How anti-money laundering legislation impacts you

  If you’ve seen the film The Wolf of Wall Street, you’ll be familiar with the concept of money laundering – an illegal process where ‘dirty money’ received from criminal activities is passed through legitimate businesses and made ‘clean.’ In response to a growing number of laundering incidents in New Zealand, the government has made changes to the law, which now affect accountants and small businesses like yours. As of…  Read more

Financing business growth with provisional tax

  There are several options available when it comes to accessing money to invest in your business. However, did you know that provisional tax payments are also a source of finance? Tax Finance, an option offered by an IRD-approved tax pooling provider such as Tax Management NZ (TMNZ), lets you free up working capital by deferring a provisional tax payment to a later date, without incurring IRD interest of 8.22…  Read more

Grow with the (cash) flow

  Steady cash flow is the fuel that powers your business, but when you’re busy doing a million things at once it can easily slip to the bottom of the priority pile. Here are some tips to keep the cash flowing while you’re growing: Invoice quickly – good debtor management is crucial, so send invoices quickly, ensure your payment terms are clearly outlined and offer discounts for prompt payment. Make…  Read more

My Food Bag shares growth tips and tricks

  Cecilia and James Robinson founded My Food Bag in March 2013 with Masterchef winner and dietician Nadia Lim, her husband Carlos Bagrie and former Telecom chief executive Theresa Gattung. With a concept based on delivering a week’s worth of recipes and the ingredients needed to make them, it’s no surprise that within three years the company reached $100 million in annual revenue and had 30,000 customers across 14 cities…  Read more

Handling your growing pains

Expanding your business can be exciting, but if you grow too fast – and without adequate planning – you could face major problems. Besides the uncertainty of how long the growth period will last, it’s common to lose focus on some of the factors that play a key role in the success of your business – your people, capital, forecasting and legislation that can affect your daily operations. Avoid getting…  Read more

Polite ways to sack a client

Ask anyone who’s been self-employed for a few years.  By and large, the vast majority of clients are great.  The less than ideal ones, however, can become a serious liability. Problem clients come in all shapes and sizes.  There are the late payers and scheduled “no shows”.  The ones who are demanding and don’t respect your time. Remember, just because you need to earn a profit doesn’t mean it’s in…  Read more

10 quick growth tips for your small business

Small businesses can grow in boom times as well as periods of difficulty by working smarter and taking advantage of opportunities. Put these following effective tips into practise to help grow your business. 1. Utilise new technology Modern technology can save you time, improve productivity and reduce your operational costs. Make use of Facebook, Twitter, Google+ and other social media tools to market your business. Dropbox is a cloud-based service…  Read more

How to get your business noticed on a shoestring budget

Very few small businesses have a huge marketing budget to work with.  Fortunately, there are a number of simple, free and low cost ways to get the word out about your company that are also highly effective. These tips will show you five simple ways to promote your local business without breaking the bank. Get free press Advertising rates for local newspapers and radio stations can be way too costly…  Read more

Common Homeowner’s Insurance Terms That You Should Know

While homeowner’s insurance isn’t required by law, it is often required if you are taking out a mortgage in order to purchase your home. There are a lot of things that you need to think about when purchasing homeowner’s insurance, including what types of coverage you think you need. This can be a challenging task, especially if you are not up to date on your homeowner’s insurance terminology. The following…  Read more

Ring-Fencing of Residential Rental Property Losses

Inland Revenue are proposing the introduction of a loss ring-fence for residential rental property losses. What is Ring-Fencing? Essentially ring-fencing means that losses from a trade can only be offset against income from the same trade. The proposal is for the loss ring-fencing rules to apply on a portfolio basis.  This means that investors would be able to offset losses from one rental property against rental income from other properties…  Read more

Business Health Check

Check your expenses and save Know how much you’re spending on printing, advertising, and taking clients out to lunch?  Or does it come as a shock when you do your GST returns? If your company is growing, your expenses may too, but in some cases it could be a lack of attention causing spending to creep up. Take a few minutes this week to track your expenses and see where…  Read more

What changes will affect my business?

#1 Extending perpetuity laws At the moment, when you set up a family trust, it has a time limit of 80 years.  Then you have to wrap it up and distribute the assets.  The new legislation suggests extending it to 125 years, which may involve significant succession planning adjustments. #2 More information access for beneficiaries In its draft form, the Trusts Bill proposes to give most trust beneficiaries the legal…  Read more

To claim or not to claim?

Planning a summer business trip with a personal holiday tacked on the end?  Renting out the bach and unsure what expenses can be claimed? Whatever your situation, we want to make sure you’re getting the expense claim tax break you’re entitled to. Here’s the lowdown on legal costs for trust admin, travel expenses, mixed-use assets and sponsorship. Facing a legal bill for your business or trust?  Good news. Generally speaking,…  Read more

Changes to Mileage Rates and Claims

The rules for mileage claims have changed and been applied from 1 April 2017. The new rules allow the choice between using the cost method (which is based on keeping records of actual costs incurred) or a kilometre rate method, which has replaced the mileage rate method and must be elected to be used. The Inland Revenue kilometre rate has two tiers.  The tier one rate applies for the business…  Read more

Minimum Wage Rates Increase

From 1 April 2018, the minimum wage rates increased as follows: Adult minimum wage increased from $15.75 to $16.50 per hour; Starting-out minimum wage increased from $12.60 to $13.20 per hour; and Training minimum wage increased from $12.60 to $13.20 per hour. These minimum wage rates apply to employees aged 16 years or over. If you have any questions or would like further information, please feel free to contact us.  Read more

Tips for choosing a business credit card

It can be a challenge for new business owners to find a bank that will approve them for even a small business loan.  Most will see a young company as too high a risk to qualify for corporate lending. A credit card can serve as a short term solution for small scale financing, offering entrepreneurs a “foot in the door” with a lender.  Think of it as a chance to…  Read more

Why your business needs you to say no

Being open to new possibilities is a positive trait shared by most entrepreneurs—but saying yes to all the people you meet and opportunities that come your way can get you into trouble. When we overcommit—especially when we take on projects that don’t actually benefit our business—our stress can hit the roof.  It’s much hard to be productive when we’re feeling burned out and resentful. One of the most impactful changes…  Read more

Petrol or Diesel – Which way should I go?

Which option will be more economical, petrol or diesel?  This is a common question for business owners. There is no clear answer to this question. A lot of factors other than the fuel price at the pump, affect which option would be best for your business: Size & type of vehicle How much mileage you do in a year Purchase Price Registration Costs Convenience Noise and performance, etc Generally diesel…  Read more

How to sell more to existing customers

If growth is your primary goal, take note of these two essential sales strategies: cross-selling and upselling. Why?  Because it’s much easier to sell to existing customers than to acquire new ones.  According to Marketing Metrics, the probability of selling to an existing customer is 60 to 70 percent, while the likelihood you’ll sell to a new prospect is just 5 to 20 percent. Some entrepreneurs use the terms “upselling”…  Read more

Finding money within your business

Most small businesses experience cash flow problems from time to time and urgently need working capital.  Many business owners immediately think of the bank or loans when they’re short of money. But there are other resources you can tap before you ask for that expensive overdraft or overdraft extension.  The money you need might already be there—locked up in inventory, assets or your debtors’ book. You can often free up…  Read more

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