the budgeting and planning process will get you crystal clear on your direction.

Three: Budgeting is not about accounting. It's about being accountable .

Once you are clear on the handful of drivers that creates your business' results, the next question is…

What are you going to do about it?

Your budget won't just give you a monthly sales target, for example, it will help you quantify the drivers that will produce the result.

For example, if next month's sales target is $120,000, that end-result figure is not your focus. Not on a day-to-day basis. Knowing the underlying drivers, your focus will instead become, for example:

Now you and your staff have a clear focus and are 100% accountable.

That's good for them, and good for you and your business.

People in a business want a clear scoreboard and a 'game to play' so they know whether or not they are winning. Research has found that a lack of measurement in a job is demotivating to a staff member. Patrick Lencioni's book '3 Signs of a Miserable Job' gives some great examples of this.

Knowing these drivers, and quantifying a target for each you can then ask questions like:

You can then decide to improve skills, or systems, or attitude, or all three!

As you can see, the power of the budget is in the process of preparing it, and then the budget itself is a tool to hold you accountable to the measurable indicators you've chosen.

An added layer of accountability is... us.

We work with a number of clients where, on either a monthly or quarterly basis, we act as a sounding board and independent party to ask you the hard questions about the drivers and the results. This focuses your mind, allows you to form a clear Action Plan to improve results, and then increases your chances of success because you know you need to report in to us next time.

It's a powerful process that you'll enjoy due to the focus it creates and, in turn, the results that focus achieves in your business.

To take more control of your business and its performance, get in touch to make a time to come in and see us. Depending on the size of your business, we might work out that a quarterly process might work best (and be the most feasible, cost-wise), or your business might be at a point where monthly or even weekly guidance would be ideal.

Either way, we'll outline your options and your costs so you know precisely what's involved.

We look forward to helping you chart your course, helping to get a clear direction, and then keeping you and your business on course.

After all, you won't end up at the ideal destination by drifting.

Where Did It Go?: Taking The Mystery (And Pain) Out Of Managing Your Money

Sun, 07 May 2017 23:00:00 GMT

With the ageing population and many Baby Boomers now continuing to work-at least on a part-time basis-past the traditional retirement age, people are working more years than ever. Even if a person works only 40 years, at average earnings, that's a lot of money.

It is said, " Money talks ", but for many, all it ever says is, " Hello, and Good-bye ".

Have you ever found that the month lasts longer than the money? Or have you ever got your tax return and looked at all the money you have earned over the past 12 months and then thought, "Where has it all gone?"

You're not alone. And the good news is, now there's a simple solution.

There's a great quote from Charles Dickens' book David Copperfield where the character Mr. Micawber says to Copperfield, "Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.

This is so true, regardless of the income level.

Yet keeping track of what you spend your money on, for many, is too hard, too laborious. The benefits of doing so are obvious to anyone, yet the discipline to keep all your receipts, enter the information into a program like Quicken Personal or MS Money (or just to write it into a paper ledger), and keep that going consistently over time is beyond most of us.

Well ... and here's the good news ... what if a piece of software could track and categorise what you spent your money on, but it involved very little effort by you?

Imagine the clarity you'd get if you knew exactly how much you have spent and what percentage of your income is going on the various areas including mortgage/rent, vehicles, groceries, schooling/education, eating out, entertaining, mobile phones and internet, medical and pharmaceutical, and so on.

For most people, it would be a real eye opener.

It is said that knowledge equals power.

That is very true when it comes to your personal finances.

Once you can objectively see exactly how your lifestyle and your habits-that is, you -are spending your money each year, and month-to-month as you go, you then have the power to make decisions on where you can change your spending (and saving!) habits.

In this information age and electronic era, many of us use credit cards, debit cards and EFT when buying things. We have now reached a point for the first time in history where more money is exchanged electronically than through cash transactions.

That's a lot of transactions. And it's a lot of data.

This data is available to be analysed on a societal basis, industry basis, business basis and ... a personal basis.

And that's where a brilliant tool comes into play: Xero Cashbook

It analyses and categorises all your electronic transactions to give you a snapshot of your complete financial position in an instant. This also organises a view of all your bank accounts and credit card accounts in one place. Very handy.

This is precisely what a lot of people have been waiting for: An easy way to track and control your finances.

Xero Cashbook categorises your spending and saving, so you can tell whether your money is being used for essentials or you're splashing out on other things.

If you are concerned about security, Xero protects your financial data with 128-bit SSL encryption, the same as online banking. Your data is well protected.

You can also invite people you trust, such as your spouse, accountant or other financial advisor, to access your Xero reports for free. This means that as your advisors we can see the true picture of your finances and spending habits, and help you stay on track.

This allows us to help you plan ahead and make the most of your money.

You will never before have felt so in control of your personal finances.

Being web-based, rather than being stuck on one computer like traditional software, you can access Xero from home, work and even on your smartphone such as an iPhone and Android device.

If you'd like us to step you through getting set up with Xero Cashbook, or their Xero equivalent for Business, or both, get in touch and we'll hand hold you through the process. It's not difficult, and once your bank accounts are set up, it happens automatically from there.

The way we see it, the more clients we help keep track of their finances in such an easy way, the more clients who will prosper and find financial happiness instead of financial misery, to paraphrase Dickens' Mr. Micawber.

Your next step ... Call us on 09 576 4166 or request an appointment to make a time to meet and discuss your options. We'll then outline the costs so you know exactly what lies ahead.

It's time to stop saying "good-bye" to so much of your money each year!

How To Plan Your Exit Strategy

Wed, 15 Mar 2017 22:00:00 GMT

As trusted business advisors in Auckland, we help clients to create exit strategies for their businesses. Here are some of the things that you need to consider when planning an exit strategy:

1. Future funding

Just like your retirement plan, you should also set aside enough funding for your business after you are gone. If you own a big company, you should consider the hundreds of people that you employ. You can't just leave them behind if you decide to step down or close the business. But if you are a solopreneur, it is okay, since you only have yourself to consider. Your retirement plan is enough to cover you.

As a business adviser, we assess the status of your finances and make necessary recommendations based on your business goals. From here, we can map out your exit strategy.

2. Successors

Part of your exit strategy is finding the right successor. If you have a family-owned business, you may plan to turn the business over to your children or another member of the family. On the other hand, you can also entrust your business to a valued employee or to someone you can rely on.

It may be too early to think about who will succeed you in the business should you wish to continue it after you are gone. But as business advisors, we encourage our clients to create a list of their possible successors. In the event that they need to step down from their business, they have a ready list to choose from. As your business advisor, we can also assist you prepare for the turnover of your business to your chosen successor.

3. Documentation

You need written documents of all the things that you want to do with your business. These written documents will be used for legal proceedings in case you pass away unexpectedly. They will also be used to present to any investors.

As the exit day nears, your lawyer will go over the document and discuss it with the people concerned. They will also prepare everything to legally transfer the business to your successor.

Planning your exit strategy is very important. You just don't leave your business behind. You don't leave all your hard work and let it disappear. You should want to give it to someone who is deserving and who will continue what you have started.

If you need help on what to do, and want to start your succession planning, we can help you.

We are experienced business advisors who will help you map out the best business succession strategy. We also offer GST, tax returns, annual accounts, and other small business accounting services to help you be more efficient in your business. We use the best accounting software in NZ to give you the most timely and accurate financial reports.

We also have flexible service plans to suit your business needs. If you want to know more, request an appointment online or contact us on (09) 576 4166.

Tips To Better Understand Your Customers

Sun, 05 Mar 2017 22:00:00 GMT

That is why, before starting a business, you need to know who your target market is and what they want. This needs to be included in your business planning and business strategy.

As an experienced business advisor in Auckland , here are some tips to help you achieve this.

Tip #1 - Know your customers

If you want to understand your customers, you first have to know who they are. This may seem a little difficult but in reality it is not. A simple way that you can know your customers is by looking at the foundation of your business.

Whether you offer a product or a service, you've probably started a business because you found that no one in the market is offering that kind of product or service, or there is high demand for that product or service and limited suppliers offering it. Whatever your reasons for setting up your business, it will lead you to knowing who your customers are.

Once you know who your customers are, it is easy to analyse and assess their behaviour and needs. You can then use these assessments to customise your product or service to complement their buying behavior.

Tip #2 - Connect with your customers

It is not enough that you know and understand your customers. You also need to talk with them and ask them for feedback. This way you can fully tailor your product or service to meet their needs.

Connecting with your customers can be a lot of work, especially if you are targeting a large portion of the market. But technological innovations can make this job a little easier. There is the internet, specifically social media that you can use to reach out to your customers. Set up your own social media accounts and try connecting with them using these.

You can also send online surveys, questionnaires or feedback forms to ask how they feel about your business and your product or service. Let them know that you appreciate their feedback and use it to improve your business.

Tip #3 - Use data to understand their behavior

Your inventory, sales and other reports or data can be used to understand your customer. Any data your business can gather will greatly help to look for patterns of behavior, such as how your customers make orders or purchases.

Use this data to your advantage to improve customer satisfaction and loyalty. You can also use this data to help you think of strategies that would increase your sales, like upselling or cross-selling.

Tip #4 - Research your competitors

If you've tried your best and used all the strategies that you can think of to understand your customers and still fail to encourage them to buy your products, you have to look for a different angle.

Research your competitors. Know what they are doing and how they present their products/services to the market. Don't copy their strategy, but use it as a reference and create your own ways of attracting customers.

These are just some of the tips that you need to know if you really want to understand your market and improve your sales. But if you are serious about improving your sales and business value, we would like to invite you to attend our seminar titled "7 Ways to Grow Your Business" happening this 23 March 2017 (Thursday) at 4:00 PM and 24 March 2017 (Friday) at 8:30 AM . The venue is Paul Martin Chartered Accountant Ltd Boardroom, Level 1, The Lane, Botany Town Centre.

In this seminar, you will:

• Be challenged to change your behaviour and look at your business like you never have before

• Learn how to set a roadmap and cruise control dashboard for your business

• Discover how to measure and maximise business efficiency

• Discover the 7 ways to grow your business

• See a worked example of the Growth Equation in action

Seats for this high value seminar are limited. To reserve your seats, just click here to register . You can also give us a call on (09) 576 4166.

Things that Prevent You from Getting Rich and How to Avoid Them

Mon, 20 Feb 2017 22:00:00 GMT

One of the reasons for this is due to our poor money habits .

As a trusted personal financial and business advisor in Auckland , we are sharing some of the common things that we notice people do that prevent them from building a strong financial position. So, what money traps can you fall into?

1. You don't have emergency funds

You may have money to cover your bills. But you don't have any emergency funds that would cover any unexpected expenses, such as repairs to your damaged vehicle, maintenance around your home, or emergency medical bills among others.

No matter how good you are at budgeting your money, if you don't have an emergency funds that would cover sudden big expenses, you are financially fragile. You might even end up with increased debt because you don't have extra money to pay for these sudden expenses.

Expert advice:

Save at least 20% of your income. Set up a direct debit from your wages to make the saving automatic. If you think you can increase your savings, increase it by 5 or 10% quarterly or yearly. This way you will be able to prevent spending all your money on non-emergencies and build a nest egg for the future.

2. Not paying your debts on time

Some people pay only the minimum amount due on their credit card, thinking that having a credit balance will give them a solid credit history. But in reality you are not building a good credit rating if you cannot pay off your debts. Also, you are extending the suffering from paying your debt for a long period of time and you will be paying more interest because of this. It makes more sense to always pay credit cards off when they fall due.

Expert advice:

If you cannot pay off your debts right away, it is advisable to create a plan for settling your debts. Prioritise those that are urgent and with the highest interest rates. Make a flexible payment plan or schedule that you know you can follow.

Paying your debt off will mean sacrifices in other areas. But the rewards are great if you have a clean credit record and are not bogged down with debt.

3. Not knowing where your money goes

You may have many bills to pay and other things that you buy for your everyday needs. But not paying close attention to your finances has repercussions. If you continue mindless spending, you won't be able to save for emergency situations, or have funds to pay off your debt. Mindless spending also prevents you from getting rich.

Expert advice:

If you don't have a budget, it's time you created one. If you are not good at budgeting, it's time to learn. Budgeting your money and knowing how to track your spending habits will help you to manage your finances properly. If you know where your money is going it is easier to make necessary adjustments.

Example, if you are spending $5.00 a day for a coffee, you may want to buy a whole pack and make your own coffee instead. A whole pack of coffee is more affordable and can last for a long period as compared to buying an expensive single coffee every day.

4. Hanging out with toxic people

Your spending habits will also depend on the type of people you socialise with. If you spend time with people who love gambling, drinking and partying, it is likely that you may fall into their spending habits, which will affect your own finances.

Expert advice:

There's nothing wrong with socialising with other people. You just need to understand if you can keep up with the kind of lifestyle they have. More likely, in the attempt to blend in, you will be influenced by their spending habits.

Spend time with people who you think will help you be more responsible with your finances. Or seek financial advice from mentors or experts. Find someone that you can trust to help you manage your finances properly.

These are just some of the very common things we see that prevent clients from getting ahead financially. As chartered accountants in Auckland, we help professionals and business owners manage their finances. We also assist them with annual accounts, tax returns, GST and other professional accounting services . We offer business consulting and help clients prepare business strategies for their dream business.

So if you want to know more about how you can improve your personal finance, or if you need help in starting a business, talk to us on (09) 576 4166 or request an online appointment .

Ways To Improve Your Sales

Sun, 12 Feb 2017 22:00:00 GMT

What should you do?

As business advisors and chartered accountants in Auckland, we've seen many small and medium businesses struggle to increase their profit and business value. When this happens we assist them to get back on their feet and help them create a business strategy to improve their sales and performance.

So if you find yourself struggling to improve your sales, here are some tips that may help:

1. Be very hands on and make increasing sales a priority

Some business owners have knowledge and skills when it comes to sales and may be the head of their sales team or sales department. However, if you don't know anything about sales, you may need to hire someone who is more experienced and skilled when it comes to sales. If you can't afford to hire a sales specialist you could talk to a sales mentor and ask them what you need to do.

While your business will have many aspects that need your attention, you need to make improving your sales a priority at this time. You need to focus your energy and effort on achieving sales growth.

2. Know your product or service

You and your sales team should know all aspects and details about your products or services. You should know and be able to fully describe and sell them to anyone. Lack of product knowledge can put your sales down.

If you or your team know your products or services very well and are confident about them, you can be great salespeople. You can use your knowledge to tailor-make solutions to meet the needs of your customers. If you can successfully do this, you will be creating a good relationship between your customer and your company, and this will surely result in further sales.

3. Tailor make your products/services to the needs of your customers

Some businesses push their products/services to the customers instead of adjusting their products/services to meet their customers' needs. Perhaps you could tailor-make your products//services specific to one industry or profession. Your products/services should be able to help a specific niche. If you try to generalise you may be targeting random people who might not be the customer that you are looking for. This means you are wasting your energy and resources.

4. Stay up to date and know what's new

Today, things change quickly. The conventional way of marketing your product may not work anymore. You may need to reconsider and look for more non-traditional ways to promote your business to your target market. Get up to date with the latest trends and use them to your advantage.

5. Up-sell and cross-sell

Up-sell is a sales strategy where the seller encourages the buyer to upgrade or buy other add-ons to the existing product/service. Cross-sell, on the other hand, is a strategy where you offer other products/services to an existing customer.

Up-sell and cross-sell are two of the easiest and most effective sales strategies that you can use if you want to improve your business sales. But for these strategies to be effective the timing and customer relevance needs to be right. Make sure that your up-sell or cross-sell offer is relevant to your customer and it is what they actually need.

These are just some strategies that you can use to improve your sales. If you are serious about achieving business growth, please register for our seminar "7 Ways To Grow Your Business" happening 23 March 2017 (Thursday) at 4:00 PM and 24 March 2017 (Friday) at 8:30 AM at Paul Martin Chartered Accountant Boardroom located at located at Level 1 The Lane, Botany Town Centre, 588 Chapel Road, East Tamaki, Auckland 2013.

At this seminar we will be discussing effective strategies that you can use to increase your profit and business value in more depth. We will also help you to discover how to measure and maximise business efficiency.

Aspiring entrepreneurs and business owners are invited to join us and learn in this valuable seminar.

Just click the link below to learn more about the seminar and reserve your seat for either date.

You may also directly call us on (09) 576 4166 or request an online appointment today.

Reasons Why You Should Start A Business Today

Sun, 05 Feb 2017 22:00:00 GMT

Starting a business can be overwhelming. But the rewards are great once you know how to handle the responsibility and get the business planning right. To get you excited and inspired to start a new venture, here are some of the reasons you may decide to start a business this year.

The main reason why people launch their own business is to make money! A successful business should provide financial stability. You can earn a very decent income if you get things right. However, many established and experienced business owners would say that money should not be the sole purpose for starting a business. If it is you may end up failing.

As business advisors , we always recommend to our clients that they should focus on providing quality services and products. Quality services and products are very important to creating a successful business. Once you have this foundation, monetary success will surely follow.

2. Change in lifestyle

Many aspiring business owners come from being ordinary employees. As an employee your lifestyle is more limited. Launching your own business can create a positive change in your lifestyle and give you more independence. You own your time and you can choose when and how to work.

3. You are the boss

Being a boss of your own company is a dream come true. You can make decisions about your business without someone telling you what to do. The profit is also yours. You have the money, the time, and the liberty to more or less do whatever you want, for as long as your business is operating smoothly.

4. Making a difference

When you start a business you are creating opportunities, not only for yourself, but also for other people.

Many entrepreneurs launched their business for the sole purpose of helping other people or society in general. Even though they may earn a lower income, the feeling of helping others gives them that ultimate satisfaction. This is where most business owners succeed.

5. Self-fulfillment

One of the many satisfying things in the world is having a successful business. It is a symbol of good social status and a stable financial life.

If you are thinking of starting a business but don't know where to start, as trusted business advisors and chartered accountants in Auckland we can help you with the process.

We offer a wide variety of business consultancy and accounting services - from business strategy and planning as well as small business accounting services like annual accounts, tax returns, GST and more. We also use the best accounting software in NZ to provide you accurate and timely financial reports.

Talk to our experts on (09) 576 4166 or request an online appointment today.

Demystifying Income Tax

Sun, 29 Jan 2017 22:00:00 GMT

As a dedicated tax accountant in Auckland , we are sharing this tax overview so you can better understand your tax obligations - which will also help you more effectively manage your business finances.

Income Tax

Income tax is payable on the net taxable income of the business. Broadly speaking it is computed based on the difference between your business income and your business expenses. However, there are some expenses that you need to adjust when calculating your taxable income - like entertainment expenditure. Talk to your accountant about these special rules.

If you are a start-up business, you will calculate your net taxable income based on your net profit at the end of the financial year which in New Zealand is 31 March. Your net taxable income must be adjusted for non-deductible expenditure. You don't have to worry about this. Your accountant or does this calculation for you.

