diprose-miller

Introducing our Contract Milking Accelerator Programme

Mon, 06 Apr 2026 02:48:52 GMT

Financial clarity and support for the season ahead

We’re pleased to introduce a new programme designed to support contract milkers in managing the business side of farming with greater clarity and confidence.

Stepping into contract milking - or taking the next step - brings new opportunities, but also a greater level of financial responsibility. Having a clear plan from the outset, along with the right support throughout the season, can make a significant difference to how that season unfolds.

A new way to approach the financial side of contract milking

The Contract Milking Accelerator Programme has been developed to provide structure, visibility, and ongoing guidance - not just at year-end, but right throughout the season.

It brings together forecasting, reporting, and advisory support into one programme, helping you stay on track and make informed decisions as you go.

What the programme includes

The programme covers the key financial areas contract milkers need to manage with confidence:

First season financial forecast
Bi-monthly dashboard reporting
Three seasonal review meetings
Ongoing financial monitoring
GST and income tax compliance

Together, these provide a clear starting point and regular checkpoints throughout the season - so you always know where things stand.

Designed for where you’re at

While the programme is particularly valuable for those stepping into contract milking for the first time, it’s equally relevant for those looking to strengthen their financial position or bring more structure to their business.

Practical, ongoing support

The programme is delivered on a simple monthly basis, with optional add-ons such as payroll services available if needed. Software costs sit outside the package and can be tailored to your setup.

Get set up for the season ahead

If you’re planning for the upcoming season and want greater financial clarity from day one, we’d be happy to talk through how the programme could support you.

Celebrating Our New Associates

Wed, 01 Apr 2026 02:20:50 GMT

We’re pleased to announce the appointment of Grant Glover and Sharlotte Salisbury as Associates at Diprose Miller. They are based in our Morrinsville office. Both bring strong community ties, practical experience, and a steady, down-to-earth approach to their work. Their promotions recognise the contribution each has made to our clients, our team, and the wider rural communities we serve. We’re proud to support their continued growth within the firm.

Grant Glover

Grant grew up on a dairy farm just outside Morrinsville, attended all the local schools, and still calls the town home today. That strong connection to the community shapes the way he works. He understands the realities facing local businesses, farmers, and families because he’s grown up alongside them.

Since joining Diprose Miller in 2015, Grant has supported clients with GST and annual financial statements, cash flow forecasting, and day-to-day accounting needs. He’s known for his practical, down-to-earth approach and for building longterm relationships that help clients make confident decisions about their business.

Grant holds a Bachelor of Business from the University of Waikato and is a member of Chartered Accountants Australia and New Zealand. Outside the office, he serves as Vice President and Treasurer of the Te Aroha Jockey Club and keeps active at the local F45 gym.

DDI 07 884 8055 ext 895

Email gwg@diprosemiller.co.nz

Sharlotte Salisbury

Sharlotte was born and raised in Cambridge and spent much of her childhood on her grandparents’ dairy farm just outside the town. That early connection to farming life has shaped her understanding of the pressures and opportunities facing rural businesses. She now lives with her family on a lifestyle block in Tauwhare and enjoys being part of both the Cambridge and Morrinsville communities.

Sharlotte joined Diprose Miller in 2025 and supports clients with GST and annual financial statements, cash flow forecasting, and day-to-day accounting needs. Her experience spans farm accounting, mum and dad businesses, and large commercial and industrial enterprises, giving her a broad, practical perspective that clients appreciate. She enjoys seeing people grow and succeed and values being able to contribute to their progress.

She holds a Bachelor of Management from the University of Waikato and is a member of Chartered Accountants Australia and New Zealand. Outside the office, Sharlotte helps her partner run their fitness business, BFT Cambridge, and can often be found on the sidelines supporting her partner and children in their sporting endeavours. She is also co-treasurer of the Auckland/Hauraki Dairy Industry Awards alongside Melissa Slattery.

DDI 07 280 5519 ext 824

Email ses@diprosemiller.co.nz

We’re delighted to congratulate both Sharlotte and Grant on their promotion to Associates. Their rural grounding, and commitment to clients and the Morrinsville community make them such a valued part of our team.

1 April 2026 Payroll changes for Employers

Mon, 09 Mar 2026 20:48:10 GMT

What You Should Be Reviewing Now

The new financial year brings several payroll updates. None are overly complex — however, if they’re missed, they can result in compliance issues or payroll discrepancies.

If Diprose Miller administers your payroll function, the necessary changes will automatically be incorporated into the first pay run in April.

If not, please ensure that you are complying with the changes below from 1 April.

Here’s what you should be checking.

Minimum Wage Increase

Effective 1 April 2026:

Adult minimum wage: $23.95 per hour (16 years and older)
Starting-out and training wage: $19.16 per hour

If any employees are paid at or near minimum wage, their pay rates will need to be reviewed and adjusted where necessary.

Important for Salaried Employees (particularly in farming)

Minimum wage obligations still apply to salaried staff based on actual hours worked. Salary averaging is not permitted.

Compliance check: Annual salary ÷ 26 fortnights ÷ $23.95 = maximum hours per fortnight

If the actual hours worked exceed this, the salary may fall below minimum wage and top-up payments will be required to remain compliant.

Reviewing this early helps avoid last-minute payroll corrections.

KiwiSaver Default Rate Increase

From 1 April 2026, the default KiwiSaver rate increases to 3.5% for both employees and employers.

Key considerations:

Employees wishing to remain at 3% must apply for a temporary rate reduction through myIR.
If an employee moves to 3%, the employer contribution may also reduce to 3%.

Where total remuneration packages apply, employment agreements may need updating to reflect the increased employer contribution cost.

Small oversights here can create inconsistencies between payroll and employment agreements.

ACC Earners’ Levy Increase

The ACC earners’ levy will increase to 1.75% (from 1.67%).

As this forms part of PAYE deductions, employees may notice a slight reduction in net pay.

Most payroll software will update automatically - however, it is important to confirm your settings are correct.

Fixed Automatic Wage Payments

If wages are paid using fixed automatic bank payments, changes to:

Minimum wage
KiwiSaver rates
ACC levy

will mean current payments to employees no longer align with PAYE calculations filed with IRD.

These must be recalculated and updated accordingly. A practical starting point is the IRD PAYE calculator for the 2027 tax year (01/04/26 – 31/03/27). Link here

Practical Checklist Before 1 April 2026

Review all wage and salary rates
Confirm KiwiSaver defaults update to 3.5%
Check payroll software levy settings
If calculating wages manually, test your figures using the IRD 2027 PAYE calculator
Update any fixed automatic payments
Seek advice early if unsure

Payroll & HR Support Available

If payroll isn’t something you enjoy managing, we can assist with:

End-to-end payroll administration using dedicated payroll software
KiwiSaver and minimum wage compliance reviews
Troubleshooting payroll discrepancies
Preparation and updating of employment agreements
Assistance with HR matters

Support can be ongoing or one-off - whatever suits your business.

If you would like a payroll review before 1 April, please get in touch.

You’re welcome to contact one of our payroll specialists: Angela Millward or Denice Taukiri .

March Balance Date Approaching

Wed, 28 Jan 2026 22:51:50 GMT

Key Tax Matters to Review Now

With the 31 March balance date approaching, now is the time for most business clients (and some of our farmers) to review their tax position and address any matters that need to be actioned before year-end. Early planning can help manage tax cash flow and avoid surprises. We’ll be in touch directly with our clients to request completion of their end-of-year checklist document that provides valuable information required to prepare the annual financial statements.

Expected profit and tax exposure

It’s useful if clients have a clear sense of how this year’s profit is tracking. If results are stronger or weaker than expected, there may be implications for income tax, provisional tax, and cash flow that should be considered before 31 March.

Asset purchases and depreciation

If you’re planning to purchase business assets such as vehicles or equipment, timing is critical. To claim depreciation this year, assets must generally be purchased and available for use before 31 March. Remember that asset purchases just before balance date provide minimal tax benefit, as depreciation is calculated based on the number of months the assets is owned.

Bad debts and income recognition

Review outstanding debtors and follow up overdue accounts. Genuinely bad debts may be deductible if they are written off before balance date. Ensure all income earned to 31 March is correctly recorded.

Stock on hand

If your business holds stock, ensure stock levels and values at 31 March are accurate. Obsolete or slow-moving stock should be identified, as overstated stock can increase taxable income unnecessarily. Trading stock at balance date should be valued at cost price and excluding GST. Farmers, we need you to provide details of the numbers of animals owned by you at balance date.

Records and GST

Ensure bank accounts are reconciled in your accounting system, GST returns are up to date, and transactions are correctly coded before year-end. Good records support accurate tax reporting and reduce compliance costs.

Provisional tax looking ahead

Your 31 March result will influence future provisional tax obligations. Understanding this early helps with cash flow planning for the year ahead.

Final word

Tax planning before 31 March is far more effective than trying to fix things after the fact. If you’d like help reviewing your position or discussing actions to take before balance date, we recommend getting in touch sooner rather than later.

Three Numbers Every Business Owner Should Understand (and Why)

Thu, 15 Jan 2026 23:40:57 GMT

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.

Is Your Business Working for You - or Are You Working for It?

Thu, 08 Jan 2026 23:28:36 GMT

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.

Beyond Profit & Loss: What Makes a Business Truly Profitable

Thu, 01 Jan 2026 23:18:15 GMT

Profit isn’t just a number on a spreadsheet. It’s the result of the conversations you have, the systems you build, and the decisions you make every day.

For many business owners, profitability is judged by one measure: the bottom line. If revenue is steady and costs look manageable, things must be on track, right? Not necessarily!

A Profit & Loss statement (P&L) is valuable, but it only shows what happened. It doesn’t explain why it happened, or whether your business is genuinely positioned for long‑term, sustainable success. True profitability is built on much more than margins alone.

Planning: Profit Starts Before the Numbers

The most profitable businesses don’t rely on guesswork, they plan ahead. In New Zealand’s business environment, where seasonality, rising costs, and cash flow pressure are common, clear budgets, forecasts, and scenario planning make a meaningful difference. Understanding when cash will come in, when it needs to go out, and how obligations like GST and provisional tax fit into the picture helps protect your profit from unexpected shocks.

Good planning turns financial information into a forward‑looking tool. It gives you the confidence to make proactive decisions instead of reacting under pressure.

People: Your Most Valuable Investment

Your team is one of your biggest drivers of profitability, and one of your biggest costs.

Hiring decisions, leadership capability, team structure, and staff retention all influence your bottom line, even if the impact isn’t immediately visible in the P&L. High turnover, unclear roles, or over‑reliance on the business owner can quietly drain time, energy, and profit.

On the other hand, engaged people, clear accountability, and strong leadership create better productivity, stronger client relationships, and a more resilient business. These benefits don’t always show up neatly in the numbers, but they absolutely shape them.

Systems and Processes: Making Profit Sustainable

Many businesses look profitable on paper but feel fragile in practice. Manual processes, outdated systems, and inefficient workflows create hidden costs that erode profit over time. They also contribute to burnout, especially for owner‑operators juggling multiple roles.

Smart systems and clear processes make your business easier to run, easier to grow, and easier to step away from. Sustainable profitability comes from building a business that works well without relying on long hours or constant firefighting.

Better Insight Leads to Better Decisions

Ultimately, profitability is driven by the quality of your decisions. Understanding which products, services, or customers are truly profitable allows you to focus your time and resources where they have the greatest impact. Timely management reporting and meaningful conversations around the numbers help turn financial data into insight, and insight into action.

With clarity, you can make confident decisions about hiring, pricing, investment, or scaling back when needed. That confidence is often what separates businesses that simply survive from those that thrive.

Profitability Is a Mindset

A healthy bottom line matters but it’s rarely achieved by numbers alone. Truly profitable businesses think beyond the P&L. They plan ahead, invest in their people, strengthen their systems, and use financial insight to guide smarter decisions. They understand not just what the numbers are saying, but why.

Ready to Build a More Profitable Business?

At Diprose Miller, we help business owners look beyond compliance and understand what’s really driving their performance. Whether you want clearer reporting, better planning, or support to strengthen your systems and team, we’re here to help you build a business that’s profitable, resilient, and future‑ready.

If you’re ready to take the next step, let’s talk. A conversation today could be the start of a more profitable tomorrow.

Accounting Tips for Growing Property Portfolios

Fri, 10 Oct 2025 00:04:33 GMT

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.

5 Tax Traps Property Developers Should Avoid

Wed, 08 Oct 2025 00:13:37 GMT

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

A Developer’s Guide to Feasibility

Mon, 06 Oct 2025 05:12:06 GMT

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

In property development, success starts long before the ground is broken. Profitability is often determined in the early planning stages - and that’s where feasibility comes in. A thorough feasibility study gives developers the clarity to decide whether a project stacks up financially, strategically, and practically. Done well, it can mean the difference between a development that delivers strong returns and one that struggles from day one.

Step One: Define the Project Clearly

Before running numbers, you need a clear picture of what you’re building. Is it residential, commercial, or mixed-use? What scale, what timeframe, and who is the target market? Getting these fundamentals right ensures your feasibility exercise is anchored to reality, not assumptions.

Step Two: Crunch the Numbers

The financial modelling is the backbone of any feasibility:

Acquisition costs: land purchase and due diligence fees.
Development costs: construction, consultants, infrastructure contributions.
Financing costs: interest, bridging, or alternative lending.
Holding costs: rates, insurance, compliance.
Revenue projections: realistic sales or rental income.

It’s also wise to run a sensitivity analysis. How do the margins look if building costs rise by 10%? Or if sale prices soften? These scenarios show just how robust your project is.

Step Three: Regulatory and Compliance Checks

Even the best concepts can unravel without a close look at council and compliance requirements. Zoning, resource consents, building consents, environmental obligations, and infrastructure levies can all affect costs and timelines. Early checks prevent nasty surprises that might require redesigns or stall projects.

Step Four: Risk Assessment and Mitigation

Markets change. Interest rates move. Supply chains falter. A good feasibility looks at risks from every angle:

Market risks: buyer demand, lending conditions.
Project risks: delays, overruns, materials.
Financial risks: lender appetite, regulatory shifts.

Thinking ahead about “what if” scenarios helps developers prepare for bumps in the road rather than be blindsided.

Step Five: Get Independent Advice

Many developers are optimistic by nature - which can sometimes mean blind spots in feasibility work. That’s where independent advisors come in. Accountants, valuers, surveyors and lawyers bring objectivity and ensure assumptions are realistic, funding is structured, and risks are accounted for. An outside view often saves money and headaches down the line.

Setting Your Project Up for Success

Property development can be rewarding, but only when built on a solid foundation. A comprehensive feasibility isn’t a hurdle - it’s your best protection against risk and your clearest path to confidence.

Thinking about your next project? Our team can help you assess feasibility independently and objectively, so you know whether to proceed, pivot, or walk away.

Is it a Rental or a Business? The Bright-Line Test & Beyond

Thu, 02 Oct 2025 05:14:53 GMT

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

Owning residential property for investment is very common in New Zealand - but from a tax perspective, there’s a big difference between holding a rental and running a property business. The bright-line test is just one piece of the puzzle.

The bright-line test basics

The bright-line test applies when you sell a residential property within two years of purchase (as of 1 July 2024). Any profit may be taxable unless an exclusion applies, the most common being the main home exemption. It’s a rule designed to catch short-term “flips” - but it doesn’t tell the whole story.

When property investment becomes a into business activity

If you’re regularly buying and selling property, or your intention is to make a profit from resale, you may be considered a property dealer, developer, or builder. In that case, all your property sales could be taxable, not just those that occur within the two-year bright-line period. That can come as a surprise for investors who don’t see themselves as being “in business.”

What about rental income?

Most residential landlords fall into the rental category, where income is taxed as part of your overall earnings. Loss ring-fencing and limited interest deductibility still apply, which can affect cash flow. On the other hand, property development or trading activities bring wider tax implications, including how deductions are treated.

Beyond the bright-line

Other factors can also come into play - such as GST on large-scale developments, or how ownership structures (companies, trusts, or partnerships) impact your position.

The takeaway

The bright-line test is important, but it’s not the whole picture. The real question is whether your property activity is a rental investment or a business - because the tax outcomes can be very different. A clear understanding upfront can help you avoid unexpected tax bills down the track.

If you’re unsure how the rules apply to your situation, now’s a good time to review your position and get clarity before making your next property move. We need to be kept up to date with clients’ plans for property sales, so we can make sure that (where possible) any tax implications are minimised.

Celebrating Community: Diprose Miller Wins 2025 Contribution to Community Award

Wed, 01 Oct 2025 03:18:38 GMT

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.

Strategic Reinvestment for Farmers Post-Fonterra Record Payout

Thu, 11 Sep 2025 05:29:37 GMT

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.

Taxing Payments to Employees – Allowances, Benefits, Lump Sums

Thu, 04 Sep 2025 22:51:58 GMT

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.

6 Powerful Reasons To Use Your Financial Reports

Thu, 28 Aug 2025 22:49:41 GMT

This is a subtitle for your new post

Making time to look over your financial reports each month is an important task for any business owner. If you are not taking time to do this, either because you’re too busy, or perhaps you don’t really understand what you’re looking at and it doesn’t make sense to you, then here are 6 reasons we recommend why you should start to do this.

But before we get to our 6 reasons, let’s talk very quickly about which reports to look at. At a bare minimum, and depending on the complexity of your business, you should be looking at the following:

The Statement of Financial Performance – also known as the Profit and Loss report (P&L) or the Income Statement – tells you, as the name suggests, how your business is performing over a period of time, such as a month or a financial year. In broad terms it shows the revenue that your business has generated, less the expenses for that same period. In other words, it shows how profitable your business is.
The Statement of Financial Position – also known as the Balance Sheet shows the value of the business’s assets, liabilities and equity.
Assets include things like money in bank accounts, plant and equipment and accounts receivable balances
Liabilities include things like bank loans and credit cards, accounts payable, and hire purchase balances
Equity is the difference between your assets and your liabilities and includes retained earnings and funds introduced by the owners
Accounts Receivable Ageing report (Aged Receivables) – this shows how much money is still owed to the business as at a certain date in time and is usually segmented as to how overdue they are, or sometimes by how far past the invoice date they are. Generally, you will have current, 30, 60 and 90 days columns.
Accounts Payable Ageing Report (Aged Payables) – this report shows who the business owes money to as at a certain date in time and, like the Accounts Receivable Ageing report, is usually segmented by overdue period.

So why bother?

Understand your business better - by looking at your Profit and Loss report monthly you will get a good picture of how your business is performing month by month and it gives you a better understanding of what makes up your profit. It can be helpful to compare periods, or to look at a month-by-month P&L, so you can clearly see on one page the revenue and expenses month by month. This also helps identify trends in your data and many also help to highlight anomalies in coding/categorising transactions or unusual expenses or earnings.
Accurate information for lending purposes – If you are applying for a loan or an overdraft, the bank or financial institution will look closely at both your Profit and Loss report and the Balance Sheet as a lot can be learned about a business by looking at these reports together. If you are unsure what some of your balances are in your accounts, get in touch and we can explain them further.
Get paid quicker and reduce bad debts – by looking at your Accounts Receivable Aged Summary each month you can follow up with overdue accounts promptly which often results in getting paid quicker. The longer an overdue amount is left unpaid the higher the risk of it not being paid at all, so it is important to keep on top of this.
Better relationships with your suppliers – Assuming you are entering your supplier bills into your accounting software (recommended for most businesses to get an accurate profitability figure) your Aged Payables report will alert you to any unpaid or overdue amounts. Supplier relationships are an important aspect of your business and paying on time is crucial to maintaining those relationships.
Better cashflow – having an accurate understanding of how much money the business is owed, and how much money the business owes, can help with cashflow planning to ensure that there is enough money when needed. Additionally, understanding the trends of your business, its profitability drivers, its expenses, etc., can help to plan sales and marketing campaigns so that the revenue keeps coming in.
Better business decision making – Your financial reports tell the story of your business and it’s important that you understand the story that they are telling you. The better you understand what’s going on in your business the stronger position you will be in to make better business decisions that affect the profitability of your business and its financial viability.

If you would like to know which reports are relevant to your business, and you want to better understand what’s going on in your business, then get in touch so we can make a time to go through them with you.

Your business success is important to us and we’re here to help.

Do You Need to Improve the Cash Flow Position for Your Business?

Thu, 21 Aug 2025 22:53:39 GMT

Keeping on top of the financial management of your business can be hard work. It's possible to have a profitable business that is struggling to find the cash flow to pay expenses and fund growth. Likewise, you could have positive cash flow but are not turning a profit, particularly if you are re-investing profits back into the capital expenditure.

Turning a profit is at the heart of running any successful business

But without an even and predictable flow of cash into the company, you can't cover your overheads, you can't pay your employees, and you can't run your day-to-day operations – let alone think about expanding and growing the business.

In the end, you need both. But if you’re going to be in control of your financial destiny, it’s important to get your head around the important process of cash flow management.

