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Redefining success

For those of us in business, it’s important to redefine our plan and goals that ensure the business delivers our definition of success. The natural extension, for those with team members, is to revise what the business needs to deliver to the team. Personal successYour definition of personal success may be different to what it was before the world was turned upside down by a global pandemic. For example, wanting to be able to travel the world, regularly upgrade the car, and enjoy frequent...

Lets improve your year-end processes and plan for 2023

Welcome to 2023, are you ready for the year-end, and have you done your homework when it comes to planning your business journey for 2023 and beyond?Let's take a look at the key ways to tie up your year-end and start the new year with a clear strategy to drive your business forward.Making your 2023 business journey that little bit easierThe past couple of years have not been easy for most business owners. Cashflow has been tight, costs have been steadily rising and the marketplace is ever-more c...

Christmas - Presents, Parties & Bonuses

Its Christmas time. The season for office parties, generosity and spending way too much on presents. To make the post-holiday season hangover a little less shocking, here are a few of our key tips on parties, presents and bonuses that you need to be aware of. The IRD is never too far away from any act of employer generosity with their entertainment, FBT or PAYE rules.Paying a Christmas BonusOne of the easiest ways to reward your employees, no matter the time of year, is with a discretionary cash...

How Healthy Is Your Business?

Your vehicle needs and oil change, a wash every now and then and a new battery every few years so you get a service. Just like you take your car to the mechanic to keep it running smoothly, you need to perform regular checkups on your business health as well. It's not just about performance, it is about safety.Most business owners are extremely busy, so without regular financial check-ups they can easily lose control and become susceptible to financial problems. With this in mind we can be the m...

How to Find Your Why in Business

When it comes to doing work that is meaningful, fulfilling, and purposeful, you need one thing above anything else: You need to find your “why.” The concept of “finding your why” became popular with Simon Sinek’s book and Ted Talk, “Start With Why.” is a good place to start. In a nutshell, your why is your purpose or the reason behind what you do. Start With your Why and work back to What you do. Think of your why as your personal mission statement. It’s a brief, one-se...

Discover your business’s untapped potential

When focusing on sales growth, your existing customers are your greatest asset. Many businesses focus on enticing new customers instead of encouraging their existing customers (who already know, trust and like them) to spend more, more often. The probability of selling to existing customers is 60-70%, whereas the likelihood of selling to a new customer is only 5-20%. The opportunity with your existing customers is huge, so why not focus some more attention here instead of prioritising chasing ...

Create a business plan - Here's how

‘Fail to plan, plan to fail’, as the saying goes. If you're going to create an effective, successful and profitable business, you need to create a solid strategic plan. Your business plan is the route map that defines your goals, explains your strategy and gives real direction to the everyday running of the company. So what should you include in your plan? 5 key elements to include in your business plan To create a truly robust and meaningful plan: Outline your vision – explain WHY yo...

Grow your numbers - Improving your margins

Measuring your sales and margins provides insight into which parts of your business are performing well and which ones need improvement. With improved margins, you don’t have to generate as many sales to get the same profit. Better still, lift your margins and achieve higher sales; you’ll get even more on your bottom line! A couple of strategies to lift your margins: 1. Set targets and budgets for team members and jobs, and share these with your team.Have brief weekly meetings to celebrate...

Holiday pay sorted?

Working out what an employee gets paid for taking a day off on annual holidays will depend partly on what they have earned in the previous 12 months because they must be paid for holidays at these average weekly earnings if they exceed the employee’s ordinary weekly pay as at the beginning of the holiday. Find out more about how to calculate payment rates for holidays and leave at Employment New Zealand, or using Wolters Kluwer's New Zealand Workforce Manager. Remember, Christmas and New Yea...

How to improve your year-end processes and plan for 2023

We're well into the final quarter of the year, with 2023 just a few months around the corner. But are you ready for the year-end? And have you done your homework when it comes to planning your business journey for 2023 and beyond? Let's take a look at the key ways to tie up your year-end and start the new year with a clear strategy to drive your business forward. Making your 2023 business journey that little bit easier The past couple of years have not been easy for the average small business...

Have you got a strategy for a financially stress-free holiday period?

Holiday breaks are a chance to recharge for the year ahead especially after the year we have had. We look forward to warmer weather and finally setting up an out-of-office email for the break. However, for business owners, this time is a stressful without careful cash-flow planning. Even if you do continue to operate through the holiday season, your customers' financial behaviour may not remain the same. The strategies and tips shared below are generalised, however, we are here if you need to ...

Profit vs Cash

1. Sales.Profit increases when you increase sales; cash increases when you collect the money from customers. To increase both your profit and cash from sales: Delight your customers Generate more leads and referrals Convert a higher number of quotes or proposals Increase transaction frequency Increase transaction value 2. Invoicing.Profit increases when you send an invoice to a customer; cash increases when you collect the invoiced amount. To increase both your profit and cash: Set clear Term...

Profit vs Cashflow

As a business owner, that’s one of your key financial aims – to make enough sales, with a big enough margin, to generate profit from your business enterprise.But how does profit differ from cashflow? And why is cash queen or king?To really understand the difference between generating profit and managing cashflow, we need to look at what both these terms mean. Being in control of your profit and cashflow is an invaluable business skill.Let’s take a look at the differences:What is profit?&nb...