Tax rates vary depending on the type of business you have - whether you are a sole trader, a partnership or a company. The current IRD tax rates are:

Individual or sole trader and partnerships

For companies, it is a bit different. A company's taxable income is taxed at a flat rate of 28%. Likewise, trusts are taxed at a flat rate of 33%.

Year 2 onwards

One of the many misconceptions of first time business owners is that they don't need to pay tax during their first year in business. That is not strictly true. The income of a new business cannot be properly assessed in the first year because the first year's accounts have not been completed. In fact, tax on the first year's profits is paid in the second year.

Once there is a profit, the business is required to pay provisional tax during the next year. The tax paid is based on the result of the first year, plus a 5% uplift for growth in the coming year. Business owners can give an estimate of likely profit for the next year ahead if it varies significantly from the IRD's standard calculation.

This means business owners have the burden of paying tax on the first year's trading plus provisional tax for the second year's trading in their second year of business. We recommend first time businesses start putting aside tax money in their first year as they go.

Provisional Tax

This is called "provisional" tax because the amount is only an estimate until actual net income is determined at the end of the financial year.

The good thing about provisional tax is that payments are spread over the year in three equal instalments depending on your balance date.

Also, you don't have to pay provisional tax if your tax payable for the year is less than $2,500.

Terminal Tax

Terminal tax is the final tax to pay for each year of trading based on the final profit result once your accounts have been completed. Remember provisional tax is paid based on estimated earnings - terminal tax is calculated as the actual balance remaining. It must be paid by the terminal tax due date. If you have the standard balance date of 31 March, your terminal tax is due on 7 February, or 7 April if your tax accountant filed for an extension.

Remember, you need to cover your provisional tax throughout the year to avoid a large terminal tax bill at the end of the year.

Failure to make your payments on time, will result to interest and penalties.

As a trusted accounting firm in Auckland, we make sure that our clients know what tax they are paying and why they are paying it. We also help ensure that they know when they need to pay their tax to avoid interest and penalties.

As an accounting firm in Auckland, we prepare annual accounts, tax returns, GST and provide other small business accounting services. We use the best accounting software in NZ to ensure that you get an accurate and timely result.

If you want to know more about taxation and how to handle your finances request an appointment online or call us on (09) 576 4166.

Tips For Sorting Finances For Small Businesses

Sun, 22 Jan 2017 22:00:00 GMT

Examine the funds in your business closely. Do you have enough money to sustain your operations for the next 3 or 6 months or the whole year? What is the status of your cashflow? Is money regularly coming in? Are you aware of your outgoings? Last year or in past years, were you spending more and gaining less?

Answer these questions as honestly as possible without any bias. Then, analyse your business finances. If you are spending more and gaining less, admit it. Be realistic about your finances. Track down the problems. And once you do, focus on how to solve them.

If your business expenses are increasing, maybe it is time to cut things that are unnecessary or think of more ways to gain or attract more clients or customers. Or sell more to your current clients or customers.

People sometimes have the tendency to rationalise illogical decisions. According to studies, if we think that Plans A and B are good plans, we make up convenient "facts" to back up these plans neglecting all the other things that make these plans bad. We have an innate bias to things that we think are good decisions.

Being biased and illogical are not good things when it comes to dealing with your finances. Thus, to know if your plans or decisions are logical or rational, you need to ask for advice or consult an expert instead of assuming or relying on the "facts" that you may have conveniently created.

As a trusted business advisor and chartered accountant in Auckland , we talk one on one with our clients and help them to create effective business and financial plans Our clients can talk with us anytime they need assistance.

Loans are good to help you get started. But debts with high interest are like an anchor that will drag you and your business down.

If you have debt, repay the debt with the highest interest first and make sure to make it a priority

The best way to get more money is to create another source. Why not think of expanding your business? Or adding more products and services? Or creating a new business venture?

When clients think of expanding or adding more services or products to their current business, they call us and talk to us about their plans. As their trusted business advisor, we help them with business planning and assist them every step of the way to make sure that they are making the right decisions.

Record your finances. Record everything. Keeping records will help you effectively manage your finances. It can also make your life easier when it comes to handling your annual accounts, tax returns and GST, among others .

Many business people ask their accountant to do their business book keeping for them As a dedicated chartered accountant in Auckland, we have a team of accountants who are ready to assist you manage your financial records. We use the best accounting software in NZ to ensure that your records are accurate and up to date.

Contrary to popular belief that managing finances is a nuisance, it is actually quite straightforward when you have a plan and an expert partner to help you.

More than just an accounting firm in Auckland, at Paul Martin Chartered Accountant we have helped many business owners to create their business strategy and help them stay on track with their business financial goals.

If you want to get started sorting your business finances, please request an online appointment or call us on (09) 576 4166.

Business Upgrades To Help Your Business Scale

Wed, 21 Dec 2016 22:00:00 GMT

So how do you do that?

How do you attract more customers and improve your service?

The new year is fast approaching so you should review and revitalise your strategy to keep your business growing. As trusted business advisors in Auckland, we have put together some business suggestions that you can start planning today and execute at the start of the new year. These aim not only to help you stay in the game, but also put you on top.

1. Don't just assume, ask your customers

The best way to know how to better improve your product or service is to ask your customers directly. Don't just assume that they want this or want that. Your perception about your product/service is different from theirs.

There are many ways to do this. Firstly, you could call your customers and talk to them. Ask them what they think. Most would be delighted to receive a call from you as this will show that you care about them. Secondly, you could do a customer survey. There are a lot of survey tools on the internet that you can use such as Survey Monkey. Use them to send a survey to your customers. This is an efficient and cost effective method to gain insights.

You may know a lot about your product or service, but your customers know more about it than you could possibly imagine. So, ask them "What can I do better to serve you?

2. Go online and be social

If your business is not on the internet, then you are missing many things. In the new year you should consider registering your business on different social media sites such as Linked In. Make your brand known by widening your customer reach through online. And once you have established your position online, network with people, even during your free time. You might find your next customer, a loyal supplier, or some friends that can help your business grow.

3. Automate your work processes

Stop working hard, start working smart. One of the many upgrades that you should consider for your business is automating your work processes. Overseeing everything from managing your business to supervising your employees is time consuming, not to mention the administrative and accounting work that you also need to complete. You can lessen the burden by having more effective and efficient financial processes and by working with a dedicated chartered accountant who knows all about how to get the most from cloud computing.

As an established accounting firm in Auckland, we maximise the use of cloud computing to help our clients automate their financial processes. We use the best online accounting applications to help our clients achieve fast, secure, and accurate financial reports. We assist them with the setup of the accounting software of their choice, and help them to oversee and manage it.

Also, as tax accountants, we make our client's lives easier by preparing their annual accounts, tax returns and GST, and provide many other small business accounting services. By helping clients to automate their business processes, we are helping their business to scale and grow well.

These are just some simple business upgrades that you can start focusing on when the new year hits. But if you still don't know what to do or where to start with your business strategy next year, you can always talk to us. We are your dedicated business advisor and chartered accountants in Auckland that will help you when it comes to business planning and online accounting.

If you are starting a business or trying to find ways to grow your current business venture, contact us on (09) 576 4166 or request an appointment online today.

Beat Holiday Cash Flow Problems With These Tips

Thu, 15 Dec 2016 22:00:00 GMT

Businesses might close for a few days or even weeks during this time - but it doesn't mean that their expenses stop. There are still business expenses that occur while your business is on a break.

Some of the cash flow woes that small and medium sized businesses experience over this season include insufficient funds to cover expenses over the summer break and the employees who are responsible for managing your cash flow, accounts receivable and other financial affairs are on holiday.

So how do you beat these cash flow problems while enjoying the rest of the holiday?

Here are some simple cash flow management tips that you need to do to have a worry-free holiday season:

Tip #1 - Plan ahead

Analyse your current finances. Check if you have enough money to cover all your outgoings. Consider things like tax bills, capital expenditure and changes to sales, among others. Once you analyse your finances, proceed with strategic planning. Identify what you need to do or where you can find the money to pay all the bills. If you are having a hard time planning for this season, you should talk to your trusted business advisor.

Tip #2 - Get paid early

Send early invoices to your clients. Remind them of their December and January invoices. Most likely, your clients will be busy and may be distracted, so make sure to remind them before they close for the season.

Tip #3 - Get help from your staff

You can require some of your employees to work during the holiday season. No need to ask your whole team. Just ask those who can help keep things running to work during this period. They may be happy to take their holiday at another time. You may want to offer these employees an extra bonus for this.

Tip #4 - Get extra funds

If you think that you won 't have enough money to cover the holiday period, obtain extra funding such as a temporary overdraft before the holiday starts.

These are just some of the things that you need to consider if you are caught in cash flow strife this season. If you are unsure of the best way to manage this period, please contact us for an appointment.

We have expert business advisors that can help you with business strategy and planning to make your business running smoothly even at this time of the year. Also, as a trusted accounting firm in Auckland, we offer accounting services like tax returns, annual accounts, GST, and other small business accounting services to support your business.

We also have chartered accountants who are very skilled in using the best accounting software in NZ.

If you need help, contact us on (09) 576 4166. You are also a click away by setting up an online appointment here .

Photo source: https://travellerscarinsurance.co.nz/christmas-in-new-zealand/

Simple Tips To Successfully Network With People

Wed, 16 Nov 2016 22:00:00 GMT

Do you want more connections and to grow your business?

How about good referrals or possible clients?

These are just some of the many outcomes you will want to achieve when you connect with people or attend networking events, with your elevator pitch ready to help you make conversation and gain good connections.

But are you making good connections at these networking events? Or are you just collecting a handful of business cards that will just get dusty on your office table? Are you just wasting your time talking to random people?

Successful networking occurs when two or more people understand that they can be valuable to each other. It is about people who share the same passion and goal and who enjoy communicating with each other just by sharing their ideas.

It is about listening and sharing what you think is valuable to the other person.

So how do you know if a conversation with a random person is valuable? How do you achieve a successful networking outcome?

With many years as a trusted business advisor and chartered accountant in Auckland , meeting with people in different walks of life and industries has always been part of my job. With many years of doing this, I've learned and discovered a lot of things about the right way to successfully network and communicate with people.

Here are some helpful tips you can use at your next networking event:

Tip #1 - Set your goal

We all have different goals for why we attend networking events or why we communicate with people. Your goal could be about a possible job opportunity, gaining client referrals or growing your business to name a few.

By setting your goal, it will be easy for you to pick the kind of group or people to talk to. Knowing who to talk to will help you have more time to make good conversation with the right people. You don't have to meet everyone in the room or talk to everyone at the conference. You just need to know your goal and priority and deal with the right people or group.

Tip #2 - Be genuine

It is hard to trust random people. It is also hard to prove yourself to them. When you try to make a connection, do your best to build trust and a good rapport. You can do that by offering what you know that might help the other person. If you show that you are genuine in offering help, he/she will feel your sincerity and will try to do the same by thinking of ways to assist you.

Tip #3 - Ask open-ended questions

Avoid asking questions that are answerable with yes or no. Ask who, what, where, how, and why to spark and open valuable discussion. By asking these types of questions, your listener will think that you are genuinely interested to know their thoughts and ideas. Do the same courtesy and enthusiastically answer their questions as well. You can also add more details and information that you think will be valuable to them.

Tip #4 - Learn to listen

Networking is not just about telling people what you do, what you know or how you can be valuable to them. This is also an opportunity for you to learn something from them. So be attentive and listen to them. Make sure to listen well.

Most of us have difficulty in listening. Sometimes we are so distracted thinking about what to say next that we lose our attention and miss our chance to listen to the conversation.

When someone is speaking try to free your mind of any distraction and just listen to the person. If the person you are talking to notices your interest, they are more likely to do the same when it is your turn to speak.

Tip #5 - Be nice to everyone

It is understandable that during networking opportunities you would only want to talk to specific people or groups. That is a wise move to maximise your time during the event. But this does not mean that you should ignore other people who are present.

Be nice to everyone. You don't have to talk to every one of them. You can just smile and occasionally nod. You never know, you might encounter a CEO or someone influential. A friendly smile makes a good impression compared to a frown or blank face.

Tip #6 – Be confident

Lastly, be confident when talking and communicating with others. Be prepared and know how you will present yourself when someone asks you "What do you do?". Furthermore, try to build rapport by looking friendly. Try to attract others with your positive personality.

Networking is an important skill to know. For small business owners and entrepreneurs, networking can be a good source of client referrals. That is why, as professionals, we need to hone this skill as we progress in our career.

If you want to know more about how to network successfully and expand your business growth, we are trusted business advisors in Auckland that can help you. We are also a dedicated accounting firm that is composed of highly skilled chartered accountants who can help you with small business accounting, annual accounts, tax returns, GST , as well as business planning and development, among others.

We are tax accountants who use the best accounting software in NZ to provide accurate, reliable and fast financial reports for business owners and entrepreneurs.

Whether you are starting a business or planning for your next big venture, we can set up the best business strategy to help you get started.

If you want to know more, contact us on (09) 576 4166 or set an appointment online today.

Business Strategy Tips To Achieve Business Success

Wed, 09 Nov 2016 22:00:00 GMT

That is why you need to invest time and energy creating your business strategy and mapping it out step by step to ensure it is well-organised and well-planned.

Here are some tips to help you create an effective business strategy which will assist your business to grow.

1. Be hands-on with your business.

For a business to be successful, it needs three things - money, time and effort. It is likely to be a challenge for you to juggle working full time and managing a business venture and there will come a time where you need to choose between the two. You need to allocate sufficient time and effort, as well as enough budget for your business to grow.

As a business owner, you shouldn't be afraid of doing small tasks for your business. Whether it is cleaning the floor or straightening boxes, you should be ready to do all these if needed. Be hands-on and know the different aspects of your operations. This will help you to have a full understanding of your business and help you gain respect from your employees in the long run.

2. Be optimistic.

You can't expect your business journey to be smooth sailing. Whether you like it or not, there will always be challenges along the way. And sometimes, no matter how prepared you are for these problems, you may find yourself in a deep corner of depression and rejection.

As a business owner, you need to be optimistic and resilient. Don't let these setbacks stop you from pursuing what you want to do. Be passionate and always look at the brighter side of things. Having an optimistic view of everything will help you come up with better ideas to grow your business, instead of getting down and despondent and achieving nothing. Being optimistic is also contagious. You will positively affect your team and employees.

3. Make your customer the priority.

Make the happiness of your customers your business priority. Create a solid customer base and keep your customers coming back to you again and again.

One of the many ways that you can provide 100% customer satisfaction is to always listen to what your customers are saying about your brand and your product or service. Be very involved in their buying experience and use their feedback to help you improve your offering.

4. Be competitive and learn from the competition

Business competition is good. It can show you what works and what doesn't. It gives you an opportunity to grow and improve your product and help you establish your unique selling proposition (USP). Your USP can be your unique product, location or service. Once you have established your USP, people will easily remember you as a unique brand in the market.

5. Focus on net profit

In order to have a clear understanding of the performance of your business, you should focus more on your net profit than your gross profit. Net profit gives you a realistic view of how your business is doing.

6. Measure your business

The best way to find out if your strategy is effective is to analyse the results. Some of the many determinants that your business performance is solid include hitting your numbers, a strong customer base, and most importantly you love doing what you are doing.

As a tax accountant and business advisor in Auckland , these are some of the business planning tips that we share with clients to help them grow their businesses. For more tips and information please call us on (09) 576 4166 or request an online appointment here.

We are also an accounting firm in Auckland that provides quality small and medium sized business accounting, annual accounts, GST, tax returns and more, using quality and top of the line accounting software in NZ to provide accurate and fast results.

Cash Flow Goals For Your Business To Grow

Tue, 01 Nov 2016 22:00:00 GMT

Cash flow is the main indicator that your business is doing well. That is why many business owners aim to have a consistent positive inflow of cash.

But how do you achieve that?

How do you get more cash coming into your business?

If you are starting a business or thinking of ways to grow your existing one, here are some cash flow goals that you need to achieve to keep money coming into your business.

Tip No. 1 - Have cash reserves

No matter how good your cash flow is, don't forget to have a cash reserve for your business. Save at least enough cash that would cover 90 days' worth of your business expenses to cover any unexpected events like natural disasters, market fluctuations, poor economy, illness, and more.

Having enough reserve funds will help you be more prepared for any unexpected situation and expenses.

Tip No. 2 - Avoid debt as much as possible

Debts are not good for your cash flow. If you have debt, make it a priority to pay it back as soon as you can. Remember that it is good to start with a clean slate. So as much as possible, avoid acquiring unnecessary debts. If unavoidable, make sure that paying that debt is your number one priority.

If you operate with cash and not with debt, your business will be in a more stable and stronger financial position.

Tip No. 3 - Set a margin for your cash flow

You want cash to continuously come in. But you need to make it stable by hitting a specific and realistic target margin.

Know the difference between gross and net margins. Gross margin is the amount you get before you make deductions, while net margin is what is left after you've paid all your expenses.

Your net margin should be above 10 percent to have a healthy cash flow. If it is below that margin, then you need to reassess the status of your business and identify where you are falling short.

Setting a target margin for your cash flow should be included in your business planning process.

Tip No. 4 - Pay yourself

You've worked hard for your business just like an ordinary employee. You deserve to be paid a fair share of what your business has earned. Pay yourself a reasonable wage. You deserve it. And don't underpay yourself. This can affect your personal finances. Also, if you can't pay yourself enough, it only means that you are not confident in the ability of your business to make a profit. It also suggests that your business is not financially healthy.

Tip No. 5 - Aim for capital investments

This is a clear sign of business growth. If you have a good cash flow, you will be able to save enough for capital investments and/or expansion, so always aim for this. This shows that your business is in a good financial position and that you are using your cash effectively. This is also good if you have long-term plans for your business.

Goal setting is very important in business. You need to have goals that you pursue so you know what to do and aim for. Also, your goal should be realistic. The above tips on cash flow goal setting can help you to plan for the growth of your business. Depending on your business strategy, you may identify from the above tips which to prioritise.

At Paul Martin Chartered Accountant we can assist you establish good cash flow management practices.

We are an accounting firm in Auckland that provides accountancy, and business strategy and consultancy services to small and medium businesses around New Zealand. We offer accounting services such as tax returns, annual accounts, GST and more.

We also use the best small business accounting software in NZ like Xero and MYOB to provide you with accurate and timely financial reports.

If you want to know more about us and our team of experienced tax accountants, feel free to arrange an appointment online or call us at (09) 576 4166.

6 Reliable Ways to Fund your Business

Mon, 24 Oct 2016 22:00:00 GMT

But your excitement may die down, as you come to realize the biggest question when starting a business.

"How and where do I find the money to start?"

Money is the life blood of business. If you don't have enough capital, you will have a hard time getting started.