Let’s look at some of the key things to understand about your finances:

Profit is a by-product of a successful business – as the owner, you want to make profits, but profitability isn’t the only goal. A business can easily be profitable, but also be highly unstable in the longer term. What you want is stability and consistent revenues.
Cash flow keeps your business alive – good revenues (income) serve to bring cash into the business. Without cash to cover your operating expenses, you have no means to keep the lights on in the business. So cash really is king!
Know your cost base and overheads – the flip side of your cash flow position is your costs. In an ideal world, you want more cash inflows than cash outflows, so it’s important to know your expenses and costs and to manage them carefully.
Be proactive about spend management and easing expenditure – if you can take action that reduces your spending, that is hugely positive for your cash flow position. Choose cheaper suppliers, negotiate better deals and bring that cost base down.
Drive more revenue, through increased sales and marketing activity – if you can increase your revenues, you also boost your cash flow. So it’s important to be proactive about running targeted sales and marketing campaigns to increase your sales.
Keep the cash flowing and the profits take care of themselves – if you achieve the ideal cash flow position, the company sits on solid financial foundations, the cash is there for investment and the business can grow. It’s that simple.

Talk to us about improving your cash flow management

Whether you’re new to running a business, or a seasoned owner who needs some financial support, we can give you the cash flow advice you need.

We’ll review your finances, delve down into your cash flow, and come up with key ways for you to increase your cash income and reduce your cash expenses. It only takes a few small changes to achieve a far better cash flow position for your business – helping you maintain positive cash flow AND generate profits.

High Unemployment: What Could this Mean for Your Small Business?

Thu, 14 Aug 2025 01:54:20 GMT

Unemployment in New Zealand has been steadily rising over the past two years. The unemployment rate has risen from 3.4% in Q1 of 2023, to 5.1% in Q4 of 2024.

The rate has remained static for Q1 of 2025, but this prolonged rate of unemployment may be having a detrimental impact on the future of your small business.

Let’s look at the alignment between unemployment and your future growth.

1. Reduced consumer spending:

With more people out of work, consumers have less disposable income to play with.

This leads to customers tightening their belts and less consumer spending on non-essential goods and services. This can directly impact your sales and monthly revenue, forcing you into a corner where prices (and margins) might be decreased to encourage more sales.

2. Low morale and poor employee retention:

While a larger talent pool might seem beneficial, high unemployment can sometimes create a sense of job insecurity among your existing employees.

Unstable economic conditions can lead to decreased morale, higher stress levels, and a potential struggle to retain top talent, who may feel less secure in their current roles.

3. Difficulty securing loans and funding:

Banks become more risk-averse when there’s evidence of high unemployment, poor economic conditions and unpredictable market conditions.

The recent CPA Australia Asia-Pacific Small Business Survey found that only 26.4% of Kiwi businesses expect it to be easy to access finance. Reduced access to funding can lead to poor cash flow, slower growth and an increasing need to reduce costs.

4. Decline in overall business confidence:

The combined impact of poor economic conditions and high unemployment is significant.

This unpredictable and unstable outlook can have a major effect on business confidence. New Zealand's ANZ Business Outlook Index fell sharply to 36.6 in May 2025 from 49.3 in the previous month. This may deter your small business from investing, innovating or expanding – all factors that could hinder your own long-term growth and stability.

If you need support getting your business through the tough times – we’re here to help.

There are still ways to control your spending, drive growth and do your bit to provide employment.

How to Use Forecasts & Scenario Planning

Thu, 07 Aug 2025 01:49:52 GMT

For centuries, accounting was all about reviewing historic information – but that only told you about the past, not what was going to happen in the future.

If you’re only looking back at past periods and historic numbers, this limits the insights you can achieve for your business. With a backward-looking ideology, it becomes difficult to plan, run through different scenarios or understand the path of the business going forwards.

Forecasting changes this. With the right data analysis and forecasting tools, you can project sales, cash, revenue and profits into the future – and get in control of your business.

A forward-looking view of your business journey

Forecasting switches the focus of your financial management. By moving to a forward-looking view of your business journey, you can see further down the road – and that helps to spot any opportunities and avoid common business pitfalls.

Forecasting adds value by:

Highlighting the data patterns – a forecasting tool takes your historic data and projects it forward in time. This helps you and your advisers spot patterns, trends, gaps and opportunities, revealing the true ‘story’ behind your business accounts. For example, forecasting may reveal a predicted seasonal slump in the next quarter, allowing you to plan ahead and proactively take action to minimise negative impacts.
Giving you a future view of your business – instinctively, business owners will look back at prior periods to assess performance. There’s value to reviewing your historic actuals, of course, but using forecasting helps you to look forward, rather than just backwards. Forecasting is the satnav, showing you the road ahead, rather than the rear-view mirror showing you the road you’ve already travelled.
Helping you scenario-plan – with a financial model of your key drivers, combined with accurate forecasting, you can quick answer your burning ‘What if…?’ questions. Forecasting lets you run different scenarios, with different drivers, to see how business decisions may pan out over time. If option B performs better than option A, that’s invaluable information when defining your next strategic move.
Making informed, evidence-based decisions – having ‘the full picture’ of combined historic numbers, forecasts and longer-term projections aides your business decision-making. Forecasting gives you solid evidence on which to base your strategy and helps to red flag any threats that are looming on the horizon – giving you the best possible information to keep your executive team informed and on the ball.
A more effective relationship with your accountant – forecasting also helps us to get a better insight into what makes your business tick. This helps to spot potential areas of performance improvement, and to give you the best possible strategic advice, all backed up by solid, empirical data and management information.

If you want to get in better control of the destiny and results of your company, we’re here to talk. Forecasting helps you highlight your future threats and opportunities – and create a proactive strategy to improve the performance of your business. It’s not always an easy process, but almost always one worth undertaking.

Accounting Basics: The Profit and Loss and Balance Sheet Reports

Thu, 31 Jul 2025 00:43:27 GMT

Understanding your finances is a vital part of running your business. But getting down into the nitty gritty of your business’ financial reports isn’t every entrepreneur’s top skill. If you are new to company accounting, or simply want to expand your knowledge, this guide explains the foundational reports.

The profit and loss report and the balance sheet are both key reports when it comes to getting in control of your company’s financial health.

What’s a profit and loss statement?

Your profit and loss statement is commonly called your P&L, but is also referred to as your income statement or statement of earnings. It’s a full breakdown of your company’s revenue (money coming into the company as sales and other business income) and your expenditure (direct costs, overheads, expenses and other costs).

As a business, you obviously want to turn a profit and make money from your venture. Careful observation of your P&L allows you to track your revenues and expenses over a set period of time. You can then look back over the period and see exactly where you’re making money, and where you’re losing money. The more you make, and the less you lose, the greater your profits will be at year-end – and your P&L is your barometer for measuring these metrics.

The P&L statement is good for:

Giving you a breakdown of all revenues and relevant costs and expenses
Showing the profit and loss figures over a set period of time
Summing up your profit and loss for the period to gauge if you’re profitable.

What’s the balance sheet?

The balance sheet gives you a snapshot of your company’s financial health at a given point in time, based on the following accounting equation: ‘Equity = Assets - Liabilities’

The balance sheet shows you the company’s:

Assets (the things the company owns, including cash)
Liabilities (the things the company owes other people)
Equity (retained earnings plus the funds you originally invested as shareholders)

Unlike the P&L – which shows you the revenues and expenditure over the course of a given historic period – the balance sheet is best seen as a ‘screenshot’ of your current finances. In a nutshell, it shows you what the company is worth on paper right now, based on the current numbers in your business accounts. So it’s a vital tool in your accounting toolbox.

The balance sheet is helpful for:

Assessing the current financial position of the company
Providing evidence of your financial position to banks, lenders and investors
Making decisions on company dividends and related distributions
Giving potential buyers an idea of the company’s tangible net asset value, if you plan to sell up.

Talk to us about expanding your accounting skills

If you can’t quite tell your assets from your equity, we are here to help. Accounting can be complicated and it takes time to fully grasp all the different terms and processes.

We’ll be happy to run you through your latest management or statutory accounts and explain exactly what each report means – and how it reflects your current performance as a business.

Get in touch with us to find out more.

Motor Vehicle Business Use and FBT for Companies

Tue, 15 Jul 2025 00:36:53 GMT

If you operate your business as a company, and you make a vehicle available to an employee to use privately, you’ll be liable to pay fringe benefit tax (FBT). This applies on vehicles made available to:

employees (and their associated persons), and
shareholder-employees (business owners)

This applies whether the vehicle is actually used for private purposes or not.

FBT does not apply:

to vehicles that come within the definition of being ‘work related vehicles’ that are not available for private use
for certain emergency calls and some out of town travel
for working owners in Look Through Companies (LTCs). Instead, such benefits are treated as a distribution of profit to the working owner to the extent of the private use
for sole traders and partners in a partnership. Instead, they make income tax and GST adjustments for private use.

Not all ‘business’ vehicles are ‘work-related vehicles’ for FBT purposes. And some companies have other options instead of paying FBT. In some cases, exemptions apply.

When is FBT payable?

FBT is normally payable quarterly but can be filed quarterly, annually or by income year. Filing frequency depends on the type of company you manage, the benefits you provide and how much tax you pay.

It’s important for clients to get this right because the use of, and deductions claimed for, vehicles is a common feature of any Inland Revenue review of a company’s tax affairs.

You need to understand how the rules apply to your specific business. If you’re unsure and need advice, we’re here to help.

Business Credit Score: How to Build a Good Credit Profile

Tue, 08 Jul 2025 12:03:30 GMT

A good credit profile acts as the foundations for your finance strategy. But what can you do to build and nurture a good credit profile and business credit score?

When owning or first starting out in business, having access to finance will be fundamental to your success. And being able to borrow funds, or attract investment, will be dependent on you having a good business credit score and a healthy credit profile as a business.

Let’s explore how you can build up your credit profile.

Why is your credit profile important?

Funding is key for any business. Banks will lend to you and private equity investors will put money into the business – but only if they see the business as viable.

In short, lenders and investors want to be confident that you’re a low-risk prospect, with viable income streams, good cash flow and the capability to repay the loan, or deliver a return.

Your credit profile lists your credit history, payment history and your public financial records, to give an overview of the general creditworthiness and risk level of your business.

Key factors that affect your credit profile

Your credit profile evolves over time, along with the business. And your overall business credit score is not static. By being responsible with your use of credit facilities and your overall financial governance, you can improve your credit score and open up more routes to funding.

Here are some ways you can grow your credit profile as a business.

Pay your suppliers and debts on time:

Always pay your bills, invoices and loans before their due dates. This demonstrates that you’re reliable and financially responsible, factors that are heavily weighted by credit reporting agencies (CRAs) and lenders when assessing your business's creditworthiness.

Keep your credit utilisation ratio low:

Don’t use the full amount of credit that’s available to you. A high credit utilisation ratio can signal financial distress, so aim to use well under 30% of your available credit limit. Keeping this ratio low, shows you’re responsible and can have a positive effect on your credit score.

Don’t apply for multiple lines of credit:

Applying for multiple lines of credit or loans in a short period can be a major red flag to lenders and CRAs. Each application can result in a hard inquiry on your credit report, which can temporarily lower your score. Only apply for credit when it’s genuinely needed.

Get a business credit card and use it responsibly:

Using a business credit card for regular, manageable expenses, then paying off the balance in full each month, builds a positive credit history. This credit history is separate from your personal credit score and demonstrates that the company can manage its finances and credit well.

Keep your debt-to-equity balance healthy:

Make sure the business isn't overly reliant on debt compared to its own equity. A balanced capital structure is a good sign of financial stability to lenders, showing that you have a strong financial foundation to support your obligations and future growth.

Keep your financial records and filings up to date: Make sure you’re updating your financial records, statutory accounts and company filings. This makes it easier for the CRAs, lenders, and investors to access your public records, check for good governance and form an opinion on your creditworthiness.

A good credit profile acts as the foundations for your finance strategy, putting you on solid ground to reinvest in the business and begin the next stage in your start-up growth.

Come and talk to us about other ways to improve your business credit score, sure up your finances, and get the funding you need to bring your strategy to life.

Budget Alert 2025 - Attracting Investment and Talent, Increasing Savings

Tue, 08 Jul 2025 12:00:44 GMT

Along with lifting domestic investment with Investment Boost, Budget 2025 seeks to attract capital and skilled labour, and increase the KiwiSaver balances of New Zealanders.

The Growth Budget seeks to attract capital and skilled labour and increase New Zealanders' savings in KiwiSaver.

$10m is earmarked to help New Zealand start-ups and unlisted companies recruit talent, deferring the tax liability arising on employee share scheme (ESS) benefits until a liquidity event occurs to fund the tax on income. The boundaries for eligibility are still unclear.
For migrants and returning New Zealanders, possible ‘revenue account’ and ‘deferral’ methods of calculating foreign investment fund (FIF) income are proposed to ease cashflow.
$85m is allocated to establish Invest New Zealand to attract talent and capital to New Zealand, lifting growth across technology, science, innovation, and other high-value sectors.
$65m is set aside to ease thin capitalisation rules for foreign direct investment (FDI) into qualifying private infrastructure projects.

There’s also been changes to KiwiSaver

The Government has announced several key changes to KiwiSaver - affecting contribution rates, government incentives, and eligibility. Here's a summary of what’s changing and when:

Contribution Rate Changes

From 1 April 2026:

The default employee and employer contribution rate increases from 3% to 3.5%.

From 1 April 2028:

A further increase to 4% for both employees and employers.

Option to Reduce Contribution Rates

From 1 February 2026 , KiwiSaver members will be able to:

Apply for a temporary rate reduction back to 3%.
This reduced rate will also apply to the employer’s contribution .
Members will need to reapply periodically if they wish to continue the reduced rate.

Government Contribution Changes

From 1 July 2025:

The maximum annual government contribution will be halved — from $521.43 to $260.72 .
Those earning above $180,000 per year will no longer be eligible for any government contribution.

Younger Members Get a Boost

From 1 July 2025 , 16- and 17-year-olds will be eligible for the government contribution .
From 1 April 2026 , they’ll also qualify for employer contributions - currently not available to them.

What This Means for Employers & Employees

These changes will affect payroll processes, budgeting, and how individuals plan their retirement savings. Employers should prepare for higher default contribution costs and updated obligations for younger employees. Members may want to review their KiwiSaver settings in advance of these changes.

Talk to us about how these changes could affect your business.

Bringing Your Cash Flow Processes into the Digital Age

Tue, 08 Jul 2025 11:56:47 GMT

When economic times are tough, it helps to be in control of your cash flow. We explain how to improve your cash flow – and how this helps you run your business through tough times.

Keeping on top of your cash flow is even more important during tough economic times.

With global uncertainty, recent high inflation, energy prices soaring, supply chain challenges, cash is likely to be tight over the coming year. Cloud technology and finance technology apps can give your business the best possible control over its cash.

Why is cash flow so important?

To keep your business operating, you need enough money coming into the business to cover your outgoings – with enough surplus cash to deliver a profit.

In recessionary periods consumers have less disposable income to spend on your products and services. Business customers will be looking to rein in their spending on suppliers. As a net result, your business is likely to make fewer sales and will bring in smaller revenues.

This means:

Reduced income coming into the business.
Less cash in the business to cover your operational expenses.
Not enough money in the bank to pay suppliers, utility providers, or payroll costs.
In the worst-case scenario, insufficient cash flow for you to continue trading.

What can you do to improve your cash flow situation?

The more informed you are about your cash position, the more you can do to prepare for any cash flow gaps. It’s this foresight that can make all the difference when you’re battling against tough external economic forces and a downturn in sales.

If you want to safeguard your cash flow, these are some sensible steps to take:

Switch to cloud accounting – accounting and finance technology has moved on in leaps and bounds in the past decade. The best cloud accounting platforms all offer a detailed reporting of your cash position. These software tools will generally offer real-time data, giving you up to date cash numbers.
Integrate with cash flow forecasting apps – cloud accounting platforms let you add third party apps to create a custom stack of helpful business tools. There are plenty of cash flow forecasting apps to choose from, giving you the ability to predict your future cash flow position.
Plan ahead for the cash flow gaps – when your forecast shows a shortfall of cash coming up, that’s the time to take evasive action. If you can see that there’s a cash hole approaching next month, it’s time to look at ways of raising extra finance to fill that hole. That could mean extending your bank overdraft, taking out a small business loan, or taking out an invoice finance facility with a lender.
Look for opportunities to cut your overheads – one way to even up your cash flow is to cut down on your expenditure. If you can cut back on overheads, expenses, and unnecessary costs, this can help you re-balance your cash position, even when cash flow is getting tight. Look for cheaper suppliers, buy in smaller quantities, and take every opportunity to cut costs and keep your spending more sensible.
Update your prices and your sales strategy – raising your prices is one way to bring in more cash, with the same volume of sales. But it's a balancing act. Putting your prices up can alienate existing customers and could see you losing customers, but if you can find the sweet spot for your pricing AND also drum up more sales, you can quickly increase revenue and give your cash inflows a healthy boost.
Review your cash flow reports regularly – it’s important to look at your cash flow numbers and reporting regularly, not just at period-end. This is particularly important when economic times are tough. With the most current cash information to hand, you can make informed business decisions and aim to keep the business operational.

Talk to us about updating your cash flow processes

With your business in a healthy cash flow position, you give yourself some solid financial foundations for riding out the global recession. No business is invulnerable in these conditions, but with liquid cash in the business, you have more flexibility and more capital to play with.

Take Care of Yourself, not just Your Business

Tue, 03 Jun 2025 23:08:36 GMT

Last month was Mental Health Awareness week. Being a business owner can be stressful. When the buck stops with you, it can be easy to let the pressure mount up and to discount your own wellbeing.

Looking after your mental health is as important as looking after your balance sheet. That’s the reality. So, having an improved focus on rest, wellbeing and talking about your struggles is a big part of moving towards becoming a better business leader.

Here are some examples:

Don't overwork yourself – it's tempting to work every hour that's available in an attempt to meet your goals. But working yourself into the ground is, ultimately, a destructive thing to do. If you're tired and burnt out then you're in no position to lead the company. Try to stick to set working hours and avoid working 60-hour weeks wherever possible. Sleep, rest, and downtime are vital.
Schedule time for non-work-related activities – make sure you have time blocked out for things that aren't work. That might be a walk in the countryside, time with your kids, or a game of tennis. The aim is to take yourself away from the stresses of the business and to give yourself a broader life outside the company. It's a chance to have fun, to relax, or to be someone who isn't just 'the boss'.
Take up an activity that promotes wellbeing – there are plenty of pastimes that can help you bring down your anxiety levels and bring you to a calmer place. Yoga is a good way to stay fit, but also an excellent form of relaxation. Equally, finding time for meditation helps you to empty your mind of business concerns and allows you to become more grounded and calmer. Even something as traditional as a fishing trip could help you to chill out and relax away from a screen.
Talk about your worries, concerns, and anxieties – if business-related stress is building up, the worst thing you can do is keep it all bottled up. It's beneficial to open up and talk about these issues. This could be with a partner, a fellow entrepreneur, your accountant, or even a professional counsellor. Be transparent about your state of mind and you’ll find people are more than willing to listen, understand, and offer some support.

Finally, as accountants and advisers, we’re in a good position to help when you need someone to open up to about your business concerns.

Compliance with ‘Healthy Homes Standards’ from 1 July 2025

Tue, 03 Jun 2025 23:03:26 GMT

About the standards.

The healthy homes standards, which became law on 1 July 2019, introduced minimum standards for heating, insulation, ventilation, moisture ingress and drainage, and draught stopping in rental properties. Landlords are responsible for ensuring their properties meet the standards and continue to do so over time.

When you need to meet the standards.

All rental properties will need to comply with the healthy homes standards by 1 July 2025. You must make sure that your rental meets the standards within certain time frames. The time frame depends on what type of tenancy it is, or when a new tenancy starts or is renewed.

What happens if you don’t meet the standards.

Landlords who don't meet their obligations under the healthy homes standards are in breach of the Residential Tenancies Act 1986 – and may face consequences, like financial penalties.

What to include in the tenancy agreement.

New or renewed tenancy agreements must include a signed statement with details of the property’s current level of compliance with the standards.

What records to keep.

Landlords must keep all records and documents that show how they are complying with the healthy homes standards.

These must be made available on request – for example, to the Tenancy Tribunal, or the Tenancy Compliance and Investigations team.

Landlords are committing an unlawful act if they don’t supply the records within 10 working days of a request, and do not have a reasonable excuse. Tenants can also request information about compliance with the healthy homes standards.

Landlords must provide this information to tenants within 21 days.

Is Airbnb Income Taxable?

Tue, 03 Jun 2025 23:01:17 GMT

Are you renting accommodation from your home, through Airbnb or some other way?

For tax purposes, short-stay or holiday accommodation is treated differently from accommodation provided to tenants, boarders, or care home residents, or from student or emergency accommodation.

A short stay is anything up to four consecutive weeks. The tax rules are different depending on whether you’re hosting guests in your own home, or on a separate property at your place, such as a sleepout, or at your holiday home or bach.

