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1. Accounts Receivable Process A poor accounts receivable process will result in debtor days (the time between billing and banking) being too high. This will stifle your cashflow. There are many strategies to minimise debtor days including tightening your Terms of Trade, offering prompt payment discounts and streamlining your billing process. 2. Accounts Payable Process A review of all suppliers’ terms may identify ways to improve cashflow and potentially achieve…  Read more

Managing your cashflow is an integral part of running your business. In this new series of blogs we will be providing some of our best tips and tricks! Five Principles For Keeping Cash Flowing There are five key principles to remember when looking at your cashflow 1. Without cash your business will not survive Cash is the lifeblood of any business. In fact, very profitable business’ can and do fail…  Read more

Inland Revenue have released an interpretation statement on this one recently. Next time you grab a coffee or a meal at your local café in between back-to-back client meetings and think about claiming this as an expense because you are self-employed and it’s just part of your work day, think again. New Zealand’s Inland Revenue has confirmed that these expenses are not deductible for self-employed taxpayers in all but very…  Read more

Payroll – one of the most important tasks in running a business, and let’s be real – it can be very intimidating! There is a tonne of information out there, legislations, minimum entitlements, Casuals vs Permanent vs Contractors, Kiwisaver, Tax Codes – this list goes on. We are going to share some of our top tips and tricks to help you feel confident in managing your payroll: Stay on top…  Read more

Employer superannuation contribution tax (ESCT) is deducted from your employer contributions to your employees’ KiwiSaver or complying funds. Complying funds are superannuation schemes with similar rules to KiwiSaver. For example, members’ savings are locked in until they’re eligible for NZ Superannuation. You do not pay ESCT if your employee asks you to deduct money from their pay to put into a superannuation scheme. These are not employer contributions. There are…  Read more

Going into immediate Lockdown can be hugely unsettling, but I must say, nowhere near as hard as the March 2020 was.  We have been here before, and I think that brings with it a sense of calmness, open mindedness and understanding of what is expected and what it is going to look like. What is hugely frustrating is assimilating the massive amount of information out there and sorting out the…  Read more

There is confusion around the rules on jury service and payment for employees called for jury.   We thought we would share your obligations as an employer on this. If one of your employees has been summoned for jury service, here’s what you need to know. Talk with your employee about: when they need to go to jury service how long the trial might last. This information may be contained in…  Read more

Solid cash flow management is vital to ensuring your business survives, but not everyone understands what cash flow is or how to manage it. That’s likely what makes it a leading cause of stress for small business owners. Cash flow refers to the movement of money into and out of your business. It’s based on the amount of money you bring in minus the amount you spend. A positive cash…  Read more

As we all know and hear regularly, stress is a leading cause of dis-ease within our population today, and it continues to increase as we pile more and more into our lives on the journey to success and fulfilment.   Luckily, we have incredible people doing amazing things in this area to bring it to our attention, but, it is up to us to take ownership of our own health, and…  Read more

Employees can ask to cash-up up to one week of their four weeks’ minimum entitlement to annual holidays each year. Employees can ask their employer to pay out in cash, up to one week of their four weeks’ minimum entitlement to annual holidays per year for each entitlement year. They can do this all at once, or can make multiple requests to cash-up until the entire one week is cashed…  Read more

We found this really helpful in understanding where my time is spent and where it needs to be, along with what we can do about it.  We would love to hear you thoughts. The Achiever Matrix (created by Stephen Covey) is made up of four quadrants and helps you prioritise tasks based on their importance; allowing you to manage your time better and achieve more.   Quadrant 1 is The…  Read more

A lot of people this year are finding that once their income tax assessment has been calculated automatically they end up having tax to pay – and suddenly it’s panic stations! (Don’t worry, this happened to me and I did the same!). There may be a reason for it! In the Financial Year Ended 31 March 2021, there were 53 weekly pay periods, as opposed to 52 weekly pay periods.…  Read more

Business planning gives you a road map and shows you the best way to get to your destination. Without a map, you are driving blind and feeling your way along as you go, which means you could miss a very important turn in the road and arrive in a completely different place than you desire, or you could end up taking a detour down a gravel road instead of taking…  Read more

It’s one of those tricky balancing acts most business owners struggle with right? – how to spend as much, if not more time on their business as in their business.  This is something I struggle with myself as a small business owner. An accountability group can help you strategize for future growth and set goals that move your business forward. Most importantly, checking in with other people on a regular…  Read more

If you ask 100 business owners what they like least about running a business, chances are good that bookkeeping will rank high on the list. It’s one of those chores that takes up a lot of time and is easy to put off until tomorrow.  Generally its also the last thing you want to be doing when you spend all day working either in or on your business. The problem…  Read more

The increase of the minimum sick leave entitlement from 5 days per year to 10 days per year will come into effect on 24th July 2021. What does this mean for you and your employees? For existing staff they will get the increase of entitlement on their next sick leave anniversary (not automatically on 24th July) For new staff they will get this on their 6 month anniversary The maximum…  Read more

Some of you may have realised that Xero has instigated compulsory Multifactor Authentication for logging into their software.  You can either use a generic authentication app or Xero have made their own app to help with this. Xero Launches Xero Verify Xero has launched its own authentication app, Xero Verify, to give small businesses world-class data protection. The new app makes it easy for users to set up multi-factor authentication…  Read more

Do you have a passion you are thinking about turning into a paying gig?  Have you always dreamed of doing what you love and making a living from it? We have shared some steps that we believe will help you avoid some common mistakes as you set out to earn an income from your favourite pastime. Do you have what it takes? Unless you’ve run a business before, it’s easy…  Read more

This is something we hear a LOT!  Along with the old myth about only paying tax once you earn more than $5,000… It’s important to understand the differences between a hobby and a business. A small side hustle you’ve been doing for years could actually be a business for tax purposes, and you may be accumulating tax debt without realising it. A hobby is generally something you do in your…  Read more

If you want your new business to succeed, you need to make smart decisions and be strategic. Here we share five business killers that you should avoid if you want your startup to be successful, along with some strategies for lowering your start up costs. Too much overhead– Start with the bare necessities and focus on surviving your first year in business. By keeping your business lean in the early…  Read more