Good thing there are options out there that you can investigate if you are looking for ways to fund your business. As a mentor and business advisor in Auckland, New Zealand, we have suggested some of the various financing options, including the pros and cons of each option to help you.

Option #1 - Personal savings

Self-funding is the most common way to finance a business. Often, entrepreneurs use their hard-earned personal savings to start.

The advantage of personally funding your business is that you have control over your money and the business is yours alone. However, it may take a longer period to save money and launch your dream business.

Option #2 - Friends and family

Asking friends and family to help you fund your business is also a good option to consider. Just make sure that you let them know the risks of where they are putting their money, as well as the terms for how you plan to pay them back..

Even though you share a good relationship with your friends and family, it is still advisable to be professional in dealing with them – especially where money is involved. Set proper expectations and create a clear agreement outlining the arrangements.

Failure to meet expectations can put your relationship with them in jeopardy. Things can get messy and at worst could lead to ruining a friendship or worse broken family relationships.

Option #3 - Partnerships

You can invite someone or a group of people or a company who are willing to partner with you to fund your business. They could be a capitalist or industrial partner, depending on the partnership agreement.

Partnerships are also a good source of funding but you should be aware that profits and risks must be shared among the partners. If you decide to go for partnership, make sure you have a solid partnership contract signed by all the involved parties. This will be your reference in case there is conflict.

Option #4 - Crowdfunding

Crowdfunding has become popular because of the many technological businesses that have sprouted from it today. Entrepreneurs who have web-based projects or ideas often seek this platform to finance their business.

Basically, crowdfunding works when an individual with an idea reaches out to thousands of potential investors using various platforms. There are hundreds of crowdfunding sites and platforms today that you can check out. However, if you are thinking of going with this option, it is advisable to research it well.

Option #5 - Investors

You can also look for an affluent individual who will help you fund the business. There are cash-rich people out there who are willing to invest in certain business ventures. But it is not easy to find one and if you do, you need to prove that your business ideas are in line with their business goals.

Option #6 - Bank loan

This option is also the most common way to finance a business. However, many entrepreneurs are hesitant to go for this option because of the many requirements. Furthermore, it is not certain that your loan will be approved.

A comprehensive business plan and financial projections are often required for you to get a bank loan. As a trusted accounting firm in Auckland, we have assisted many entrepreneurs to obtain bank loans. We have helped them prepare their business plan and their financial forecasts to ensure a successful loan application.

If you are looking for a business advisor or a chartered accountant to assist you in preparing for bank loan requirements, or if you need assistance investigating other options to finance your business, we can help you in the business planning process. Further, as a tax accountant in Auckland, we can also assist you with different accounting services such as preparing tax returns, annual accounts, GST and more. We also use the best accounting software in NZ so you are assured that you get accurate, reliable and timely financial reports.

We invite you to book an appointment online with us or call us on (09) 576 4166 to talk about your business options.

BUYING A BUSINESS PART 6: How to Enhance Business Survival

Sun, 16 Oct 2016 22:00:00 GMT

In New Zealand, about 10% of all small businesses fail in their first year of operation, while a significant number (70%) will fail in their first five years. Some of the most common reasons why businesses fail include poor management, sloppy records, too much or too little stock, failure to plan, misuse of time, neglecting marketing, and general management incompetence among others.

That is why business owners need to have a solid business strategy to help them stay on track and not get lost along the way.

Some of the most important factors that a well-managed business will possess are:

• Proper financial information.

• Uses a written business plan with future development and expansion guidelines.

• Has an adequate product mix.

• Does not rely too heavily on one or a limited group of customers or clients.

• Understands its operating environment.

But how can you be prepared if your business fortunes start to turn?

How can you be ready when the economy becomes sluggish?

How can you recover when there is a dramatic change in technology that has affected your sales?

There are many warning signs on the road to failure that you need to understand and address to ensure that your business can weather any potential storm.

As a trusted tax accountant and dedicated business advisor to many small and medium businesses in Auckland, we have listed some of the problems we see clients facing, along with recommended solutions.

Insufficient capital

If you are starting a business, you should allocate ample budget for operations, marketing and other expenses. If you don't have sufficient capital, you may have difficulty purchasing stock and supplies, which in turn could mean lost sales. Invariably you will also fail to meet your other financial commitments as they fall due.

Partnership problems

Business partners can contribute to the failure of your business. That is why you should be very selective in choosing your business partners. Select your partners the same way you select an employee. Make sure they have the ability to contribute effectively to the business and help achieve its goals.

Too often a partner is selected simply because he/she is a relative or friend or is willing to contribute an amount of capital.

Lack of management expertise

It is not enough that you have a business strategy. It is important that you have the right management expertise to execute all the strategies in your business plan. Don't think that you can get away with learning while on the job. Seek help and direction from a trusted business mentor to guide you in unfamiliar areas.

High gearing

Borrowing money usually cannot be avoided when you start a business. Make sure to keep it to an amount which you are capable of repaying. If you borrow more than you can repay, chances are a greater portion of your gross profit will be directed to paying these financial costs. Cash flow may also be drained by repayments.

Incorrect pricing policies

Too often prices are set to market determinants rather than based on cost recovery and profit generation. Efficient service or added value may be more important than price alone.

You need to make an adequate profit margin to ensure success.

Marketing

Many businesses neglect the importance of marketing. Marketing is important to attract new customers, as well as keeping your current customers updated and engaged.

Cash flow

Cash flow forecasting is very important if you want your business to survive. Without proper and accurate cash flow projections, you won't be able to identify future cash requirements, hence you will be lacking vital information about the financial direction of the business.

Breakeven point

Business owners should know when the business will breakeven. Breakeven is calculated by gross margin (revenue less variable costs) = total fixed costs.

These are just some of the things you should be aware of to help you enhance the chances of business survival.

As a trusted business advisor in Auckland , we can discuss these things with you and provide the most fitting solutions that your business needs. We are also tax accountants who can help you with GST, tax returns, annual accounts and more , using the best accounting software in NZ to provide fast and accurate result.

So if you need help with business planning and small business accounting, we are an accounting firm in Auckland that can help you.

Talk to us today on (09) 576 4166 or book an appointment online to get started.

7 Steps To Create An Effective Business Strategy

Sun, 09 Oct 2016 22:00:00 GMT

But how do you create the most effective strategy for your business?

Here are the steps that you need to consider:

Step #1 - Research, research and research

Research can be perceived as a boring activity. Often aspiring business owners don't want to waste time reading and researching a bunch of things. Instead they may be eager to go ahead and launch their business idea straight away. But they must not. Research is a very critical factor when it comes to achieving success. It is the foundation of your business strategy.

When doing your business research, you should be able to gather facts that tell you about the industry you are trying to enter and where your future business may sit in that industry.

There are techniques that can help you to gather and make sense of data for your future business. One is the SWOT analysis. SWOT stands for Strength, Weakness, Opportunities and Threats.

If you are still not sure how to effectively conduct research for your business, you can talk to a business mentor or business advisor in Auckland.

Step #2 - Establish your vision

Once you understand more about the environment you will be operating in you should have an idea of where to position yourself or your business in the industry. You should be able to decide which direction you want your business to go in the future. This should be a long term perspective as it forms the vision of your organisation.

Step #3 - Develop your mission

Your mission refers to the purpose of your business. This refers to what needs to be done in both the short term or the long term, depending on the needs of your business. In developing your mission, you should be able to answer questions like, "What do we do?", "How do we do it?", "Whom do we do it for?", "What value do we bring?", among others.

Step #4 - Identify your objectives

You should be able to set specific targets for your business. Your target objective should be SMART (Specific, Measurable, Achievable, Realistic, and Time-bound). They should also include KPIs (Key Performance Indicators), resource allocation and budget requirements, among others.

Step #5 - Create a strategy and tactical plans

These are short-term plans that will help you to achieve your objectives. These include jobs or tasks that are often delegated to your different business departments. You can also include in your plans the suppliers and other resources that will help you to achieve your business goals. This is the core of your business strategy.

Step #6 - Establish your financial plan

Also core to your business strategy is the financial plan. Financial planning can be a bit difficult, especially if you don't have any background in accounting and understanding financial transactions. That is why, business owners hire business advisors to help them understand and interpret their numbers.

As trusted business advisors in Auckland, we, at Paul Martin Chartered Accountant, assist clients create their financial management plans. We teach them how to effectively manage their cashflow and grow their business. Aside from that we can also attend regular meetings to discuss and review the results and provide customised monthly financial reports.

Step #7 - Performance review

Your business strategy is not complete just having a plan and ways to execute it. You should review performance and analyse results and achievements. This performance review will help you identify if your strategy is effective for your business or not, and help refine the ongoing business strategy.

These seven steps are the main things that you need to cover in developing an effective business strategy. As a trusted business advisor and an accounting firm in Auckland , we help businesses to create strategies that are applicable to their business requirements.

We are also tax accountants who help businesses set up and prepare tax returns, annual accounts, GST and more. We use high-end accounting software in NZ, to deliver best and accurate results.

If you need assistance with business and financial planning, you can talk to us on (09) 576 4166 for more information. You can also book an appointment with us online.

BUYING A BUSINESS PART 5: What are the Legislative Requirements

Sun, 25 Sep 2016 23:00:00 GMT

Whether you are starting a business from scratch or have acquired an existing one, as a business owner you need to be aware of the legal environment you are operating in. Here are some laws you may need to know about so you can legally operate your business, regardless of what line of business you are in:

Employment Agreements

Employing staff automatically creates legal obligations for the employer and the employee. The acts relevant to this are The Employment Relations Act 2000 and the Holidays Act 2003.

All employees are required to have a written employment agreement which should contain details of employment including a job description, work location, work hours, salary, holiday and other leave entitlements, and more. Wages cannot fall below the minimum guaranteed hourly rate, currently $15.25 per hour for adults.

Employers must keep accurate records for all employees of the hours worked each day in a pay period and the pay for those hours, as well as leave accrued, entitled leave and leave taken.

Fair Trading Act

This act covers the prohibition of misleading or deceptive conduct and trade as well as false representation of goods, services, land and employment. Any entity proven to violate this act is subject to civil remedies such as injunctions, damages, corrective advertising at the defendant's expense and other orders of the court directing compensation or restitution. The most important section of this act that business owners need to remember is:

Fair Trading Act Section 9 - No person shall in trade, engage in conduct that is misleading or deceptive or that is likely to mislead or deceive.

Commerce Act

Commerce Act protects the vendor and the consumer by fair pricing. It also covers fair market competition by prohibiting the abuse of market position, contract provisions that lessen competition in the market and restriction of goods or services to another competitor, among others.

Consumer Guarantees Act

This act aims to provide consumer protection in the supply of goods and services to ensure they are fit for the intended purpose. A set of statutory standards called "guarantees" are attached to any goods and services being sold to consumers, acquired for domestic or personal use. It does not apply when goods and services are acquired for re-supply in trade, or to be consumed in production or manufacture.

Health and Safety in Employment Act

This act covers all work situations. It aims to promote excellence in terms of health and safety performance. It also aims to improve hazard identification and control methods, health and safety training and education and regulation of specific hazardous situations, to name a few.

Furthermore, employers must take all necessary practicable steps to ensure safety of employees while they are at work. Employers must be able to provide and maintain a safe working environment. This also applies to external contractors working on your site.

Privacy Act

This act aims to proactively require businesses to be wary of sharing information. A breach may arise when information is shared for the purpose that is not intended or without express permission.

The act covers the collection of information, storage and security of information, access by the individual and correction of the information, updating and disposal of information, as well as the use and disclosure of information and unique identifiers.

Business owners should comply with these and other legislative requirements for the protection of their business, their employees and their customers. Non-compliance may result in costly consequences for the business.

As business advisors , we discuss legal requirements with business owners and point them in the right direction to ensure all relevant areas are addressed. We provide a comprehensive risk review service in which we analyse compliance with these and other statutory requirements and business risks to ensure you are adequately covered should an adverse event ever occur.

Our next blog will discuss business survival and provide tips that will keep you in the game.

If you want to know more about these laws, or are in need of business strategy or business planning advice, request an appointment online via out website or call our team on (09) 576 4166.

If you want to catch up on the rest of this blog series, check the previous discussions here .

BUYING A BUSINESS PART 4: Creating the Marketing Plan

Mon, 19 Sep 2016 23:00:00 GMT

The next important step is to create your marketing plan.

We have invited Jo Martin, Marketing Manager for Paul Martin Chartered Accountant Limited to answer some of the many questions you may have and to give us some tips on how to create the most effective marketing plan for your business.

What is marketing?

Marketing consists of identifying the need for your product or service and then presenting your goods and/or services, at the right time, at the right place and at the right price to satisfy a customer's needs.

It also includes analysis of your target market in order to identify your potential customers and select the right advertising and promotional activities to make your target market aware of your goods and/or services.

What is the first step in creating a marketing plan?

The first step in creating a solid and effective marketing plan is to list your marketing goals. What do you want to achieve with your marketing activity? Are you planning to increase your sales by 50 percent? Are you trying to boost your brand image? Or are you trying to reach a new or slightly different target market?

Whatever your marketing goals are, it is important that you make them measurable and specific which will help you track your progress.

The next thing you need to do is to analyse your business so you can align your marketing activity. You can do this by developing a SWOT analysis. SWOT is an acronym that stands for Strengths, Weaknesses, Opportunities and Threats.

How do you do a SWOT analysis?

You simply get a sheet of blank paper. Draw a line down the middle. On the first side of your paper, you list all the strengths of, and opportunities for your product or service. What is it about your product or service that makes it stand out from the crowd? Are you personally well-known and respected by the marketplace? Are there any unique selling points? List any unique selling features or benefits that you will have over your competitors.

On the other side, list your weaknesses and any threats to the ongoing health and viability of your venture. Weaknesses could be limited capital, brand or product is unknown in the marketplace, limited buying capacity, etc. On the other hand, threats could be things like removal of tariff protection, changes to government legislation that could affect your trading, among others. Threats are usually external factors that you need to keep aware of.

List down all the strengths, opportunities, weaknesses and threats that you can think of and then you should analyse and refine the list down afterwards. The result of your SWOT analysis will help form the main core of your final marketing plan and will guide your marketing activity.

What are the likely costs associated with marketing?

Print media - This is the most common marketing medium. This includes placing an advert in newspapers, magazines, directories, etc. Layout, design, copywriting, printing and/or publishing are some of the expenses that you will incur when releasing a print advert.

TV commercial – This usually is a more expensive marketing platform. Costs would include the creation and production of the commercial as well as the placement of the ad with different TV channels.

Radio commercial – This tactic is not as expensive as the TV commercial but it involves the same process of creation and production as well as radio channel placement.

Out-of-home advertisements – These include billboards, banners, flyers, brochures to name a few. A billboard will cost you quite a bit while a small banner will not. The cost will depend on the creation, production, type and quantity of your advertising material.

Social media and website – This is probably the cheapest form of advertising. Setting up a social media account is free. There are also free website creation sites on the internet. However, there are limits to using these free websites. If you want to increase your exposure or want unlimited control and a customised website and social media platforms, you would need to pay a website developer and social media manager to assist.

Email marketing – This is another form of digital marketing where you directly connect and send the product or brand information to your market or prospect. There are free email marketing tools available that you can use, such as Mailchimp . Again you will need to pay for extra features and add ons. You must also be aware of antispam laws.

Trade shows – Trade shows, fairs, or expos are events organised for businesses to showcase their products and services. They are often run annually. You need to consider costs for your booth display, rentals, promotional material, etc.

Your marketing plan is critical to the success of your business. You should dedicate time and effort to creating it. Your marketing plan should be thorough and well-researched. It should include targets and goals and have clear measures of success so you know what is working and what is not. Often you will need a combination of marketing tactics to reach your target market and achieve your stated business goals.

If you are thinking of starting a business or planning to buy one, we can help you build a business plan or marketing strategy to help ensure the success of your venture.

Our team at Paul Martin Chartered Accountant Limited is composed of highly skilled and professional business advisors and chartered accountants in Auckland , who can help you with your business strategy and marketing plan. We can give you assurance that you are covering all bases when you are starting or buying a business, from business planning and marketing, to preparation of tax returns, GST, annual accounts and more.

For more information, call us on (09) 576 4166 or request an appointment online .

Next on our blog series discussion are the important legislative requirements that you need to know in running your new business.

If you want to catch up to this blog series, you may check the previous discussions here .

BUYING A BUSINESS PART 3: Creating the Business Plan

Mon, 29 Aug 2016 23:00:00 GMT

Now, once you've successfully purchased the business, you need to create or structure a business plan that will help you sustain it and facilitate its growth.

As business advisors and Chartered Accountants in Auckland , we specialise in providing business strategy advice to people who are starting a business or purchasing an existing one. We help them understand that business planning is not just to raise finance but also the blueprint for the business' future.

So, what are the components of a detailed business plan?

In drafting your business plan, here are things that you need to consider and include:

Executive Summary

This is the very first item in your business plan. It contains the general detail of what your business entails. It should be clear, simple and not longer than a page. The aim of this part is to give the person reading your plan a broad overview of what you are setting out to achieve.

Even though it appears at the start of your plan, normally, the executive summary is the last section you prepare after you've finished doing the rest of your business plan.

Business Objectives

The objectives are a detailed description of your business strategy. You should list all the possible objectives or aims that you want to achieve with your business. What is the business of your business? What are you going to do? What is your mission statement?

Product/Service Profile

This is the part where you describe the product and/or service your business is offering. You should provide a detailed description of the product/s or service/s. You should also supply details for any machinery or equipment involved in the business.

Marketing Plan

This contains the detail of your marketing objectives, projections, and sales forecast. This will also include analysis of the marketplace you will be entering, details of competition, historical information about the industry and channels you will use to promote your products or services to name a few.

Financial Plan

This includes both the short term (one year) and long term (three years) financial projection of your company. Make your forward projections as conservative as possible. Don't predict a 50% increase each year if you cannot solidly support it. An impossible financial projection is difficult to believe and take seriously.

This part of the business plan also covers details of the capital required to both start up and run the business and where the capital will be used.

It is recommended to also have projected cash flow and profit and loss statements . These can be complicated to prepare and you usually will need the help of an expert to accomplish this – such as a Chartered Accountant.

Repayment of Loan

If you are trying to present your business plan to a prospective financial institution, your business plan should have this section. In here, you need to disclose how and when you will repay any loans. Your repayment strategy should tie in with your cash flow projections. Remember that banks are unlikely to be interested in proposals from businesses that simply want to borrow money with no indication of how they will repay it.

Security for Loans and Guarantees

In connection with the above, you should also outline the details of any assets which are going to be used as security. You should be able to present that you are viable and that the interest and capital repayments can be discharged during the normal course of business. Financiers will not generally lend capital without adequate security.

An Organisational Plan

This section will include the outline of the management structure, responsibility, and accountability of office holders. This will also include the type of business structure, e.g. company or partnership. You should also list down the names of directors and the company secretary and the location of the registered office.