If you host guests in your own home, whether in one or more rooms, or the whole home, income from it is taxable. You can claim deductions for costs related to the rental. If you do, Inland Revenue will want to know that you are only claiming for costs related to the rental and not for costs incurred because of your own household use.

Handing Over the Family Farm: The Need for Succession Planning.

Tue, 03 Jun 2025 23:00:00 GMT

As the owner of a family farm, you’re not just running a business - you’re responsible for the future of the family’s legacy, and the financial security of your nearest and dearest. You’re also the custodian of the land, livestock, and environment that makes up your land.

So, do you have a plan in place for handing over this vital asset when you choose to retire?

With the average age of Kiwi farmers now at 58 years old, it’s important to think about succession planning and how the farm will be passed on to the next generation.

With the demands of running and operating the farm at the forefront of your mind, it can be a challenge to find time to work on the business, and to outline your future plans as a family. But having a succession plan is a critical part of your farm strategy and planning.

We’ve outlined five key areas you should have on your radar when it comes to getting a clear, workable, and effective succession plan in place.

Family dynamics

Sit down regularly to talk through the family’s plans for the farm, and the careers and aspirations of each family member that works in the business. This means addressing those all-important family relationships, expectations, and facing any potential conflicts head-on to ensure a smooth transition.

Business valuation

The farm is a critical business asset, so it’s important to get an accurate valuation of the whole business. This allows you to determine a fair and equitable transfer price to your successor, or to have a fair market price when selling up.

Financial planning

The business you hand on needs to be financially viable, while also providing for your own retirement. You’ll need a comprehensive financial plan to cover retirement expenses, estate taxes, and potential debt restructuring.

Legal and tax implications

Partnering with legal and tax advisers helps you avoid any major problems further down the line. Work with your advisers to understand the implications of different succession strategies and the impact they will have for you, your successor, your family, and the business as a whole.

Retirement planning

Develop a retirement plan for yourself and the current generation of family members. This means assessing your lifestyle considerations, personal retirement goals, and the financial stability you and your family will need once you step back from the farm and ownership of the business.

If you need help, we’d love to talk to you about developing a succession plan for your farm and setting the best possible foundations. Succession planning should be at the top of your to-do list.

New 20% Investment Deduction a Win for Farmers & Small Businesses Eyeing Capital Upgrades

Mon, 26 May 2025 02:07:11 GMT

The 2025 New Zealand Budget has introduced a significant incentive aimed at boosting business investment: a 20% immediate deduction on capital spending . This measure is set to provide a timely advantage for small businesses and primary producers—particularly farmers who have enjoyed strong payout seasons in recent years.

For both groups, the combination of higher returns, aging equipment, and the need to stay competitive has created the perfect conditions to reinvest. Under the new policy, eligible capital expenditure can be immediately reduced by 20% for tax purposes, with the remainder depreciated over time. This not only improves cash flow in the short term but also provides a strong incentive to accelerate long-needed upgrades.

Whether it’s new machinery, technology systems, infrastructure, or specialist equipment, the opportunity to reduce taxable income while modernising operations is likely to resonate with businesses across New Zealand.

The timing couldn’t be better. With Fieldays coming up in June in Hamilton , many businesses and farmers will be engaging with suppliers, exploring the latest products, and making purchasing decisions. This new tax deduction could make those investments significantly more attractive—and more affordable.

With the agriculture sector under pressure to maintain productivity and meet rising environmental standards, and small businesses looking for ways to scale or modernise, this policy could also help fast-track the adoption of more efficient, sustainable technologies.

In practical terms, a $200,000 investment in new equipment could reduce taxable income by $40,000 under the new scheme—a substantial financial incentive for those considering capital purchases.

For both small business owners and farmers, 2025 may be the ideal time to act.

Confidence check: Where do you sit on the business barometer?

Tue, 06 May 2025 04:08:14 GMT

Business confidence is a key economic indicator, and right now in New Zealand, the latest data is showing some positive signs:

Signs of recovery – After a slow period, economic activity has started to pick up with early signs of renewed business momentum.
Cautious optimism – Business confidence is improving, but caution lingers as companies navigate costs, demand, and future economic uncertainty.
Global uncertainty – While domestic trends are improving, global trade tensions and price volatility could still impact supply chains, costs, and long-term stability.

Use the current business confidence to your advantage

In any economic environment, the key is to adapt and adjust to protect and future-proof your business:
Consider your growth strategy. If confidence continues to rise, now could be a good time to expand your operations, invest in new equipment, or explore new revenue streams.
Hiring and workforce planning. Business optimism often fuels recruitment and team expansion. Confidence is on firmer ground, but uncertainty remains. If hiring, focus on roles that support long-term growth. If caution is needed, consider upskilling existing staff instead.
Market positioning. Shifting confidence levels can change customer spending habits. Are there opportunities to refine your pricing, enhance your marketing efforts, or introduce premium services that align with shifting demands?
Financing decisions. If borrowing costs continue to ease, consider refinancing loans at a lower rate or securing funds for expansion—just make sure you weigh affordability before taking on new debt.

Understanding the current business climate is key to making informed financial decisions. Want tailored insights for your industry? We’re here to help.

Melissa Slattery Shines a Spotlight on Our Agribusiness Expertise

Mon, 05 May 2025 02:06:19 GMT

At Diprose Miller, we work with a diverse range of clients and industries—but when it comes to agribusiness, we bring a depth of expertise that truly sets us apart. Our team includes professionals with strong backgrounds in the sector, allowing us to bring together a cross-functional group focused on providing tailored support for agribusiness clients. By working seamlessly together and sharing knowledge, we deliver practical, forward-thinking solutions that meet the unique needs of rural businesses. We're proud to offer exceptional service built on collaboration, industry insight, and a genuine understanding of the challenges and opportunities in agribusiness.

Why Agribusiness is Unique

Agribusiness is unlike any other sector. It demands specialised knowledge in areas like banking requirements, tax compliance, market trends, and risk management. There are specific challenges unique to this field, and having professionals working in agribusiness every day gives us the insight and expertise to truly support our clients.

My family has vested and lifetime interest in this industry, which adds another level of understanding and connection throughout the ever-changing seasons. Whether it’s navigating regulations or planning for future growth, our experienced team is here to help agribusinesses thrive.

A Fun Side to the Team

It’s not all hard work and no play! One of my favourite Diprose Miller team traditions is our Secret Santa gift exchange. I’ll never forget being the first “newbie” to receive a less-than-ideal present—an ongoing joke that continues to bring laughter to our team even now. Moments like these remind me how much I enjoy being part of such a fun and close-knit group.

At Diprose Miller, we’re passionate about helping agribusinesses succeed. If you’d like to learn more about how we can support your business, feel free to reach out.

Spotlight on Melissa Slattery

Tue, 25 Mar 2025 08:26:27 GMT

We are extremely proud to announce the appointment of Melissa Slattery as a director, effective from 1 April 2025. Melissa will join our leadership team alongside Ed, Jeanette, Darren, and Sharon. Her appointment is a testament to her expertise in agricultural business and reinforces our commitment to providing top-tier service to our clients in the farming sector and the dairy industry in particular.

Melissa has a wealth of real-life experience in these areas. She understands the challenges her clients face and has a vested interest in their success. Melissa’s approach goes beyond just looking at numbers; she relates them to the current business environment while maintaining a forward-looking perspective. Her ability to put figures into context with what’s happening today, while focusing on tomorrow, is invaluable.

Melissa has clients all over New Zealand, utilising the latest technology to ensure they receive the best service. She works with farmers from the far north to Southland and recently ventured down to Murchison on a Sunday to see clients. This dedication highlights her commitment to providing exceptional service regardless of location.

Her colleagues have expressed high regard for her expertise and practical advice. “Melissa brings an extensive knowledge of the dairy and farming business and is best placed to provide practical advice for growth and sustainability,” noted Director Ed Wagstaff. This sentiment captures Melissa’s essence—she offers insightful, growth-oriented advice that drives success for our clients.

Melissa is dedicated to helping her team and clients achieve their goals. She enjoys working closely with them to truly understand their businesses and assist in solving problems. Her collaborative approach ensures that she can offer tailored solutions that foster growth and resilience.

As she steps into her new role, Melissa is eager to support the firm and its clients in their future growth endeavours. Her passion for helping others and her commitment to excellence align perfectly with our values and mission here at Diprose Miller.

Outside of her professional life, Melissa values family time. She loves exploring the great outdoors, discovering new places, and taking the opportunity to unwind and relax. She calls herself an ‘active rester’ as she enjoys chasing a ball—in particular, netball, volleyball, and squash—though currently she is recovering from a knee injury.

We are excited to welcome Melissa to our leadership team and are confident that her expertise and dedication will have a significant positive impact on our firm and clients. Melissa’s appointment marks a new chapter for us, and we look forward to the continued growth and success that she will help drive.

Scam Alert! Is it really Inland Revenue?

Tue, 25 Mar 2025 08:12:14 GMT

Over the last few months, we’ve had a number of clients contacted by scammers pretending to be representing Inland Revenue, usually via email.

To be safe, we recommend that our clients never respond directly to requests from Inland Revenue. As your nominated tax agent, we should be the first point of contact for Inland Revenue staff. In most cases, genuine Inland Revenue requests can be dealt with without the client needing to be involved.

Often the language used in the email, together with the domain name of the sender, will provide a strong hint that an email is a scam. However, the scam emails are becoming more sophisticated over time and less likely to arouse suspicion.

The “golden rule” is easy to remember – refer any Inland Revenue queries and/or requests directly to us.

Changes to Reporting Standards for Charities

Tue, 25 Mar 2025 08:10:11 GMT

There are changes to the reporting standards for charities that administrators for charitable entities need to become familiar with.

For reporting periods ending on or after  31 March 2025 , the new “Tier 4 (NFP)” standard will be compulsory for annual returns filed with Charities Services. This standard replaces the existing “PBE SFR C (NFP)” standard that currently applies. Both standards apply where cash-based reporting is used.
An equivalent change applies to charities required to use accrual (non-cash) based reporting, with a new “Tier 3 (NFP)” applying.
The changes are not significant. They simplify the content of the Statement of Service Performance and the Statement of Resources & Commitments and amend the standard reporting categories for receipts and payments for Tier 4 (or income and expenses for Tier 3).
Guidelines for the new standards and their application can be found at  www.charities.govt.nz/reporting-standards/about.

If you’re responsible for annual reporting for a charity, contact us to check how these changes will apply to you.

How Does Your Accountant Save You Money?

Tue, 25 Mar 2025 08:05:09 GMT

You think that handling your accounts yourself will save you money, especially if your business seems straightforward, right? Wrong! In today's complicated financial world, having a good accountant is essential for businesses and individuals. Accountants do more than just handle numbers; they offer valuable advice and strategies that can save you a lot of money. Here's how your accountant can help you save:

Tax efficiency: Accountants save you money by making sure you use all available tax deductions and credits. They understand New Zealand's tax laws and stay updated on any changes. By preparing your tax returns accurately and planning ahead, accountants help you pay less tax and avoid expensive penalties.

Financial planning and budgeting: Accountants help you make detailed financial plans and budgets. They set realistic financial goals and create strategies to reach them. By tracking your income and expenses, accountants find ways to cut costs and improve your financial health. Good budgeting prevents overspending and ensures you have enough money for future investments or emergencies.

Cash flow management: Managing cash flow is absolutely vital for any business's survival and growth. Accountants help you keep track of your cash flow, making sure you have enough money to meet your needs. They can predict future cash flow needs and suggest ways to improve your cash reserves. This proactive approach can prevent cash shortages and reduce the need for costly short-term loans.

Cost control: Accountants look at your financial statements to find ways to cut costs. They can spot inefficiencies and suggest ways to save money, like renegotiating supplier contracts or streamlining operations. By closely monitoring your expenses, accountants help you stay profitable and avoid unnecessary spending.

Compliance and risk management: Following financial regulations is essential to avoid fines and legal problems. Accountants make sure your financial practices follow the latest laws and standards. They also help you manage financial risks by spotting potential threats and creating strategies to deal with them. This proactive approach can save you money by preventing expensive compliance issues and financial losses.

Business growth and expansion: For businesses wanting to grow, accountants are key in planning and carrying out expansion strategies. They help you see if new projects are financially possible, secure funding, and manage the money side of growing your business. By giving insights into market trends and financial performance, accountants help you make smart decisions that boost growth and profits.

Accountants are more than just number crunchers; they are strategic partners who help you save money and reach your financial goals. They offer expertise in tax efficiency, financial planning, cost control, and investment advice, leading to significant savings and better financial health. Whether you're an individual or a business, having a skilled accountant is an investment that pays off in the long run.

Review Your Expenses - It May Be the Key to the Financial Health of Your Business

Tue, 25 Mar 2025 08:02:32 GMT

Running a small business has its unique challenges and opportunities. One of the most important things you must do is to keep a close eye on your expenses. Regularly checking your expenses can help you find ways to save money, work more efficiently, and increase your profits. So, what are some of the key points you should consider when reviewing your expenses?

The first step is to track every dollar that goes in and out of your business. Use accounting software or a reliable bookkeeping system to record all transactions. This will give you a clear picture of your financial situation and help you spot any unnecessary or excessive spending.

Organise your expenses into categories like rent, utilities, salaries, marketing, and supplies. This makes it easier to see where your money is going and identify areas where you might be overspending. By categorising your expenses, you can also compare your spending against industry benchmarks and make better decisions.

Fixed costs, like rent and salaries, stay the same no matter how much business you do. Variable costs, like supplies, change with your level of production or sales. Analysing both types of costs can help you understand your cost structure and find ways to save money. For example, you might be able to negotiate lower rent or find cheaper suppliers.

Many businesses subscribe to services and memberships that may no longer be necessary or beneficial. Review all your subscriptions and memberships regularly to make sure you are getting value for your money. Cancel any that are not essential or that you can replace with cheaper alternatives.

Take the time to review your contracts with suppliers and service providers. Are you getting the best rates? Can you negotiate better terms or find alternative suppliers with more competitive pricing? Building strong relationships with your suppliers can also lead to discounts and better service.

Utility costs, like electricity, water, and internet, can add up quickly. Look for ways to reduce these expenses by using energy-saving measures, like energy-efficient lighting and equipment. You can also shop around for better deals from utility providers or consider bundling services to save money.

Salaries and wages are often one of the largest expenses for small businesses. While it's important to pay your employees fairly, there are ways to manage these costs effectively. Consider offering flexible work arrangements, like remote work or part-time positions, to reduce overhead costs. Investing in employee training and development can also improve productivity and reduce turnover, saving you money in the long run.

Creating and sticking to a budget is essential for controlling your expenses. A budget helps you plan for future expenses, set financial goals, and monitor your progress. Regularly review your budget and adjust it as needed to reflect changes in your business environment. The benefits of being able to compare your actual results against your original expectations, particularly for a new business, cannot be underestimated.

If you're unsure where to start or need help identifying areas for improvement, consider seeking advice from a financial advisor or accountant. They can provide valuable insights and help you develop strategies to manage your expenses more effectively.

Regularly checking your expenses is vital for all small businesses. By tracking every dollar, categorising expenses, analysing costs, and seeking professional advice, you can find ways to save money and improve your financial health. Remember, every little bit helps in building a successful and sustainable business!

Is Your Business Model Still Fit for Purpose?

Sat, 01 Mar 2025 07:58:59 GMT

In today's constantly changing business environment, it's essential to frequently evaluate if your business model is still effective and relevant. What worked a few years ago might not be suitable today, especially with the rapid changes in technology, consumer behaviour, and market dynamics. Here are some key points to consider when evaluating if your business model is still fit for purpose.

Market trends and consumer behaviour

The first step in assessing your business model is to understand current market trends and consumer behaviour. Are your products or services still in demand? Have there been significant shifts in your industry that require adaptation? For instance, the rise of e-commerce and digital platforms has transformed how consumers shop and interact with businesses. Staying attuned to these changes can help you identify opportunities and threats.

Technological advancements

Technology is a major driver of change in the business world. New tools and platforms can enhance efficiency, improve customer experiences, and open up new revenue streams. Evaluate whether your business is leveraging the latest technologies to stay competitive. This might include adopting cloud computing, utilising data analytics, or implementing automation in your operations.

Financial performance

Reviewing your financial performance is essential to determine if your business model is still viable. Analyse key financial metrics such as revenue growth, profit margins, and cash flow. If you notice a decline in these areas, it might be time to rethink your strategy. Consider whether your pricing model, cost structure, or revenue streams need adjustment to improve profitability.

Customer feedback

Your customers are a valuable source of insights. Regularly seek feedback to understand their needs, preferences, and pain points. Are they satisfied with your offerings? Do they see value in your products or services? Use this feedback to make informed decisions about potential changes to your business model. Engaging with customers can also foster loyalty and trust.

Competitive landscape

The competitive landscape can change rapidly, with new entrants and innovations disrupting established markets. Conduct a thorough analysis of your competitors to see how they are adapting and what strategies they are employing. This can provide valuable insights into areas where you might need to innovate or differentiate your offerings.

Regulatory environment

Changes in regulations and compliance requirements can impact your business model. Stay informed about any legal or regulatory changes that might affect your industry. This could include new environmental standards, data protection laws, or industry-specific regulations. Ensuring compliance can help you avoid legal issues and maintain a positive reputation.

Regularly evaluating your business model is essential to ensure it remains fit for purpose in a dynamic and competitive environment. By staying informed about market trends, technological advancements, financial performance, customer feedback, competitive landscape, and regulatory changes, you can make strategic adjustments to keep your business thriving.

Adaptability and innovation are key to long-term success.

ACC Rules for Superannuitants

Sat, 01 Mar 2025 07:54:40 GMT

We’ve recently assisted with ACC claims for a number of clients who are also receiving National Super. During the process ACC clarified the rules around eligibility for “earnings related compensation” for superannuitants.

They make interesting reading, so we’ve summarised them below.

If the claimant is injured before they turn 63, they are eligible for weekly compensation payments until they turn 65.
If the claimant is injured after they turn 63 but before they turn 65, they are eligible for weekly compensation payments for two years from the date the payments start.
If the claimant is injured after they turn 65, they can receive both National Super and weekly compensation payments for two years. After two years, they can only receive the National Super.

Farmers, Did You Receive a Higher Payout Than Expected? Watch Out for Tax Implications!

Mon, 24 Feb 2025 20:03:46 GMT

When, as a farmer, you receive a higher-than-expected payout, it can have several tax implications:

Increased Taxable Income : A higher payout means an increase in taxable income for the year. This could push you into a higher tax bracket, resulting in a higher overall tax liability.
Provisional Tax Adjustments : You may need to adjust your provisional tax payments to reflect the increased income. This helps avoid underpayment penalties and ensures that you are paying the correct amount of tax throughout the year.
Income Equalisation Scheme : You can use the Income Equalisation Scheme to smooth out your income over several years. By depositing some of the higher payout into the scheme, you can reduce your taxable income for the current year and withdraw the funds in a less profitable year, potentially lowering your overall tax burden.
Deductions and Expenses : You should review your eligible deductions and expenses to ensure you are maximising your tax benefits. This includes costs related to farm development, maintenance, and other operational expenses.
Tax Planning : It's essential that you engage in tax planning to manage the impact of higher payouts. Consulting with a tax advisor or accountant can help you develop strategies to minimise your tax liability and make the most of your increased income.

Overall, a higher-than-expected payout can provide you with greater financial security and opportunities for growth and development. By planning and managing your finances effectively, you can make the most of this positive outcome.

Provisional Tax: How It Works and Avoiding the Pitfalls

Mon, 24 Feb 2025 19:59:51 GMT

Navigating the world of provisional tax can be daunting, but understanding the basics can help you manage your tax obligations more effectively. We provide some essential information on how provisional tax works and offer tips to avoid common pitfalls.

What is provisional tax?

Provisional tax is a way of paying your income tax in instalments throughout the year, rather than in a lump sum at the end of the year. This helps spread the tax load and avoid a large end-of-year tax bill. You are required to pay provisional tax if your residual income tax (RIT) from the previous year is more than $5,000.

How does provisional tax work?

Provisional tax is not a separate tax; it is part of your income tax. You pay it in instalments based on your estimated income for the current year. There are several methods to calculate your provisional tax:

Standard Option : This method uses your previous year's RIT plus 5%. It is straightforward and works well if your income is steady or increasing.
Estimation Option : Here, you estimate your income for the current year and calculate the tax based on that estimate. This option is useful if you expect your income to decrease.
Ratio Option : This method is available if you are registered for GST and file returns monthly or two-monthly. It calculates provisional tax based on a ratio of your GST turnover.
Accounting Income Method (AIM) : This option is suitable for small businesses using accounting software. It calculates provisional tax based on your actual income and expenses throughout the year.

Payment dates

The due dates for provisional tax payments depend on the method you choose and your balance date. Generally, payments are made in three instalments: 28 August, 15 January, and 7 May. For non-March balance date taxpayers, the payment dates are different. If you use the ratio option, you will make six instalments throughout the year.

