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Which is more important? Cashflow or profit?

Cashflow and profit are two of the most important financial metrics for any business. But while they’re both related to the financial performance of a company, they measure different things.Knowing the difference – and how cash and profit contribute to your success story – is a vital skill if you want your business to have the best possible financial health.The difference between cashflow and profitUnderstanding the technicalities of financial reporting can be daunting as a new entrepreneu...

GST invoicing changes from April 2023

New rules modernising GST invoicing and record-keeping requirements apply from 1 April 2023.The key change is removing the requirement to issue and hold a “tax invoice” document (which meets certain prescribed requirements on details required), and instead having GST requirements met provided specific GST information is held through various business records, for example commercial invoices or agreements.Tax invoices are replaced by taxable supply information (TSI). This is a set list of info...

Why your business needs a digital marketing specialist

Has your business kept pace with the digital revolution when it comes to ecommerce, online marketing, social media marketing and customer experience?24.5% of sales are expected to be made online by 2025, according to recent predictions from Shopify. So, if online is the place to be when looking for targets, customers and conversions, what's your current strategy for achieving this? And do you have the skills in the business to bring your marketing and customer strategy into the digital age?Where...

Understanding the Use of Money Interest (UOMI) System

Some taxpayers are subject to use of money interest when they don’t pay their tax, pay late or underpay.When do you have to pay use of money interest to Inland Revenue?Taxpayers that must pay use of money interest are those who:have under-estimated their provisional taxhave earned income which has either not been taxed, or has not had enough tax deducted from it, and the end of year residual tax works out at $60,000 or morepay their taxes late.COVID-19Inland Revenue has discretion to write-off...

Running your business in a crisis

If the past few years have taught us anything, it’s that businesses can face major challenges and disruption.The latest is the extreme weather brought by Cyclone Gabrielle that caused flooding, power cuts, building and roading damage, and disrupted transport and supply links.Beyond the impact to normal business operations, these difficulties are also challenging on a personal level, and after 3 years of the COVID-19 pandemic, many people are experiencing heightened anxiety, concern, anger, sad...

Business tips - Marketing and promoting your new business

Even with the best products and/or services in the world, you won't make many sales if your intended customers don't know about your business. To raise awareness of your brand and to kickstart your sales process, you need to start marketing and promoting the company.Sales and marketing doesn’t have to be complicated, but it is important to have a clear idea of your customers’ preferred channels and how you can engage with them in these places.Create a website and an online/digital presenceWe...

Managing your marketing budget to improve your ROI

Having a well-planned marketing budget can help you allocate resources to the right digital marketing channels and maximise the effectiveness of your campaigns.But where do you begin when it comes to managing and tracking your budgets?Businesses spend between 2% and 5% of their revenue on marketing to promote their products and services. That might not sound like much, but bear in mind that it’s vital to use your working capital wisely. So, whatever the size of your marketing spend, you want t...

Build long-term customer relationships: improve your financial stability

We know that building long-term relationships with your customers makes good sense for your customer experience. But good relationships are also a key factor in making your business more financially stable and improving your bottom line.The answer lies in nurturing the relationship, building a sense of trust and satisfaction that leads to regular sales and a boost to your revenue.Nurturing customer relationships that drive your profitsA business with no customers has no future. But a business wi...

Get in control of cashflow

It’s a well-worn phrase, but cashflow really is the lifeblood of your business.When your cash inflows are greater than your cash outflows, that puts you in a positive cashflow position – giving you the liquid cash needed to trade, improve and grow as a business.But if costs start to outstrip your income, that can leave too little cash in the pot. This results in mounting debt, problems paying suppliers and (in the worst cases) the failure of your business.So it’s vital to get proactive wit...

Top Tips for getting your financial yearend work completed quicker

A new financial year is upon us and that means that it’s time to check the accuracy of your financial information in your accounting software for the past financial year, and to gather the documentation that we, as your accountant, will need to finalise your accounts and file your tax returns.The sooner we have this information the sooner we can complete your accounts and notify you of your tax position. It’s a good idea to have this information as soon as possible so that you can make infor...

Creating business Resilience in changing conditions

Economies are in a perpetual heating and cooling cycle, with all phases providing opportunities to better serve your customers and thrive in your business.There’s no denying the effects of higher interest rates and inflation are changing customers’ buying habits. This, combined with more expensive raw materials, stock and labour, and disruptions to supply chains, could test your business’s resilience. Planning is the best way to get ahead of changing conditions and build resilience.Five wa...

Want more money, more time or less stress?

Freedom is the oxygen of the soul. Is your business destroying your freedom? Don’t neglect the other important things in your life. Whether you’re looking for #FinancialFreedom, #TimeFreedom or #MindFreedom - we can help you achieve all threeWe 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 f...

What's your money story?