Appendices

This section will cover any information or further details needed to back up or expand on any of the above. This can be your company brochures, market research, press clippings, etc.

Preparing a detailed business plan will help you trace the flow and the future of your business. It will also help you acquire outside finances, if you are thinking of getting a bank loan or an overdraft facility. It should also be updated regularly - we recommend annually to ensure you stay on track to achieve your goals and react to changes in the market.

As your business plan is so important to the future prosperity of your business, it is important to have a trusted advisor when drafting and reviewing your business plan. They will review it in terms of completeness, financial soundness, objectivity, logic, presentation and its ability to communicate.

If you are looking for a business consultant or advisor that can help you with creating a plan and strategy for your business, call us on (09) 576 4166 or request an appointment online .

Next on our blog series, we will be discussing about how to market your newly acquired business by creating the most effective marketing plan.

If you want to catch up to this blog series, you may check the previous discussions here .

BUYING A BUSINESS PART 2: Start-Up Costs

Sun, 21 Aug 2016 23:00:00 GMT

As consumers, one of the things that really matters to us when making a purchase is the cost of the product or service. We want to know the price so that we can analyse our capacity to buy and if the price is reasonable for the item being sold. We can also use this information to make comparison to other products and services. And once we make the decision to buy, we make necessary adjustments to our budget.

When clients come to us for business advice in regard to purchasing a business, we help them to break down all the costs and expenses involved in the transaction. As a trusted business advisor and Chartered Accountant in Auckland , we discuss with them the importance of various costs and the benefits of having them.

To give you a general idea of the establishments costs involved in buying an existing business, here is a list of some of the types of expenses that may be incurred:

Legal fees

There are contracts and agreements that need to be prepared and signed to legally transfer and bind the business to its new owner. In addition, there are many documents, requirements and agreements that need to be considered. As your accountant in Auckland, we can work alongside your lawyer to thoroughly evaluate all legal documents and avenues required to protect you as a buyer, as well as the future prosperity of your business, including:

• Checking the lease of premises

• Completing company name search and registration

• Reviewing intellectual property

• Reviewing contract of sale

• Consideration of restraint of trade clauses

• Clarifying your obligations in regard to employee entitlements - annual leave, long service leave and other human resource policies

• Understanding contractual relationships with key suppliers and customers

• Checking for royalty payments

You may need to look at getting some of your finance for the business purchase from your bank. With many years of experience in the industry, we have good partnerships with many banks so we can introduce you to different bankers and help you evaluate which bank is best suited to your business needs.

You need to factor into your calculations:

• Overdraft establishment fees and monthly interest

• Loan establishment fees

• Loan principal and interest repayments

• Monthly account fees

Setting up a new business structure

It is recommended you have a Chartered Accountant on board to help you set up your new business structure and systems. Remember to allow for annual account and tax return preparation, GST and other taxes, ACC administration, costs for a cloud accounting system such as Xero or MYOB and more. At Paul Martin Chartered Accountant Limited, we provide all these services packaged into convenient monthly service plans.

If you want a comprehensive discussion of the above list, you can personally contact us at (09) 576 4166 or request an appointment online . We are happy to discuss it with you in detail.

After analysing costs and expenses, you may be ready for the purchase of the business. And once you have acquired the business, the next important thing you need to do is to create a business plan and strategy. Next week, we will discuss the importance of business planning and how to create the most effective strategy for your business.

If you want to catch up to this blog series, you may check the previous discussions here .

Simple Habits of Successful Entrepreneurs That Will Inspire You

Sun, 14 Aug 2016 23:00:00 GMT

Successful entrepreneurs are just ordinary people. They live and breathe in the same world just like the rest of us. The only thing that makes them different from the rest is how they cultivate and live on positive values and habits. And these positive values and habits are not that difficult to achieve. In fact, with the right mindset and discipline we can also do what they are doing and potentially achieve success in everything that we want to do.

So, want to know what these simple habits are that make these entrepreneurs successful? Here are some of them:

Be passionate

Successful entrepreneurs know what they want and they will do anything and everything to get it. They have a goal and nothing in this world can get in the way of achieving it. But having a goal is not enough. Fueled by the love of what they do, they continue to learn and explore things to help them achieve their goal. They are also aware that there will be challenges along the way. But with their passion and desire, they try to accept these challenges and see opportunities that they can use to their advantage.

Work smarter

If you want to succeed, you should understand that there is a lot of work that needs to be done and sometimes it never seems to end. A successful entrepreneur is aware of this and tries to create ways to make work easier and faster. Working hard is good, but it can burn you out, which is not good. That is why successful entrepreneurs spend time on business planning and strategy to help them have smarter work processes.

Continue learning

The inspiration and idea tank of any successful entrepreneur is never full. That is why, even though they've had years of experience in a specific industry, they are always hungry for ideas and new things. They relentlessly seek new adventures and new experiences. They just don't stop learning.

Prioritise your customers

One of the habits that make these successful entrepreneurs different from other entrepreneurs is that they always put customers as their priority. Their ideas are always on the basis of creating a better service for their customers. Before thinking about the revenue that their product or service will create, they think first if their product or service will be valuable to their potential customers. They are not driven by sales, but by the satisfaction they get from their customers.

Use your time wisely

Instead of spending hours on social media or answering unimportant emails or binge watching movies, successful entrepreneurs use their time, even their free time, wisely. They read books , communicate with their employees and network with other people. Sometimes they use their free time to go to the gym or have a jog to keep their body and mind fit and healthy.

Use your failures to your advantage

Failures are part of life. Whether it is failure in starting a business or failure in your personal career, there will always be challenges that will keep you from achieving your goals. All successful entrepreneurs today have experienced failure many times in their life. But what makes them different is that despite these failures, they didn't stop. They even use these failures to their advantage. They turn these failures into learnings and opportunities as well as inspiration to move forward.

These are just some of the simple habits of successful entrepreneurs. You can also do these things to make a positive change in your life. At Paul Martin Chartered Accountant Limited we can help you be successful in your business . We are chartered accountants and business experts who can help you achieve business growth through effective and quality accounting and business planning services.

If you want to know more about our services, please book an appointment online or call us on (09) 576 4166.

BUYING A BUSINESS PART 1: Starting the Process

Sun, 07 Aug 2016 23:00:00 GMT

...which is the total opposite of buying an existing business.

Purchasing a business for sale is easier, faster and less risky than starting from scratch. When you buy a business, you simply take over and continue its operation. As long as you are making a wise purchase decision, it should already have an established brand, customer base, and cash flow.

But before you get excited with the benefits of acquiring an existing business, you need to know where to start, what to do, and be aware of the whole process. You need to be warned that the whole process can be exhausting and heart-wrenching.

As trusted business advisors and chartered accountants in Auckland , we make sure that our clients know what they are getting themselves into. We take them through and help them consider the following issues:

It is a CRITICAL investment decision

We often advise our clients to invest an hour with us so we can introduce them to the methodology we use in evaluating business opportunities. We discuss and provide them examples to assess the real and the future value of the business being sold. We also take time to answer any questions they may have. We do this to help them make the best investment decision.

It is a DUE DILIGENCE process

Chances of success

The need for adequate working capital to get started

Be clear about what you are buying

Evaluate carefully the business

These are just some of the most important things that you need to know when looking to buy a business. To find out more or for assistance with a due diligence process, call us on (09) 576 4166 or request an appointment online

Next week, we will be discussing the cost and other expenses involved in buying a business that you need to know.

If you want to stay updated and avoid missing out on any of the discussion, you can subscribe to us here .

BLOG SERIES: Buying A Business - An Overview

Mon, 01 Aug 2016 23:00:00 GMT

Buying a business, big or small, is one of the biggest decisions and financial transactions you might ever make. It is not as simple as buying a product or service. There are many things to consider, processes and procedures to undertake, and different financial and legal requirements to think about. So, whether you are a businessman or a budding entrepreneur, you need a comprehensive guide to follow to ensure a successful transaction.

With many years in the industry, we, at Paul Martin Chartered Accountant Limited, have encountered many different clients aspiring to engage in the buying and selling of businesses. As trusted business advisors and chartered accountants in Auckland , we have helped them with what they need to know every step of the way - from due diligence right through to successful business turnover.

As many people don't know where to start when first looking at a business purchase option, we are launching a blog series covering a range of things you need to know about buying a business.

The topics that will be discussed include:

• Starting the Process

• Start-Up Costs

• Creating your Business Plan

• Creating your Marketing Plan

• Legislative Requirements

• Enhancing Business Survival

You may be interested in other aspects of this topic as well, so feel free to send us your questions through this link .

Keep in mind that buying a business is a huge business decision and it is important not to let your emotions override rational thinking. As your dedicated business advisor, we will provide you all the assistance and business advice you need to make this, and any business transactions, successful. To learn more about how we can help, call us (09) 576 4166 or request an appointment online.

Reasons Why Setting Goals Is Important for Your Business

Sun, 24 Jul 2016 23:00:00 GMT

If you don't have business goals right now, here are more reasons that you should consider creating some as soon as possible:

They serve as a guide.

Having business goals will give you the right perspective. They will serve as guides to help you manage and operate your business. They allow you to set certain targets and then meet those targets one step at a time. When you do this, you will be able to see the positive changes taking place.

They help you focus.

They encourage initiative.

If you have goals and those goals are shared with the rest of your team, your team will know how to use them as their guide in accomplishing tasks. They will even think of ways to help you achieve those targets. Also, once they are on board with your goals, there will likely be less supervision required on your part.

They help you make critical business decisions.

As your business progresses, hard choices will need to be made. Your business goals will guide you on what decisions to make and steps to take. Whether you need new assets, new employees, possible expansion and so on, your business goals are your key to unlock these major decisions.

They help you measure your progress.

If you have business goals it is easier to measure your success. You simply have to check if your goals for this week, this month, or this year have been met. If not, then you can make changes that will help you achieve your desired result. As you measure your progress, you will also have a chance to reassess your goals.

You can't just desire success. You must specifically identify the things you want to be successful at. These will be the goals you need to work out.

We've seen a lot of entrepreneurs who are still unsure of what they really want for their business. And as chartered accountants and business experts, we've helped them identify possible goals that they can achieve. We've given them an attainable business strategy that is tailored for their business.

For assistance in creating business goals and business planning, please book an appointment online or phone (09) 576 4166 to personally talk to our advisors.

Financial Mistakes Business Owners Make and How to Avoid Them

Sun, 17 Jul 2016 23:00:00 GMT

With many years of experience as chartered accountants and business experts, we've seen many financial mistakes that business owners make. Here are some of the most common mistakes and how to avoid them:

Not having a business plan including clear financial goals

Business planning is very important. If you want to be successful in your business, you need a roadmap. It is also important to set clear goals and targets. In particular, you need to have financial goals that will help you measure how well your business is doing. Furthermore, your financial goal should be clear and realistic. Goals should be phased - weekly, monthly, quarterly or yearly. You also need to involve your whole organisation in your business strategy. Give your team goals to aim for.

With these plans and goals in place, you will have a clear view of how your business is performing which will eventually help you make important financial and growth-management decisions.

Not keeping proper financial records

This is one of the most common mistakes of business owners and also the most crucial. Most business owners are so busy focusing on managing their business that they neglect the importance of financial record keeping. If you don't have time to update your financial records, hire an expert to do it for you, such as a Chartered Accountant. They can set you up with proper systems and help process your transactions accurately.

Combining business capital and personal finances

Some business owners, especially those who are struggling with their business capital or finances tend to merge their personal savings with the business. Business owners should avoid doing this, as it will only make it more difficult to track how much money the business is making. Also, it complicates IRD and tax obligations.

Starting too big

Starting a business can be overwhelming. You put everything in that you have before you actually start. You may rent an office or other space and hire employees thinking about the future. You want to start big. But you have to understand that starting big doesn't necessarily ensure your future success. It may put undue pressure on you and your business. The best thing to do is to start small and once your business becomes financially stable, you may then consider expanding. Make sure that your expansion can be justified by your profits.

Not having an expert to assist you with your finances

Accounting, bookkeeping and tax compliance - these are just some of the financial responsibilities that you need to take care of when you start a business. These are critical and timely business processes. But some business owners are so busy managing their business that they often neglect these. You don't have to stress yourself in thinking and doing everything. You can hire experts to do it for you.

Some business owners are hesitant to hire experts to do these things for them and only realise they need help when it is too late. So hire a trusted Chartered Accountant to help you with your finances so you can focus on your business, as well as having more time to relax.

These are just some of the common financial mistakes that business owners make. For more information on how to avoid these mistakes and achieve business growth, talk to our experts today on (09) 576 4166 or request for an online appointment.

Why good business relationships matter more than sales

Tue, 24 May 2016 23:00:00 GMT

Though sales are one of the most important metrics to monitor your business growth , it is just a number. There is more to it than seeing the numbers go up and down. Sometimes high sales don't mean happy customers. If they have a bad experience dealing with your company, do you think they would still patronise your products or services? You would need to offer them something really great in return.

The focus should be on how to convert them into repeat and happy customers. Here are some tips to consider if you want good business relationships with your customers:

Here at Paul Martin Chartered Accountant Ltd , we help customers to create strategies for business growth. Please feel free to call us on (09) 576 4166 for more business advice, ideas and tips.

Understanding the role of a Chartered Accountant

Sun, 15 May 2016 23:00:00 GMT

Chartered Accountants

Bookkeepers can call themselves accountants but this does not necessarily mean they are Chartered Accountants (or Certified Public Accountants in some countries). Bookkeepers are responsible for tracking and recording of business transactions. They are often called accounting clerks. Their main responsibility is to keep daily financial records accurate, complete and up to date. Being a bookkeeper only requires basic qualifications such as technical knowledge in bookkeeping, relevant bookkeeping experience and basic accounting skills.

On the other hand, accountants that are members of the Chartered Accountants Australia and New Zealand (CAANZ) (or similar professional bodies offshore) need a higher level of tertiary education to be qualified. They usually have at least seven years of education and must undertake ongoing annual professional development to maintain their qualifications. Some accountants are not Chartered Accountants which means they do not need to undertake any particular ongoing professional development or meet certain minimum standards to remain up to date with the latest tax and business trends.

Why choose a Chartered Accountant?

In today's competitive world, having a professional accountant is a must for every kind of business. Although it is possible to have an accountant who is not certified, they may not be the best advisor for your business.

A good Chartered Accountant can help your business thrive. Unlike a bookkeeper or non-Chartered Accountant, they are usually more knowledgeable in business financials and tax due to their ongoing professional development requirements and can help you with general financial and business management. Moreover, Chartered Accountants are bound by a code of ethics to ensure highest professional standards. They have rules to follow and a reputation to maintain. This provides you with an assurance that your business is in the very best hands.

Trusted business partner

Chartered Accountants should be your trusted business partners. They have the ability to analyse business data and see business insights, trends and the unique needs of your business. They recognise the changing demands of the market and understand the pressure of competition enabling them to find viable business and financial strategies and solutions that will work for your company. As they say, with ongoing changes in the business world you must either keep up or be left behind. With a good Chartered Accountant to provide you advice, you can take on multiple challenges and stay ahead.

For more information on how a Chartered Accountant like Paul Martin Chartered Accountant Ltd can add value to your business growth , please do not hesitate to call us on (09) 576 4166 or request an online appointment .

Why your business strategy is in need of some dusting off

Thu, 12 May 2016 23:00:00 GMT

What are things that could happen to your business strategy that would require you to dust it off? Here are a few:

request an appointment online

5 ways to differentiate your business. No. 3 is ingenious!

Sun, 10 Apr 2016 23:00:00 GMT

A part of being a business owner is working out how to differentiate your business and make it stand out from the crowd. Market competition can be tough particularly for start-ups and SMEs. You need to stay ahead and outgrow your competitors. While you may be satisfied with your current business status, growth still matters and being too complacent may cause future risks to your business.

Here are some ways to help you differentiate and grow your business:

1. Keep your company under the radar. Great ideas, opportunities and strategies can be quite exciting but as you are creating these with your team, you may want to keep a low profile to avoid feeding valuable information to your competitors.

2. Learn more about your competitors. Researching more about your competitors may give you valuable insights about their organisation and help identify some of their weaknesses. You can start by subscribing to their newsletters or following their social media accounts. Take note of their marketing approach and how they deal with their customers. Knowing and understanding your competitors will give you the edge when creating your own approach to set your business apart.

3. Study your competitors' website traffic and backlinks. Checking out your competitors' online presence can provide you insights about the keywords they are using and a rough idea of where they are getting most of their website traffic. You can use online free tools like ahrefs.com to find information about their top content, top referring content and top websites linking to their domain. You can also check the technology they are using for their website Content Management System, widgets and any affiliate relationships they have through builtwith.com . Moreover, to have an idea of how they are improving their website for conversions, you can check the previous changes they have made with their website by checking the old versions of their website at Wayback Machine . With all these tools, you can uncover your competitors' techniques on acquiring website traffic and use their weaknesses as your opportunities to generate more traffic for your website.

4. Focus on enhancing the customer experience. The customer's journey from start to finish plays an important role in the success of a business. You either get repeat and loyal customers or lose more sales because of unbridged gaps in your sales funnel. Understanding the needs and wants of your target market can help you personalise their experience when dealing with your company. Sometimes it is not just about the product they are looking for, but the feeling and experience they get each time they interact with your company. You do not only sell them products or services, you sell the experience.

5. Know what you are selling - your value proposition. How can you convince someone to buy something if even you do not know or understand it? To build a lasting relationship with your customers, you must know how to communicate your products and services to them, in a way that resonates with them.

In today's world, almost anything is possible. You can utilise advanced tools to level up your business and make it stand out in your industry. You can also ask assistance from a Chartered Accountant that specialises in business strategy such as Paul Martin Chartered Accountant Ltd, as we can help you differentiate your business and develop your business growth strategy . For more information, please call us on (09) 576 4166 or request an appointment online .

How short-lived successes could be sugar-coating the underlying problems in your business

Wed, 30 Mar 2016 22:00:00 GMT

First, what are short-lived business successes? They may have different meanings depending on who is involved. Short-lived business success may refer to a new business project, a completed goal, or maybe it is just the feeling of triumph over adversity.

You might be feeling good having implemented a new project or overcoming a big issue. But problems with cashflow , creditors and debtors and other issues beyond the metrics prevail and won't go away, stopping you from maximising your business' potential. If this situation is familiar to you, then your short-lived successes may be sabotaging your business viability by sugar-coating underlying problems.

Like a house, your business needs more than just a nicely painted wall. All aspects need to be solid from the foundations up. It has to survive a competitive market and be ready for change and challenges.

To be sure your business is in good shape, first take an honest look at your business and learn, learn and learn more about it. Regularly conduct a business health check with the help of someone you trust like a Chartered Accountant. Follow the three R's to thoroughly evaluate your business.