Avoiding common pitfalls

Below are some of the common pitfalls that we see, and how to avoid them.

Underestimating income : If you underestimate your income and underpay your provisional tax, you may be charged interest and penalties. It's important to make accurate estimates and adjust them if your income changes.
Missing payment deadlines : Missing payment deadlines can result in interest charges and penalties. Set reminders and ensure you make payments on time.
Ignoring changes in income : If your income fluctuates, consider using the AIM or ratio option to ensure your provisional tax payments reflect your actual income.

Penalties and interest

Inland Revenue (IRD) will charge interest on late or underpaid provisional tax. The interest charge is not a penalty, but a charge for the use of money, and is tax-deductible. Additionally, penalties may

apply for late payments or underestimating your income. It's crucial to stay on top of your payments and make accurate estimates to avoid these charges.

By making accurate estimates, keeping detailed records, and staying on top of payment deadlines, you can avoid common pitfalls and ensure a smooth tax experience.

For more information reach out to us – we’re here to help.

What is Advisory Accounting and How it Can Help You?

Mon, 24 Feb 2025 19:53:13 GMT

One of our clients also tells us how our advisory services help him and his business.

At Diprose Miller, we offer advisory accounting services that go beyond traditional accounting tasks like bookkeeping and tax preparation. Advisory accounting involves providing strategic advice and insights to help businesses grow, improve efficiency, and achieve their financial goals. Our advisory accountants work closely with clients to understand their unique challenges and opportunities, offering tailored solutions in various areas.

Our advisory accounting services include:

Financial GPS: We help businesses identify their long-term goals and provide a roadmap to achieve them. We offer regular updates and guidance to keep clients on track and ensure they reach their objectives.
Business Strategy: We support business growth and profitability by working with clients to identify growth opportunities, develop strategic plans, and implement effective solutions.
Smarter Farming: We specialise in helping farming and agricultural clients improve their performance and prepare for the future. Our tailored advice and solutions address the unique challenges faced by the agricultural sector.
Cash Flow Management: We assist businesses in managing their cash flow to ensure they have the necessary funds to operate and grow.
Performance Improvement: We identify areas for improvement and implement strategies to enhance business performance and profitability.
Risk Management: We advise on risk mitigation strategies to protect the business from potential threats.

By leveraging our expertise and experience, and by using the latest software and technology, we aim to support our clients in achieving their business objectives and navigating the complexities of the financial landscape. At Diprose Miller, we are committed to delivering exceptional advisory accounting services that drive success and growth for our clients. But don’t just take our word for it, see what our client, Pete Norris, Financial Advisor at Keystone Wealth, has to say about our services:

We have been referring our clients to, and working with, Diprose Miller on our clients’ behalf for the last 3 or 4 years. Ed and his team have been providing fantastic service and just “made it easy”, which is high on my priority list, especially when they also “get it right first time”.

I switched my business accounting to Diprose Miller when my previous accountant retired a couple of years ago. Switching accountants had been on my to-do list for several years but it always seemed like a low priority/high workload task. In reality, it was the opposite and I should have done it five years earlier!

Ed has been brilliant to work with. Nothing is too difficult, and he is happy to source external information when required for those more complex situations (and some of mine get complex!).

The whole team at Diprose Miller work cohesively, are responsive, and are helpful. They make it easy, which is exactly what I want and what I need.

Ed and Diprose Miller handle the end-of-year accounts for many of our investment clients.
They manage our accounts and GST for our Investment and Retirement Advice business, Keystone Wealth.
They provided the structure and establishment advice, and manage the ongoing accounts, for my investment property company.
They are providing advice (GST, currency, Xero, structure etc) and will assist me with establishing the right structure and ongoing accounting as we branch out into invoicing Australian suppliers for our investment education for Advisers programme that we are establishing.
They will shortly be providing structure and accounting advice as we commence providing our investment portfolios to other investment advisers.

They removed a massive barrier that used to exist in my planning stages of business growth. Now I just fire through my thinking and some questions and Ed calls me with what I need to know. It’s perfect!

Pete Norris

If you require any advice or help with your business, whatever type it may be, please give us a call or drop in to see us at the office.

Something for the kids this summer - colour to win!

Mon, 09 Dec 2024 02:40:40 GMT

Colour to Win

We have created something fun for the kids this summer.

Download the age appropriate image below - colour your heart out and be into WIN!

Submit your work to mail@diprosemiller.co.nz by 13th January 2025. Competition will be drawn Friday 17th January 2025 and winners will be notified by email.

Three categories:

Pre School - Under 5
Primary School - 5- 12 years
High School - 13 -17 years

Winners in each category will receive a $100 Warehouse Stationery voucher and runner ups will receive a $50 Warehouse Stationery voucher.

Diprose Miller Directors' decision is final.

Business Summer Survival: How to Stay Cash Liquid and Enjoy a Rewarding Christmas Break

Wed, 04 Dec 2024 03:51:49 GMT

As summer approaches, businesses need to manage cash flow while getting ready for the Christmas break. Here are some tips to help your business stay cash liquid and help you enjoy the holiday season.

Plan ahead: Good planning is key to managing cash flow in summer. Start by estimating your cash needs for the holiday period. Spot any potential shortfalls and plan how to handle them. This could mean adjusting your budget, getting short-term financing, or negotiating longer payment terms with suppliers.

Manage inventory wisely: Good inventory management is key to keeping cash flow healthy. Avoid overstocking by looking at past sales data and predicting holiday demand. Use just-in-time inventory practices to cut holding costs and free up cash. Also, clear out old or slow-moving stock with promotions or discounts to boost cash flow.

Optimise invoicing and collections: Make sure your invoicing process is quick and efficient. Send out invoices promptly and follow up on overdue payments. Offer early payment discounts to encourage faster payments. Using an automated invoicing system can make the process smoother and reduce errors.

Control expenses: Watch your expenses closely to keep cash flow healthy. Review your spending and find areas to cut costs without affecting quality or service. Negotiate better deals with suppliers, reduce non-essential spending, and consider temporary measures like reducing staff hours or pausing hiring.

Diversify revenue streams: Diversifying your revenue streams can help manage seasonal ups and downs. Look into new markets, launch new products or services, or offer seasonal promotions to attract more customers. This can provide a steady income and reduce dependence on one source.

Leverage technology: Technology can help manage cash flow better. Use accounting software to track income and expenses, create financial reports, and predict cash flow. An online payment system can make it easier for customers to pay, speeding up the payment process.

Communicate with stakeholders: Keep open communication with employees, suppliers, and customers during the holiday season. Inform them about your business operations, any changes in hours or services, and your holiday plans. Building strong relationships can foster loyalty and support during tough times.

Take care of your well-being: Running a business can be stressful, especially during the busy holiday season. It's important to look after yourself to lead your business effectively. Take regular breaks, delegate tasks, and seek support from family, friends, or professional advisors. Taking care of your mental and physical health will help you stay focused and energised.

Reflect and plan for the future: As the year ends, take time to review your business's performance and plan ahead. Look at your financial statements, see what worked and what didn't, and set goals for the next year. Use these insights to make better decisions and improve your business.

By using these tips, you can keep your business financially healthy and enjoy a great Christmas break. Good planning, managing cash flow well, and looking after yourself are key to handling the holiday season and setting your business up for success in the new year.

Five Things to Remember About Annual Leave

Wed, 04 Dec 2024 03:47:56 GMT

Managing staff isn’t just about what happens at work; it’s also about managing holidays. As an employer, you’re responsible for keeping accurate, up-to-date records about much-deserved time off.

Here are five key points to remember about annual leave:

Annual holiday entitlement does not expire; staff are entitled to their holidays until they take them. This entitlement does not expire, meaning staff can accumulate leave over time. However, only one week’s leave per year may be cashed up, and this can only be done with your consent. It's important to communicate this clearly to your employees to avoid any misunderstandings.
As an employer, you need to be reasonable when considering annual leave requests. You cannot unreasonably refuse an employee who wants to take their entitled leave. This means taking into account the needs of your business while also considering the personal circumstances of your employees. Striking a balance between operational requirements and employee well-being is crucial.
While you need to be reasonable with annual leave requests, you do have the right to decline unpaid leave requests or requests for advance holidays. Unpaid leave is not an entitlement, and granting it is at your discretion. Similarly, you are not obligated to approve requests for taking annual leave in advance. Clear policies on these matters can help manage expectations and ensure consistency.
If you and your employee cannot agree on when leave should be taken, you can require them to take a holiday. However, you must provide at least 14 days’ notice. This can be particularly useful in managing leave balances and ensuring that employees take regular breaks, which is beneficial for their well-being and productivity.
A business cannot make an employee take their annual holiday in advance, except when the company has an annual closedown. This means that outside of a closedown period, employees should not be forced to use leave they have not yet accrued. It's important to plan for such closedown periods well in advance and communicate them clearly to your staff.

To effectively manage annual leave, it's helpful to systematise your processes. Maintain an annual leave planner within the business to record all leave taken and planned by team members. Various online formats are available, but an old-school wall planner can be just as effective. Employment Agreements should set out all leave entitlements and any conditions that apply. Additionally, when new staff join the team, provide them with a team handbook that includes information about leave entitlements.

Make sure you follow the tax rules applying to leave. For instance, an employee is liable for PAYE on pay for annual leave and statutory holidays. Ensuring compliance with tax obligations is crucial to avoid any legal issues.

By keeping these five points in mind and systematising your leave management processes, you can ensure that your business runs smoothly while your employees enjoy their well-deserved time off. Remember, managing holidays effectively is just as important as managing day-to-day work activities.

Congratulations to our recent Community Fund successful applicants

Wed, 20 Nov 2024 04:48:24 GMT

In our latest round of Community Fund applications, we’re pleased to announce the successful recipients were:

Valley Cricket
Kiwanis Club of Morrinsville
Positively Morrinsville Radio
Auckland / Hauraki Dairy Industry Awards
Living Well Trust
Turua’s Event Committee

A huge congratulations to you all!

Just a reminder that our Diprose Miller Community Fund assists with funding for projects and events carried out by not-for-profit organisations and individuals in our local area. We want to support those people working to make our communities a better place to live. The fund aims to provide financial support towards ongoing operating costs and/or projects which help the people in our community.

Key outcomes of our fund are to ensure that:

our community wellbeing is protected;
we’re supporting our community and cultural identity, and
we’re helping people feel that they belong and can take part in the community.

If you know a local organisation that could benefit from some funding support, our next round of funding closes at the end of December 2024.

Click here for the full details.

Understanding how Hubdoc works

Wed, 20 Nov 2024 04:17:30 GMT

Hubdoc is a data capture tool which extracts key data from documents, then creates transactions in Xero. You can:

email bills and receipts straight into your Hubdoc organisation, and
use the mobile app to upload a photo.

As soon as Hubdoc receives a document, it extracts the key data such as contact, date, and amount. When you publish the document, Xero creates the invoice, bill, credit note, or spend money transaction with a copy of the document attached.

You can set up Hubdoc to automate every step, so all you need to do is reconcile the transaction against your bank statement line in Xero. This is particularly useful if you get regular bills from the same supplier.

Hubdoc also stores documents, so you don't need to keep paper copies of bills and receipts. You can organise the documents in Hubdoc using tags and folders or send them to another cloud storage system your business might use, such as BILL or Dropbox.

Like Xero, you can invite the team at Diprose Miller into your Hubdoc organisation, so that we can support you at any time if needed. 

Using Hubdoc and Xero together

If your Xero organisation is on a business edition pricing plan, Hubdoc is included in your Xero subscription. If your Xero organisation is on a partner edition pricing plan, you can still connect it to Hubdoc, but Hubdoc isn’t included in Xero so you're  billed separately by Hubdoc .

Hubdoc and Xero connect on a one-to-one basis, so if you have multiple Hubdoc organisations, you need to connect each one to a separate Xero organisation.

Within Xero you can create a new Hubdoc organisation, or connect your existing one.

Hubdoc offers a trial of 30 days, if you are interested in signing up, contact us and we can start the ball rolling for you.

Key Tips for Success with Managing Payroll and HR Issues in New Zealand’s Manufacturing Industry

Wed, 20 Nov 2024 04:11:47 GMT

The manufacturing industry is a cornerstone of New Zealand's economy, providing jobs and supporting economic growth. However, managing payroll and HR issues in this sector can be complex. From compliance with employment laws to maintaining staff morale and retention, manufacturing businesses face numerous challenges. We share some important tips to help navigate payroll and HR issues in New Zealand’s manufacturing industry.

1. Ensure Compliance with Employment Laws

Manufacturing employers must comply with a range of employment laws. We have robust legislation around minimum wage, leave entitlements, working hours, and health and safety. The key pieces of legislation include the Employment Relations Act 2000, the Holidays Act 2003, and the Health and Safety at Work Act 2015.

Tip: Regularly review your employment agreements and payroll practices to ensure they align with legal requirements. Payroll errors related to leave calculations can result in significant fines and legal penalties, which could impact your business’s reputation and finances.

Leave entitlements are a particularly sensitive area. The manufacturing industry often involves shift work, which can lead to complex calculations for sick leave, annual leave, and public holiday pay. Use payroll systems that automate these calculations to reduce your risk of human error.

2. Accurate Payroll Management

Managing payroll in the manufacturing sector can be challenging due to shift work, overtime, and varying pay rates. A reliable payroll system is crucial for keeping track of hours worked, ensuring employees are paid accurately, and staying compliant with tax obligations.

Tip: Implement a modern payroll software system that integrates time and attendance tracking, employee records, and wage calculations. This helps streamline payroll processes and avoid common pitfalls such as underpayments or miscalculated leave payments. Accurate tracking of time, including for break periods, is also vital to ensure you comply with all employment standards.

Also, ensure that the payroll team is well-versed in calculating allowances, shift differentials, and penal rates that are common in the manufacturing industry. Mismanagement of payroll can lead to wage disputes and affect employee morale.

3. Prioritise Health and Safety

The manufacturing industry is inherently high-risk due to the presence of heavy machinery, hazardous materials, and complex processes. This makes the management of health and safety compliance a top HR priority. Failing to provide a safe working environment not only puts employees at risk but can also lead to legal and financial repercussions.

Tip: Develop comprehensive health and safety policies and ensure regular training for all employees. Create a culture where workers feel comfortable reporting hazards or concerns, and act on these reports promptly. Keeping proper records of incidents, accidents, and safety training is critical, as WorkSafe New Zealand often audits workplaces to ensure compliance with safety standards.

4. Effective Workforce Planning and Retention

The manufacturing industry faces workforce retention challenges, particularly in securing skilled labour. A high turnover rate can lead to productivity losses and increased recruitment costs. Additionally, the need for skilled workers, combined with rapid technological advancements, can make recruitment difficult.

Tip: Implement a strong workforce planning strategy that focuses on both recruitment and retention. Consider offering competitive wages and benefits, training and development opportunities, and fostering a positive workplace culture. Engaging employees through upskilling and career progression programmes can also improve retention and reduce turnover rates.

Investing in diversity and inclusion initiatives can also help attract a broader talent pool, improve workplace culture, and boost overall productivity. A diverse workforce brings different perspectives, which can lead to innovative problem-solving and higher employee engagement.

5. Navigating Union Relations

Many manufacturing employees are union members, which can add an extra layer of complexity to managing HR issues. Strong union relationships can improve communication, resolve disputes quickly, and ensure fair treatment of workers. However, poorly managed union interactions can lead to disputes, strikes, and a breakdown in workplace relations.

Tip: Foster open communication with unions and involve them in key decision-making processes that impact workers. Transparency and collaboration are essential in maintaining a positive working relationship. Regularly consult with union representatives on changes to working conditions, pay structures, or health and safety practices.

It’s also essential to understand your legal obligations when dealing with unions, particularly around collective bargaining and employee rights.

6. Managing Employee Well-being

Manufacturing environments can be physically and mentally demanding. Managing employee well-being is critical to maintaining a productive workforce. High-stress environments, long working hours, and physical strain can lead to burnout and absenteeism.

Tip: Promote employee well-being through mental health initiatives, flexible working arrangements, and clear communication channels. Providing access to mental health support services and encouraging work-life balance can help reduce burnout. Recognising employee contributions and providing opportunities for growth and development also improve overall morale.

Conclusion

Effective payroll and HR management is essential to the smooth operation of your manufacturing business. By ensuring compliance with employment laws, implementing accurate payroll systems, prioritising health and safety, and focusing on workforce retention, you can navigate many of the common challenges in the industry. Moreover, fostering strong union relations and prioritising employee well-being will ensure long-term success in maintaining a motivated and productive workforce.

Ownership vs. leasing of equipment in the transport and manufacturing industries

Tue, 22 Oct 2024 21:44:23 GMT

The decision to own or lease equipment is a significant one for businesses in the transport and manufacturing industries. Each option has its own set of advantages and disadvantages, and the best choice often depends on the specific needs and circumstances of the business. We explore some of the key considerations for both ownership and leasing, to help you make an informed decision.

Ownership of Equipment

Advantages:

Long-term cost savings: Owning equipment can be more cost-effective in the long run. Once the initial purchase cost is covered, the ongoing expenses are generally lower compared to leasing. This can lead to significant savings over time.
Asset value: Owned equipment is a tangible asset that can be used as collateral for loans or sold if necessary. This can provide financial flexibility and security for your business.
Tax benefits: Ownership can offer tax advantages, such as depreciation deductions, which can reduce taxable income.
Control and customisation: Owning equipment allows for greater control over its use and maintenance. You can customise the equipment to better suit your specific needs without restrictions imposed by leasing agreements.

Disadvantages:

High initial costs: The upfront cost of purchasing equipment can be substantial, which may strain your business’s finances.
Maintenance and repairs: You, as the owner, are responsible for all maintenance and repair costs, which can be unpredictable and expensive.
Depreciation: Equipment depreciates over time, which can reduce its resale value and the overall return on investment.

Leasing of Equipment

Advantages:

Lower upfront costs: Leasing requires a lower initial investment compared to purchasing, which can be beneficial if your business has limited capital.
Access to latest technology: Leasing allows businesses to upgrade to newer, more advanced equipment more frequently, ensuring you have access to the latest technology.
Predictable expenses: Lease agreements typically include maintenance and repair services, providing predictable monthly expenses and reducing the risk of unexpected costs.
Flexibility: Leasing offers flexibility, allowing your business to adjust its equipment needs based on changing demands without the long-term commitment of ownership.

Disadvantages:

Higher long-term costs: Over time, leasing can be more expensive than owning due to ongoing lease payments.
No asset ownership: At the end of the lease term, your business does not own the equipment and must either return it or negotiate a new lease.
Usage restrictions: Lease agreements may impose restrictions on how the equipment can be used, which can limit operational flexibility.

Considerations for the Transport Industry

In the transport industry, the decision to own or lease equipment often hinges on the nature of the business and its financial health. For instance, if you are a large transport company with stable cash flow you might prefer owning your fleet to capitalise on long-term savings and asset value. Conversely, if you are a smaller company or a startup you might opt for leasing to minimise initial costs and maintain financial flexibility.

Considerations for the Manufacturing Industry

For manufacturers, the choice between owning and leasing equipment can significantly impact your operations. Owning equipment can be advantageous for long-term manufacturing operations that require specific machinery tailored to your needs. However, leasing can be beneficial if you need to manage cash flow carefully or want to access the latest technology without the burden of high upfront costs.

Ultimately, the decision to own or lease equipment depends on various factors, including financial stability, operational needs, and long-term business goals. By carefully weighing the pros and cons of each option, businesses can make informed decisions that best support their growth and sustainability.

Diprose Miller: Your Forestry & Transport Experts

Tue, 22 Oct 2024 21:24:44 GMT

One of the areas that we are qualified to provide advice on, is forestry and transport. The forestry and transport industries are among the most demanding industries that can bring high rewards but are also fraught with high risk.

What makes our team exceptional specialists in this area is our complete knowledge and experience of the forestry sector. In a commodity-based industry we recognise that you must be quick to adjust to economic changes. Contractors, transport operators, and forest owners must stay current with management issues, pricing, investment analysis, and project evaluations including land use, crop types, and most typically, advice on the Emissions Trading Scheme. Planning ahead, mitigating risk, and asset protection, is critical.

With our key experience in the industry, we can help you with all aspects of forestry and transport, and this is just the start – we have a qualified team who can then ensure that all those other specialist areas that you may need, like succession planning and property matters, are incorporated into your business solutions.

We start with great financials and tax planning, so that we can create the best decision-making process on rates, cash flows, budgets, and funding. We will protect your assets, and when the going is good, we help you diversify your opportunities outside of the forestry and transport industry.

We think ahead by looking at what volume of work is coming online, what is current and projected in the world markets, and what challenges are coming up with mechanisation and technology.

Your transport business is going well - now what?

Tue, 15 Oct 2024 22:15:27 GMT

Your transport business is going well - now what?