What is the Difference Between Holiday Pay and Annual Leave?

In New Zealand, the terms “Holiday Pay” and “Annual Leave” refer to two different things. The following applies for all types of employees except Casuals who are having their Holiday Pay 8% paid out with every pay. Annual Leave is what an employee is entitled to after working for 12 months. The 4 weeks Annual Leave gets added in one lump after 12 months of employment, and then every 12 months after that. So, until an employee has worked for 12 months there is no Annual Leave. Annual...

Christmas gifts for your customers and team

Christmas is nearly here, and it’s a great time to let your customers and team members know how much you appreciate them. But after another unsettled year – it’s not easy to know how much to spend or whether to throw a party. Gifts, cards and donations The traditional professional Christmas gift tends to be food-related: hams; hampers; bottles of wine or spirits. Those can be ordered online and sent out, although it’s best to avoid anything that will spoil considering current delivery ...

Parties and Presents - and Tax!

Are you planning a Christmas event for your clients? Is gift-giving on your to-do list? Take a minute to refresh yourself on how much is deductible as a business-related expense. Presents Are you thinking of gifts for clients, business associates or team members? If gifts consist of food or drink, you can only claim 50% of the expense as a tax deduction. If gift baskets or hampers contain some food or drink and some other goodies, the food or drink items are 50% deductible, but other gift it...

Want more money, more time or less stress?

We believe our clients all deserve the three freedoms: Financial Freedom; Time Freedom; and Mind Freedom. In other words, more money and time to spend on important things outside of their business, along with less stress. Is your business stifling your freedom? Being in business is tough. At times, you might be worried about whether you’ll have enough cash in the bank to pay your team and suppliers. Perhaps you’re working 80-hours a week just to stay on top of things. Or, maybe the stress o...

Meeting your goals during a global slowdown

Optimism among business owners was high coming into 2022. But a number of factors are now making things a lot more challenging: Global events are pushing up energy prices to astronomical levels. Ongoing supply-chain issues are making it difficult to source raw materials. A scarcity of talent is causing problems when it comes to staffing and hiring. Covid is still around and making trading more complex and difficult. Faced with these hurdles, you might feel that your goals are no longer attain...

Key numbers to focus on in your business now

As a business owner, it’s never been more important to have a good grasp on your finances. For many businesses, priorities have changed, customer behaviours have mutated and revenue streams have had to evolve and pivot in order to create a viable business model. To track, monitor and drive your financial performance in this new business world, it’s increasingly important to have a handle on your key financial reports and metrics. Getting to grips with your financial reports Whereas in the pa...

Can you claim clothing as a business expense?

We get a lot of questions about what you can claim as a business expense, and clothing is one of the confusing topics when you’re self-employed. Most jobs have some sort of dress code – whether you wear suits and heels or overalls and steel-toed boots. Work clothes can be a significant expense for any business owner or employee. You only buy these clothes for your job, so it feels as though they should be business expenses, right? Well, not quite. What types of clothing can you claim as a bu...

How’s your work-life balance?

It’s great to be the boss – you can work any hours you like, right? Unfortunately, for many business owners, that means long hours, plenty of stress, and very few breaks and holidays. A survey done by Statistics NZ found that: 21% of employers work 60 hours per week or moreOnly 45% employers said they were satisfied with their work-life balance, compared with 76% overall. After lockdowns and restrictions due to COVID-19, you might find yourself thinking about your priorities – at least, th...

Understanding Your Balance Sheet

To understand the financial position of a business at a specific point of time, look at the balance sheet. The balance sheet may also be called the statement of financial position. Together with the Profit and Loss Statement, and possibly other reports such as the Statement of Cash-flow, these reports provide a complete understanding of the financial position and business performance. So what’s involved? - The balance sheet has three sections: assets, liabilities and equity. What are Assets? A...

Living above the line - how winners behave

There are three winning behaviours and three responses that’ll sink your team. Are you living above the line? If not, you need to get there, as it’s the easiest way to transform workplace culture and team performance. Here’s how, using the OARBED behaviour model: The acronym starts with OAR - when behaving above the line, one takes: Ownership. Accountability. Responsibility. Below the line, BED, is defined as: Blame. Excuse. Deny. No matter what, reacting in these ways is below the line. C...

One-off public holiday - what rules apply?

To mark the death of Queen Elizabeth II, there will be a one-off public holiday on Monday, 26 September. What do business owners need to know about this unexpected day off? Here are the most important points: Shop trading restrictions will not apply. (These apply on Christmas Day, Good Friday and ANZAC Day.)Employees are entitled to have the day off and be paid leave if they normally work that day.The employee can agree to work on the day.Employees who work must be paid at least time-and-a-half....

Understanding Your Profit and Loss Statement

Your profit and loss statement (P&L) helps you understand your business performance and profitability over time. It’s sometimes called an Income statement and its main purpose is to list income and expenditure. Whereas a balance sheet is a snapshot in time, the P&L shows transactions over a specific period of time. This can be a month, quarter, financial year or any other period, and it can be a stand-alone report or a comparative period report. Together with the balance sheet, these two repor...