Review. Ask basic questions first: How is your business currently doing? Are you achieving your KPIs? How are your business finances? You can use a business health check guide to ensure you review all relevant aspects of your business. It is also useful to get assistance from a Chartered Accountant to help you understand the meaning behind the numbers in your business financials.

Research. After evaluating your business, conduct research on areas that need improvement. Knowing where you are having problems is not enough. You need workable solutions. Perhaps there is a missing link between your marketing efforts and sales conversions. Research how you could bridge the gap between these two aspects and learn why your prospect customers are dropping off before they even reach the checkout.

There are many possible solutions to the different problems in your business operations. The only way to resolve them is to conduct research and find the best possible solution.

Remedy. Finally, work on the problems. This is essential to improve your business and create a solid foundation towards long-term prosperity. Cure the root causes of the problems to minimise future risks in your business. Create measurable action plans, strategise and monitor your progress .

It is important that you understand your business, in particular its financial ins and outs. You should not dismiss underlying problems just because you have achieved your goals for the month. A truly viable and future-proofed business can withstand scrutiny and unexpected problems.

For more information on how you can maximise your business' potential call us on (09) 576 4166 or request an online appointment . We'd love to hear from you!

Why mentorship matters to your business growth?

Sun, 13 Mar 2016 22:00:00 GMT

What is a mentor?

One of the age-old forms of learning is by having a mentor (or mentors). A mentor can be called 'master', ' sensei ', 'teacher', 'advisor', 'guru', 'coach' and so on. But what is exactly a mentor? A mentor is someone who is more experienced in a field and is willing to teach and provide wisdom to his/ her student or apprentice.

In the business world, mentors are often referred to as the business advisors, executive coaches and financial advisors who help business owners in making important decisions for their companies. They teach new skills, offer advice or simply provide a new perspective on something that business owners are having problems with.

There are several benefits from having a mentor particularly when it comes to growing your business. One of these benefits is getting an outside perspective on what is really happening in your business. A mentor can help you step back and see the bigger picture whenever you are clouded with uncertainties. The mentor is there to present you with a different angle on the problem and provide inputs for long-term interests of your business.

Below are some of the important areas where mentorship could add value to your business:

According to Adam Kreek , a motivational speaker and 2008 Olympics Gold Medallist, goal setting should be CLEAR :

- Collaborative (Goals should encourage team members to work collaboratively)

- Limited (Goals should have both scope and time duration)

- Emotional (Goals should connect to team members emotionally)

- Appreciable (Large goals should be pided into milestones to achieve them quickly and easily. This way, goals can be achieved by doing one step at a time)

- Refinable (Set goals firmly but if inevitable circumstances ask for certain changes, goals should be modifiable)

The list of how mentorship could add value to your business could go on and on. Mentors know what to advise for specific situations because they have been there before. As Academy Award-winning American film director George Walton Lucas Jr. said, " Mentors have a way of seeing more of our faults than we would like. It's the only way we grow. "

If you need help with developing your business vision, setting CLEAR goals, strategic planning or financial management, contact us on (09) 576 4166. It's time to a ccelerate your business growth.

Managing key metrics to leverage business growth

Mon, 15 Feb 2016 22:00:00 GMT

To leverage business growth , business owners and managers must know their business' strengths and weaknesses and understand their customers' needs and wants.

How is this possible?

What are the key performance indicators (KPIs) that businesses need to measure to determine the future risks and areas for improvement in their businesses? Below are some of the key metrics to consider:

1. Sales/ Revenue KPIs – One of the most important metrics to analyse and monitor is your sales or revenue. Determine if your business is generating revenue by using Sales KPIs such as sales growth, quote to lose ratio, average purchase value and sales by contact/ channel method.

2. Marketing KPIs – To be effective marketing efforts should be refined by constant trial and error and analysis of data from marketing campaigns. Marketing KPIs should be segmented depending on the marketing channel or source used.

One example of a marketing KPI is CAC or Customer Acquisition Cost – This refers to the cost of acquiring users or clients stated by per new user or client. To get the estimated cost per customer, it is important to separate acquired clients from organic traffic and clients acquired from paid marketing. If a business uses referral programs this should be considered to the costing as well.

Other important marketing KPIs include marketing return on investment (ROI), incremental sales, goal completion rate, web traffic sources, keyword performance, conversion rate, social sentiment and end action rate.

3. Financial KPIs – The key way to improve a business' profitability and fiscal health is through tracking financial KPIs and ratios. Businesses must analyse and understand how the business is performing financially. The most commonly used financial metrics are quick ratio, working capital, profit and loss, net and gross profit margin, accounts receivable and payable, overhead costs, and hours worked per process.

4. Customer Service / Help Desk KPIs – These departments of a business are at the frontline where the initial interaction of business and customers generally happens. Monitoring customer service and help desk KPIs is just as important as the other metrics to ensure that clients' expectations are met. Some of the metrics used include average handling time, first call resolution, cost per contact and retention.

5. Productivity – Measuring staff performance and productivity also plays a vital role in business growth. An in-depth understanding on how your staff are performing can greatly help the success of your business. With this, you can identify the roadblocks that your employees typically encounter and provide solutions before the roadblocks jeopardise your business' operations. Moreover, high productivity and efficiency can be your number one asset to achieve all your target KPIs.

Managing KPIs can open many opportunities for your business. By using this measurable data, you can identify the issues that may be causing your sales to decline or understand effective marketing channels that your business may have overlooked. Just like when you are using a magnifying glass, you are able to see things closer including the tiniest details. You can make business decisions based on data analysis to refine and improve your business strategies instead of merely relying on your knowledge.

Whilst having all these KPIs to measure your business performance is significant to leveraging your business growth, you must also understand when to draw the line. Sometimes keeping an eye on one of your metrics such as production ratios may lead to impossible targets or goals that may harm your employee's morale and overall business performance. KPIs must be used to improve and grow your business and not the other way around. Do not fall into the trap of managing by the metrics.

Let us know if you have questions regarding KPIs or if you want to implement an interesting metric to monitor your business performance. Call us on (09) 576 4166 or request an appointment online .

5 Key tips for business growth

Thu, 07 Jan 2016 22:00:00 GMT

There are many techniques successful companies have used to grow and thrive. You too can adopt a proven method and apply similar principles to grow your own business. According to Fergus Lee , Head of Capital Solutions at ASB , business growth can be achieved in three ways; a) build your business over time; b) borrow growth in partnerships c) or buy growth through acquisition.

But really, how does a business grow? This question has been puzzling business leaders and managers since the dawn of modern business. What is it about the global tycoons that allowed them to grow progressively from small businesses to the international business champions of today?

These 5 tips for business growth can shed some light on that question.

1. Plan. Before you take action to grow your business, it is essential to plan ahead. Business planning is important particularly when you first start a business. As a business owner, take time to review any current business trends and weigh up pros and cons. When you have a plan, you can align your strategies to your business needs and specific goals. You can also measure your progress and watch your business grow gradually without worrying so much about the future risks.

2. Don't be afraid to fail. As Napoleon Hill, author of Think and Grow Rich says, "Every adversity, every failure, every heartache carries with it the seed of a greater or equal benefit." The road to success is not a paved way but rather a road of different obstacles which you have to overcome to achieve your goals. Each time you fail on a project or business venture, there's a lesson learned. And the most important thing to remember about failure is to never let it hinder you; keep moving and keep trying.

3. It's okay to take some risks. Always try to bring something new to the table. There are several businesses out there taking the path of least resistance, so by doing things a bit differently you might find a whole new niche within your industry. Explore your horizons and don't be afraid to see beyond what you know and what you can do.

4. Keep doing what works and reinvent what doesn't. If it ain't broke, don't fix it. Growth happens when you're fulfilling a need or want. If demand increases, it means you are fulfilling your market's needs and wants. But if you have losses every passing day then it's time to evaluate what is missing or what have you been doing wrong. You can reinvent, experiment and explore business strategies or study and learn from your customers. Identify any expenditure in your business that isn't generating results and reallocate those resources to what is working, or to a new project.

5. Choose the right people. If you are serious about business growth, then you need the right people to support you and help you achieve it. With serious growth comes serious job creation. Find the perfect fit for each role in your company. It's okay to be choosy at times for as long as it's worth it.

If you have queries regarding business strategies or you need help in growing your business, please don't hesitate to contact us on (09) 576 4166 or request an appointment online.

Five Ways to Future-Proof Your Business

Mon, 16 Nov 2015 22:00:00 GMT

Innovate your business

The business world today is fast changing and your business needs to evolve to stay in touch. As a business owner there is a need to develop and use new business strategies, technologies, and ideas in relation to the current business trends to ensure your business survives.

Also, in today's world, ease and convenience are key to surviving a demanding marketplace. Business owners and managers nowadays are lucky to have hi-tech business tools like Xero, a cloud based accounting system designed for small to medium sized enterprises. It is a useful tool for managing and tracking your business finances. With Xero cloud accounting the financial health and activities of your business are in real-time allowing information to be updated and monitored easily. Since data is stored in the cloud, you can access your account anywhere and anytime on any device for as long as you have an internet connection.

Hire Chartered Accountants

To ensure the success of your business, it is important to have professionals working with you. Sound accounting and business financial management is critical for the success of your business. Hiring chartered accountants to help you make decisions in relation to your business finances is advisable. If your business' finances are handled properly, it will help ensure success and continuous growth of your business.

Re-evaluate your business

Conducting an annual business health check is important to better understand how your business is currently doing. Checking all aspects relating to your business is crucial to determine possible future risks that your business may encounter. With a business health check, you can plan ahead for your business. It is useful to get comprehensive feedback on your business health check from a Chartered Accountant or business consultant to help you make better decisions for your business.

Have something new to offer from time to time

Customers tend to be excited when there is a new offer or something different being provided, so think about providing a new or special offer to customers from time to time. You could also experiment on a product or service you offer such as providing discounts and special privileges which could help ensure customer loyalty. Check such initiatives first with your accountant to ensure they will be financially viable.

Be strong and don't give up

There could be a time that your business does not generate enough sales or loses money. Failures and losses are sometimes part of doing business. Do not be disillusioned if your business suffers a financial loss. Talk with your Chartered Accountant or business consultant about what might be wrong and what you can do about it to make the business gets back on its feet.

With these tips in mind, you can minimise future risks for your business. For more business advice, please contact us on (09) 576 4166 or request an appointment online .

Top 10 Online Productivity Tools for Your Business

Wed, 11 Nov 2015 22:00:00 GMT

Being an entrepreneur is a challenge from the moment you decide to be one and what makes it more challenging is keeping up with this ever changing world of business. But if you really want your business to thrive, you need to constantly make changes to stay productive and profitable. So, how can you do it?

Here are some online productivity tools that can help ensure business growth:

1. Google Drive . File backup and share files in the cloud easily and securely. You can also create folders for collaborative file sharing among your team members.

2. Cloud Accounting Software . This is a must have for all business owners to make your life easier. You can manage and monitor your business finances anywhere, anytime and on any device securely. It will make your day to day accounting simpler. One easy to use cloud-based accounting system is Xero, designed especially for small to medium sized enterprises.

3. Google Alerts . You can set up Google alerts for all your favourite topics which you can read for inspiration, updates and new ideas. You can also use them to manage your online reputation by setting up alerts on any brand mentions. Being updated and informed can help you get ahead of your competitors in the industry.

4. Hootsuite . This social media tool is tremendously helpful when managing various social media accounts. You can create status updates and monitor all your social activity across networks in one easy-to-use dashboard which lets you schedule your posts, delegate social assignments to team members, measure performance, organise Twitter smart list, and more.

5. Trello . A project management program which your team can use to track everything from the big picture to the minute details of your project. You can create boards, upload attachments, create lists, and integrate Google Drive, Box and Dropbox.

6. Mailchimp . For effective email marketing, a customisable tool for creating emails and newsletters is a must. Mailchimp has an advanced list segmentation feature and marketing automation capabilities for better marketing.

7. Google Analytics . This is one of the best tools for digital marketers to keep track of their online digital campaigns and make intelligent marketing and business decisions. With analytics you can analyse your website traffic, measure your online campaigns and determine the converting channels.

8. Wetransfer . WeTransfer.com is an online program that lets you transfer huge files up to 2 GB even without registration. It's simple, fast and easy way to send files if you are in a hurry.

9. Evernote . Organise your files, notes, and important ideas in a cloud-based workspace. Evernote lets you write and collect everything that matters about your work including web articles, written notes and details of your projects. You can also share your work, collaborate and communicate with others in real-time.

10. Onlinephotoshopfree . If you don't have any software for image editing onlinephotoshopfree.net is the best online tool.

For more ideas on how to increase productivity and efficiency in your business, don't hesitate to contact us on (09) 576 4166 or request an appointment online .

Day to Day Accounting Tips to Ease Your Workload

Sun, 04 Oct 2015 22:00:00 GMT

Get an accountant

cloud accounting system

Xero

filing of GST and annual tax returns

List daily expenses and income . It is a good practice to detail sales and expenses daily. It will help you and your accountant to track your business performance and ensure the end of month or end of year reporting can be completed on time.

For assistance with your daily accounting and bookkeeping please don't hesitate to contact us and we'll advise based on your particular situation.

Top 5 Forward-Thinking Business Strategies for SMEs

Wed, 30 Sep 2015 23:00:00 GMT

Strategy is important to keep your businesses afloat. As Joel Ross and Michael Kami, authors of " Corporate Management in Crisis: Why the Mighty Fall " said , "Without a strategy, the organisation is like a ship without a rudder, going around in circles. It's like a tramp; it has no place to go." However, it's not enough that you have a business strategy. It is also important that you keep your strategy aligned with current business technology.

1. Choose the right market . We'd all like to find a huge market big enough to make us a billion-dollar company. Being able to solve that market's problems with the right products or services would be a gold mine to success! There are tools that can help you choose the right market. One is the Product-Market Fit Model which Sean Ellis, Founder and CEO of Qualaroo , popularised. Research and learn from your market's feedback to know the perfect solution they are looking for. By doing this, you can increase the odds of your business succeeding.

2. Develop your value proposition . One of the most effective business strategies of all time is having a unique offering that will stand out from other businesses in your industry. Keep in mind that your product or service can be anything but ordinary. Differentiate your offering from your competitors by adding that value your target market can't help but patronise. Once you have defined your value proposition , continuously innovate a strong product or service that can withstand any competition.

3. Discover the latest untapped marketing channel . Look beyond your competitors' marketing strategies. Try new ideas – they may work for your business. Be the trendsetter. By the time your competitors follow your lead, you are already working your way through the next marketing innovation.

4. Be a growth hacker . Growth hacking is not only for startups. You can adapt growth hackers' way of thinking in terms of business growth for any business. Be creative and at the same time analytical towards growth. However, be careful not to disrupt your business operations while implementing or testing your new business strategy.

5. Digitise your business . Strategies often evolve through time. In today's modern world where everything is interconnected by technology, you may need to better align your business into this new age. If it means moving to the cloud to provide better service to your customers then you may want to give it a try. Though the old ways may still work or can be used as a base for your strategies, it's important that you try new things to get ahead of your competitors.

In the business world, there will always be a competition. Having the right business strategy is just as important as creating a strong product or service behind your business name. It needs time, research and continuous effort to know which works best for your business. Last year's strategies may not work in the present since change is constant in every industry. Your customers' preferences may also vary from time to time and to keep up on their demands, your business should be versatile enough to test new business strategies continuously.

Is your business ready to take the next step? Let us help you figure out the best business strategy that works for you. You may contact us anytime for an appointment.

Reference:

David, F., & David, F. (n.d.). Notable Quotes. Retrieved September 16, 2015 from http://strategyclub.com/notable-quotes/

Thinking about the future for you and your business

Mon, 14 Sep 2015 23:00:00 GMT

We read a lot about the ageing population and its potential impact on the economy but what does it mean for small business?

In business, typically, it takes a lot of energy and planning to get started and a lot to keep going and keep growing. Very few business owners start a business with exit in mind. It seems completely counter-intuitive. You start with a dream and the tenacious passion to make it real and then you just want it to grow. But when do you start thinking realistically about what you want to happen when you retire?

What's your plan? What do you want to see happen? How much money do you need to retire ? How do you start even thinking about all this?

In search of success(ors)

Are there family members working in the business who are interested in taking the business on? Do they have all the training and experience they need? What about your team or franchisees? Do any have management and leadership potential which could be developed further? It doesn't have to be a single individual – there might be a couple of key people motivated to form an effective partnership with some serious buying power. Is this a good time to start a conversation?

Alternatives to exit

If the idea of selling the business and retiring to a beautiful lifestyle bores you to snores, don't think about it in terms of complete cessation. If you find the right people, it might be feasible to keep an interest in the business and a slice of the decision-making. It could free you up sufficiently to discover more of the great lifestyle you could have had, if you'd ever had time to have a life. At the same time, you'll be able to share the rich business knowledge you've built up and you'll have the added satisfaction of seeing the business continue to grow.

Ready to sell

If selling is your best option, is your business 'sale ready'? To achieve the best possible price, you need your business to be in the best possible shape when it goes up for sale. You need to analyse your business from the point of view of a potential buyer. Is there clear documentation on business processes and performance? Is your business performing at peak? What would it take to be ready for sale and what is the most realistic timeframe to achieve it?

These are all things we can help with. At the very least, we can help you to start the conversation and work out a plan. Contact us today for more information or request an appointment online.

Accountancy Insurance - why it's important

Tue, 11 Aug 2015 23:00:00 GMT

Audit Shield Accountancy Insurance

For a small annual premium, Audit Shield can give you peace of mind. We have recently written to all clients with information about how to purchase accountancy insurance. If you would like more information please contact us today.

Audit Shield is offered by Accountancy Insurance - tax audit insurance specialists who assist over 1800 accounting firms throughout New Zealand and Australia. Established in 2003, Accountancy Insurance currently employ over 60 members of staff across both countries with each and every team member passionate about providing the market with a tax audit insurance product that is simple and effective - Audit Shield. The team at Accountancy Insurance has the depth of knowledge to ensure Audit Shield covers accounting firms and importantly, you, when it matters.

Defining your value proposition

Wed, 01 Jul 2015 23:00:00 GMT

If someone asks you what your business is, can you tell them in a nutshell? Or will they be bored and confused before the elevator reaches the 2nd floor…

Your value proposition should sum up why a consumer should buy your product or use your services over someone else's.

You need to understand your prospective clients so you can differentiate your offering from others. Provide clear reasoning why the client will benefit by buying your product or service - and why it will add more value or solve a problem better.

Creating a value proposition:

2. Define what makes your offering desirable and unique. How can potential clients obtain better value by doing business with you instead of your competitors? You'll need to provide evidence.

3. Test your message - is it clear? Step into your customers' shoes and ask yourself: what is actually being offered? Can someone get it cheaper/ easier/ quicker somewhere else? Does the offer convey trust? Does the value proposition make YOU want to buy it?

