You don’t need to be an accountant to run a successful business but you do need to understand a few key numbers. Many business owners rely on their year‑end accounts to tell them how things are going. The challenge? By the time those numbers arrive, they’re looking backwards. And when you’re running a business, it’s what’s ahead that matters most. With clarity around these three numbers, you’ll be better equipped to make confident decisions - without drowning in spreadsheets. 1. Cash flow: What’s Actually in the Bank Cash flow is the movement of money in and out of your business. It answers a simple but critical question: Do I have enough cash to pay my bills, staff, and tax when they’re due? A business can be profitable on paper and still struggle if cash doesn’t arrive at the right time. Late‑paying customers, large one‑off expenses, or upcoming GST and provisional tax payments can all put pressure on your cash position. Understanding your cash flow helps you: avoid surprises plan ahead for quieter periods make decisions with confidence, not stress If you only focus on profit, cash flow issues can catch you off guard. If you focus on cash flow, you stay in control. 2. Working Capital: Your Financial Breathing Room Working capital is the cash your business has available to operate day to day. In simple terms, it’s the difference between what your business owns in the short term (cash, stock, and money owed to you) and what it owes in the short term (bills, wages, and tax). Healthy working capital gives you breathing room. It allows you to: pay suppliers on time handle unexpected costs keep the business running smoothly When working capital is tight, everything feels harder. Decisions become reactive, stress levels rise, and even small issues can feel overwhelming. Understanding your working capital shows whether your business has the flexibility it needs - not just to survive, but to grow. 3. Break‑Even Sales: Knowing Your Minimum Your break‑even point is the level of sales your business needs to cover all its costs without making a profit or a loss. It answers one essential question: How much do I need to sell just to stay afloat? Once you know this number, everything becomes clearer: you know what “good” looks like you can set realistic sales targets you can see the impact of changes in costs or pricing Without understanding your break‑even point, it’s easy to feel busy without knowing whether you’re actually getting ahead. Why These Numbers Matter These three numbers don’t exist in isolation, they work together. Cash flow keeps your business moving. Working capital gives you stability. Break‑even sales give you clarity. Together, they turn financial information into practical insight you can use every day. Simple Numbers, Smarter Decisions You don’t need complex reports or technical language to understand how your business is performing. You need clarity, context, and the right conversations. At Diprose Miller, we help business owners understand the numbers that really matter and what they mean for real‑world decisions. Because better business starts with better thinking. Ready to Get Clear on Your Numbers? If you want more confidence in your cash flow, working capital, or break‑even point, we’re here to help. A conversation with our advisory team can give you the clarity you need to make smarter, more strategic decisions. Let’s talk about what your numbers are really telling you and what to do next.

For many business owners, the line between work and life can blur quickly. What begins as a business built for flexibility, freedom, or opportunity can slowly turn into long hours, constant pressure, and the feeling that the business is running you - not the other way around. If that sounds familiar, you’re not alone. When Success Doesn’t Feel Like Success From the outside, your business may look strong. Revenue is steady, bills are paid, and the doors stay open. But behind the scenes, it can feel like you’re always ‘on’, unable to step away, or unsure whether the effort is truly worth it. This is where financial clarity and honest reflection matter most. A business can be profitable on paper yet unsustainable for the person running it. True success isn’t just about survival, it’s about building a business that supports the life you want, not one that consumes it. Stepping Back to See the Bigger Picture One of the most powerful things a business owner can do is pause and step back. That means lifting your head above the day to day and asking questions that cut to the heart of how your business really operates: What do I want this business to give me - now and in the future? Am I spending my time on the right things? Does the business rely too heavily on me? Is it structured to grow, or to let me step back? These conversations are often the catalyst for meaningful change. Without them, it’s easy to stay busy without making progress. Time, Money and Clarity Go Hand in Hand Time pressure and financial pressure are closely connected. When cash flow is tight or visibility is low, business owners often compensate by working longer hours, delaying decisions, or avoiding time off. Clear financial information, including cash flow forecasting, realistic budgets, and regular reporting, can relieve that pressure and restore control. Clarity creates confidence. And confidence leads to decisions that protect both your business and your wellbeing. Goal‑Setting with Purpose Advisory isn’t just about improving numbers. It’s about aligning your business with your goals. For some, that means creating space to spend more time with family. For others, it’s preparing the business for growth, succession, or eventual sale. The right goals are personal, and they evolve over time. What matters is having a plan that connects your financial position with where you want to be, not just this year but in the years ahead. Thinking About the Long Term Many business owners delay conversations about succession or exit planning, assuming they’re ‘years away’. In reality, the earlier you start, the more options you create. A business that is well‑structured, less dependent on its owner, and financially transparent is not only easier to run, it’s also more valuable and more flexible. Even small steps taken now can make a significant difference later. Resetting the Relationship With Your Business At its best, your business should provide opportunity, stability, and balance, not constant stress. Often, improving that relationship doesn’t require working harder. It requires thinking differently, asking better questions, and having the right support around you. Ready to Build a Business That Works for You? At Diprose Miller, we help business owners gain clarity, set meaningful goals, and build businesses that support the life they want to lead. Our advisory approach goes beyond the numbers - it’s about creating a business that works for you, not the other way around. If you’re ready to reset your relationship with your business, let’s talk. A conversation today could be the first step toward a more balanced, sustainable future.