You’ve built a successful transport business, and things are going well. However, it’s wise to diversify your income streams. We advise that before diversifying, you should first protect your current business. So, what steps can you take to safeguard and enhance your existing assets?

We have the expertise to help you explore opportunities outside your industry. Darren Diprose, a director at Diprose Miller with extensive knowledge in this area, shares some insights on asset protection.

“Before you can diversify, you must first protect your assets and income base,” says Darren. The key to this is having accurate, real-time, and relevant information.

It’s challenging to protect your business once you’ve run out of cash. It’s much easier to manage if you can anticipate a cash crunch. Knowing your cash flow status now, and projecting it for the next 30, 90 days, or even a year, is crucial for your business’s survival.

Next, examine your profitability. Are you making profits? Is your business running efficiently? Darren suggests asking yourself several critical questions:

· Are costs monitored?

· Is income maximised and billed according to contracts?

· Is your team’s productivity at the desired level?

Answering these questions honestly might reveal that your business isn’t where you want it to be.

We also recommend regularly reviewing your pricing model. Assess your debt levels—do you have too much or too little debt? It’s vital to monitor your debtors and creditors and ensure overdue invoices don’t disrupt your budget. The same applies to inventory management—maintain strict controls over what’s coming in and going out each month.

Once you have this information and your business is running smoothly, consider other areas. Is your business structure effective? Should you set up a company, partnership, limited partnership, or trust? What are the tax implications of your structure—can you optimise it? Our experts can help you determine the best approach for your situation.

Are you protecting your most valuable asset, your team? Your business can’t succeed without them, and their health and safety should always be a priority. Every worker deserves to go home safely to their family each night. How often do you review your insurance coverage? Does it cover everything at the correct replacement values?

Only after you’ve ensured these aspects of your business are in order should you look to diversify your opportunities.

Diversifying within your industry is beneficial since you know it well. However, it can also mean putting too many eggs in one basket. Diversifying outside your industry into well-understood, long-term investments can supplement your savings.

Your personal preferences and risk profile will dictate where to diversify—shares, funds, other unrelated businesses, property, or even carbon credits. Regardless, moving money from your main business into unrelated investments helps protect your overall wealth.

Diprose Miller are not financial advisors but can assist you with business purchases, business

planning, cash flow planning, property purchases and business structures.

If you’re thinking about diversifying your assets, get in touch with us so we can help you to get the ball rolling.

What is Hubdoc? How can it help your business

Thu, 19 Sep 2024 00:52:25 GMT

Hubdoc is a software product that stores documents online for future reference and provides the ability for the content of these documents to be automatically imported into accounting software. It is used successfully by many of our clients in conjunction with the Xero accounting software and lays the platform for a business to become truly paperless.

We at Diprose Miller have been using Hubdoc for some years, but it is rapidly becoming more popular. We encourage our clients to download the app and use it daily so they don’t have to carry around paper receipts.

Turning your paperwork into data you can use.

Hubdoc extracts key information from your receipts, invoices, and bills. No more data entry, no more filing.
Hubdoc integrates easily with other platforms, like Xero.
It syncs with other applications and can create rules to automate how documents are published and coded. Cloud back up is easy thanks to the deep integration between Hubdoc and other add-ons. Back up is automatic.
Documents are synced to your accounting software.

Using Hubdoc can help you simplify and go paperless. Your important financial records are organised automatically, backed up forever, and available on any device.

Our team are fully trained on this software and we strongly encourage you to talk to us about the paperless option.

Reach out to us today via emailing us at mail@diprosemiller.co.nz

Hospo: Hot property

Thu, 19 Sep 2024 00:51:06 GMT

Selling a hospitality business is a significant step that requires careful planning and preparation.

Whether you run a hotel, restaurant, café, or bar, making your business appealing to potential buyers can significantly increase its value and help you achieve a successful sale. Here’s the six areas we believe you need to focus on to prepare your hospitality business for sale and enhance its appeal to buyers:

Organise your financial records
Optimise your operations
Build a strong brand and reputation
Review and upgrade your physical assets
Strengthen your team
Get professional advice

Let’s explain each further.

1. Organise Your Financial Records

One of the first things potential buyers will want to see is your financial records. Clear, accurate, and up-to-date financials are essential for demonstrating the profitability and stability of your business.

Clean up your books: Ensure all financial records, including profit and loss statements, balance sheets, and tax returns, are accurate and well-organised. Ideally, you should have at least three years of financial records readily available.
Show consistent profitability: Buyers are looking for a business that generates consistent profits. If your financials show steady growth or a stable profit margin, you’ll have a stronger negotiating position.
Reduce personal expenses: If you’ve been running personal expenses through the business, now is the time to separate them. Buyers want a clear picture of the business’s true profitability.

2. Optimise Your Operations

Streamlining your operations not only enhances the appeal of your business but also makes it easier for a new owner to take over.

Standardise procedures: Document your operational procedures, from employee training to customer service standards. This makes it easier for a new owner to maintain the quality and consistency of the business.
Improve efficiency: Look for ways to cut costs and improve efficiency. Whether it’s renegotiating supplier contracts or implementing energy-saving measures, small improvements can add up and make your business more attractive.
Enhance technology: If your business is not already using modern technology for bookings, inventory management, or customer relations, now is the time to invest. A tech-savvy operation is more appealing to buyers looking for a business with growth potential.

3. Build a Strong Brand and Reputation

A strong brand and reputation are invaluable assets in the hospitality industry. Buyers are looking for businesses with a loyal customer base and a positive public image.

Invest in marketing: If you haven’t already, develop a robust marketing strategy that highlights your business’s unique selling points. This could include social media campaigns, partnerships with local influencers, or special promotions to boost visibility.
Maintain high standards: Ensure your business consistently delivers high-quality service. Positive reviews and word-of-mouth recommendations can greatly enhance your business’s appeal to buyers.
Create a memorable experience: Consider ways to create a unique and memorable experience for your customers. This could be through special events, themed nights, or offering something that sets your business apart from competitors.

4. Review and Upgrade Your Physical Assets

The physical condition of your premises and equipment plays a crucial role in the sale process. Buyers are more likely to be attracted to a well-maintained, up-to-date business.

Conduct a thorough inspection: Review the condition of your premises, equipment, and furnishings. Address any maintenance issues and consider upgrading outdated equipment or décor.
Enhance curb appeal: First impressions matter. Make sure your business’s exterior is clean, inviting, and well-maintained. A fresh coat of paint, updated signage, and tidy landscaping can make a big difference.
Review lease agreements: If your business operates from leased premises, ensure your lease agreements are in good standing. Buyers will want to know that the business can continue operating without immediate lease issues.

5. Strengthen Your Team

A strong, reliable team is a valuable asset to any hospitality business. Buyers want to know that they can count on the existing staff to maintain operations during and after the transition.

Train and retain key staff: Identify key staff members and ensure they are well-trained and motivated to stay with the business. Offering incentives or bonuses can help retain top talent during the sale process.
Develop a succession plan: If you are heavily involved in the day-to-day operations, consider how the business will function without you. Developing a succession plan, or delegating responsibilities to key staff, can make the transition smoother for a new owner.

6. Get Professional Advice

Preparing a business for sale can be complex, and it’s often worth seeking professional advice to maximise your results.

Hire a business broker: A business broker with experience in the hospitality industry can help you navigate the sale process, from valuation to negotiations and closing the deal.
Consult with an accountant: An accountant can help you organise your financial records, identify tax implications, and advise on ways to structure the sale for maximum financial benefit.
Legal consultation: Ensure all contracts, leases, and legal documents are in order. A lawyer can help you address any potential legal issues that could arise during the sale process.

Conclusion

Selling your hospitality business is a significant decision that requires careful planning and attention to detail. By organising your financials, optimising operations, building a strong brand, and seeking professional advice, you can enhance your business’s appeal to potential buyers and achieve a successful sale. Remember, the more prepared you are, the smoother the process will be, leading to a better outcome for both you and the buyer.

Getting your hospitality business ready to sell

Keep the cash flowing: essential tips for trades businesses

Thu, 19 Sep 2024 00:49:26 GMT

Cash flow is the lifeblood of any trades business. Whether you're an electrician, plumber, builder, or any other type of Tradie, maintaining a steady cash flow is crucial for keeping your business running smoothly. Here’s how to ensure your financial health through smart budgeting, forecasting, and management of receivables and payables.

1. Budgeting: Plan for Success on the Bottom Line

Budgeting is the foundation of financial management. A well-structured budget helps you anticipate expenses, allocate resources, and set financial targets. Most importantly, it provides a valuable insight into the key drivers for your business success. Here’s how to create an effective budget for your trade business:

Track your expenses: Start by listing all your fixed costs (e.g., rent, insurance, salaries) and variable costs (e.g., materials, subcontractors). Understanding where your money goes helps you identify areas where you can cut costs.
Include seasonal variations: Many trade businesses experience seasonal fluctuations. Factor in these variations to ensure you’re prepared for slower periods. For example, budget for higher expenses during peak seasons and set aside funds for quieter times.
Set realistic goals: Based on past performance and market conditions, set achievable revenue and profit targets. This will help you stay focused and motivated throughout the year.

2. Forecasting: Looking Ahead at Cash In & Out

The budgeting process generally provides an “accrual” result because it includes non-cash items such as depreciation, and recognises income and expenses as they are incurred rather than when they are physically received or paid.

In contrast, forecasting is cash-focused planning that allows you to anticipate future cash needs and avoid surprises. It’s a critical tool for ensuring your business remains sustainable in the long term.

Sales forecasting: Estimate your future sales based on historical data, market trends, and any upcoming projects. This will help you plan for staffing, materials, and other expenses.
Cash flow forecasting: Create a cash flow forecast to predict when money will come in and go out of your business. This helps you identify potential cash shortfalls and take action before they become a problem.
Scenario planning: Consider different scenarios (e.g., a key client delays payment, a project is cancelled) and plan how you would manage your cash flow in each case. This helps you stay prepared for unexpected challenges.

3. Managing Receivables: Get Paid on Time

Managing receivables effectively is crucial to maintaining a healthy cash flow. Late payments can cause significant disruptions, so it’s important to have a solid strategy in place.

Set clear payment terms: Make sure your clients understand your payment terms from the outset. Clearly state your payment deadlines, any late fees, and the consequences of non-payment in your contracts.
Invoice promptly: Send invoices as soon as work is completed. The sooner you invoice, the sooner you can expect payment. Consider using invoicing software to streamline the process and set up automated reminders for overdue payments.
Follow up: Don’t hesitate to follow up on late payments. A polite but firm reminder can often prompt clients to pay sooner. If late payments become a pattern with certain clients, consider adjusting their payment terms or requiring upfront deposits.

4. Managing Payables: Stay on Top of Bills

Just as you need to get paid on time, it’s important to manage your own payments effectively. Late payments to suppliers or subcontractors can damage your relationships and lead to penalties.

Prioritise payments: Create a list of your regular payables and prioritise them by due date and importance. Paying essential suppliers and services first ensures your business can continue operating without interruption.
Negotiate payment terms: If you’re experiencing cash flow issues, consider negotiating longer payment terms with your suppliers. Many are willing to accommodate loyal clients, especially if you communicate openly about your situation.
Monitor your cash flow: Regularly review your cash flow to ensure you have enough funds to cover upcoming payments. If you anticipate a shortfall, take action early by delaying non-essential expenses or seeking short-term financing.

5. Use Technology to Your Advantage

Modern technology can make managing your cash flow much easier. Consider using accounting software that offers features like cash flow tracking, invoicing, and expense management. These tools can save you time, reduce errors, and give you a clear picture of your financial health at any given moment.

6. Seek Professional Advice

If managing cash flow feels overwhelming, don’t hesitate to seek professional advice. A qualified accountant or financial advisor can help you create a solid financial plan, identify potential issues, and suggest strategies for improvement.

Conclusion

Keeping the cash flowing in your trade business is all about planning, discipline, and proactive management. By budgeting carefully, forecasting accurately, and managing your receivables and payables effectively, you can ensure your business stays financially healthy, even in challenging times. Take control of your cash flow today and set your business up for long-term success.

Cyber security: Best practice tips to keep your business safe

Wed, 21 Aug 2024 22:22:09 GMT

Cybercrime is no longer a distant threat reserved for large organisations; it’s a very real risk for businesses of all sizes.

As a business owner, it’s essential to protect your company’s data, reputation, and bottom line from cyber threats. Here’s some best practice advice and tips to enhance your business’s cyber security.

TIP 1. Implement strong password policies

One of the simplest yet most effective ways to protect your business is by ensuring that everyone uses strong, unique passwords. Weak or reused passwords are an easy entry point for hackers. Encourage your staff to create passwords that are at least 12 characters long and include a mix of upper and lower case letters, numbers, and symbols.

Use a password manager to help generate and store passwords securely. Additionally, implement two-factor authentication (2FA) where possible, adding an extra layer of protection by requiring a second form of verification beyond just the password.

TIP 2. Keep software and systems updated

Outdated software and systems are a significant vulnerability in any business. Hackers often exploit known vulnerabilities in outdated software to gain access to systems. Ensure that all your business software, operating systems, and antivirus programs are regularly updated.

Enable automatic updates wherever possible to reduce the risk of forgetting to apply critical patches. This simple step can significantly decrease the likelihood of a successful cyber-attack.

TIP 3. Educate and train your employees

Your employees are your first line of defence against cyber threats. Training on cyber security best practices is essential. Make sure your staff are aware of common threats like phishing emails, suspicious links, and social engineering tactics.

Encourage a culture of vigilance. For example, employees should be taught to verify unexpected email requests, especially those asking for sensitive information or urging urgent action. Regular refresher courses and simulated phishing exercises can help keep cyber security top of mind.

TIP 4. Back up data regularly

Data loss can be devastating, especially if it’s caused by a cyber-attack like ransomware. Regular backups ensure that you can quickly recover critical business information if your data is compromised.

Back up your data to a secure, off-site location—either in the cloud or on physical storage that is not connected to your main network. Test your backup systems periodically to ensure they work correctly and that you can restore data quickly if needed.

TIP 5. Secure your network and devices

Finally, securing your network and devices is a fundamental part of any cyber security strategy. Ensure your Wi-Fi networks are encrypted and protected by strong passwords. Consider segmenting your network so that sensitive data is separated from less critical information.

Make sure all business devices, including smartphones and laptops, are secured with passwords, encryption, and up-to-date security software. If employees are working remotely, they should use a virtual private network (VPN) to ensure secure connections to your business network. Employees should not be using free and unsecure Wi-Fi networks in cafes or airports. Mobile data is a significantly safer option.

Cyber security isn’t just the responsibility of your IT provider – it’s everyone’s in the business.

By following the best practices above and educating your staff, you can significantly reduce the risk of a cyber-attack by ensuring your business is well-protected – and if the worse happens, you can be up and running again quickly.

Remember, the cost of prevention is always lower than the cost of a breach, both in financial terms and in the potential damage to your reputation. Take the time now to review and enhance your cyber security measures to safeguard your business’s future.

Winning recruitment strategies for hospitality businesses

Thu, 15 Aug 2024 22:24:36 GMT

Recruiting and retaining staff in the hospitality industry has always been a challenge, but with the right strategies, you can build a strong, engaged team that helps your business succeed.

Whether you run a small café, a busy restaurant, or a lively bar, here are three strategies to help you attract and keep the best hospitality staff.

Plan your workforce needs

Start by assessing your business needs and understanding your staffing requirements during peak and off-peak hours. Create clear job descriptions to target the right candidates and streamline your recruitment process. Consider the seasonal nature of the hospitality industry and plan ahead for busy periods by building a pool of reliable temporary workers. Using workforce management software can also help schedule shifts and track hours, helping you ensure optimal staffing levels.

Attracting the right talent

Promote your business as a desirable place to work by highlighting your unique selling points, such as a positive work culture, career development opportunities, and employee benefits. Advertise job openings on various platforms, including job boards like Seek and Trade Me Jobs, social media, and local community boards. Simplify the application process to make it easy for candidates to apply and follow up promptly with shortlisted candidates to keep them engaged.

Improving staff engagement

Offering competitive compensation and benefits is crucial for attracting and retaining staff. Review wages to ensure they are in line with industry standards, and consider offering additional benefits like staff meals, discounts, or health and wellness programs. Invest in your staff’s growth through training programs and opportunities for advancement. Foster a positive work environment by promoting open communication, recognising hard work, and creating a supportive atmosphere. Regularly seek feedback from your employees and address any issues promptly to show their opinions are valued. Finally, help your staff maintain a healthy work-life balance by offering flexible scheduling options and ensuring fair distribution of shifts.

Bringing it all together

Recruiting and retaining staff in the hospitality industry requires planning and a focus on staff engagement. By understanding your staffing needs, promoting your business as a great place to work, and fostering a positive work environment, you can build a strong and loyal team. Implement these strategies to enhance your recruitment process and create a thriving, happy workplace.

Thinking about selling your business?

Sun, 11 Aug 2024 22:29:24 GMT

Selling your business requires careful preparation to maximize its value and attract the right buyers.

If you’re in the trades, you know the value of planning ahead. Just as you wouldn’t start a project without a plan, you shouldn’t rush into selling your business without a well-thought-out plan. If you are mulling over selling, here’s some advice to help you make good decisions.

Preparing to sell: Key considerations

1. Evaluate your business health

Start by assessing the current state of your business. This involves reviewing your financial statements, operational processes, and overall market position. Ensure your financial records are up-to-date and transparent. Potential buyers will scrutinize your books, so it’s crucial to have everything in order.

2. Understand your business’s worth

Determining the value of your business is essential. This might involve engaging an independent business valuer who can provide an objective assessment. They will consider factors such as your company’s earnings, assets, liabilities, and market conditions.

3. Plan your exit strategy

An exit strategy outlines how you will transition out of your business. This includes deciding whether you want a complete sale, a phased exit, or even selling to a family member or employee. Your exit strategy should align with your personal and financial goals.

4. Tax and legal implications

Consult with your accountant and a lawyer to understand the implications of selling your business. They can help you navigate complex issues, such as tax, transfer of ownership, and compliance with regulations.

Maximising business value

1. Streamline operations

Efficient operations make your business more attractive to buyers. Look for ways to improve processes, reduce costs, and enhance productivity. Implementing standard operating procedures (SOPs) can also show potential buyers that your business is well-organised and capable of running smoothly without you.

2. Boost your financial performance

Strong financial performance is a significant draw for buyers. Focus on increasing revenue and controlling expenses. Highlight any recurring revenue streams, such as maintenance contracts or long-term customer relationships, as these provide stability and predictability.

3. Enhance your brand and reputation

A solid reputation in the trades and construction industry can significantly increase your business’s value. Maintain high standards of workmanship, prioritise customer satisfaction, and actively seek positive reviews and testimonials. A well-regarded brand can be a valuable asset.

4. Diversify your client base

A diverse client base reduces risk and makes your business more appealing. Relying too heavily on a few key clients can be a red flag for buyers. Work on broadening your customer base to include a mix of residential and commercial clients, and perhaps even public sector contracts.

Attracting the right buyers

1. Market your business effectively

Selling a business is similar to marketing a service. Create a compelling information package that includes your business’s financials, a summary of operations, and growth potential. Highlight what makes your business unique and profitable.

2. Engage a business broker

A business broker can be invaluable in the selling process. They have the expertise and networks to find and vet potential buyers, ensuring you get the best deal possible. They also help maintain confidentiality, which is crucial to prevent any disruption to your business operations.

3. Negotiate wisely

When you receive offers, don’t just focus on the price. Consider other terms, such as payment structure, transition period, and any contingencies. Seek advice from advisors, like your accountant or lawyer. They can provide essential guidance during negotiations.

Moving forward

Selling your trades or construction business is a significant decision that requires careful planning and execution. By thoroughly preparing, enhancing your business’s value, and strategically marketing it to potential buyers, you can achieve a successful sale that meets your financial and personal goals.

Ready to take the next step?

Our team can help you navigate the complexities of selling your business, from valuation to finding the right buyer. Contact us today to start planning your successful exit strategy.

Standing strong: How trades businesses can thrive in tough times

Thu, 08 Aug 2024 22:34:30 GMT

In a tough economic environment, trades and construction businesses—whether residential builders, commercial construction firms, plumbers, electricians, or other trades— need to navigate unique challenges. Standing out from the competition is critical. Here are some practical strategies to help you survive difficult times.

1. Prioritise quality and reliability

Consistent excellence

Ensuring that every job is done to the highest standard is the best advertisement for your business. Quality workmanship leads to satisfied customers, positive reviews, repeat business and word of mouth referrals. Reliability is equally important—turn up on time, meet deadlines, and communicate effectively with clients.

Training and certification

Invest in ongoing training for your team. Keeping up with the latest industry standards and technologies not only improves the quality of your work but also showcases your commitment to excellence. Certification from recognized industry bodies can also give you a competitive edge.

2. Enhance your online presence

Professional website

A professional, user-friendly website is essential. It should include information about your services, customer testimonials, and an easy way to contact you. Showcasing a portfolio of past projects can also help potential clients visualize the quality of your work.