4. Balance your objectives. If your message is clear but lacks persuasion or it makes people want the product but doesn't convey that it's exclusive to you then you'll need to tweak the message.

5. Boil it down. Remove unnecessary words, keep it simple - it should read clearly on a web page and you should feel confident reciting it to potential clients.

6. Test your proposition. Keep it current so that it constantly reflects your position within the industry. Talk with close clients - ask them what appeals most and what sums up their buying experience.

If your value proposition doesn't roll off your tongue then you probably don't have one. It's time to define how the value of what you're offering far outweighs the perceived cost.

For assistance developing all aspects of your business strategy, contact us today or request an appointment online.

Human capital risk - what is it and what do we do about it?

Tue, 09 Jun 2015 23:00:00 GMT

When you are in the process of assessing your business risk and putting together your risk management plan, make human capital risk one of your focus areas.

Human capital risk is a term which covers whatever arises out of not managing an organisation's human capital well. This includes:

Where catastrophic events pose a danger to the business through the loss of key people, an insurance package might cover funds to help cover shortfalls through the transition and replacement costs, as well as funding a shareholder's share of business debt, and purchase of the deceased or disabled partner's share of the business. Backup strategies might also include developing a leadership programme, more effective delegation of responsibilities, mentoring and training.

If staff turnover is an issue, is there something else going on? Are pay points far lower than those of competitors? Is morale an issue? Are the business' recruitment strategies just not finding the right fit for the firm? You might look at what your competitors are doing but you could retool recruitment and training processes to increase employee retention. If staff are leaving because for lack of a clear career path, could the organisational structure offer solutions? You might also look at organisational culture and introduce measures to improve morale, engagement and a positive outlook toward the business and customers.

The potential damage a fraudster could do to a business is truly horrifying. It's hard to come back from the direct costs to management, as well as the damage to the brand, team morale, and vital relationships with partners, suppliers and regulatory bodies. However, it is possible to create a climate which minimises the possibility. Strategies might include screening employees at pre-employment as well as screening suppliers and third parties, thorough internal controls and audit processes, as well as a clear code of conduct and awareness training for the whole team.

Whatever your assessment of business risk, a risk management strategy that meshes with every aspect of the business is crucial. Regular review and energetic follow through will help to minimise risk and create a stronger organisational culture alert to possibility and adaptive to change. For assistance with your business risk management, please contact us for an appointment.

How do you know what to insure?

Sat, 16 May 2015 23:00:00 GMT

It's a bit of a Murphy's Law principle that businesses often don't really come to grips with their risk management plan (or the lack of one) till some random accident takes out a key manager or lead hand and it hits everyone what it will mean for the business.

No one can plan for everything but every business should have a sound grasp of the kinds of risks that might hit them hard. And every business should put strategies in place to minimise risk and deal with it, if the unthinkable happens.

There is no one rule to apply to insurance risk as everyone's situation is different. However, start by brainstorming up every conceivable risk. Then divide your list into two columns:

Whenever they start to work through their insurance plan, most people tend to think about things rather than people - the buildings, the vehicles, plant and equipment. You also need to factor in the impact if key people were suddenly not there to make everything run smoothly.

Do a double take and consider whether you've really taken human capital risk into account. What would be the effect if you couldn't work for six months, for example? Who are the other key people in your business? What would be the impact if they couldn't work for six months or if they couldn't return to work at all?

Often people make the mistake of over or under insuring in the wrong area and find there are gaps in their risk management plan. For professional advice in structuring your risk management plan connect with your local insurance consultant. If you're not quite sure where to start, contact us first to help break it down.

Common marketing mistakes

Wed, 06 May 2015 23:00:00 GMT

We often get asked by clients about ways to grow their businesses and expand profit. While there are no simple answers and every industry is different, below are a few potholes to avoid on the road to marketing your business :

1. Going into business without finding out what customers really want.

2. Launching the products or services without sufficient market research.

3. Competing on price rather than developing a Unique Selling Proposition.

4. Pitching prices too low so that not enough funds are left for sales promotion.

5. Expanding sales of products or services which offer very little profit.

6. Expanding sales when there isn't enough working capital.

7. Opening a business in the wrong location.

8. Using sales people who may have good technical knowledge but who have not been trained to sell.

9. Staying too long in dying or unprofitable markets.

10. Doing the same as last year - all the time.

For helping with your business growth planning contact us for further assistance.

KPIs and Benchmarking - what are they all about?

Wed, 08 Apr 2015 23:00:00 GMT

Businesses often ask us about KPI's and benchmarking and want to know more about them. So what exactly do these terms mean and how can using them help your business? KPIs - Key Performance Indicators are pieces of measurable data that breakdown aspects of the operational side of your business in order to measure your progress. These include: 1. Data surrounding how many staff you have and how 'productive' they are in terms of selling goods or services 2. How many clients or customers you have and how much each of these spends with you 3. Data surrounding cashflow and the collection of bad debts or even debts you may have to 'write off' 4. Revenue generated by the different goods and services you offer Benchmarking is vital when establishing the performance of your business. Benchmarking compares your important KPIs to those of businesses with similar operations. You can then ask yourself: 1. Are your operating costs as low as similar businesses? 2. Is your debtor management plan working as effectively as those of your competitors? 3. Is your staff productivity comparable? Benchmarking can provide the not so obvious solutions to a number of small margins which in turn, when tweaked, may dramatically improve your bottom line. Paul Martin Chartered Accountant Limited can assist you with setting KPIs and benchmarking your business. Contact Us to find out more.

Meetings Matter

Wed, 28 Jan 2015 22:00:00 GMT

Meetings: scourge of the working day or a top way to make things happen? Go for the biggest outcome from the smallest window. Start with basics.

Focus

Do you want to share information or status reports, make a decision, brainstorm ideas or solve a problem? Complete this sentence 'by the end of this meeting I want us to have…'. If appropriate, circulate an agenda in advance. Ask people to think about a task or problem ahead of time so they come prepared.

Who needs to be there... really?

Meetings lose momentum when there are just too many people there. Are there some things you want everyone to know about but other business involves only a small core group? Schedule so you can deal with what involves everyone first. Then, like the man said, 'let my people go'. They'll thank you. The core group can then focus on what they need to achieve. If there are a lot of people moving at once, this is your moment to schedule coffee for those staying on.

Timing

When are all the participants most likely to be available, awake and enthused? Early mornings are good though you can lose points on the 'awake-o-meter' or because of latecomers and 'what was on TV last night'. But everyone wants to be done quickly so they can get on with the day. Mid-morning means people have made some headway on their desk, they're awake and in work harness. However, you risk burning up the most productive hours of the day if you let it drag on. Work to an 'end stop' event like lunch so there's a natural time to finish. Late afternoons are low on the 'awake and enthused-o-meter' but may still work. If you call a meeting in the last half hour of the day, you risk energy being low but you increase your chances of everyone in the room being committed to achieving outcomes in the fastest, smoothest way possible.

When scheduling, a half hour is good, an hour at most. No matter how much business there is to go through, after an hour you've lost them. Schedule a series of smaller purpose-built appointments if you have to.

Who's leading?

A facilitator is clear on the purpose of the meeting, keeps the group on task, summarises outcomes and outlines who is accountable for them. Gain the reputation of someone who starts on time, keeps to time and ends on time. People appreciate you understand they're busy. Be firm with anyone who takes the meeting off-topic. Keep it light too - it's important to stay on task but a sense of humour keeps you on task as a team. Ask someone to note down outcomes. As chair, model good listening skills by being respectful and attentive to all participants. Make sure everyone has input and is heard. At the close of the meeting summarise what's been achieved. Ask everyone if they thought the meeting was useful and field suggestions for how it could have been more effective.

Kill the toys

Nothing is more soul destroying and unproductive than trying to drag a meeting to a result while one or more people monitor their emails and texts. Be firm but fair and thank the group for staying on task.

Agenda, minutes, action!

Agenda and minutes attract flak as hallmarks of the typical boring meeting. They don't have to be. Use an agenda to establish the purpose of the meeting. When you plan it, plan how much time to allocate to each agenda item. When you chair the meeting, it will keep you on track.

As far as possible, pare back minutes to what decisions were taken, what action is required, who's responsible and by when. Follow up after the meeting by emailing a brief summary highlighting tasks and outcomes. At the next meeting, use the minutes to check that people have done what they've said they would and, if not, detail the next best course of action.

Six of the best ways to increase productivity

Wed, 14 Jan 2015 22:00:00 GMT

Happy New Year! While you are rested and enjoying the sunshine, it's a great time to think about how to get the most for yourself in 2015. Do you often wonder why successful people seem to have so much spare time? Enough time to exercise, share holidays with family and yet, to still be completely relaxed and stress free? Those people probably have the balancing act right and are efficient at managing time.

Here are six things that really productive people do that could help:

1. Define your priorities

Defining these can often be tricky and it isn't always about work. Part of you wants to say that work is your priority, but stop before you answer this question. What do you find fun? Think about the kind of lifestyle you want and go from there. If you want to be a CEO, you're going to have to be willing to take the level of work commitment that goes with it. If you want to have a life filled with family, then work out what your priorities are in order to make this happen.

2. Do what you are best at

You don't do everything well, but what you do well is often more enjoyable and will take you less time. It's also more than likely that if you don't enjoy something, you may not compete it or do it to the best standard. Don't take on new challenges if they are too much for you to handle. Be efficient and use your best ski8lls and expertise to shine and get the job done on time.

3. Integrate your activities

If can be a real balancing act trying to manage work, fitness, a social life and family, so look at ways to incorporate these. Find someone at work who wants a workout buddy so you can exercise together in lunch hours. It also helps to try and develop you work life and career around your interests. You will soon find yourself amongst peers with similar interests which can in turn lead to a healthy and balances social life. Instead of feeling pulled between work and play while trying to keep everyone happy, aim for a healthy medium and let everyone come to you.

4. Stop wasting time

Social media can be an excellent business tool....but it can also be a very good time waster. Unless you are using a social media site to do something specific, put it away. Ignore gaming apps which send reminders and updates - these will only lead to distraction. You need to actually budget time for necessary activities with family and friends and don't do anything that doesn't energise and uplift you. Also use business tools that can help you increase productivity like Xero cloud accounting , Trello, Call Scheduler and more.

5. Learn more

In spite of what you may think, learning can give you back time. By discovering new tools or ways to do things, you can become more time efficient and effective in your way of doing them. If it starts to drag on though, leave it. Nothing should take up your time, only enhance it.

6. Don't beat yourself up

Remember that you are only human, so don't get too down on yourself if you can't attend to everything on the list. Also remember to celebrate your achievements as you do them. Reward yourself for the items you do tick off the list because completions can act as a form of motivation for other tasks.

It's not easy to do all these things at once, but by gradually incorporating each too into day to day work and play, you might find that over time, stress levels will be lower and life more enjoyable.

Naming your business wisely

Thu, 13 Nov 2014 22:00:00 GMT

As a business owner, especially if your business is a new one, you will be eager and excited at the opportunities for growth, growth, growth – of course, everybody dreams of that. But before trying to decipher the pathways to success for your business, you need to first ask: who are you?

Your business' identity may actually rely on its very own best assets – good food, quality service, affordability for example – and all the positive adjectives found in the English language. But does the public really know you? Or worse, do they even remember who you are?

That's where a suitable business name becomes critical.

A good advertisement with a beautiful commercial model on the side may attract potential customers, but the name you give to your business will imply trust or distrust from your target market. A business logo may be changed from time to time to give the public a "fresh" perspective of you, but a business name usually remains for a very long time. So it is worth it to think about it carefully, just like a parent spending time thinking of a name before their baby is born.

Are there any rules in crafting a business name? Practically speaking there are none but you should be very careful.

Some people, like some parents naming their children, get the names of their businesses by combining their own names. This could be appropriate especially if your name carries a good reputation, but be cautious – it may in still wrong ideas in your customers on what your business is all about. If you establish a restaurant and you and your business partner's surnames are Rusty and Spoon, and you decide to combine them, the public might be scared to get tetanus and avoid coming in! Lost sales – and that hurts. Or if your surnames start with the letters S, C, A, and M, and you plan to combine them to name your insurance company… ah! Don't even consider it. Or if your surname is Schuzinderbalwoek and you plan to use it for a convenience store – don't. It will not be very convenient for the customer.

Another pitfall for some business owners is the idea of copying existing entities' names to ride on their popularity and sound catchy. Again don't. You might be selling cameras and name your business Koduck (with a matching duck logo carrying a DSLR camera). Or sell soft drinks and name your business Poke. Or establish a convenience store and name it Haven Eleven. Or… or… or… Please, just don't do it. Many business owners have already tried, and most times all it brings them is a bad reputation with a court summons as a bonus.

You do need to be creative – but not so much that the name sounds ridiculous or Harry Potter-y. It is better if your business name reflects what you really offer your customers. But don't make it so long to be worth forgetting. Don't rush, don't copy, don't overdo. Give your business a character through your business name. Make sure that it accurately describes what you do and/or what you want to become. Always remember that your name will imply trust or distrust from your target market so make sure it is worth remembering and strong enough to get the public stepping through your business' doors.

Make that holiday happen

Fri, 31 Oct 2014 22:00:00 GMT

If you are a business owner, you'll know that the more stressed out you are, the more you need a holiday and the less easy it is to make the time! With the holiday season fast approaching here are a few tips to help you plan a holiday and make the most of it:

1. Put systems in place - If you write down your procedures and practices and ensure your team are following them, you can lie on the beach without worrying. The earlier you put systems in place within your business, the earlier you will reap the benefits.

2. Plan - Use your most productive time of day to plan your holiday. Don't try and do it once you get home, after the kids are in bed. Put aside 30 minutes each working day to really plan your holiday and book airfares and accommodation. You'll have less risk of booking incorrect dates and time and your holiday will be more cohesive.

3. Rethink how you use your time - If you spend your day rushing from A to B, book a holiday that involves lying in one place. If you spend your work week on a wheelie chair in front of a monitor, go somewhere with plenty of places to walk and explore. Make sure your holiday is a real break from reality - not just the same behaviours moved to a different location.

4. Shut off - Leave your mobile and laptop behind and don't check your emails. If you are away from the office, you are out of contact. If it's an emergency, your team can call the hotel, but do not give any way to contact you directly.

5. Take a mini-break - If you really can't get away for a week or two, take a long weekend, unplug and relax. Explore your nearest large city and visit the theatre or get your blood pumping with a live sports game. If you are in the city, find your closest rural retreat, have a massage then get your gumboots on and step out into that invigorating fresh air.

Your business plan - getting started

Sat, 18 Oct 2014 22:00:00 GMT

In our last post we talked about the power of the business plan and committing it to paper. This week we'll share a few quick pointers to help you get started with your planning:

1. Start thinking - you need to try and set time aside for this frequently. Thinking is your job in the business!

2. Get the team together - you don't have all the ideas but you can bring all the ideas to the table.

3. Brainstorm ideas - anything goes, then work through the list and pinpoint the most important ones to focus on.

4. Follow a business planning guide to make sure you cover all the relevant points - you can ask us about this or locate a comprehensive, practical book on the subject.

5. Set goals - you need to keep striving ahead and you need something by which to monitor business performance. If you don't reach your goals, find out why and get the business back on course.

6. Start writing - by committing your plans and goals to paper, you have set the course ahead. It's harder to deviate from a written plan than if the thoughts are a jumble in your head.

7. Make an action plan - give people tasks to have completed by an agreed time.

8. Review monthly, or regularly enough to monitor any deviations from the proposed course. It's fine if you choose to change tack later on but keep charting the course ahead and identify goals to work towards.

Please contact us if you would like help with any aspect of your business planning.

Committing to Paper – The Power of the Business Plan

Tue, 30 Sep 2014 23:00:00 GMT

Some business owners have planned such a clear path for the future, they wonder why others are so hung up about writing a business plan.

After all they have it all in their head – their vision, objectives and goals – so isn't that enough?

The short answer is NO, it isn't enough. Even if you're so busy with your work, rigidly following that path for the future, you've still got to write a business plan.

In fact writing the business plan is one of the first things you need to do – before you set-up in business.

So, why is it so important? Let's look at some important reasons.

Good Thinking
One of the essential ingredients that goes into the planning process is good, critical thinking. Before you write anything you've got to think through what you intend to do in your business and how you intend to do it. If you're just sitting down to write your plan after several years in business, you need to think about what you are doing currently and what you intend to do.

We can help provide a list of all the things you need to cover in your business plan, or you can find helpful books in the library. For example, you'll need to include information on industry and market analysis, customers, environmental factors, financials, competition, marketing, advertising, as well as plans for sales, distribution and staff development. And that's just the short list.

Writing a business plan is a big task, but because the plan encompasses everything about your business operations, it's a vital document. Operate without one and you may start taking some wrong turns along your pathway.

On the other hand, by committing all this thinking to paper you are setting a well-mapped course for the future of your business.

Monitor the Deviations
Once you have your plan in place you now have a tool to help you compare current performance against what you wrote in the plan.

Follow-up is important with your business plan. You haven't written it just to throw it into the filing cabinet and forget about it. You do need to check in with your business plan regularly, maybe monthly, to make sure your business is still on course to reach your planned goals.

Securing a Loan
Banks and financiers love business plans. If you apply for financial support they will want to know you have a business plan and are operating to it.

A plan shows them you are serious about your business. It also states that you have planned your future direction and how this will be achieved, and, importantly, that you know how the loan is going to be repaid.

A properly-prepared loan application with supporting documentation is likely to be much more successful than a verbal or badly-prepared one.

Involve the Team
Several heads are better than one when writing, or updating, your business plan. You might be leading your organisation and have a vision about where it's going, but your employees probably have a wealth of great ideas. Don't overlook them. Your job is to bring the ideas to the table and give people an opportunity to discuss them.

Involving the team can often result in more effective implementation as they own the ideas and are more willing to implement the plan. The teamwork approach can also spark a lift in morale.

As well, the business planning process focuses the team on big issues, such as looking at future developments for the company or enhancing services to customers. By reviewing the "big picture", you are making decisions based on analysis of the business in its entirety, rather than a piece-meal approach of decision-making forced by crises.

"…there are oodles of studies showing that businesses that write business plans have a much better chance of being lean, mean and successful, generating higher sales, more profit and better growth." Small Business For Dummies. Veechi Curtis

For more information and assistance with your business planning contact us today.