Building a property portfolio is about more than just acquiring properties - it’s about managing the financial details that keep growth sustainable. From tracking cash flow to structuring ownership, the right accounting approach helps investors scale with confidence. Here are practical tips to strengthen your portfolio while maintaining financial stability. 1. Accurate Record Keeping Maintaining accurate and detailed financial records is crucial for managing a growing property portfolio. This includes: Income Tracking: Document rental income for each property separately. Expense Records: Keep a record of all expenses, including maintenance, repair costs, property management fees, rates and insurance. Mortgage Documentation: Track loan balances, interest rates, and payment schedules. Using accounting software tailored for property management can streamline this process and help you generate useful financial reports. 2. Understand Tax Implications As your portfolio grows, so will the complexity of your tax responsibilities. Ensure you are familiar with: Deductible Expenses: Understand which expenses are tax-deductible to maximize your tax benefits. Common examples include mortgage interest, property taxes, and operational costs. Bright-Line Rules: Be aware of potential bright-line tax liabilities when selling property and explore tax strategies to mitigate these costs. Consulting with a tax professional or accountant who specializes in real estate can provide valuable guidance. 3. Use Strategic Financing Leverage strategic financing options to expand your property portfolio effectively: Refinancing: Consider refinancing your existing properties to take advantage of lower interest rates or to extract equity for new investments. Portfolio Loans: Utilize portfolio loans that enable you to finance several properties under one consolidated loan, simplifying management and potentially offering better terms. Proper financial analysis will ensure that any borrowed capital is sustainable and beneficial in the long term. 4. Perform Regular Financial Analysis Regularly assess the financial performance of your property investments to make informed decisions: Cash Flow Analysis: Continually monitor cash flow to ensure your properties are generating surplus cash that can fund new purchases or improvements. Profitability Metrics: Calculate metrics such as ROI (Return on Investment) and cap rates (Capitalization Rate) to evaluate the performance of individual properties. Leveraging these analyses will help you identify underperforming assets and make strategic decisions on acquisitions or disposals. 5. Plan for Contingencies Have a financial contingency plan in place to shield your portfolio from unexpected events, such as market downturns or natural disasters. This might include: Emergency Funds: Maintain a reserve of liquid assets to cover unexpected expenses or periods of reduced income. Insurance Coverage: Ensure adequate insurance coverage for each property to mitigate risks from damage or liability. 6. Engage Professional Services As your property portfolio expands, the complexities of managing it can increase significantly. Consider engaging professionals such as: Accountants: They can manage the intricacies of financial records, compliance, and tax planning. Property Managers: They can handle daily operations, tenant management, and maintenance, allowing you to focus on strategic growth. Growing a property portfolio requires careful financial planning and management. By keeping accurate records, understanding tax implications, strategically using financing, regularly analysing financial performance, and planning for contingencies, you can efficiently expand your real estate investments. Engaging professional services, including accounting support, will provide peace of mind and contribute to the long-term success of your portfolio. If you need expert accounting services tailored to property investment portfolios, feel free to reach out to us .  Our team understands the nuances of real estate accounting and can provide personalized advice and solutions to support your investment objectives.