Social media engagement

Use social media platforms to engage with your community and share updates on projects. Regularly posting content such as before-and-after photos, client testimonials, and industry tips can help build your reputation and attract new clients. And don’t spread yourself too thin. Using one social media platform really well is much more effective than doing 2-3 poorly.

Online reviews

Encourage satisfied customers to leave positive reviews on platforms like Google My Business and Facebook. Responding to reviews—both positive and negative—demonstrates that you value customer feedback and are committed to continuous improvement.

3. Focus on customer service

Clear communication

From the initial consultation to project completion, clear and transparent communication is critical. Ensure clients are kept informed about work timelines, costs, and any potential issues that arise.

Personal touch

Personalise your interactions with clients. Simple gestures like follow-up calls or thank you notes can make a significant difference in how clients perceive your business. Happy clients are more likely to recommend you to others.

4. Diversify your services

Broadening your offerings

Consider expanding the range of services you offer. For example, if you are a builder, you might also offer renovation and maintenance services. This can help attract a wider customer base and provide more opportunities to win business.

Specialised skills

Developing specialised skills in high-demand areas can set you apart from competitors. Whether it’s sustainable building practices, smart home installations, or energy-efficient solutions, niche expertise can attract clients looking for specific skills and services.

5. Network and collaborate

Industry connections

Build strong relationships with suppliers, subcontractors, and other businesses in your area. Networking can lead to referrals and collaborative opportunities that benefit all parties involved.

Community involvement

Get involved in your local community. Consider sponsoring local events, participating in trade shows, or contributing to community projects can enhance your business’s visibility and reputation.

6. Financial prudence

Cost management

Regularly review your expenses and find ways to cut unnecessary costs without compromising on quality. Effective cost management can improve your bottom line and provide more flexibility during tough times.

Financial planning

Work with an accountant to develop a robust financial plan. This includes setting aside reserves for slow periods, planning for equipment upgrades, and ensuring you have a clear understanding of your cash flow.

7. Stay adaptable

Market trends

Stay informed about market trends and be willing to adapt your business strategy accordingly. Whether it’s new building regulations, emerging technologies, or changing customer preferences, staying ahead of the curve can provide a competitive advantage.

Flexibility

Be flexible in your approach. Being able to pivot quickly—whether by adjusting your services, exploring new markets, or adopting new technologies—can be crucial to maintaining business continuity.

Standing strong in tough times requires a combination of quality workmanship, strong customer relationships, strategic planning, and adaptability. By using these strategies, trades and construction businesses can not only withstand economic challenges but also thrive and grow.

Great people, expert advice

We’ve helped hundreds of trades businesses improve the way they operate and be better equipped to survive during tough times. If you need some business advice or guidance, let’s sit down and chat. Just give us a call – we’re here to help.

Tips for boosting your cash flow

Sat, 20 Jul 2024 01:58:47 GMT

Managing the finances in your business can sometimes be a bit of a headache. Your business can be thriving but you’re having difficulty finding the funds to pay your expenses and fund the growth your business needs. Or your business can have good cash flow, but you’re profit is really lean or you’re just breaking even.

Unless you’re a not-for-profit, you’re in business to make a profit. However, unless you have an predictable cash flow, you spend more time worrying about how you’ll pay your overheads such as staff and expenses, rather than thinking about expanding and growing your business. It only takes a few small changes to achieve a better cash flow position for your business, which helps you maintain positive cash flow and generate profits. Here are some tips on how you can maximise your cash flow management.

1. Know your costs.

What are your cost base and overheads? Ideally you want more cash coming in than going out, so it’s important to know what your expected expenses and costs are so you can manage them.

2. Reduce costs where you can.

Everyone talks about reducing your expenses and it’s a solid strategy to improve your cash flow, but be mindful that you’re not cutting expenses for things you’ll need in the future. Review your expenses, see where you can maximise efficiency or reduce costs to help you reduce your cost base. If you hold inventory, consider decreasing the amount of stock that you hold, so that you don’t have so much cash tied up in holding stock.

3. Chase outstanding invoices.

It’s important to make sure you’re getting paid. If you’re waiting on a lot of businesses to pay you for goods and services you’ve already delivered (or paid for), then that will be affecting your cash flow. Check your payment terms – are you waiting too long for payment? Are you able to shorten the length of time you wait for payment? Also chase up outstanding invoices now, especially if you have generous payment terms.

4. Increase your marketing activity.

If you’re already running a lean cost base, then you need to increase sales. Be proactive about running targeted promotions and marketing campaigns. Think about where you’re most likely to reach the biggest chunk of your customers and focus your efforts there. As the old adage goes, ‘you have to spend money to make money’.

If you can keep the cash flowing, the profit will take care of itself. Once you have a good cash flow position, you’ll have cash to meet your overheads as well as cash for investment and to grow your business.

If you need help running the numbers or specific advice on how to improve your cashflow management, get in touch and we can help you work out your cash flow strategy.

Bright-line test changes – what property investors need to know

Mon, 01 Jul 2024 22:38:09 GMT

f you own an investment property or properties, you need to be aware of the Government’s changes to the ‘bright-line’ test, which took effect on 1 July 2024.

What is the bright-line test?

The bright-line test determines whether tax is payable on any profit made from the sale of a residential property based on the period of ownership.

The bright-line test period is being reduced to two years

The period during which a property sale is subject to the bright-line test has been reduced from 10 years for existing homes, and five years for qualifying new builds to just two years. This means, that as of 1 July 2024, only residential property sold within two years of its purchase date will be subject to tax on any profit made when it’s sold.

The main/family home exemption still applies

The main home exemption remains in place. The bright-line test does not generally apply to the sale of a person’s main home. However, there are some fishhooks to be wary of – depending on your specific circumstances. The exemption applies only if you:

use more than 50% of the property as your main home
use the property as your main home for more than 50% of the time you owned it.

Inherited property rule is unchanged

Current rule stays the same. From the IRD website, “A transfer of residential property on the death of a person to an executor or administrator of a deceased estate, and the subsequent disposal, is not taxable under the bright-line property rule.”

Relationship property settlements

When a couple separate, the bright-line test does not apply to the main home. However, the test will apply to any investment properties (including holiday homes) that are sold within two years of their purchase date, as part of the relationship settlement.

Rollover relief rules extended

The rollover relief rules are being extended to the associated person rules. This includes:

associated companies, or a person and an associated company
relatives (within 2 degrees of relationship)
trusts and settlors, beneficiaries, and related trusts
a partner and a partnership
a look-through company and an owner of that company.

Be aware though, these new rules are limited to situations where the transferor and the transferee are associated for two years before the transfer. Plus – you’ll only be able to claim rollover relief once in any two-year period.

These changes will come into effect on 1 July 2024

Understanding the changes to the bright-line test is essential for making informed investment decisions. It’s particularly important for anyone involved in property development or larger scale property investment. By staying informed and proactive, you can ensure that your investment strategies remain sound and compliant with the latest tax obligations.

What the 2024 tax threshold changes mean for employers

Tue, 11 Jun 2024 01:58:48 GMT

Budget 2024 included some significant adjustments to personal income tax thresholds. The changes are aimed at providing the tax relief for Kiwi families promised by the National Party on the campaign trail last year. All relatively straight forward you would think – or is it?

Because the changes to the tax thresholds take effect from 31 July, part way through the current tax year, the impact is potentially a little trickier to manage for employers.

For payroll purposes, thresholds should adjust from 31 July, but the 2024/25 tax year will be considered a “composite” year. This means that tax reductions will effectively be averaged across the year when it comes to working out end-of-year tax obligations.

Changes to tax thresholds

From 31 July 2024, the income tax thresholds in New Zealand will be adjusted as follows:

Composite tax thresholds and rates

For the 2024/25 tax year only.

What employers need to do

There are several things employers should be aware of and plan for:

1. Payroll adjustments in payroll software:

You must ensure your payroll software is updated to accommodate the new thresholds by 31 July 2024. This might involve coordination with payroll providers to ensure seamless transition. Cloud-based payroll systems should update to the new thresholds and composite rates automatically. However, we’d strongly recommend confirming this with your provider well before 31 July.

If you file your payroll manually – make sure you use the new tax tables in your calculations.

2. Fringe Benefit Tax (FBT):

New FBT thresholds will take effect from 1 April 2025, except where an employer chooses to calculate FBT using the attribution method for the 2024/25 year (for which the composite rates and thresholds can be used).

3. Employer Superannuation Contribution Tax (ESCT):

The proposed ESCT thresholds will also change from 1 April 2025 meaning employer KiwiSaver contributions will not benefit from these changes until the 2025/26 year.

Are you prepared for the tax threshold changes?

The changes to the tax thresholds should have a positive effect for Kiwi families struggling with the rising cost of living. However, it may mean a little extra work for employers in the short term (and potentially some confusion), while they prepare and make sure they’re using the correct tax rates at the correct time.

We can help!

If you’re feeling unsure or have any questions about the changes and how they might impact your business, just reach out to our team. We’re here to help you get it all sorted.

Preparing for the new financial year: key steps for farmers

Fri, 31 May 2024 01:58:49 GMT

As the end of the financial year comes to a close for many farmers, it’s crucial for farm owners and managers to prepare for the new financial year. This period can be particularly busy, with activities like drying off cows, shipping animals to grazing, and handling maintenance tasks. Proper preparation can simplify the year-end process and set your farm up for success in the coming year. Here are some key steps to ensure a smooth transition between one year and the next.

1. Budget for next season

Creating a budget for the upcoming season is vital. A well-planned budget helps solidify your plans and provides an opportunity to correct any accounting errors before your accountant reviews your financials. A detailed budget will also help you manage cash flow and set financial targets for the new financial year.

2. Get your financial documents organised

Ensure all necessary documents are organised and accessible. Most documents should be attached to your accounting software, but double-check that the following are included (as appropriate):

Loan or hire purchase documentation
Dividend statements from companies like Fonterra, Ballance, Silver Fern Farms, LIC etc
Bank and loan statements showing the balance at year-end.

These documents are crucial for an accurate financial assessment and for your accountant to process your year-end financials efficiently.

3. Stock reconciliation

Accurate stock reconciliation is essential. Tally your stock on hand at the end of the financial year and report any discrepancies, such as animals that have died or gone missing. This helps ensure that your stock records are accurate and reflect the true state of your assets.

4. Asset review

Review the assets listed in your accounts from the previous year. Identify any assets that have been written off, stolen, or are broken beyond repair. This review will help you update your asset register and provide an accurate valuation of your farm’s assets.

5. Review unpaid bills and invoices

Examine any unpaid bills and invoices to determine if they will be paid. This step is important for accurate financial reporting and managing your farm’s cash flow. Addressing unpaid bills early can prevent financial discrepancies and improve your farm’s financial health.

6. Set goals and plan for success

Goal setting is an integral part of financial planning. Take the time to set clear and achievable goals for the new financial year. This can include production targets, financial milestones, or operational improvements. Effective goal setting will guide your decision-making and help you track progress throughout the year.

By following these steps, you can ensure that your farm will be well-prepared for the new financial year. Proper planning and organisation will not only make the year-end process smoother but also position your farm for success in the coming year.

Four tips for faster payments

Thu, 30 May 2024 01:58:59 GMT

Getting paid on time is crucial for the cash flow of your business and so you can pay suppliers, employees, and overheads. The easier you make it for customers to pay you, the faster you’ll see money coming in. Here are four tips on how to speed up payments and get paid on time.

Set clear payment terms

Your payment terms are the starting point, and they set out when you expect to be paid and form a legally binding contract with the customer. You may expect immediate payment on receipt of the invoice. Or you might set out a specific number of days that the customer has to pay the invoice, which has often been the 20th of the following month. However, you’re free to set whatever payment terms you like – on receipt, 7 days, 14 days etc – just make sure it’s clear to the customer.

Your payment terms should also include details of any late payment penalties. If the customer doesn’t meet your agreed payment times, some businesses will add a 1% to 1.5% monthly late payment fee to the outstanding bill. This acts as a great incentive for the customer to pay the bill, before the penalty fees start mounting up.

Invoice customers as soon as you can

In a business-to-consumer (B2C) environment, your customers will generally pay for their goods and services immediately. But when you’re working in the business-to-business (B2B) world, you’ll need to send your customer an invoice, asking for the money to be paid.

A customer can’t pay you until you invoice them, so the quicker that happens, the sooner you’re likely to be paid. For larger projects, the total cost will be broken down into multiple invoices, paid across a period of time. This makes it easier for the customer to pay and means you (as the supplier) don’t have to complete the project before receiving the money you’re owed.

Ideally, you want your invoices to go out as early as possible. This allows your payment terms to kick in and makes it easier to predict when cash will be coming into the business.

Be organised about your payment admin

Getting paid is a process – and the more organised you make the process, the quicker the payment will be received. When you send out the invoice, make sure you send it to all the relevant people in the payment chain. This will usually be:

Your main contact at the client – the person who you usually deal with.
The person who will approve the bill – the person who will green-light the payment.
The finance team – the person (or people) who will actually action the payment.

It’s also a good idea to quote all relevant purchase order (PO) numbers that the customer has raised, and to give a very clear description of the work done, or the goods purchased. Also make sure that all your bank account details for payment are on the invoice.

Embrace the available payment technology

Invoices used to be hard-copy printed bills, but in the digital age the vast majority of companies will send out e-invoices. Electronic invoices are easy to raise (usually from your accounting software or project management app) and can be emailed out instantly. Doing everything in the digital realm also makes it easier to keep records and keep track of payments.

Many e-invoice systems will also let you add a variety of different payment options for the customer. You could just include your bank details and wait for the customer to make a direct payment to your account. But you can also include payment buttons in the e-invoice that give customers the option to pay via digital payment gateways, like PayPal or GoCardless etc.

Offering more ways to pay makes the whole process more convenient for your customers – and will generally result in faster payment times as a result.

If you need help speeding up your payment times to boost your cash flow, let us know. We can help you streamline your payment processes and embrace the latest in payment tech.

Tips for keeping your employees and customers safe

Tue, 28 May 2024 01:58:56 GMT

As an employer and an owner, it’s your responsibility to keep your people safe. This includes both employees and customers. In 2023, the number of new claims for ACC workplace-related injuries was 194,570, with the highest claims from the construction, manufacturing, agriculture, forestry, and fishing industries.

Your duty of care to your employees

You have a duty of care to your employees to keep them safe and healthy at work. This includes providing a safe work environment, providing adequate training, and monitoring their safety and well-being on an ongoing basis.

Specific examples of your duty of care to your employees include providing:

safe and well-maintained machinery and equipment;
a safe and healthy work environment, free from hazards;
adequate training on how to use machinery and equipment safely;
training on health and safety procedures;
monitoring the health and safety of your employees;
supporting employees who have been injured or become ill at work; and
taking out the relevant liability insurance in case of staff injuries.

Your duty of care to your customers

You also have a duty of care to your customers to keep them safe when they visit your physical shops and office spaces. This includes providing a safe environment, thinking about accessibility, and making sure your premises are reviewed for safety on a regular basis.

These customer concerns can include:

providing safe premises that are hazard free and maintained to a high standard;
taking steps to prevent crime, such as installing CCTV and hiring security guards;
ensuring that people with health conditions or impairments can access the premises safely;
providing adequate training to staff on how to deal with emergencies; and
taking out the relevant public liability insurance in case of customer injuries.

Your duty to provide relevant staff training and a continuity plan

Staff should get relevant training on health and safety procedures, so they’re on the ball with safety procedures, and can do everything in their power to keep customers safe and free from danger. It’s also vital to have continuity plans in place in case of staff/customer injuries, criminal activity, or unexpected emergencies and natural disasters.

To be on the ball with your training safety plans:

conduct regular risk assessments to identify and assess potential hazards;
develop strategies and business procedures to mitigate any risks;
implement and maintain a health and safety management system;
provide your staff with the resources and support they need to work safely;
communicate your health and safety policies and procedures to all staff and customers; and
monitor and improve the effectiveness of your health and safety measures.

Get your health and safety up to speed

By having a real focus on health and safety, you do the right thing for your staff, your customers, your suppliers, and everyone involved in your business.

To find out more about keeping your workplace safer, take a look at this government guide

Unlock your business potential – the power of in-depth financial data

Mon, 20 May 2024 01:58:51 GMT

If you run a business, making smart decisions is key. Your strategy, how you spend money, earn it, and manage cash flow really matters for your company’s future.

Want an edge in decision-making? Use your financial data. Today’s cloud accounting tools and finance apps can help you make informed choices.

With the latest technology and software, you can see your business’s financial details instantly. This quick look at how your business is doing financially can make a big difference.

Good real-time financial data can really boost your business. Here’s how:

Make smarter choices: With the latest numbers, you can make quick, smart moves. See how your money’s working and where you can save, all on one easy dashboard.
Keep cash flowing: Cash is important, and knowing where it’s coming and going helps you plan better. Stay ahead of bills and know when to borrow or invest.
Plan better budgets: Forget old spreadsheets; use live data to guide your budget and goals. Spot when things are off track and tweak your plans for better results.
Earn more money: Use live data to cut costs and up your earnings. Focus on what sells best and trim the fat where you can. This helps you focus your marketing and adjust prices to increase profits.
Feel confident about your business’s finances: Having this data at your fingertips means you can feel confident about your business’s finances. You’ll have the details you need to make smart decisions and show investors that your business is a good bet.

These steps help you stay informed, manage your money, plan accurately, and increase profits. Simple, right?

If you’re currently only tracking the most basic of finance metrics, now’s the time to dive deeper into your pool of valuable financial data. The more detailed and refined your finance dashboard becomes, the more you’re in control of the next steps of your business.

We can help you set up a tailored business dashboard and management reporting tools to track all the most valuable finance metrics for your business.

Get in touch to start exploring your real-time data.

Do you have a risk management plan?

Wed, 15 May 2024 01:58:52 GMT

Owning a business means you have to keep an eye on risks and make sure you’re ready for them. Risks can be anything from an unexpected tax bill to a big event like a flood. They can cause a little trouble or a lot, so it’s smart to figure out what risks you have and how to handle them.

Check your business from top to bottom for anything that might go wrong and take steps to protect yourself. Some risks are easy to see coming, like making sure you have enough money for wages every month. But you can’t always predict things like fires or storms. Still, you can plan to reduce harm and get insurance just in case.

Do a risk check-up. Talk with experts to make sure you haven’t missed anything. Make sure your insurance is good enough. Keep checking your safety plans to make sure they’re up to date with what your business needs.

If you have people who give you advice, like a board of directors, talk about how you’re keeping the business safe and how you’re doing overall at your next meeting.

We can assist you to conduct a risk assessment on your business and help you develop appropriate strategies. Get in touch if you want to get the process started.

Which business expenses are really tax deductible?

Fri, 10 May 2024 01:58:53 GMT

Keeping track of business expenses is key for any company. It’s important to know which costs can be deducted from your taxes and which can’t. Here’s a simple guide to the expenses that can reduce your tax bill.

What can you deduct?

You can usually deduct any business expense that is necessary to earn your taxable income. This means you can subtract these costs from your income.

Here are some typical business expenses that you can often deduct:

• Costs for using vehicles, traveling for business, and other transportation.
• Rent for business buildings.
• Loss in value of items like computers and office furniture.
• Interest on business loans.
• Some types of insurance.
• Business-related books and magazine subscriptions.
• Membership fees for professional organisations.
• Home office expenses.
• Costs for business-use mobile devices and their operation.
• Office materials.
• Work uniforms.
• Fees for tax advice.

This knowledge is useful for controlling your business costs, lowering your tax payments, and keeping a stable cash flow. How much and when you can deduct depends on the type of expenses – see the Inland Revenue (IRD) website for more details https://www.business.govt.nz/tax-and-accounting/reducing-your-tax/claiming-expenses/

Generally, there are three basic rules for checking if your expense claim is a valid business deduction, and that it won’t be challenged by Inland Revenue:

1. The expense must be only for your business and allowed as a deduction, not something you use personally.
2. If you use something for both business and personal reasons, you can only claim the part used for business.
3. You must always keep receipts or records to prove the expense happened.

What can’t you deduct?

While you can typically deduct a variety of business expenses that are necessary for your everyday income-generating operations, there are certain expenses that are not eligible for tax deductions.

These include:

• The principal amount of any loan repayments.
• Fines for speeding or parking violations incurred by personal or company vehicles.
• Penalties charged by the IRD for delayed submissions or payments.
• Initial purchases of equipment, machinery, or plants, which may be subject to depreciation over time.
• Premiums paid for life, accident, personal illness, and mortgage protection insurance policies.
• Expenses related to the early phases of establishing your business.
• Generally, clothing, shoes, and glasses cannot be deducted, except for mandatory work attire such as uniforms or protective footwear.
• Legal fees associated with the purchase of capital assets.

If you’re looking to cut back your costs and improve your tax efficiency, we can help. Talk to us about your regular operational expenses and tax costs and we’ll work with you to find the important reliefs, incentives and allowances that can be claimed. Get in touch to start reducing your expenses!