What story have you told yourself about money? For some, money means freedom and opportunity; for others, it evokes feelings of stress and lack of control. We can help you rewrite your money story so you can achieve #FinancialFreedomWhat you believe about money and how you relate and interact with it affects every aspect of your life and business. A belief is simply a story that you have told yourself so many times that you think it’s the truth. So, for us all to live a vital, vibrant, and thr...

Living above the line - how winners behave

OARBED is a powerful behaviour model depicting three winning behaviours and three responses that’ll sink your team. Get in touch to learn how OARBED can transform your business culture. #TeamWork #Accountability #Culture #NoHierarchy 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 mo...

Adopting an Atomic Habits mindset

James Clear’s book, Atomic Habits, is a #Gamechanger. If you struggle to make habits stick, stop focusing on habit outcomes and consciously adapt your identity to be the person that aligns with your habit.We all have habits; some good and some not. Habits are those almost unconscious behaviour patterns we have... so, how do we build better habits?In his book, Atomic Habits, James Clear identifies two types of habits; outcome-based and identity-based. Understanding the difference and reframing ...

Changing the Trajectory of Generational Wealth!

Generational wealth is often a pearl-clutching topic in many communities and, as a result, is a topic many people shy away from discussing. The change has to begin within the home, starting with communication among family members about intentions and future plans. Often, people are so busy with their daily lives they do not stop to plan for the future or ensure their children have a future set up for them. Below, I will outline tips on how to prepare your family to build generational wealth, and...

Achieving financial freedom

When you started in business, what did you imagine your lifestyle would be? How does your current lifestyle compare? Many business owners assume that after a few years in business they should be able to achieve another financial milestone such as buying a house, upgrading the car or taking the family on an epic holiday. Reality may be different.Is financial stress common in your business?You invested a significant amount of cash in the early days with the aim of getting a great return on your in...

Reminder: End-of-year tax is due on April 7

The end of the tax year is around the corner, so this is a quick reminder that your terminal tax payment is due on 7 April.If cashflow is a problem and you’re not confident in your ability to make your payment, please get in touch. We understand that the past 12 months have been extremely tough for many businesses and clients, so you’re not alone.Ways to avoid penalties and interestPaying tax late means Inland Revenue will charge you use of money interest (UOMI) and late payment penalties. T...

How does Provisional Tax work?

If you had to pay tax of more than $5,000 in your last income tax return, you may have to pay provisional tax for the following year. Provisional tax is like paying progress payments on next year’s income tax. The amount you must pay relates to your expected profit for the year. In practical terms, the amount of provisional tax you’re expected to pay is based on the tax you were liable for in the previous year, often referred to as residual income tax (RIT). Even if you are not required to p...

What’s your business worth?

Your business should be one of your biggest assets – but what’s it actually worth? Whether you want to sell your business, adjust the ownership, borrow, or calculate your net worth, a business valuation can be extremely useful.Earnings and assetsThe two most important value drivers of your business are earnings and assets. These are the main selling points – strength of earnings and/or valuable assets will make any business more attractive.Other intangible factors can play a part in adding...

Getting funding for your startup

A great business idea is an excellent starting point for a company. But without funding to provide the necessary capital, your business idea could be dead before it's even begun.To quote a well-worn phrase, ‘Cash is King’ and that means it’s critical to start thinking about funding as early as possible in the journey. Think about how much investment you’ll need to get going, the different routes to funding and the best ways to approach investors and lenders.Calculate your startup costsWo...

Keeping track of Covid -19 business operating guidelines

At the Red all businesses can have staff onsite, provided those staff and the business meet the operating guidelines for their sector at Red. But if a staff member tests positive for covid-19, shows symptoms, or is a close contact then the rules state they must isolate. For a run down on the framework, and what it means for your business visit the Ministry of Business, Innovation and Employment business website here.Omicron three Phase responseThe Government response also includes phases th...

Defining your business idea

Having that Eureka moment when you cook up a great new business idea is a great moment. You’ll be full of ambition and eager to begin building your startup. But once you've had that initial rough idea, how do you assess and plan out your business idea to make sure that it has legs?For a startup, the key thing is to define what your idea brings to the marketplace. This way, you know WHY you’re starting this venture and – crucially – whether it’s a viable business model.Research the exis...

Writing a mission statement

You've had your initial business idea and written a plan. But do you know WHY you're creating this business, or HOW you’ll deliver your end product/service? What will the company's underlying purpose be and how will your core values drive the business?To get these crucial elements ironed out, it’s a good idea to write a ‘mission statement’ for your startup – a short summary of the aims and values of your business.WHAT does your business do?The first thing to pin down is what the busine...

Small Business Marketing

Even with the best products and/or services in the world, you won't make many sales if your intended customers don't know about your business. To raise awareness of your brand and to kickstart your sales process, you need to start marketing and promoting the company. Sales and marketing doesn’t have to be complicated, but it is important to have a clear idea of your customers’ preferred channels and how you can engage with them in these places. Create a website and an online/digital presence...