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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...

This is the value of having a great business advisor on your side

Post covid our client was struggling with one product line in particular. This line was one of his initial lines he had when he first started in business so letting go was going to be a huge deal! We had an initial meeting to determine what was and what was not working in his business.From this we looked at systems and ran reports for periods to determine a plan regarding product/s we were looking at in particular.  We then met to discuss some outcomes and recommendations. He trusted us to ...

Let me tell you a story - Part two

Client B: " I need help understanding my business and evolve post covid " Me: "Lets discuss this more?" We can help, however lets meet to see what you really need.  The conversation continues, we arrange a time and book in a business development session which results in a further meeting involving all staff and my staff member also. Client B was sent away with some homework and I ran some 'reality' reports for him, came up with some ideas on how to drive the business forward and t...

Improve debtor days to boost your cashflow

It’s important to stay on top of your debt collection to free up cash. Establishing how long it takes you to get paid is the first step, but how can you measure this? Debtor days measures, on average, how long your customers take to pay you. While there are many complex formulas to accurately calculate this, a nice easy formula is: current debtors owing / annual sales * 365. For example, if you have annual sales of $450,000 and debtors owing of $80,000, your debtor days are 65 ($80,000 / $450,...

Let me tell you a story - Part one

Client A: " I think I need a Business Plan "Me: "Why do you think that and have you ever had one?" I can defiantly help, however lets chat. The conversation continues, we arrange a time and book in a planning session over 3 weeks. This results in a one page business plan, business goals and clarity for Client A. The turn over forecast from this was significant especially compared to last year and the goals audacious, however achievable.  So, I let him sit on it for a while with co...

Difference between profit & 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: Have a point of difference with your customers so they refer you onGenerate more leads and referralsConvert a higher number of quotes or proposalsIncrease 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...

Reducing your lock up days to free up cash

It’s vital for businesses to free up as much cash as possible, particularly in these tough economic times. Your ‘lock up days’ is the number of days it takes to convert your debtors, stock and work in progress into cash. A high number of lock up days means your business needs to have more cash injected, either from you or the bank. You also have a higher risk of losing that cash, particularly if a lot of it is locked up in your debtors. Worse still, you’re likely to be paying tax on that...

How we have helped businesses by providing clarity and support.

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Our Complimentary Client Review service

It’s essential to work on your business, not just in it. Taking time out to discuss what’s happening in your business gives you clarity about your future.A 60-minute Complimentary Client Review is your opportunity to discuss:Your goals and how you plan to achieve themHow your business goals tie in with your personal and lifestyle goalsIssues and challenges you're facing in your businessHow we can work together to address theseWe’re not just advisors on your rear-facing bookkeeping - we wan...

Are you working on your Books nights and Weekends?

Easter has been and gone, yet another long weekend is coming up, how much time did you spend working on your business instead of spending it with your family, friends or on a favorite hobby?If you run a business and are struggling to keep on top of all the ins and outs of your finances, then hiring a bookkeeper can help. We can help you deal with all the day to day financial parts of your business which makes sure everything is in order for your accountant or IRD throughout the year. We will giv...

Difference between an Accountant and a Bookkeeper (us)

I called a prospective client today and this reply is all too common, "thanks but I already have an accountant" There are differences between bookkeepers and accountants, and there can often be confusion surrounding this, but any business requires both bookkeeping and accounting. Bookkeeping is the foundation of accounting and while there is often an overlap between what bookkeepers and accountants do, it’s not a matter of choosing one over the other. We work seamlessly together.Bookkeepers ar...

Welcome our new team member

This week saw us welcome Georgia to our team, I am so excited to welcome her to our team too. Georgia has a passion for numbers, loves working with figures and knew a career in numbers was for her. Having recently graduated from NMIT with a Bachelor of Commerce, majoring in accounting and management, Georgia has gained experience working in small accountancy firms as a part-time job while studying. Born and raised in Nelson, she loves what the region has to offer, especially camping holidays at...

Covid-19 Protection Framework

Today the Government announced changes to the COVID-19 Protection Framework, or Traffic Light System. The current Omicron outbreak has peaked in Auckland, with the rest of the country to follow suit. However, modelling suggests there will always be several thousand positive cases in our community. Therefore, the changes to the Traffic Light System can be reviewed at times where there is future spikes and new variants. Businesses are encouraged to be prepared for possible changes as COVID-19 prog...

Collect Your debtors faster

Did you know that you still have to pay tax on your debtors, even if you haven’t yet collected them? This is because you pay tax on your sales figures, whether you’ve collected the cash or not.So, how do you collect your debtors faster? Agree your payment terms at the time of sale.Ensure your customer signs your Terms of Trade before you start the job.Include a guarantee in your payment terms.Invoice as quickly as you can, as soon as the work is completed.Ask for a deposit prior to starting ...

End of Financial Year

If this is your financial year end, now's a good time to begin reviewing your ledgers, and all of your accounts, chase up any invoices or receipts you should have kept for your records.Did you purchase any new assets this financial year? Make sure you have copies of the receipts/invoices.Review all of your outstanding invoices owed to you in your business, it's good business practice to get them paid before year end. Outsource this if needed.Home office expenses, if you have a home office, make ...

New financial support for businesses affected by Omicron

Businesses struggling with revenue during the Omicron outbreak can apply for new targeted funding, as announced by the government on Monday 21st February. Applications for the first payment open on February 28, with payments starting from March 1.There will be 3 payments in total, available on a fortnightly basis. The new scheme is based on the understanding that the Omicron outbreak will pass over about 6 weeks. This scheme may be extended. Each COVID Support Payment will be $4000 per business ...

Know your numbers - Your Balance Sheet

Knowing your numbers is vital to business success. The Balance Sheet is arguably the most important report, as it measures whether your business's worth is increasing or decreasing. It illustrates the overall financial health of your business; whether it is funded appropriately, if there’s enough cash to pay the bills, and what the owners would have left if it was wound up tomorrow. Profitable businesses can, and do, go broke if they have a weak Balance Sheet. Three common scenarios: 1. Growi...

Our Business Planning Service

Success is about planning; we want to help you achieve success. It’s essential to take time out from the day-to-day activities in your business to focus on your business; setting goals and establishing strategies to unlock your business potential. At the end of the session, you’ll have a one page Business Plan to act as a guide map to ensure you’re on course for success.Every business must have a Business Plan. During the four-hour Business Planning session, you’ll:Discuss and set both p...

Time to Review 2021 and Plan for 2022!

The beginning of a new calendar year is an excellent time to review the year just finished and reflect on what worked, what didn’t, what you’d like to change and new things you’d like to implement. Last year, there were inescapable impacts on businesses, with some thriving, others failing, and others just getting by. So what kind of year was 2021 for your business? Take the time to review the year and acknowledge all that has happened, good, bad or indifferent. Examining the year with an o...