Minimising human capital risk when buying a business

Sun, 21 Sep 2014 23:00:00 GMT

Buying a business in NZ? Chances are you'll be buying a Small to Medium Enterprise - a business with between 3 and 50 employees and a turnover of $250,000 to $10,000,000. One of the most substantial risks facing SMEs is the loss of key people. A profitable, solvent business can quickly begin sinking if key human assets jump ship. Minimise your human capital risk at the outset by undertaking and implementing prudent risk management processes. Things to consider: 1. Shareholder purchase and sell agreements. If you are buying a business with other investors make sure you seek legal advice on your shareholder agreements for the buy and sell of shares following major events such as death or serious incapacity. 2. Key person risk. As a new owner, you may not be the 'key person' on day one. Establish who has the expertise or business knowledge that is vital to your business' success as part of due diligence. Who does the business rely on? What is the current process for managing human capital risk? 3. Business debt. Bank funding for the purchase of a business might require you to personally guarantee, offering your personal assets as security against a loan. You may also need to guarantee leases and supply agreements. Carefully consider what you are agreeing to. 4. Insurance factors. Unfortunately, you can't buy insurance to protect against business failure from bad decisions or poor management but you can protect against serious events affecting key people that could cause the business to fail and you to default on your debt. When purchasing a business it pays to implement a robust key person analysis process. This will enable you to understand how and why a business is vulnerable and the potential financial risks of not acting in advance, while enabling you to minimise risks and make informed decisions going forward.

Cost of Sale and Overheads Explained

Mon, 01 Sep 2014 23:00:00 GMT

Cost of sale and overheads affect your profit. Understanding how they inter-relate and keeping track of them can really have an impact on your business success.

Cost of Sale
Cost of sale (also known as Cost of Goods Sold or CoGS) is how much it costs you to make a sale.

In a business which sells products, CoGS is based on the price paid for the product, plus any costs necessary to put the merchandise into inventory and make it ready for sale, including shipping and handling. You can even break it down to calculate the cost of sale of individual units.

The basic formula is CoS = Opening Inventory + Purchases + Carriage In – Closing Inventory.

It varies, depending on what kind of business you have. Manufacturers determine the cost of sale as the sum of the direct costs of material and labour incurred in producing a product. A business that provides services would calculate cost of sales by looking at the amount of money that goes into providing a service. In this kind of business it's important to have a system to track the time the team spend directly involved with delivering the service.

Overheads
Overheads are general business expenses. They can't be tracked directly to sales. Overheads are what it costs you to open your doors every morning.

Seeing Profit
When you're looking at your profit and loss statement, it can be a challenge to see how all the factors inter-relate.

When you look at income from sales, you won't be able to see what your profit is until you've factored in costs. After you've made deductions for items such as customer discounts and returns, and taken away the cost of sales you can see your gross profit. When you look at gross profit, then deduct all your overheads, you'll see your net profit and get a better idea of how your business is really doing.

Your net profit is the proverbial bottom line. It's important to also remember that tax is based on your net profit – the profit you keep will be your net profit after tax.

The important thing to understand is that every dollar you can save from your cost of sale increases your gross profit. Every dollar you save from your overheads increases your net profit. If you can't shave anything off your costs, you might need to think about whether you can increase your prices. Increasing prices without sacrificing sales is the ultimate aim, however adding value to your products should always be considered to maintain or increase sales.

If you would like more assistance analysing and understanding your business cost of sale and overheads, please contact us for an appointment.

Bolster Your Bottom Line

Tue, 26 Aug 2014 23:00:00 GMT

For new businesses in that critical early period, cashflow is a vital part of staying afloat to establish and grow the business. Established businesses also know the importance of cashflow to help you keep everything running while you grow the business. If you can't reach your targets for income, reining in your costs can help give you a little extra head room to manage cashflow while you're planning your next move.

Cost control can contribute to business success or failure but it can be hard to get a handle on it as your business costs can work on a number of levels. It can be a challenge to pinpoint hidden costs or where your established ways of doing things cost you more money than they should.

It's more than just keeping an eye on outgoings (though that's important). It's about looking at each aspect of your business and all your business systems (or the gaps where there should be business systems) to see if poor practice is driving costs up unnecessarily.

It can be helpful to break it down a little. You can look at it in terms of cost centres such as power or office supplies. Or you can look at what those costs do for your business. It can help to analyse costs in terms of cost of sale and overheads.

Every dollar you can pull back from your costs can go straight onto your bottom line. Contact us if you'd like to review your costs and your systems to keep costs under control. Whether your sales are booming or busting, you want to make sure that while you're focused on revenue, your costs aren't ballooning and you're still delivering on your bottom line.

Accounting vs Bookkeeping

Thu, 31 Jul 2014 23:00:00 GMT

Accounting vs Bookkeeping – What is the Difference and Why Does it Matter?

It is very common for non-accountants to think that accounting and bookkeeping are the same thing. Both play a vital role in the financial cycle but fulfil quite different purposes. As a business owner you need to understand how these functions operate to ensure your business is getting the right financial data and advice that is critical for your future growth and success. So, let's take a closer look:

What is a Bookkeeper?
Bookkeeping is the process of recording the daily financial transactions of the business in a consistent way – generally the basic cash in, cash out in order to gain a simple understanding of financial performance.

Bookkeeping is the first stage of the accounting process and lays the foundations for the work completed by an accountant.

Unlike accountants, bookkeepers do not need any formal qualifications. Frequently the person keeping the books for a small business is the business owner themselves, although as their business grows, they often look to their accountant to provide this service.

What is an Accountant?
The accountant takes the raw information recorded by the bookkeeper and makes sense of that information. Accountants are trained and qualified professionals, skilled in analysing, interpreting and presenting data in different ways. This includes preparing tax returns and financial reports such as profit and loss statements and balance sheets – all essential to managing your business.

Accountants create reports that bring together key financial indicators to enable a better understanding of profitability and cash flow. Their focus is on providing business advice to help ensure your business performance is on track for the future.

There are however differences between regular accountants and Chartered Accountants. Chartered Accountants are further qualified to be members of the industry body which has strict professional and ethical standards. This includes the requirement for ongoing training and upskilling. So, working with a Chartered Accountant gives you the extra confidence your financial affairs are being well looked after!

Accountants and Bookkeepers Working in Harmony
Accountants can be bookkeepers but bookkeepers are rarely accountants. However, as the transactional information provided by the bookkeeper provides the foundation for the accounting process, it is important the two work in harmony.

One way many small businesses create this professional and financial harmony is to outsource both functions to a Chartered Accountant. Using the latest cloud accounting systems such as MYOB and Xero, Paul Martin Chartered Accountant Limited is able to exploit the synergies of a single data source to deliver real-time views of your company's performance. This enables more effective decision making, saves you time and gives you peace of mind your business is in good hands.

Are you adequately covered?

Sat, 19 Jul 2014 23:00:00 GMT

Sales discounts and discount reserves

Mon, 23 Jun 2014 23:00:00 GMT

Does your business regularly offer sale or cash discounts to customers who pay early on their invoices for goods and services? If so, it's a good idea to set aside a reserve fund to cover these sales discounts, The amount of this discount reserve should be based on your estimate of the likely total figure for discounts that will be taken. As customers actually take the discounts, credit the accounts receivable account for the amount of the discount and debit the sales discount reserve. This way the discount is clearly in the same period as the associated invoices, so it is easier to account for all aspects of the sale transaction.

Networking: what's your elevator pitch?

Sat, 14 Jun 2014 23:00:00 GMT

How to Boost Morale Within Your Business

Mon, 26 May 2014 23:00:00 GMT

It's that time of year when team morale begins to drop. The colder months tend to lean toward less social interaction and more 'bunking down'. This in turn leads to a general lack of motivation amongst employees. What better time to launch a rocket ship so to speak and organise some exciting boosters for your team? Recognise special personal events - Acknowledge birthdays and the length of time spent with the company. Organise a coffee shout or buy a cake and get the whole team together to recognise the occasion. Communicate - Encourage conversation and idea sharing amongst team members. Remember that most of our time is spent at work and it's a good way to learn more about each other. Acknowledge and reward hard work - Order in pizza for lunch, have Friday after work drinks or simply send around a congratulatory email. As long as you ensure the right people are rewarded and your staff feel valued. Encourage regular breaks - Remind employees to stop work for 10 or 15 minutes in the morning and afternoon. Suggest popping outside for fresh air or coffee. It actually improves productivity. Smile and have fun - Organise team events away from the office, whether it be a team building exercise or a group lunch. Work can be stressful at times and can lead to burnout. It's important to add an element of light heartedness, as long as it's done in good taste. Employees will prosper from positive energy.

Create Excellent Systems for Business Excellence

Sun, 11 May 2014 23:00:00 GMT

Well-run businesses have excellent systems that produce key information about the business' status. Regular monitoring is important to ensure the business owner or chief executive always has a finger on the pulse of business activity and can be quick to make changes where necessary.

Small businesses are fortunate in being able to respond quickly to fluctuations in the market place. In fact, to be successful, it is imperative they do move without delay to improve a bad situation. It is vital therefore to monitor the following information:

- Daily bank balances
- Daily sales information giving, total sales, sales of individual products and sales made to new customers
- Daily, weekly or monthly gross profit figure achieved (normally only available via a computer system)
- Weekly debtors' aged analysis, showing the amount owing to the firm and the age of those debts
- Labour productivity reports daily or weekly showing the actual time charged to clients or work on productive tasks – how does this compare to budget?
- A weekly statement of financial performance report
- Weekly creditors' aged analysis, showing the amount the business owes and the age of that debt
- Detailed monthly financial statements on all aspects of the business operations including statement of financial performance and statement of financial position, with comparisons to budget and cash flow forecasts
- Annual budgets and annual cash flow forecasts (updated monthly)
- Details of any lost customers showing details of what their annual sales had been and reason (if known) for them leaving the business
- Specific details on sales over a specified amount – who the sale was made to and what was it for.

At Paul Martin Chartered Accountant we can assist you monitor your key business metrics. Contact us today for help with you business systems.

Look at Alternatives Before Discounting

Sun, 04 May 2014 23:00:00 GMT

Many small businesses experience difficult periods where they need to generate additional sales in the short term, and many small businesses believe discounting their stock is the best way to move it. But if you are going through a rough patch, consider the alternatives before resorting to discounting. Discounting is a very costly form of promotion and comes straight off the bottom line of your business. And, there are no long-term benefits. Instead consider adding a free product or service, free consultations or vouchers to the sale. This way you are introducing the customer to something they may not have tried before and, if they like it, they may buy it from you in the future. Ideally your business wants a reputation for having much more going for it than just being a discount barn. Sit down and think laterally before merely discounting your sale price. Working together with other businesses, for instance, can be beneficial for both parties, especially if they want an inroad into your customer base and will sponsor giveaways. For example, a movie theatre wanting to increase its numbers might give you free tickets to hand out as part of your sales promotions.

How to increase turnover in your business

Sun, 27 Apr 2014 23:00:00 GMT

Small increases can make a significant difference to your turnover. The question is: HOW do you make those increases? That's where you need to think about implementing marketing strategies to increase your total number of customers, or to increase the number of transactions made by existing customers. For example, you could: reward existing customers for referring new people to your business; encourage add-on sales; directly target your customers to inform them of special offers or new products/services soon to be available, or even to inform them of other products and services offered by your business that they may not be aware of. Maybe your focus for one year will be to increase your customer base; the next, to increase the amount each customer spends on each visit; and so on. Whichever way you plan to raise the figures, the basic measurement data (discussed in last week's blog) will help you determine the targeted, annual sales figures for the current year.

Monitor Business with Business Measures

Fri, 18 Apr 2014 14:00:00 GMT

Every business owner needs reliable figures to regularly check on business performance.

A valuable set of measurement data to collect is your annual customer numbers, average sales, number of customer visits and so on. Using these figures as a baseline you can then set realistic targets towards increasing profitability and continue to monitor the business' performance on say, a monthly basis.

In a retail store, for example, (although the exercise is appropriate for other businesses also), you need to collect the following data from the previous year:

- Number of customers = x
- Average sale per customer = y
- Average number of transactions per customer = z.

By multiplying the figures, x * y * z, you can calculate the business' annual turnover. Ensure this figure equals the total sales for the year.

The next step is to use these figures to set specific targets for the following year and record this data in your business plan, for example:

- Number of customers last year – plus targeted percentage increase
- Average sale per customer last year – plus targeted percentage increase
- Number of transactions with customers last year – plus targeted increase.

At Paul Martin Chartered Accountant Limited we can help you to set and monitor your business measures - contact us for assistance.

Be First, Be Different

Mon, 07 Apr 2014 23:00:00 GMT

Being first to the market with a sought-after new product or service can be a potential money-spinner.

If you've done your market research and business planning, pitched the product at the right price, planned the launch and have been particular about quality service, being first to the market will undoubtedly give you a competitive edge.

The challenge however of entering a competitive market is working out when the product or service is ready to launch. You may have to go in at a satisfactory quality level, rather than waiting to achieve the final couple of percentage points of quality.

If you procrastinate and a competitor beats you to it, you would have missed the opportunity to be the "pace setter" in the market by being first with the product

Know what your competitors are doing

Standing out above the others and being different is another way of creating your competitive edge.

To compete in a market, you need to know what your competitors are doing and offer a better deal.

But don't compete on price alone. Instead, make customers believe your business offers better value for money in other ways, for example:

- After sales service
- More personalised service
- Value-added service
- Long guarantees
- Better than average quality.

A small service station, for example, might offer a free tyre check and windshield-cleaning service to customers, to compete with the bigger self-service, cut price petrol stations.

When you have your customers thinking your product or service is a better deal, even if it's just the way they interpret it, then you have created a Unique Selling Proposition (USP) for your product or service in the market.

If you want to make profits in your business, try to make your business look different from that of your competitors. Dare to be different!

Contact us for help with your business planning today!

Keep Reviewing Your Business

Mon, 31 Mar 2014 22:00:00 GMT

When was the last time you checked performance against your business plan?

The business plan needs to be under continual review to make sure you are successfully implementing each planned stage. It won't be any use to you unless you use it.

By writing a business plan you've taken the time to plan in detail what your business goals and objectives are - it's a living, working document, not something to be filed away and then dusted off for review in a couple of years time.

This concentrated thinking, discussion and debate is the key to the formulation of a workable and achievable business plan. And as long as actual performance is monitored against it, the plan should significantly assist in the long-term survival of the business.

Ideally you should review performance on a regular monthly basis, or at the very least on a quarterly basis. Ask the fundamental questions:

- Where are we?
- Are we heading in the right direction?
- Will we achieve the goals and objectives of our business plan?
- Should we review pricing structures?
- What has been the effect of the consumer price index increase?
- What has been the effect of price rises in our particular business?
- Should we raise our prices?
- Should the gross profit percentage be higher?
- Have we got empathy with customers?

On an annual basis you need to compare actual financial performance to the budgets and cash flow forecast. Ask:

- How did we perform?
- What went wrong?
- Have we learnt from the mistakes?
- Did we exceed budget expectations anywhere? Why?
- Can we capitalise on these improvements?

A valuable assessment is to compare your business figures to industry statistics (please ask us if you need help obtaining this information).

You'll also want to know: What is the general business climate in your area? Is it conducive to your type of business? Should you be expanding, drawing back or diversifying? What is the status of your investment in stock?

Don't forget that the business review should also include an appraisal of what has been happening within your team. You need to look at:

- Recruitment
- Training and development
- Meetings
- Employment agreements
- Wage/salary reviews.

Use your business plan as a day-by-day, week-by-week, month-by-month reference point to compare where your business is against what you planned it to be. If there are any deviations, immediately investigate them and try to take corrective action.

We can assist you to develop your business plan - check out our range of business consulting services and contact us today.

Know Your Business' Opportunities and Threats

Sun, 23 Mar 2014 22:00:00 GMT

Astute business people are constantly keeping a watchful eye on what is happening in their business environment.

If you want to keep up with the play, stay ahead of your competitors, and plan for potential fluctuations in the marketplace, you simply cannot hunker down within your own business and forget about the outside world.

You've got to be out there researching the market. But market research doesn't have to be an expensive exercise. In her book Marketing for Small Business Success, Angela Nitchov suggests using the following sources of information in the first instance:

- direct observation
- surveys
- sale tests
- small group discussions
- personal interviews
- the internet.

If you want to take your research further, look to professional associations, trade journals, government departments and so on, which have potentially already done some of the information gathering for you.

What you're looking for are the potential opportunities and the impact of possible threats upon your industry. Think about the:

- capital available to invest in new plant or equipment
- major trends that have affected or will affect the industry
- changes to government policy limiting, or opening up entry to new markets
- possibility to forge alliances with other operators to gain more buying power
- future changes to demographics in the industry eg, an ageing population will have greater reliance on the health industry in the long-term
- new competitors setting up or current competitors changing what they do
- new technologies posing a threat to your business.

The list of potential questions can be endless and no business needs to answer absolutely everything. Look at the research as a means to help your decision-making and target your questioning as appropriate.

This information forms your SWOT Analysis – what you've identified as your business' Strengths, Weaknesses, Opportunities and Threats – and can be used to support your decision-making process.

Probably you did a SWOT Analysis as part of your business and marketing planning. If so pull it out and review – don't let it sit around gathering dust. The SWOT, as with all aspects of your business and marketing plan, needs to be constantly updated and modified. The business environment is forever shifting and you've got to keep abreast of what is going on if you want to realise opportunities and plan for potential threats.

Systemise Your Business

Sun, 16 Mar 2014 22:00:00 GMT

If it works, write it down – chances are you'll need to remember how you did that at a later date. In fact, why not write everything down, every function of your business. If your business follows a set of systems, it's likely to be highly organised and offer consistent service.

Various commentators have suggested the most successful way to run a business is to write everything down and develop the system as if the business was a franchise.

For a franchise business to be successful, it has to be replicated in many different locations and possibly different countries. The only way for that to work is if the business has been systemised. This means that for each and every function of the business there is an explanation of, or a system for, how the function is
carried out, for example, the way your staff answer the phone, take messages, give quotes, make a sale and so on.

This system is then followed step-by-step by anybody who has responsibility for that function. For example, when we go into a McDonalds restaurant in Paris we would expect to receive the same service and the same food as a McDonalds restaurant in Wellington. Every function in that business – down to how the meat patties are cooked – has a system.

Franchise businesses, like McDonalds, have seen phenomenal success over the last 35 years and one of the key ingredients in that success would appear to be the preparation and implementation of systems.

Unfortunately though, many small to medium-sized businesses do not follow the franchise lead. In most cases they have no written system in place at all and often lack the discipline of the franchised systems.

Take a look at your own business. What happens when you go on holiday or you employ new people? Can it continue to run without missing a beat? While you might be intimately familiar with every function of your business you can't expect the same from everyone else. But if there is a system outlining how everything is done, you might be able to take that much needed break and you won't even be missed – that's what you're aiming for.

One of the key messages to come out of franchising is that what you do is not nearly as important as doing what you do the same way each and every time. If it's written down, new staff members should be able to pick up the task and complete it in a consistent manner.

Direct Marketing - An Essential Tool for Small Business

Mon, 10 Mar 2014 22:00:00 GMT

Small business is about identifying and servicing niche markets. If you know what your niche market is you have a fantastic marketing opportunity already at your doorstep – as long as you know how to reach it.

