Minimum Wage Increases 1 April 2022

There’s a lot of concern amongst employers, with the Government’s increase of the NZ minimum wage to $21.20 per hour from 1 April 2022. This is a $1.20 increase from the previous rate. As a business owner, you need to be ready for the increase in minimum wage rates. If you have not yet talked to your accountant, payroll provider or your finance/HR teams now is the time. It is…  Read more

Targeted COVID Support Payment opens 28 February 2022

A new targeted COVID Support Payment will be made available for businesses struggling with revenue during the Omicron outbreak. From the Inland Revenue statement issued 24 February 2022 The Covid Support Payment is to help support viable and ongoing businesses or organisations which have experienced a 40% or more drop in revenue as a result of 1 or more of the following COVID-19 circumstances: the widespread presence of COVID-19 in…  Read more

Covid-19 Small Business Cashflow Loan Scheme

Under the Small Business Cash Flow Loan Scheme the Government provides loans to small businesses, including sole traders and the self-employed, impacted by COVID-19 to support their cash flow needs. If you’ve previously applied for a SBCS and have fully repaid it, you can apply again. Applications are open until 31 December 2023. You can apply through myIR. The small business cash flow loan scheme will provide assistance of up…  Read more

Cashflow Series #4 – How Much Cash Does My Business Need?

Your business needs cash. Cash is what keeps your company in operation and enables it to grow, so you should know how much cash your business needs to survive. Although many people think the answer is linked solely to operating expenses, this isn’t the case. There is no single factor that determines how much cash every business needs to have on hand. Somewhere between 3-6 months of operating expenses is…  Read more

Cashflow Series #3 – Recovery After a Financial Setback

You started your business with plans of earning a living and being successful, but an unfortunate fact of business life is that companies suffer financial hardships.  Whether those hardships are pandemic-related or linked to other urgent situations, the effect is still the same. Your finances are negatively affected and it’s up to you to lead the recovery. Here are 5 steps you can take to help your business recover after…  Read more

Cashflow Series #2 – The Seven Key Causes of Poor Cashflow

1. Accounts Receivable Process A poor accounts receivable process will result in debtor days (the time between billing and banking) being too high. This will stifle your cashflow. There are many strategies to minimise debtor days including tightening your Terms of Trade, offering prompt payment discounts and streamlining your billing process. 2. Accounts Payable Process A review of all suppliers’ terms may identify ways to improve cashflow and potentially achieve…  Read more

Cashflow Series #1 – Five Principles For Keeping Cash Flowing

Managing your cashflow is an integral part of running your business. In this new series of blogs we will be providing some of our best tips and tricks! Five Principles For Keeping Cash Flowing There are five key principles to remember when looking at your cashflow 1. Without cash your business will not survive Cash is the lifeblood of any business. In fact, very profitable business’ can and do fail…  Read more

Lockdown Levels – What Support is Available

Going into immediate Lockdown can be hugely unsettling, but I must say, nowhere near as hard as the March 2020 was.  We have been here before, and I think that brings with it a sense of calmness, open mindedness and understanding of what is expected and what it is going to look like. What is hugely frustrating is assimilating the massive amount of information out there and sorting out the…  Read more

Cash Flow Advice for Small Businesses

Solid cash flow management is vital to ensuring your business survives, but not everyone understands what cash flow is or how to manage it. That’s likely what makes it a leading cause of stress for small business owners. Cash flow refers to the movement of money into and out of your business. It’s based on the amount of money you bring in minus the amount you spend. A positive cash…  Read more

Three Consequences of Avoiding Your Bookkeeping

If you ask 100 business owners what they like least about running a business, chances are good that bookkeeping will rank high on the list. It’s one of those chores that takes up a lot of time and is easy to put off until tomorrow.  Generally its also the last thing you want to be doing when you spend all day working either in or on your business. The problem…  Read more

What Causes Your Profit Problem?

Do you ever feel stuck in your business? After all the time and effort you’ve put into it, your revenue seems to have plateaued or maybe has even decreased. If you’re having a profit problem, it can be a sign of a deeper issue that needs to be fixed. Below are the three key areas that you should look into: Products or services– Are your customers happy with what you’re…  Read more

6 Key Financial Documents Any Small Business Needs

Drawing up the right financial documents matters to your small business’ success more than you think they do. They can give you a clear view of your financial health and can help you make sound decisions based on the numbers. Below are the six most useful financial documents that you can benefit from: Income statement- This shows your revenue and expenses and indicates if your business is profitable. Cash flow…  Read more

If my business is making a profit, where is the cash?

Some small business owners find themselves in the difficult position of running a business that according to reports appears to be profitable, but still having no money in the bank. It’s a really important situation to address, after all, a lack of adequate cash flow is one of the main causes of small business failure. Here are some reasons profitable businesses have little money in the bank, and what business…  Read more

COVID-19 – What you need to know

With the constant changes in Covid-19 levels and the uncertainty this brings to business,  here is a summary of what support business owners can access to help you through the hard times. COVID-19 Wage Subsidy Payments Started This Week Applications for the wage subsidy opened last week and payments started to flow on Monday. This scheme allows employers to continue paying staff and protect jobs that may have been affected…  Read more

5 Simple Ways to Keep Your Business Finances ‘Ontrack’

Small steps can lead to a tremendous ripple effect on your business. Here are some simple things you can do to better manage your finances and stay ‘Ontrack’. Record all transactions, whether big or small. Expense tracking technologies can help you avoid errant spending. Make it a habit to keep your business and personal expenses separate. Reconcile what you know from your books with what your business bank accounts reflect.…  Read more

Five Tips to Managing a Healthy Cash Flow

We cannot stress further the importance of properly managing your cash flow to ensure the smooth running of your business. However, in times of crisis such as the ongoing COVID-19 pandemic, this becomes more than important– managing your cash becomes a necessity for survival.   If you are experiencing cash flow troubles, here are five things you can do to manage your cash flow better. Check your expenses. Now is…  Read more

A Beginner’s Guide to Cash Flow Forecasting

Nobody wants their business to fail. Although it’s impossible to predict the future with 100% accuracy, a cash flow forecast is a tool that will help you prepare to weather the different possible scenarios in the future. In a nutshell, cash flow forecasting involves estimating how much cash will be coming in and out of your business within a certain period and gives you a clearer picture of your business’…  Read more

5 Key Ways to Boost Your Revenue This Year

2020 has been a difficult year for business owners. Now that a new year is in full swing, it’s time to put your foot on the gas pedal and make 2021 the year for your business. Here are some ways you can grow your revenue this year and beyond:   Review your business and address blind spots. The first thing you can do is to look at your current situation…  Read more

COVID-19 Resurgence Support Payment (RSP)

If you’re a business or organisation that experienced a revenue drop of at least 30% due to the recent rise in COVID-19 alert levels, you may be eligible for a Resurgence Support Payment. It’s not a loan and doesn’t need to be paid back. The Resurgence Support Payment (RSP) is for viable and ongoing businesses or organisations with reduced revenue due to a COVID alert level increase to level 2…  Read more

Three tips for managing construction industry cashflow

Owning a small business in the construction industry can be incredibly stressful. In addition to the long days and difficult working conditions, you have to worry about cash flow issues. It can take a long time to collect on payment from your clients or contractors who hired you, and in the meantime you have to pay employees, cover fixed expenses, buy supplies and pay your own subcontractors. We have come…  Read more

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