Planning your exit strategy

Tue, 30 Apr 2024 01:58:55 GMT

Leaving behind everything you’ve built up in your business is a tall order, so it’s vital that you have a plan to execute when leaving your business. There needs to be a plan of action that’s aligned to your key goals, aims, and financial commitments as the owner. This means you need to create a long-term exit strategy with your advisers, as selling a business is complex with many different elements that all need to be considered.

Creating your exit strategy won’t happen overnight, however, having a plan gives you a guide along the way, and you can tweak your plan where necessary.

What should I consider?

When writing your plan there are a number of things to consider, they include:

What do you need to sell your business for?

As the vendor, you need to come up with an asking price for the business. Your sale price isn’t just driven by market forces. It’s also dependent on how much money you need to gain from the business sale.

If your aim is to start a new business, think about how much capital will be needed to get this idea off the ground. If your goal is to retire, you need to work out the size of the lump sum that will be needed. You could live for 20 or 30 years post retirement, so any cash raised has to provide you with your desired income and lifestyle for a number of years. Don’t forget to allow for any tax that may be payable on profits you’ve made. We can help you estimate that.

Work out what funds you will need to retire or invest, and make this total cost the benchmark for your ideal sale price. If you’d need 10 million over 20 years, you know that your asking price must leave you with more than that after tax to provide a cushion for your finances.

What is the business worth?

The next step is to understand the value of the business on the open market. This means talking to your accountant who may advise you to talk to a M&A (mergers and acquisitions) expert.

Value is a complex measurement. It can be influenced by your brand’s reputation, the business’ current financial health, the worth of your company assets, or the skill of your existing team. A change in any of these elements can have a huge impact on your sale value – and, as a result, the size of the profit that you and your departing shareholders will make from the sale.

If your current value is projected as 8 million, but your initial asking price must be 10 million or more, there’s some work to do to add this value and boost your final sale price.

Who will be your successor?

Every business needs a safe pair of hands at the top. Thinking about who will take over the reins, and how to make this transition run smoothly, is a vital part of your exit strategy.

A succession plan explains your own plans for retirement, who will take over your role, and the timescales for this succession process. It may be that a family member is your intended successor. It could be that your intended buyer will take on the owner-manager role. Or it could be that a current member of your executive team is ready and willing to step into your shoes. Make sure you’re clear about who the new boss will be, and how (and when) this person will succeed you as the leader of the business.

What’s the timeline?

Selling your business is rarely something that happens quickly. Preparing for a sale can often begin years before the proposed date of exit, so it’s important to be clear about your exit strategy and the key dates along the main timeline.

A five-year exit strategy is common, and you should allow at least two years to complete the process from beginning to end. Selling up may seem like the final scene in your business play, but in fact it’s only the beginning of a long and protracted final act. The more you can do to plan each step of the exit, the more successful your final sale will be.

Needing to create an exit strategy?

If you think now is the time to start planning your exit, let us know. We can help you value your business, work out your sale price, and achieve the best possible sale price.

Tax changes for online marketplaces such as AirBnb, Bookabach and Uber

Sat, 20 Apr 2024 01:58:57 GMT

If you earn income through an online platform that puts together service providers with customers, you need to be aware of the latest requirements for online marketplaces in New Zealand. From 1 January 2024, New Zealand requires online marketplaces to conduct due diligence on all their sellers, and to collect and report information about sellers and transactions on their platforms. Income earned through online marketplaces and the activity of sellers registered on these digital platforms will be more transparent to Inland Revenue for tax collection purposes.

Does this affect me?

These changes are relevant to you if you provide services or assets through an online marketplace for a fee. In the online environment sometimes referred to as the sharing or gig economy, these activities typically include:

• providing short-stay accommodation, through platforms such as Airbnb;
• providing ride-sharing services for a fare, through platforms such as Uber;
• sharing assets such as cars, caravans/RVs, parking spaces, or storage space, through platforms such as Camplify, Parkable, and Sharedspace; and
• providing personal services, such as graphic design, creating websites, or odd jobs like deliveries, pet sitting, furniture assembly or trades services, through platforms such as Pocket.Jobs, Fiverr, Airtasker, weDo, and Delivereasy.

Other activities that are not considered to be part of the sharing economy include:

• online selling or classifieds, like Trade Me, eBay or carsales;
• cryptocurrency exchanges; and
• peer-to-peer finance or crowdfunding.

But for ALL these activities, if you earn income from them, consider how income tax, GST, and other obligations apply to you. If you’re registered with, and receive income from, an online marketplace as a seller or provider of services, what you earn is taxable income and must be declared in your tax return. You may also have to account for goods and services tax (GST).

Online marketplaces and GST

If you earn more than $60,000 in a year from all taxable activities, you must register for GST. If you’re already GST registered when you register with an online marketplace, use your existing GST registration for your activities on the digital platforms. If you’re GST registered, you can claim GST for expenses related to your business.

Be aware that from 1 April 2024 online marketplace operators who facilitate the sale of listed services, must collect and return GST when the service is performed, provided, or received in New Zealand. This applies whether the seller is GST registered or not. The ‘listed services’ cover:

short-stay and visitor accommodation
– although accommodation used by the customer as their principal place of residence is exempt from tax;
– connected services facilitated through the marketplace operator, for example, cleaning fees charged on top of accommodation costs, will also be subject to GST.
ride-sharing and ride-hailing; and
food and beverage delivery

Are you GST registered?

If you are GST registered, you need to include supplies sold through an online marketplace as a zero-rated supply in your GST return. You will still be able to claim GST on the costs of making supplies.

Some GST registered sellers may be able to opt out of the marketplace rules and carry on being responsible for their GST obligations, if they:

make more than $500,000 of supplies in a year;
provide accommodation and meet a 2,000-night threshold, based on the number of nights of accommodation listed through a single online marketplace.
They can notify their marketplace operator that they are opting out and enter into an agreement with the marketplace operator to opt out of the rules.
Different rules may apply where the marketplace operator is not treated as the supplier of listed services. In these situations, the provider of the services will be responsible for GST.
If you are NOT GST registered, a new flat-rate credit scheme will apply. Marketplace operators will collect GST at the standard 15% rate on the services. They will then pass on 8.5% to you, recognising the GST on your costs supplying listed services. The remaining 6.5% is returned to Inland Revenue.

Keep up with the changes

This is a rapidly changing sector and Inland Revenue has made it plain they intend to monitor it in the broader context of the tax base. It is important you understand your income tax and GST obligations under the new rules. Make sure you keep good records of your income-earning activity and your expenses. Get in touch with us to discuss how this change affects your business.

Tips for attracting and retaining the top talent for your business

Thu, 22 Feb 2024 00:59:04 GMT

The job market has had plenty of ups and downs in recent years so the challenge now is to attract and retain the top talent for your business. According to the Manpower Group, worldwide nearly 4 in 5 report difficulty in finding the right talent. This scarcity of talent can be a real stumbling block when your strategy relies on expanding your workforce and bringing the brightest minds into the business.

So, how do you overcome this?

Here are five ways to help you find the right talent:

Offer competitive salaries, rewards, and benefits

One of the top ways is to offer a competitive, above average wage and rewards/incentives package. A job is a job, so if you’re paying better than your competitors and offering a bonus system, you’re more likely to attract the skilled workers and professionals you need in your team.

Make your workplace attractive

Employees are attracted to a company that looks like a great place to work. So, there’s value in developing a company culture that values individual team members and their contribution to the wider team and business. Share what your business’ values are and what your workplace offers employees.

Prioritise professional development

It’s not just about the salary, benefits, and workplace but about upskilling your staff. Prioritise offering opportunities for growth and advancement – it’s a great way to retain your existing staff and allows your employees skillset to grow along with the business.

Offer flexible working conditions

The global pandemic changed the face of employment, and employees have enjoyed the benefits of remote and hybrid working. If you’re wanting to keep competitive and attract the top talent, you need to be embracing flexible working arrangements such as remote working, work-from-home days, flexible start/finish times, or a combination of these. It shows a level of trust and interest in the wellbeing of your staff. If your business isn’t one that can accommodate WFH or hybrid options, consider options such as finishing early one Friday a month.

Recognise the talent already in your business

Valuing, acknowledging, and rewarding your employees’ contributions is an excellent way to boost morale and job satisfaction. Happy employees are far more likely to remain in the business, grow with the business and keep your team more stable.

Having the best people, talent, and skills gives your business the foundations it needs to evolve, grow, and diversify. Attracting and retaining top talent is fundamental to your business to allow you to hit your goals for the year ahead.

How knowing your customers can help your sales

Thu, 22 Feb 2024 00:59:03 GMT

Do you know who your customers are? What makes them tick and why they buy from you? Do you primarily sell to consumers or other businesses? Knowing who’s buying from you and what solution you provide for them, can increase your sales and the overall satisfaction of your customers.

For instance, take B2C and B2B businesses:

Business to consumer (B2C) cater primarily to consumers. Examples include retail, entertainment, food and beverage sellers.

Business to business (B2B) cater to other businesses. Examples include office supply companies, businesses that manufacture components for other manufacturers (e.g. of computers or vehicles), or provide professional services such as web design, legal, and financial services.

Key differences:

Buying decisions:  B2C businesses tend to make buying decisions quickly, and may be influenced by emotion. B2B businesses need more time to seek approval from management, and their buying decisions tend not to be influenced by emotion.

Marketing:  B2C businesses typically use tv and radio, and consumer magazines, as marketing media. B2B businesses use trade and technical shows, industry publications and sites. They both use social media but the channels they use, and how they present their brands, will differ.

Message:  B2C businesses stress low price, the feel-good factor, and FoMO (fear of missing out). B2B businesses focus on value and service, and may also reference the trust built up long-term.

There are grey areas, naturally. Consumers, as well as businesses, use office supply companies. Cleaning businesses may service offices as well as private homes.

When was the last time you analysed who your customers are, and segmented your marketing and sales approaches based on the B2C and B2B businesses in your customer base? Call us if you would like help getting started.

Why inventory management is important to your business

Thu, 22 Feb 2024 00:59:01 GMT

Having the right products at the right time for your audience is critical in retail. This is why inventory management, or stock control, is critically important. Inventory management encompasses all the tasks you carry out to keep your inventory in check. Activities like ordering products, storing your merchandise, counting items, and forecasting demand are all components of inventory management.

In order to run a successful retail business, you’ll need to think about the following key areas:

Sourcing products effectively

Tap into online directories, attend trade shows, and analyse your stock data. Talk to your customers and staff, and review your sales data to guide your purchasing decisions.

Understanding different inventory techniques

Determine the best stock control method for your store and the products you sell. For example, ‘Just in Time’ means you only order when you need something, but it can involve a lot of work with suppliers. Food businesses might be more likely to use ‘first-in, first-out’ method where items that have been on their shelves longest, and therefore are closer to expiry, are ordered first.

Tracking metrics

Tracking Gross Margin Return on Investment will show you how much money you earned on the sales of a product. Stock Turn shows you how many sales within a period, and Shrinkage gives you figures on inventory loss that is not a result of a sale. The more you know, the easier it will be to always have a handle on product movements and sales.

Conducting physical inventory counts regularly 

Inventory auditing ensures that what you have on paper or in your systems, matches what’s in your physical location.

Implementing demand forecasting

By digging into historical data in your product reports, and determining how fast products are selling, you can forecast what products are likely to be in demand, and you can order more of those. You can also look at seasonal trends and talk to customers.

Reviewing 2023 and setting goals for 2024

Thu, 22 Feb 2024 00:59:00 GMT

The new year is a new beginning. If you are a business owner, this is often the time of year when you reflect on where you are at, and think about your business goals for the year ahead.

Setting goals is an essential part of personal and professional growth. These could be big goals, or even setting out a plan to achieve some more mundane (but equally important) projects. Whether that is getting paid faster, reassessing expenses, or bigger things like automation of processes, or new markets. You may be looking to expand your business or create more time for yourself.

Having a clear vision and actionable goals can help you achieve your long-term plans. Here are some tips to get you started:

Envision your future

Reflect on what you’d like to achieve and how your business can make those aspirations happen. Consider where you want your business to be in the next five or ten years. Having a clear endpoint in mind will make it easier to set goals that align with your vision.

Set measurable goals

Vague goals can be challenging to track and evaluate. Instead, focus on setting goals that are measurable. Think about the key metrics you already monitor in your business and how you would like to see them improve. For example, aim for a 3% increase in net profit year-on-year, a 2% reduction in expenses, acquiring two new customers per month, or grow your prospect database by 50%. If you set specific targets, you can easily track your progress and make adjustments as needed.

Develop a plan for each goal

Once you have identified your goals, it’s crucial to create a plan of action to achieve them. This can be as simple as jotting down your ideas or engaging in a brainstorming session with your team or advisors. Having a well-defined plan in place will help you stay focused and motivated to follow through.

Monitor your progress regularly

It’s essential to regularly check in on your progress towards your goals. Set reminders on your calendar or align your monitoring process with your invoicing cycle. By consistently evaluating your progress, you can identify any areas that need improvement or come up with fresh ideas to help you reach your targets.

Celebrate your achievements

Celebrating milestones along the way is crucial for maintaining motivation and momentum. Plan a reward when you achieve a significant goal. It could be treating the team to a morning tea, having a day out of the office together, or planning an event for the end of the year. Choose something that brings you joy without breaking the bank.

Not sure how to get started?

We can help you with planning and tracking the information you need to measure your progress.

Setting goals is just the first step. By implementing these tips and staying committed to your vision, you can turn your long-term plans into reality.

Some tips to make your business more sustainable

Wed, 13 Dec 2023 00:59:05 GMT

There has been a huge shift towards sustainable businesses practices recently with people choosing to spend their money to support greener businesses. A 2021 global sustainability study found that:

• 63% of consumers in the last five years have shifted their spending toward being more sustainable (especially the younger demographic)
• 50% of consumers rank sustainability as a top 5 value driver.
• 34% of consumers are willing to pay more for sustainability, with a higher share of Millennials and Gen Z (those 40 and under) prepared to pay more.

The study noted that sustainability is become an expectation rather than the exception. However, consumers are becoming aware of greenwashing where companies spend more time and money on marketing itself as environmentally friendly than on actually minimizing its environmental impact so it’s important to actually make environmentally friendly choices, rather than merely being perceived as doing so. This might require your business to invest in new systems, packaging or products in the long term. In the short-term, here are 5 quick ways to help you become more sustainable.

1. Reduce your plastic waste

Is your business still buying single-use plastics? Whether it’s pallet wrap, courier bags, disposable cups or those coffee pods, there’s a quick and easy sustainable swap that you can make right now.

2. Recycle your old electronics

Old printers, phones and laptops can often be found lying around the office – along with a huge tangle of cables. Tidy up your space and help the environment by finding your local e-cycling centre and making the best of your outdated electronics.

3. Offset your carbon footprint

You can use an online calculator to estimate your business’s carbon emissions, then buy carbon credits to the same value to offset your emissions.

4. Use less paper

Embrace digital technology to cut your use of paper; switch to an electronic signing service so you no longer need to print and scan contracts or financial documents. If you must print something out, use both sides of the paper for internal documents. Buy recycled paper and recycle the paper waste your business creates.

5. Choose sustainable client gifts

Instead of sending hampers, consider a charitable donation – you could let the client choose from a list to get them engaged. Or send a potted plant, adopt an endangered animal, or pick an eco-friendly gift basket.

Employing extra staff over the summer period

Tue, 28 Nov 2023 00:59:08 GMT

As we head into the Christmas rush, you might need to employ extra staff to help you get through this busy period. However, don’t get so busy that you miss something in your new staff members’ contracts. There are three key rules to ensure your employees are treated fairly and according to the law:

1. All employees must have a signed employment agreement before they start work.

• Give new employees a few days to read, understand, and ask questions before they sign the contract.
• The contract must include certain clauses, including the type of employment (fixed-term, casual, or permanent), duties, pay and other benefits, the place and hours of work, how problems can be resolved, etc.
• Use templates in New Zealand Workforce Manager or Employment Agreement Builder to help you put together a legal employment contract. It covers what you must do by law and sets out common mistakes made by employers and how to avoid them. It takes about 30 minutes to complete and you can save it part way through.

2. All employees have minimum rights that are set out in law, including:

• Minimum wage: Employees must be paid at least the minimum wage; the current adult minimum rate is $22.70 per hour.
• Public holidays: Unless written in the contract, employees don’t have to work on public holidays. If they work on a public holiday, they must be paid time and a half, plus if it is a normal workday for them, they also get an alternative day off.
• Health and safety: Employers must provide appropriate training and information for workers so that they can work safely.

3. Employee work hours must follow the legal rules.

• Work activities paid for by the employer also include before and/or after-hours tasks, such as team meetings, opening and closing the business, cleaning and tidying up, on-the-job training, and product familiarisation.
• It is illegal for employers to offer employees zero work hours and expect employees to be available without reasonable compensation.
• Work hours must include proper rest and meal breaks. For example, an employer who works an eight-hour shift gets two paid rest breaks and one unpaid meal break.

We’re here to help, so if you have a question or are unsure about any employment issues, give us a call. and delete this default text and start typing your own or paste your own from a different source.

Five apps to help you digitise your farm

Tue, 21 Nov 2023 00:59:11 GMT

When you think of apps, you probably think of social media apps, but there are apps designed specifically for agriculture to help you streamline your farming processes. As a farmer, you can benefit from these apps that are tailored to your specific needs and challenges, such as managing crops, livestock, weather, markets, and more. By using these apps, you can optimize your farming operations and increase your efficiency and profitability.

Here are five apps you can use to help digitise your farm.

Xero

When you’re out and about on the farm, it’s helpful to be able to manage accounts on the move. Xero helps you to invoice and reconcile accounts on your phone and keep track of key financial information in a simple format.

Figured

Can help farmers navigate crucial tasks such as forecasting, financial management, wage budgeting, repairs, and maintenance.

Cloud Farmer

Allows you to ditch the notebooks and mountains of paper. Stay organised with everything you need in one place. Save time by entering farm records such as paddock records, stock records, agrichemical inventory, repairs and maintenance and a jobs list.

PaySauce

Simplify business calculations and let employees file their timesheets digitally. PaySauce also helps with record keeping and automates staff payments.

BrightHR

Helps farm owners and managers take care of staff administration, worker contracts, sick leave, holiday requests, and enables farmers to track staff hours.

If you’re not a fan of tech, remember you don’t need to be a tech expert to use the apps – they have simple and easy to use interfaces and have been designed for people working on a farm. Digitisation can help you save time, money and reduce stress!

How tax deductible is that gift you’re giving your client?

Thu, 16 Nov 2023 00:59:12 GMT

It’s that time of year again, and the season of giving is upon us. While the fun part is thinking about parties and presents, take a moment to remind yourself about the tax rules when giving gifts to clients. Some gifts will be fully deductible while others will be only 50% deductible.

If the gift includes food or drink – 50% deductible

The general rule of thumb is that if the gift consists of food or drink, you can only claim 50% of the expense as a tax deduction. If you’re giving out gift baskets or hampers and some of the contents are food or drink, but not all, the food or drink items are 50% deductible, and the other gift items are 100% deductible. When you come to claim the tax deduction, you will need to apportion the expense between the 100% deductible items and the 50% deductible items. And you will need to make a GST adjustment for expenses which are 50% deductible.

Examples of gifts which are 50% deductible include:

Bottle of wine or six pack of beer
Meal voucher
Basket of gourmet food
Box of chocolates/biscuits
Christmas ham

Examples of gifts which are 100% deductible include:

Calendars
Book or gift vouchers
Tickets to a rugby game (but not corporate box entertaining)
Movie tickets
Presents (but not food or drink)

If you’re unsure if your client gift(s) will be partially or fully tax deductible, give us a call and we can advise you.

Thinking of succession as a transition

Wed, 08 Nov 2023 00:59:15 GMT

As New Zealand’s population gets older succession planning becomes more important. Succession planning is not only about preparing a business for sale, but also about ensuring its continuity and legacy. This is especially true for family-owned businesses, which face the challenge of balancing family and business interests.

Different family members may have different expectations and opinions on succession, and about the timing and manner of this change. Most of the time, family values underpin these views, and this makes the transaction very personal. It is a complex and sensitive process that requires careful consideration of various perspectives and preferences within the family. However, creating a plan with equality and fairness often results in compromising the business in some form and there’s no simple “one-size-fits-all” approach.

What if we think of succession as a transition?

Often the focus is on the transaction – the business or farm is simply sold to the next generation. However, this can result in an established business with new owners who might not be fully equipped with the skills to move the business forward successfully. Rather than thinking of succession as a transaction, if you think of succession as a transition, then one phase of the transition could focus on the evolution of skills and capability within the business. This would also reduce the complexity and increase the focus on what’s required for the future of the business.