Knowing where the market is and how to reach it should all be written in your marketing plan. This is where you include all the information about the market in which you operate – what you're selling, where you're selling it and for how much, who else is selling it, who wants to buy it and who your specific target audience is.

Your marketing plan should also include how you are going to tell people about your products or services. The way you choose to market your business could easily determine how successful you become.

Advertising versus direct marketing

Where general advertising builds awareness and creates a positive image for a new product, direct marketing asks straight up for the order. It's about going straight to your target group, often with a personalised letter, and giving them a direct opportunity to buy.

Direct Marketing is not advertising. It is selling to existing and potential identifiable customers and its result is measurable.

The whole concept of direct marketing is that it is direct communication to a particular target; either a current customer, former customer or someone who you believe fits the characteristics of your current customers. General marketing, on the other hand, is not addressed to any particular customer.

But for direct marketing to be successful, the business must have a database. This is where you collect as much information as possible about your customers – their demographics (contact details, age, occupation), how often they buy, what they buy, how much they spend and so on.

When planning your direct marketing campaign, decide which type of customers you want to approach. Whether it's your top customers, or particular customers you think will genuinely be interested in the product you are promoting, the database should be able to tell you which customers to target.

Direct marketing, which can also use email, telemarketing or personal visit as a means of delivering the message, is a very powerful tool for small businesses because they can:

- concentrate and dominate niche markets
- generate additional sales from existing customers and new customers
- generate sales leads from groups of persons who are very similar to existing customers.

An education in ergonomics

Sun, 02 Mar 2014 22:00:00 GMT

Ergonomics is the relationship between comfort and efficiency. Effective ergonomics can lead to less injury in the office workplace and higher employee satisfaction. The way we sit, move and spend our day always needs to be assessed and developed to maximise productivity while enhancing health. Here are some tips on ergonomics that employees should be made aware of: - Have the computer monitor just below eye level and adjust the screen to eliminate glare from windows and lights - The centre line of the keyboard should be level with the height of your elbow and tilted back slightly so that wrists remain flat - Use an adjustable chair and get comfortable with the adjustment settings - it's also important to upgrade furniture regularly Ensure staff are informed about effective ergonomics. It's best to prevent health and safety issues before they arise. If you want more information about workplace health and safety, visit www.acc.co.nz

Developing Your Performance Measurement System

Mon, 17 Feb 2014 22:00:00 GMT

Last week we talked about the importance of developing a performance measurement system. Here's some pointers on how to do this: 1. Clearly define your mission statement (normally part the business plan). 2. Identify strategic objectives and goals using your mission statement as a guide. 3. Catalogue exactly what your company does as a set of inter-connected business processes. 4. Develop a KPI for each process that measures how well the business is doing in that particular area. (It should be simple to understand, easy to respond to and credible in the eyes of its users. It should also facilitate learning and therefore continuous improvement.) 5. Measure regularly and use the performance results to locate areas of opportunity and improvement. 6. Provide feedback to all levels of the organisation. At Paul Martin Chartered Accountant Ltd we can discuss this with you and provide greater insight into developing a performance measurement system to suit your business. Call us on (09) 576 4166.

Performance Measurement - Beyond the Financials

Tue, 11 Feb 2014 22:00:00 GMT

If you're serious about succeeding in business, chances are you're already doing something different or better than the business next door.

That's what having a competitive edge is all about - offering something different to encourage customers to come to you rather than your competitors.

But it's not enough just to have the edge; you've got to keep improving it. And to know how and where to make improvements, you have to be able to measure your business performance.

Traditional data not enough

Traditional accounting-based performance information is extremely important to understanding the financial health of your business, but these days it's not enough. It ignores the key issue of linking operational performance to the business's strategic objectives. As well, it's often inadequate for the strategic decision making needed to expand a business.

Surviving in business today is more about measuring the value you add. It's about measuring how well you are performing against your business goals and objectives and, significantly, where you can improve.

With that in mind, what you should now be looking to measure in your organisation is:

- How well you are doing operationally such as in customer servicing, delivery and accuracy
- How well your customers think you're doing such as in satisfaction levels and retention rates
- How well your employees think you're doing such as in satisfaction levels, productivity and retention rates, and of course,
- How well you are doing financially such as in return (profitability) on net assets.

While keeping financial soundness as a principal factor, businesses today need to venture beyond costs and profits and look to a variety of measures in order to maintain their competitive edge and succeed.

Key Performance Indicators

The trend these days is for small and medium-sized businesses to measure performance using Key Performance Indicators (KPIs). A KPI is a way of measuring a particular business process, a bit like evaluating how well the company is doing in that particular area. By recording and analysing KPIs company-wide the business owner can see at a glance which processes need attention.

KPIs provide the detail measures of your business that financial measures can never reach. And what good is an A+ profit and loss sheet when you're actually losing customers hand over fist through slack customer servicing. If, however, you were using KPIs to measure:

- What customer deadlines have been missed?
- What is the conversion rate from quotations to sales?
- For which department were customer complaints received?
- What is the direct cost of complaints?

Then you would already have seen why you were losing customers, how much it was costing you and exactly where you would need to start making some improvements.

If you rely solely on traditional financial data you cannot get an accurate picture of what is really happening in your business.

A set of inter-connected business processes

In order to develop relevant, meaningful KPIs that will accurately measure your business, you need to catalogue what your company does as a set of inter-connected business processes. Once you've catalogued each process you need to develop a KPI for each one which can measure how well your business is doing in that particular area. Once in place make sure the information is collected regularly and provide feedback to all levels of the organisation.

Results from this type of measuring system are more meaningful to the day-to-day work of employees than financial data, especially when they are taking part in collecting the information. A set of financials doesn't have any relevance to their jobs but individual processes do Ã¢â‚¬" dealing with customer complaints immediately or servicing orders more quickly is something employees at the coalface can definitely aim for. These small improvements are more likely to make the biggest impact on your business.

This theory of performance measurement, often known as the 'Balanced Scorecard Approach', requires management to focus on factors that create long-term economic value and strategic benefits to the organisation. It focuses the organisation on carefully chosen, actionable measures Ã¢â‚¬" things that business line managers and their teams can influence directly.

For assistance setting up a performance measurement system for your business contact Paul Martin Chartered Accountant Ltd on (09) 576 4166.

Cloud Accounting - Which Product is Right for Your Business?

Mon, 03 Feb 2014 22:00:00 GMT

Cloud accounting is transforming small business financial management. More and more businesses are choosing a cloud product to run their business, achieving cost and time efficiencies as well as superior reporting and other benefits.

To find out more about the two leading products on the market (MYOB and Xero) and to help you assess which will provide the best solution for your business, attend our free seminar in March. Click here for more information.

Netiquette - Maintaining Your Inbox

Mon, 27 Jan 2014 22:00:00 GMT

1. Have trouble receiving emails from certain people? Add their email address to your approved senders or address book so they get through your spam filter. 2. Clear your spam filter regularly. Nine times out of ten this is where that important email you were expecting ended up. 3. Regularly check your junk email. Sometimes important emails will end up here so don't bin them by mistake.

Ideas for minimising the effects of burnout

Sun, 19 Jan 2014 22:00:00 GMT

Recognising burnout - before you get burnt

Wed, 08 Jan 2014 22:00:00 GMT

Whilst you've just had a summer holiday and hopefully are rested and refreshed, it's important to remember that burnout can sneak up on you. Burnout is a contributing factor in the downfall of many SMEs. What once made you joyously jump out of bed can leave you hitting the snooze button on the alarm clock. There are many reasons for burning out: - Burning the candle at both ends. Driven workaholics often find their ambition pushes them over the edge. - You're tired and bored. You've been a mouse on the same wheel for too long and productivity is probably slipping along with your enthusiasm. - You're under-stimulated. Your current role offers few challenges and little recognition of your skills. You feel unmotivated, on a one-way trip to nowhere. Any bells ringing? Perhaps it's time to figure out why you're feeling this way in order to make effective choices and get your career on track. Your job accounts for roughly 40% of your waking life - generally it should be stimulating and enjoyable.

Christmas Holidays 2013/14

Sun, 22 Dec 2013 22:00:00 GMT

Our office is now closed until Monday 13 January 2014. Wishing you a very happy Christmas and holiday season and we look forward to working with you in 2014.

It's time to reduce your business carbon footprint

Tue, 10 Dec 2013 22:00:00 GMT

The concept of green business is nothing new. As the world embraces cloud based software and aims to reduce carbon emissions, it's time to get on board - whether you're motivated by minimising costs, attracting energy conscious customers or making a difference. According to the EECA (Energy Efficiency and Conservation Authority) most businesses can reduce their carbon footprint and save at least 20% of their energy costs. It's estimated that 10% can be saved through simple no/low cost actions (with a payback of 12 months or less) and a further 10% with some investment and a longer payback of 1 - 5 years. Nominate an energy saving leader who'll oversee the development of a meaningful plan and its implementation. Remember it's best to make several changes at once.... you'll notice a real difference and happily monitor your on-going success. Being energy conscious should be a part of your business' daily decision making process. For more information visit the EECA business website at www.eecabusiness.govt.nz. You'll find some nifty tools and calculators to help you measure your existing footprint and the success/savings you'll achieve as you implement subtle changes in your business.

The Remote Workforce

Tue, 26 Nov 2013 22:00:00 GMT

Working remotely can be an attractive proposition for both employers and employees. The virtual worker is rewarded with job flexibility - providing their services from home, separate or even multiple office locations. The employer can streamline their business, and minimise overheads. The fundamental reason for this increasingly popular workforce is the growing access to technology. Technology such as the smart phone and tablet are becoming mainstream amongst professionals. We can now perform tasks very effectively from almost any location. Quite simply, technology is driving efficiency and communication. Remote workers can wear whatever they want, avoid traffic and related travel costs, potentially dictate their working hours, all while avoiding the bulk of office distractions and internal politics. In some industries, it's highly likely that this style of working and managing will be prevalent in the future. As the world heads towards the 'post PC phase', now is the time to test the 'remote office' with your staff. If you remain inflexible you may miss the boat and run the risk of losing touch with your employees and customers. If your competitors are cutting operating costs by managing a virtual workplace, this will be reflected in their prices and their share of the market place. There are possible downsides. Workers may feel out of touch, find it harder to communicate with their seniors, losing sight of a tasks and predetermined outcomes. Achieving the ultimate remote work balance will be important and perhaps heavily dependent on management. Not everyone is suited to this style of working - or managing. The virtual workplace suits self-motivated employees, capable of working around distractions, and comfortable working in solitude. If your employee doesn't tick these boxes then perhaps they're better off in the office.

Holidays for busy business owners

Tue, 12 Nov 2013 22:00:00 GMT

Think you don't have time to take a holiday? Holidays are vital for tired, stressed business owners. Not only is the habit of taking regular holidays linked to reduced mortality and lower incidence of heart disease, but holidays have myriad benefits. Going away with friends and loved ones, or taking solo time out is great for your mental health, reducing risk of depression and also alleviating stress. Extra sunshine helps boost Vitamin D and a few hours' extra sleep helps our well-being in general. Holidays also allow more time to bond with family and make exercise fun. Go for walks on the beach, a city walking tour, hiking and tramping or playing backyard cricket. Depending on your destination, you are likely to expand your mind also. All that botany, marine biology, history and culture leave little room to stress out about the banalities of the office. And there is the added benefit of keeping your mind challenged and taking your family members on a voyage of discovery.

Working for families - tax credits income net widened

Wed, 06 Nov 2013 22:00:00 GMT

A reminder, you are no longer able to use investment losses such as from rental properties to reduce your income for working for families (WFF) tax credit. The definition of income now also includes an extra nine types of income: Attributable trustee income Attributable fringe benefits PIE income other than registered superannuation schemes such as Kiwisaver and retirement benefit schemes Passive income earned by children (includes interest, dividends and rent). Amounts over $500 per child will be included as family income Worldwide income received by a non-resident spouse Tax exempt salary or wages under specific international agreements Income equalisation deposits made by you, your trust or a company controlled by you or your trust Certain pension and annuities - includes 50% of payments from life insurance policies or a superannuation fund (excludes NZ super) Other payments received from any sources that are used for your family's day-to-day living expenses (but only if the total amount from those sources is more than $5,000). An example of this might be board received. In future, when you apply for WFF tax credits, you'll need to let IRD know about amounts from any of the above sources. For those clients who receive or are entitled to WFF credits, when we prepare your tax return we'll need to request the above information.

Renting your beach house out?

Mon, 28 Oct 2013 22:00:00 GMT

New rules on claiming expenses for mixed-use assets such as holiday homes (assets being used both privately and for earning income) have been passed in to law. Previously expenses have been subject to a private to business ratio (including when the asset was available for use even if it wasn't being used). The new rules restrict the deductibility of this expenditure by limiting the expenditure allowed for the period that the asset is available for use and not used. Even though these rules have just been enacted, they actually apply from 1 April 2013. If you own any assets such as a holiday bach or a boat and rent these out during the year, please come and talk to us. The government has publicly stated they are expecting an extra $50m in revenue from these new rules, so they will be enforced. Call us on (09) 576 4166 for assistance.

Promote creativity and innovation within your business

Sun, 13 Oct 2013 22:00:00 GMT

new business venture

Changes to online tax returns

Sun, 29 Sep 2013 23:00:00 GMT

The IRD have made changes to the way you file your GST returns. In September last year the IRD introduced the eGST filing service. Now the decision has been made to remove the ability for the public to access the standard online form, meaning customers will need to change their filing methods and register to file their returns through MyIR. The IRD will have sent a letter to all clients in July notifying them of the change. In addition to this a new GST email service has been established to alert customers registered with My IR that their GST return is available, three days before it's due. If you are having difficulty with this change please call us on (09) 576 4166 as we are able to assist with preparing and filing your GST.

What is RSS?

Tue, 13 Aug 2013 14:00:00 GMT

RSS is short for Rich Site Summary or Really Simple Syndication. RSS feeds allow you to subscribe to news, blogs or websites without having to regularly check back to see if the content has been updated. Instead, when an update is made, a link is sent directly to your email address to notify you. It's a great way to stay informed on your favourite sites, without being bombarded with regular e-newsletters.

Tax rules on lease inducement payments and surrender payments now law

Sun, 30 Jun 2013 23:00:00 GMT

tax

Accounting, Taxation, Business Strategy and Advisory News Updates

Does your business idea have wings? 5-steps for starting a business

Got a great business idea but don’t know where to start? Follow this 5-step plan for setting up your new business and setting the best foundations for success.

Should you keep your family trust?

Changes to the Trusts Act 2019 have led to a swathe of Mum and Dad settlors and trustees rushing to wind up their trusts. Many clients have asked us what we think, and my response is always to go back to the reason the trust was first set up and whether these benefits still apply.

Renting out your bach? Beware of tax traps that could cost you.

Are you heading away for a break from the business these holidays?

This time of year can be hard on small business, including sole traders. Your expenses continue and your cashflow can suffer when your debtors go on holiday.

Protecting you and your business: using trusts

What is a trust?

Helping you enjoy the protection of a family trust

Should you buy or lease your business assets?

To buy or to lease? That is the question

Talk to us about whether buying or leasing is the best way forward

New pet rules for tenancies from 1 December 2025

If you are a landlord, make sure you know about the new pet rules for tenants. From 1 December 2025, tenants are permitted to keep pets and landlords must agree.

Understanding Christmas gift and entertainment tax rules for clients, customers and employees

Understanding provisional tax in tough economic conditions

If you had to pay tax of more than $5,000 in your last income tax return, you may have to pay provisional tax for the following year. Provisional tax is like making progress payments on next year's income tax.

Dealing with uncertainty - tips for business owners

Inflation may be down but there’s still real uncertainty for business owners.

How the new Government and coalition agreements might affect owners of residential rental properties

How to handle inflation as a sole trader

Sole traders have had an especially difficult few years as inflation surges. We have got three tips to help lighten the load for your sole trader business. ﻿

10 ways to improve business perfomance

Supercharge your business with some simple tips. Eliminate distractions and bad customers, get a plan, use technology, deploy marketing and understand your business numbers. We have got lots more ideas to improve performance - talk to us.

Is it the perfect time to switch to an electric vehicle (EV) in NZ?

Keeping your data safe as a remote worker

Concern bright-line property rules may catch some out

Helping your business during the COVID-19 Omicron outbreak

New targeted COVID-19 Support Payment (CSP) for the most affected businesses

Top-up loan available under the Small Business Cashflow Scheme

Flexibility on tax payment terms extended by Inland Revenue.

How are cryptocurrencies taxed in New Zealand?

Upsizing or downsizing? We can help with the forecasting

Fees on utes - three things you need to know

The Man on the Moon Principle

How are costs for meeting the Healthy Homes Standards for residential rental properties claimed in my tax return?

When life gives you lemons, pivot

Provisional tax - how does it work?

Business owners - how healthy is your working capital?

Essential tax tips for rental property investors

Creating a winning business plan

Deductibility of clothing and items relating to personal presentation as business expenses

Don’t break the (piggy) bank! Why your current account matters, especially if it is overdrawn

Are you prepared if the IRD audited you?

Understanding Fringe Benefit Tax and when you are liable, especially motor vehicles

Types of FBT

Exemptions from FBT on motor vehicles

Do you know your break-even point?

How to turn your hobby into a business

Attention: If you are planning on buying or selling property, “bright-line” might catch up with you…….

Are you who you say you are? Is that really your money?

Does "mindfulness" have a place in business?

“The IRD has a way of finding out….”

Know your tax obligations before landing in the Airbnb world

Can my dog be claimed as a security expense and other curly home office questions…..

10 quick growth tips for your small business

Protect Yourself and Your Data - Proactive Steps for Living Safely in the Digital Age

Tax residency status requests from financial institutions

Global sharing of offshore bank accounts and investments with the IRD

Paying down debt

10 Daily Habits of the Rich and Powerful

3 reasons personal budgeting is brilliant, not boring!

Small Business, Big Decisions: Why Savvy Business Owners ‘Rent’ CFO-Level Experience

Why are Business Plans Important – And How Do You Start Writing One?

3 Reasons Your Business Needs a Budget Now

Here are 3 compelling reasons your business needs a budget, now:

Where Did It Go?: Taking The Mystery (And Pain) Out Of Managing Your Money

How To Plan Your Exit Strategy

1. Future funding

2. Successors

3. Documentation

Tips To Better Understand Your Customers

Tip #1 - Know your customers

Tip #2 - Connect with your customers

Tip #3 - Use data to understand their behavior

Tip #4 - Research your competitors

Things that Prevent You from Getting Rich and How to Avoid Them

1. You don't have emergency funds

Sole traders have had an especially difficult few years as inflation surges. We have got three tips to help lighten the load for your sole trader business.