Property development can deliver strong rewards, but navigating tax obligations is rarely straightforward. Overlooking key rules can erode profits or create unexpected liabilities. To help you stay compliant and protect your bottom line, here are five common tax traps developers encounter - and how to avoid them 1. Ignoring Goods and Services Tax (GST) Obligations Many property developers overlook their GST obligations, which can result in substantial penalties. Solution : Ensure you are registered for GST if your turnover exceeds the registration threshold. Keep detailed records of all sales and purchases to help accurately calculate your GST liabilities. 2. Incorrectly Claiming Deductions Expenses related to property development can often be incorrectly claimed as immediate deductions, leading to issues during tax assessments. Solution : Distinguish between capital and revenue expenses. Only claim deductions you're entitled to and ensure expenses like interest and holding costs, typically capitalized until the property is completed and sold, are not incorrectly expensed. 3. Overlooking Potential Bright-Line Implications Misunderstanding when and how the bright-line rule applies can lead to unexpected tax bills. Solution : Plan each development project with a clear understanding of the tax implications. Consult with your accountant to determine whether a property is being held as trading stock (where profits count as ordinary income) or as an investment (potentially subjecting it to the bright-line rule). 4. Mismanaging Property Titles and Ownership Structures The structure in which you hold property plays a crucial role in determining tax liabilities. Solution : Review your ownership structures - such as individuals, companies, or trusts-as each has different taxation implications. Strategic planning with a tax advisor can help optimize your tax outcomes and ensure compliance from the outset. 5. Failing to Comply with PAYE and Withholding Tax Requirements If you engage workers or sub-contractors, failing to meet PAYE and/or withholding tax obligations can lead to penalties. Solution : Implement a robust payroll system to ensure PAYE and withholding tax is managed correctly. Regularly review and update subcontractor agreements and ensure compliance with Inland Revenue requirements to avoid potential penalties. Final Thoughts Navigating the tax landscape in property development can be intricate and demanding, but with thorough planning and professional advice, these common tax traps can be avoided. Partnering with a knowledgeable accounting firm can provide you with the support and guidance necessary to manage your tax obligations effectively, ensuring the success and profitability of your property development projects. Our team is ready to help guide you through the tax complexities of development

Before breaking ground, every property development needs one thing: a solid feasibility check.

Is your residential property activity a simple rental, or could it be seen as a business? Here’s why the difference matters.

Diprose Miller is proud to have received the Contribution to Community Award at the 2025 Matamata-Piako District Council’s Business Night Out. This award recognises the positive impact our directors and staff are making within our local community - and in particular, the difference that our Diprose Miller Community Fund is making to a wide range of local groups. Why this award matters a lot to us Community has always been at the heart of Diprose Miller. For us, success isn’t just measured in numbers; it’s measured in the wellbeing of the people and groups around us. Being recognised for our contribution affirms the values we live by: supporting local organisations, helping people feel they belong, and celebrating the region we live in. About the Diprose Miller Community Fund The Diprose Miller Community Fund was established to provide practical support to not-for-profit organisations and individuals who are working hard to make our communities better places to live. The fund contributes towards specific project costs that might otherwise not be affordable - easing financial pressure so groups can focus on what matters most. The impact so far Since its launch, the fund has supported a wide range of initiatives, from local sports clubs to schools, theatre, art and music groups, programmes supporting vulnerable people and community projects within the farming sector. Whether it’s new uniforms for a sports team, resources for a service to the community, or helping a local group host an event, each contribution adds up to stronger connections and greater opportunities across our district. Looking ahead We’re honoured to be recognised with this award - but more importantly, we’re excited to continue investing in the wellbeing of our community. As our district grows and changes, we remain committed to supporting those who make a difference every day. Congratulations also to the many other winners and finalists celebrated on the night - together, we’re building a vibrant, connected, and resilient community.

