COVID-19 Business Update – 29 January 2021
Welcome to our first 2021 Covid-19 Update. Read on for some ideas to help us all move forward.
NZ Borders Likely To Remain Closed to Most of the World All Year
Prime Minister Jacinda Ardern announced that the country’s borders are likely to remain closed to most of the world for the rest of the year, as reopening them poses “too great a risk to our health and economy”.
Ardern also said frontline border staff and those working in managed isolation would be prioritised for vaccination, once the first shipment of the Pfizer vaccine arrives.
Auckland Gained Nearly 1000 New Food Businesses in 2020
Auckland saw a boom in new food businesses in 2020, despite the pandemic. A total of 983 new food businesses registered with either Auckland Council or the Ministry for Primary Industries (MPI) in the Auckland region during the year. We wonder what the statistics are for Northland on new food businesses.
Figures from Statistics New Zealand also showed card spending on eating out was up $17 million (1.8%) in December compared to the same period in the previous year.
Business Finance Guarantee Scheme Open Until June
Business Finance Guarantee loans can help small and medium businesses access credit for cashflow, capital assets and projects related to, responding to or recovering from the impacts of COVID-19.
All New Zealand registered banks and non-bank deposit takers (non-banks) are eligible to apply to join the scheme. Current participants are:
- Banks: ANZ, ASB, BNZ, Heartland Bank, Kiwibank, TSB, Bank of China and Westpac.
- Non-banks: Nelson Building Society.
Depending on your circumstances, you may be able to access credit from either a participating bank or a non-bank, but not both.
If you borrow from a bank, it will determine the amount you can borrow and the length of the term up to a maximum of $5 million payable in five years. Meanwhile, if you borrow from a non-bank, the maximum amount is $3 million payable in five years. More information on eligibility criteria and how it works can be found here.
Applications for Business Finance Guarantee loans are open until 30 June 2021. If you need assistance or have any questions, don’t hesitate to drop us a message.
Small Business Cashflow Scheme Extended Until 2023
The Small Business Cashflow (loan) Scheme has been extended until 31 December 2023.
Organisations and small to medium businesses, including sole traders and the self-employed, may be eligible for a one-off loan with a term of 5 years if they have been adversely affected by COVID-19.
The maximum amount loaned is $10,000 plus $1,800 per full-time-equivalent employee. The annual interest rate will be 3% beginning from the date of the loan being provided. Interest will not be charged if the loan is fully paid back within 2 years.
You can find out more here, or simply get in touch with us so we can provide our professional assistance.
Kiwi Business Boost Tool
The Government has funded specialist consultancy support services to provide advice to businesses who need it. You can use the Kiwi Business Boost Tool to find out what services are available in your region.
The Treasury website’s COVID-19 Economic Response Measures can also provide more information on the range of supports available to businesses.
5 Tips to Simplify Your Small Business’ Accounting
If you run a small business, a big-business accounting system may not be the best choice for you. It would be better to simplify your accounting and concentrate on actionable metrics. This is especially true if you are the only one managing your business.
Below are some of the ways you can streamline your small business accounting system:
- Track your inventory using dedicated inventory management software. Online inventory management software allows you to see your stock levels in real-time, understand your product margins and make better decisions. Choose a system that integrates with your accounting system to save even more admin time.
- Automate your invoicing. Cloud-based accounting systems now allow you to email invoices from your accounting system and can even connect to tools like Stripe and PayPal so your customers can pay online. If you make it easier to pay you, chances are you’ll get paid faster!
- Pay your bills when they’re due. Late payment fees can be steep and paying upfront eliminates the need to track your bills in the accounting system.
- Don’t use your business accounts for personal expenses. Always be diligent about which card you swipe. Your business transactions must be accounted for, so keeping your personal and business affairs separate can save you from hassles in the long run. Plus, your bookkeeper will thank you!
- Automate your payroll. Setting up your payroll so it’s automatic, or outsourcing to our experienced team, will save you time and money.
Finally, don’t hesitate to seek help to help you stay on top of your finances. We are experts in small business bookkeeping and accounting and can provide training for you and/or your team. Drop us a message today so we can discuss how we can help you.
Get in touch
Contact us if you have any questions or want to discuss the next steps for your business.