Things to consider are:

· Documenting the vision and strategy of the business so that successors/family members understand where the business is heading.
· Growing your business, as this opens up options for succession.
· Having a structure that holds management accountable for the decisions made in a business.
· Outlining the roles and responsibilities within the business as this provides pathways to nurture and develop successors/family members for future succession/transition.
· Seeking professional support to help manage family dynamics.

We have the expertise to help you with all aspects of your transitional planning and processes.

How to start your succession plan

Mon, 30 Oct 2023 00:59:16 GMT

You’ve created your company from nothing, put years of blood, sweat, and tears into its success, and now you’re thinking what next? It could be that you’re thinking of retiring or you want to move on to your next venture. If you don’t already have an exit strategy, now’s the time to think about succession planning.

Succession can mean handing over the reins to a new generation, or having someone in the wings ready to buy you out. Either way, you need a plan on how you’ll extract yourself from your business.

The first thing to ask yourself is, what needs to happen to prepare your business for handover? This could include:

A complete analysis of financial and non-financial matters.
Conducting thorough due diligence of business risks.
Removing obstacles that might hinder succession planning.
Looking at ways to enhance your company’s value (if you’re preparing for a sale)

Once you’ve identified what areas need work, the second thing is to create a set timeline of what happens and when. The most successful succession planning happens over years, rather than months, but it can be done in a shorter time frame, if necessary.

Passing the baton to family?

If you’re planning to hand over your business to a family member this still requires careful planning to ensure everyone in the family is happy with what happens next.

Before you develop your plan, gauge what different members of your family want from the succession process. This can help families work out how they feel, what different people want, what the business needs to thrive, how much money and equity is changing hands, and who gets what.

Then, create a family succession plan that recognises and accommodates the various needs, goals, and objectives of each family member. This will help avoid creating ill-feeling or upset, and takes everyone into account.

Selling the business?

You might think that selling is a golden ticket to a dream retirement, but there are a few things to think about first. There are many businesses available for sale at any given time, what makes yours different?

As mentioned above, you need to do an analysis of the business. You’ll also need to get the business valued for sale. This should be by an independent party, as there can be a gap between what you think it’s worth and what someone is willing to pay. Do this sooner rather than later so you know what you’re likely to get so you can identify areas to improve to make your business more attractive to potential buyers.

Succession is a journey

Analysing and improving your business is the start but you’ll also need good advisors to help you in this journey.

Get in touch with us to see how we can help you with your succession plan.

Values are Important

Sun, 22 Oct 2023 00:59:17 GMT

A couple of months ago, the staff from our three offices got together for a day in Te Aroha to plan our strategy for the future. As part of this exercise, we split into groups to discuss what our primary values should be when dealing with clients and others.

We decided that we should demonstrate five key values. We wanted to be:

valuable,
genuine,
interested,
relevant and
supportive.

Following on from this, we have recently installed ‘values boards’ in each of our offices. They’re a useful way of reminding us that we need to display these values in our working lives. They’re also pretty good rules for life in general.

Is your business keeping you awake at night?

Tue, 10 Oct 2023 00:59:18 GMT

Owning a business is stressful, especially if you’re doing it by yourself and don’t have someone to bounce ideas off. You can feel isolated, that you can’t ask for help, or don’t know who to ask for help. If aspects of your business are making you feel stressed or interfering with a good night’s sleep, these tips can help you reduce your stress levels.

Some tips for reducing stress

Schedule time for yourself in your diary.

Whether you like hitting the gym, swimming, walking, or daily meditation, clearing your mind with exercise and time out will help you transition from ‘work’ to ‘home’ mode. Prioritising the things that make you happy will also help you be more effective at work.

Make a plan

Whatever the issue or stress you’re facing, write down the goals or actionable items you need to achieve to make it happen. Break the longer-term goals down into short term goals/actions. Set time aside each week to check in and see how you’re tracking to achieving your goals, so you can make adjustments where necessary.

Set boundaries

You don’t have to be everything to everyone, nor can you be everything to everyone. Make a decision on what are the things that matter most to you and prioritise those. You don’t have to say yes to every invitation, job, or commitment, so figure out which ones you do want to do and let the others go. Only take on commitments that you’ll really enjoy doing, and remember, ‘No’ is a full sentence – an explanation is not necessary. Exercise using it more!

Celebrate your wins

Celebrate all your wins – doesn’t matter if they’re big or small. At the end of each week/fortnight/month, write down your biggest win. Then, on the days when you’re feeling stressed and things seem overwhelming, you can look back at that win for better perspective.

Turn off your phone at night

If you struggle to resist the urge to reply to emails or to ‘getting a head start on tomorrow’ – turn your phone off or put it in a different room. Use the time to do things you’ll enjoy such as reading a book, listening to music or a podcast, or spending time connecting with family and friends. You might need to invest in an old school alarm clock, but leaving your phone out of the bedroom will help you relax and get a better night’s sleep.

If you’re needing a sounding board for your ideas, or for challenges that you’re facing, get in touch with us to discuss how we can help you navigate these. Sometimes a problem shared is a problem halved. At the very least, you’ll get a new perspective on the situation which could be all you need to make progress and reduce your stress.

You can no longer ‘average’ wages over a season – are you minimum wage compliant?

Sun, 01 Oct 2023 00:59:20 GMT

Ensuring that you’re paying your workers the minimum wage is simple if they work an 8-hour day, 40-hour week, 80-hour fortnight. But, if your business is seasonal where peak seasons mean longer hours or irregular hours, you need to check you’ve got the systems in place to ensure you’re paying your workers at least the minimum wage. Even if you’re paying above minimum wage, it pays to check you’re fully compliant with minimum wage requirements.

From 1 April 2023 the minimum wage rates for adult workers became:

Hourly: $22.70 ($18.16 for starting-out workers/trainees)
Daily (based on an 8-hour day): $181.60 ($145.28 for starting-out workers/trainees).
Weekly (based on a 40-hour week): $908 ($726.40 for starting-out workers/trainees).
Fortnightly (based on an 80-hour fortnight): $1,816 ($1,452.80 for starting-out workers/trainees)

Averaging out wages

In the past, some employers have averaged wages out over busy and quiet times. However, this is no longer legal. Under the current law, the maximum period wages can be averaged over is a fortnight (and there are conditions that must be met). The practice of averaging wages out over a season, or for longer periods of time, is no longer allowed.

Providing employee benefits

If you provide your employees with accommodation or other benefits, you can count some of these benefits as ‘wages’ when you’re calculating wages. However, the Minimum Wage Act only allows you to count some of these benefits as ‘wages’ not all of them. You can mutually agree with your employee(s) in advance what agreed amount will be deducted from their wages, but The Wages Protection Act means this MUST be in writing.

Keeping employee records

You are legally required to keep records of hours worked, wages paid, and all holiday and sick leave, for all employees. Your records must be detailed enough to show that you’re complying with minimum employment requirements including minimum wage requirements. The agreements with employees about accommodation and other benefits should be documented and should be separate from employment agreements.

Need help checking compliance

If you want to be sure you’re complying with the minimum wage requirements, get in touch with us. We can check your records and the systems you have in place to ensure you’re correctly calculating and paying the minimum wage to your workers.

Should you buy or lease your equipment?

Fri, 29 Sep 2023 00:59:21 GMT

You need new plant or equipment for your business but what’s the best choice – to buy it or to lease it? There are some basic considerations that can help you weigh up the options.

The advantages of buying

Buying gives you certainty and ownership, at a higher upfront price, but a lower total price. Owning an item of plant or equipment gives you unrestricted use for the lifetime of the item. You can alter it to suit your business, and if you no longer need or it, you can sell it to free up some cash. The full cost is paid up front, so you have no ongoing payments, and there may be opportunities for tax depreciation.

When equipment lasts for a long time and maintains its value, ownership can be a particularly good choice. Overall, the total price of ownership is usually lower than the total cost of leasing the item.

The advantages of leasing

Leasing tends to give you more flexibility, at a higher cost. It spreads out the cost of an expensive item – you don’t need to save or borrow the purchase price and instead you make regular payments. You can return a leased item if it’s not working out, or upgrade to a better model as your business grows.

If the equipment or plant is something that quickly becomes obsolete, that you’re likely to upgrade, or that you’re not totally certain is right for your business, leasing could be ideal. While leasing is generally more expensive across the lifetime of the item, it also frees up your money to invest in other areas of the business.

Running the numbers can help you find the right decision

The decision to invest in new plant or equipment can be a tricky one, but we can help. We can tally up the upfront and ongoing costs, and weigh these against the economic benefits you might get from the new equipment. We will consider your cash flow, the cost of borrowing, and sales projections, so you can make an informed choice.

Drop us an email or give us a call – we’re here to help

Ten ways to improve business performance

Thu, 21 Sep 2023 01:59:22 GMT

If you’re looking for ways to improve your business’ performance, there are various strategies that will help you achieve your goals in each quarter. Here are ten different ways you can improve your business’ performance.

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 administration and delegate roles and responsibilities.

2. Say goodbye to bad customers

Where possible, reduce your pain points by getting 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

Once you’ve freed up some time and headspace, make sure you ring-fence this time, key people, and money for future initiatives. Redeploy with passion!

4. Get a plan

Don’t fly blind with your business, create a business plan so you know where you want to go and how you’re going to get there. If you already have one, when’s the last time you reviewed it? Take time to do this and once you have your plan (or revised plan), put that plan into motion.

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 (and yourself) a favour and free up their futures.

6. Use technology

Technology can help you decrease administration, improve communication, and improve reporting and accountability. Whether it’s for team communication, automating a process, or making your processes more efficient, utilise the available technology to free up resources to use in other parts of your business.

7. Keep on top of the numbers

Do you have enough information to know what’s going on in your business – especially financially? Are you monitoring your business cash flow and seeing the emerging trends? We can help you find out what measures you need to monitor regularly, so you can run your business more effectively.

8. Be different

Don’t be afraid to be different and break the mould. Position yourself to attract your ideal customers who’ll turn into engaged clients. By choosing the right position for your business, you will also draw in the right staff who will add value to your business.

9. Deploy marketing

Create a simple marketing plan to increase reach and penetration. Allocate a budget to take this seriously. Start by making sure you really understand your customers, what they want, and how you can help them meet this. Don’t forget about your existing customers or clients, it’s easier (and cheaper) to retain and re-engage existing clients than having a constant revolving door of new customers who need to learn your processes and what you offer.

10. Take a break

Don’t underestimate the value of taking time out away from your business. The break from your business allows you to look at things from a fresh perspective, and allows you to come back refreshed with new enthusiasm and inspiration for your business and where you want it to go.

We can offer you customised advice for your business, by assessing your business and recommending actions that can help your business thrive. Get in touch with us to see how we can help.

What you need to know about provisional tax

Sat, 16 Sep 2023 01:59:24 GMT

Provisional tax payments are payments you need to make if you paid more than $5,000 tax in your last income tax return. Think of provisional tax as paying progress payments on next year’s income tax.

For example, if you earned $100,000 from your business, the income tax on that income would be just under $24,000. This can be a lot to pay all at once. Provisional tax breaks your income tax lump sum into instalments that are paid throughout the year, smoothing out your tax burden.

How does provisional tax work?

Provisional tax splits up your income tax into payments over the year. The frequency of payments varies from as little as twice a year (28 October and 7 May) or as often as monthly.

Your due dates will depend on whether you are registered for GST and which payment option you choose. There are four payment options available:

standard option;
estimation option;
ratio option; and
accounting income method (AIM).

Talk to us about the options and which one might be right for you.

Your provisional tax payments may not be precisely correct at the end of the tax year. You may have paid too much (if you’ve earned less than expected) or too little (if you’ve earned more). Overpayment will result in a tax refund, while underpayment will mean you still owe more to Inland Revenue at the end of the year.

If you think that your income is going to be substantially more or less than last year, then talk to us as we may be able to estimate a more accurate figure. We can help you figure out how to determine your payment option as well as calculating your payments.

We can help you navigate provisional tax

We can provide you with tailored advice to navigate provisional tax. Get in touch, we’d love to help you.

Are you undercharging?

Wed, 06 Sep 2023 01:59:26 GMT

Costs have been rising so it may be time to re-think your pricing, but how can you tell if you’re undercharging for your services? It can be particularly hard to tell if you’re a contractor or in a niche industry.

Here are five signs that you might be undercharging:

1. Nobody ever questions your quotes

When you provide new clients with quotes or invoices, do they accept the quote or invoice without asking any questions, requesting a breakdown, or wanting a discount? It’s possible they’re delighted to be getting such a great deal.

2. You’re run off your feet, but you can’t afford to get help

When you’re working yourself to the bone, but there’s not enough money left over to employ someone to help you, your prices are too low.

3. Your prices have been the same for two years or more

In most industries, prices increase slightly each year. If you leave your prices flat for too long, you’re doing yourself a disservice, and then, if you increase your prices to match others, it’s a big hike for customers. It’s a good idea to review your pricing each year.

4. You’re overbooked

Unless there’s a shortage in your industry, if you’re overbooked and can’t take on new clients, it’s likely you need to raise your prices.

5. Clients don’t treat you as well as they should

If you feel like your clients have more say than you do and that they’re taking you for granted, it could be that they don’t value you because your prices are too cheap. If they don’t see your time as valuable, they’re more likely to muck you around.

What should you be charging?

It can take a little time to find a ‘sweet spot’ for your pricing. It pays to do some research on your industry, ask around and find out what your competitors are charging. We can help with this as we have clients in similar industries so we might be able to give you some indication of typical fees, so give us a call or send us an email.

How Tax Pooling works

Fri, 01 Sep 2023 01:59:27 GMT

Tax pooling is an IRD-approved service that provides an alternative to paying provisional tax on the standard dates. Tax pooling was established by the IRD in 2001 and is designed to help small to medium business pay provisional tax when it suits their business cash flow and reduce tax liability risk.

How does it work?

It works by businesses paying their provisional tax into a ‘pool’ rather than paying it directly to the IRD. When they know what they need to pay in provisional tax, they then transfer this out of the pool. If the business has extra funds in the pool, they can opt to onsell any extra to others (at a higher rate) or if you’re a bit short, you can buy off someone else.

Is tax pooling right for my business?

We work closely with Provisional Tax Finance for tax pooling. They are an approved IRD service and the rate is up to 30% cheaper than the rate the IRD would charge you. It’s not the best option for every business, and it may be easier to pay the IRD on the due dates and remove any risk of incurring ‘Use of Money Interest’ (UOMI – which requires taxpayers to pay interest when taxes aren’t paid on time and applies to most tax obligations). However, depending on your circumstances, it may not be practical to avoid UOMI and so tax pooling could be a good option.

If you’re keen to learn more about tax pooling or if it would suit your business, then get in touch and we can work out the best option for your business.

Keeping your cash flow strong in tough times

Sat, 26 Aug 2023 01:59:29 GMT

During tough economic times, small businesses can be particularly vulnerable to tight cash flow.

When sales are slow, there are still overheads and salaries/wages that need to be sorted. Pre-planning and being proactive can help you weather tighter economic periods and allow you to continue to thrive.

Make sure you have a clear picture of your payroll, and any other planned expenses that will need to be accounted for.

If there’s even a possibility that there could be a shortfall, it’s essential to meet this head-on. Whether this means talking to your supplier or creditors to figure out an arrangement, or compromising on other business outgoings, you must make a plan to ensure that the business, and your staff, won’t suffer.

Minimise the stress of cash flow

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 inventory – How much inventory do you hold – can you hold less inventory so less cash flow is tied up? Can you find a supplier locally to avoid the shipping costs or discuss alternative products that allow you to reduce expenses?

Review your costs – 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 schedule a regular time to check on your expenses, 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 cash flow is tight, make sure you have conversations early so you have everything in place to see you through.

If you’re concerned about your cash flow let us know. We can help you with strategies to protect your business for the long term and help you alleviate cash flow worries.

Gifts to volunteers – are they taxable or non-taxable?

Tue, 15 Aug 2023 01:59:30 GMT

We often see non-profit community organisations making “gifts” to people who provide volunteer labour to the organisation.

To the extent that these gifts are a reasonable reimbursement for actual costs incurred by the volunteer in providing their services, they are not taxable to the volunteer. However, any excess paid to a volunteer above the reimbursement level will be taxable and must be included in the volunteer’s income tax return.

If you’re making non-taxable reimbursement payments to a volunteer, the organisation should ensure that there is evidence to support the calculation of the amounts paid. Organisations also need to be aware that regular payments to a volunteer above the reimbursement level may constitute an employment relationship, which will have significant implications for the organisation as an employer.

We’re happy to discuss any scenarios with community groups who are unsure of the status of payments made to volunteers.

How to stay competitive in your industry

Fri, 23 Jun 2023 01:59:32 GMT

Making your business stand out from the rest requires your business to become competitive. Whether you’re a big or small business, you’re still competing for the same customers so it’s vital you’re staying ahead of what your competitors are doing so you can retain your customers. Here are some ways you can remain competitive in the current business environment.

Give your customer a personalised experience.

How a customer feels about your business, and the service they receive is vital. A happy customer will continue to buy from you, so you need to deliver a good customer experience, make the experience easy for your customer, and go the extra mile. Find out what your competitors aren’t doing, and what sets your business apart from the rest and focus on that. Use customer buying habits and feedback to help you tailor the experience.

Find out what your competitors are doing.

Finding out what your competitors are doing can help you improve your competitive edge. Gathering information about your competitors helps you to improve what your business offers. Identify your competition, find out what they’re doing and how you can do it better in your business.

Make sure you’re selling a high-quality product or services.

We’ve all bought something cheaply that broke a short time later, so make sure the product or service you offer will get you repeat business. The easiest way to do this is to offer a good, high-quality product or service. Your product quality goes hand-in-hand with your price point – make sure you’re selling your product or service for a price that your customers see as good value. It’s a good idea to regularly review your prices against your competitors as it can give you an idea of what people are willing to pay for the same products or services that you offer.

Talk to us about your business

The competitiveness of your business ebbs and flows over time. However, the more proactive you are, the more you can do to preserve your advantage and keep your business ahead of your competitors. We can help you identify the risks, spot the opportunities, and amend your business strategy to remain competitive, stable, and profitable in the future.

What can you claim as a tax deductible expense?

Thu, 25 May 2023 01:59:34 GMT

We’ve all heard of tax deductible expenses – some people think everything’s tax deductible, others are extremely cautious and think nothing is tax deductible – but what is actually tax deductible? As someone running a business, you need to know which expenses are tax deductible and which are not. Here are some common examples where confusion can arise.

Clothes

Clothes are only tax deductible if it’s a uniform or safety gear. Clothes that you wear to work, that you could wear elsewhere (even if you don’t), are not tax deductible. A good rule of thumb – anything that could potentially be worn for other purposes is not tax deductible.

Car expenses

If you use your vehicle for work, then vehicle expenses are tax deductible. However, your commute from your home to work is not tax deductible. If the vehicle is solely used for work, you can deduct all the costs such as registration, maintenance, and insurance costs. If you use your vehicle for both work and private use, you can only claim a portion.

Meals on a business trip or shouting clients

Entertainment expenses are something that trips a lot of people up. Entertainment can be food and drink, social events, trips, accommodation, privileges, musical, sporting or theatrical events, and freebies. Some entertainment expenses are 100% deductible, and some are only 50% deductible. This can be confusing, so get in touch with us to help you work out what you can claim.

Working from home

If you work from home, you can claim a portion of household expenses, including:

rates
electricity
home and contents insurance
rent, or the interest portion of your mortgage repayments.

The amount you can claim varies depending on how much of the house you use for your business. We can help you calculate this and ensure the right portion of expenses are claimed as a tax deductible expense.

Subscriptions

Some subscriptions are tax deductible. If you subscribe to work-related magazines, journals, or professional association memberships then these are all tax deductible.

Mobile phone

If you have a dedicated business phone (mobile or landline), it’s 100% deductible. If you’re using it for both work and non-work activities, then it will be partially deductible.

Need more specific advice?

You’re an expert at what you do, we’re the experts when it comes to tax. If you’re unsure if something is tax deductible, then get in touch with us – we can help you sort out your tax questions

New Tax Year – New Tax Rules

Wed, 05 Apr 2023 01:59:35 GMT

With a new tax year often comes a new set of rules or changes to existing tax laws that all businesses need to be aware of, two of the key issues coming effect in 2023 relate to GST and minimum wage changes;

GST Laws

New GST laws come into effect in April. The Government has modernised rules for invoicing and record-keeping, and the requirement to use tax invoices is being replaced by a more general requirement to provide and keep certain records known as ‘taxable supply information’.

From April, you no longer need to keep a physical copy of a tax invoice, a credit note or a debit note. Your taxable information supply can be digital – included in your accounting software, in your transaction records or in contractual information.

New wording – you no longer need to label your invoices as ‘Tax invoice’. The new wording is ‘taxable supply information’, but you don’t need to specify that on any invoices. It’s just the Inland Revenue’s way of explaining that certain information needs to be included on the documentation – you don’t need to make any alterations.

The changes were necessary to make e-invoicing legal, so without any actual paperwork or even a PDF moving around, your system-to-system invoices are still valid.