Business Growth Category

If you run a farming business, your income can experience some hard knocks with seasonal peaks and troughs, bad weather or other extreme events. Have you considered income equalization to help manage your tax and take some pressure off cash flow? To ease financial pressure, it might be worth considering the income equalisation scheme available for farmers, fishers, growers and foresters. In challenging times, it may help you manage your tax obligations as well as everything else. Income equalisation, including the environmental restoration scheme, can even out fluctuations in your income by spreading gross income from year to year. To find…

The cost of building activity has been on the rise, with the price for the construction of new dwellings increasing by 18% in the March 2022 quarter (compared to the March 2021 quarter) according to the Stats NZ Consumer Price Index. The higher demand for building activity in hand with supply-chain delays and higher labour costs are creating greater liabilities for business cash flow to cover. Construction and Contracting companies need to accommodate the increasing costs to maintain a positive cash flow for their business. This may require a review of the current cash flow management systems in place. Cash

Small business budgets are empowering. They give you the knowledge and insight to eliminate wasteful spending and get to profitability faster. When setting a business budget, you need good numbers. Don’t guess at what’s coming in and what’s going out. You could be making assumptions that just aren’t true. Take the time to look into your accounts and dig out the real figures. It might sound like hard work but it’s worth it. The numbers that matter when setting a budget So what are the key figures to consider when setting a budget? Rather than looking over large sets of…

There are so many priorities in the working day, it can be hard to stay focused on what’s happening with your business cash flow. We all know the basics: if your business runs out of cash it won’t be able to operate. And if you aren’t able to spot trends and possible bottlenecks ahead, it can compromise your long-term investment and development plans. It undermines your ability to earn returns on any cash surpluses and trim costs to avoid cash shortages. How often you forecast cash flow depends on the soundness of your business. If your business is struggling, you…

If you want to stabilise your finances and grow the business, working to strict budgets becomes a necessity. Managing the cashflow twists and turns of a project can be hard work. But it’s easier to do when you have an agreed budget and can track your spending and performance. So, what’s the best way to stay in control of the budgets you’ve set? And how can you manage your cashflow position to make sure there’s always enough cash to fund the project? Understand the costs of each project To keep on top of costs, overheads, staff expenses and general spending,

The start of a new financial year is a great time to reset your finances and put systems in place to help you keep on top of your income, expenses and tax obligations for the coming financial year. Ready to get organised? Here are 4 tips to give yourself a head start in the new financial year! 1. Start your tax planning It is best to start your tax planning early in the financial year. That’s because you have enough time to calculate how much you need to invest to save the maximum tax possible and evaluate all options available…

1. Create a cash flow forecast This is an estimate of the amount of money you expect to flow in and out of your business typically over a financial year period. A budget will provide a better understanding of where surpluses and shortages might arise and assists with making decisions such as planning new purchases or the timing of new borrowing facilities It’s important, particularly for growing businesses, to forecast their profitability and future cash flow position at the same time – click here for access to my cash flow calculator, which can be used for just this purpose should you

Travel Allowances A tax-free travel allowance must be for travel costs on top of the usual cost of travel between home and work and it must be work-related.For instance, the employee may incur travel costs on top of their normal travel between home and work, if the employee: is working outside the normal hours of work, as in overtime, shift, or weekend work For example: A commercial cleaner travels by bus to start work at 8pm and finishes at midnight, when there is no bus available to travel home. The employee travels home by taxi. needs to carry work-related tools

If you run into debt with your tax, you have options, but it is important to do something. Interest charges and penalties accrue from the date the payment is due until full payment is made. If you contact Inland Revenue early and they know you are taking steps to address the debt, they may put a hold on future penalties for late payment which may also be charged. Whereas if you do nothing, interest and penalties can multiply your original tax bill. It is actually possible to double or triple your tax bill, just by hoping it would go away…

It's important to distinguish between employees and contractors as they are paid — and taxed — differently. Inland Revenue takes a dim view of employers who ignore their PAYE obligations by treating their employees as contractors. They are also on the lookout for people who take a false tax position by calling themselves contractors when they’re really employees. Factors to be considered in deciding the real status of an employee include: ▪ The intention of the parties. Is there a written contract, for example? ▪ The control test - does the employer direct the work to be done? ▪ The…

Planning in business is essential to success. Your business plan grows with your business as you continue to lift your goals, analysing your successes and shortfalls. But honestly? Most people would rather stick pins in their eyes than write a business plan. In their minds it’s a big, long formal document that has nothing to do with what they’re really passionate about in their business, though they know they need one when they go to see their bank manager about a loan. We understand that. But it’s true what they say: ‘Failing to plan is planning to fail’, attributed to

Business Health Check Do you understand which areas of your business you should dedicate your energy to? We can work with you to provide insight into areas of your business that need attention so you can accelerate your business growth and target areas that need more time devoted to them. This quick survey will help you to identify the areas where your business excels and also the areas that need more attention. Once you have completed our Business Health Check we can assist you with strategies to leverage your strengths and reduce the impact of your weaknesses. Start your business…

How does GST work in my business? In the normal course of your business, you charge GST in your sales and income and claim it back on your purchases and expenses. You then calculate the difference in your GST return to work out if you owe GST to Inland Revenue or if Inland Revenue owes a GST refund to you. Once you’ve registered for GST, you will need to file GST returns periodically throughout the year. Registering for GST If your annual turnover is less than $60,000, you may choose not to register for GST or to register voluntarily. You