Fonterra’s recent announcement - $16 billion in cash returns and a 15% revenue boost - is great news for farmers. With strong returns flowing in, many are asking: what’s the smartest way to reinvest? Paying down debt has long been the default. But with stronger equity positions and healthier balance sheets, now’s the time to think bigger. Here are three areas where reinvestment can drive long-term growth and resilience. 1. Rethink land use If a change in land use could lift your profitability, it’s worth exploring. Whether it’s diversifying into horticulture, or leasing out underused land, banks are increasingly backing strategic shifts that build equity. The right move could reshape your farm’s future. 2. Invest in business essentials Reinvesting in business essentials helps protect your equity and maintain leverage with lenders and suppliers. This might mean upgrading infrastructure, ticking off your farm environment plan, or tackling deferred maintenance. These aren’t just compliance tasks, they’re the foundation of your long-term viability. 3. Streamline for efficiency Technology and infrastructure upgrades can reduce labour hours, cut power costs, and future-proof your operation. Think solar panels, cow collars, automatic drafting systems, or finally replacing that tractor that’s costing more than it’s worth. With investment incentives currently available, now’s a great time to act. The takeaway  Strong returns give you options. Reinvesting in land use, business essentials, and efficiency can strengthen your balance sheet, boost productivity, and set your farm up for long-term success. At Diprose Miller, we help farmers make smart, strategic decisions that support growth and protect family prosperity. If you’re ready to put your returns to work, let’s talk.

Sometimes you may pay your employees sums in addition to their normal wages, such as: allowances benefits holiday pay lump sum payments Some are tax free, but most are taxable. For some, the employer pays the associated tax. For others, the employer deducts PAYE on the employee's behalf. You may also provide various non-cash benefits to your employees as part of their total employment package. Even where the benefits are not in cash, they still have a value which is taxable. The tax treatment depends on what the payments are for and the circumstances that apply. A brief overview Allowances There are different kinds of allowances but if it's a straightforward reimbursement to the employee for out-of-pocket work-related expenses, the allowance isn't taxable. Mileage, meals, and tools (including telecommunication devices) are examples. If the amount of the allowance is more than the actual amount of the expense, then the difference is taxable. The employee will be subject to PAYE or you will pay FBT on the difference. What about travel? Where you pay a travel allowance to an employee, you need to determine whether you are liable for FBT (if you paid for the travel) or the employee is liable for PAYE (if you reimbursed the employee’s travel costs). For a travel allowance to be tax-free, the travel must be ‘on work’ rather than just ‘getting to work’. Different factors affect the tax treatment. Can I claim GST on benefits and allowances paid to employees? You may be able to claim GST on allowances paid to employees for work-related expenses, if you are registered for GST. Keep all relevant tax invoices. You can’t claim GST for items that aren’t employment related, so this generally rules out claims on benefits. Benefits Benefits include anything that benefits the employee. They're not wages as such, but they're part of the employee's total employment package. As they're a perk of the job for the employee, you, as the employer, will usually pay fringe benefit tax (FBT) or be subject to PAYE on the value of the benefit. Benefits fall into several categories: non-cash, cash, and so-called special benefits. Holiday pay The employee is liable for PAYE on pay for annual leave and statutory holidays. Lump sum payments Pretty much anything else is classified as lump sum payments. These include bonuses, cashed-in annual leave, payments for accepting restrictive covenants, exit inducement payments, gratuities, or back pay, redundancy payments, retiring allowances, and overtime. Employees are usually liable for PAYE on these payments. Note that: the PAYE rate will vary depending on the employee's total taxable income ACC earners' levy won't apply above the maximum liable income threshold redundancy payments and retiring allowances are not subject to ACC earners' levy It can be confusing working out the tax treatment of these payments for your business. Let us know if you would like to discuss how the rules apply to your business.