Would your business still thrive, or would it suffer a catastrophic failure if you suddenly stepped away? It’s tough to remove yourself from the day-to-day operations when you’re passionate and busy. However sudden accidents, illnesses, or family emergencies can – and will – happen and you need to be able to step back knowing your…
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Time is money - make the most of it
We’re all familiar with the phrase ‘time is money’ so why isn’t it tracked in the same careful way as our finances to maximise both? Remote working has brought with it a wave of disruption and time is a hot commodity. Here are four ways you can re-set and prioritise productivity. #1 Get your team…
Employment law changes, April 2022
From 1 April 2022, the minimum wage rate increases from $20 per hour to $21.20. Communicate the change with your employees in writing and if you have staff on salary, make sure their total remuneration meets the requirements.The Holidays Act is getting revamped bringing new ways of calculating holiday pay and other leave entitlements and…
Time to grow? A guide to attracting investors
If you don’t have the working capital to invest in significant expansion, it might be time to consider bringing investors on board. Pitching to raise funding can be a nerve-racking experience, so here are some tips to impress: Investors need to see evidence of an opportunity before they’ll part with their time and money. One…
Six financial myths busted
Those long-held beliefs holding you back from financial freedom need to be dispelled. Take a closer look at budgeting and money management. Myth: I need a credit card for emergencies. Reality Check: Someone who just lost their job won’t be able to pay rent or their mortgage with a credit card. That’s why having an…
Residential investment property: what you can claim for
If you’ve invested in residential property, you may be scratching your head over whether recent tax changes affect you. If you borrowed to acquire residential property before March 27, 2021, interest deductions will be phased out over the next three years. If you bought on or after March 27, 2021, you won’t be allowed…
Summer Staff Generation
A how to guide: Getting the staff you need over the silly season during a global pandemic is tough. If you’ve tried Seek, Careers, and Trademe with no luck, maybe it’s time to think creatively. And remember, while our unemployment rate is low, there are always going to be part-time workers looking for more…
Directors: Know your role
If you’re a director, make sure you’re up to speed on both company law and the accepted code of behaviour required for the job. If you ignore the underlying principles of ‘good faith’ and ‘duty of care’ you could be fined up to $200,000 or face jail time. Remember to: Maintain a consistently solid…
Six simple ways to make your business more sustainable
Assess your environmental impact. Look at your materials, emissions, and waste. Try carbon calculators Ekos or Toitu or the new Climate Action Toolbox. Put your green mission on paper. What does sustainability mean to your team, company, industry, and clients? Developing a short mission statement establishes your priorities and gets everyone on the same…
Residential Rental Property Tax
There are many tax implications when investing in residential property in New Zealand. Property investment and understanding the impact of current tax laws and their application is rather complex now, Please seek professional advice when you are unsure of the implications, as mistakes can be costly! The Brightline test For sale and purchase agreements that…
Employment Matters
Sick leave entitlement changes The recent passing of the Holidays (Increasing Sick Leave) Amendment Act increased the employee sick leave entitlement from 5 to 10 days per year. The change comes into effect on 24 July 2021. The day in which the employee’s sick leave increases is based on their next entitlement date and not automatically…
New Trust Disclosures
With the introduction of the 39% tax rate for individuals from 1 April 2021, the Inland Revenue is increasing the information it collects from trusts to assess compliance with the new tax rate and to monitor how trusts are being used. Trust disclosure obligations The additional information that needs to be included in a…
Purchase Price Allocation Rules
If you are planning to buy or sell a business, you need to be aware of the new purchase price allocation rules that apply to business asset sales as well as commercial property sales. The new rules took effect from 1 July 2021 and impact the way parties allocate the agreed purchase price between…
Reinstatement of Depreciation on Commercial Buildings
Since the 2012 income year the depreciation rate for commercial and industrial buildings had been reduced to 0%. Following the Government’s raft of Covid-19 support measures, depreciation can now be claimed on commercial and industrial buildings from the beginning of the 2021 income year. The reinstatement will mean commercial and industrial buildings are now…
Covid-19 Business Support
This lockdown was announced at 17 August 2021 and has triggered three of the government’s existing policies – Resurgence Support Payment, the Covid Wage Subsidy, and the COVID-19 Leave Support Scheme. The terms ’employee’ and ‘business’ below include sole traders and shareholder-employees. Some information and applications may not be immediately available, so keep checking…
Your step-by-step guide to meaningful customer feedback
Make a list of seven key clients or customers to call for feedback. Decide who is going to make the calls or split them between two staff members. Email in advance explaining how committed you are to improving your customer service and experience, that you value their constructive feedback, and would like to interview…
Does the new 39% tax rate affect you?
The new 39% marginal rate that applies to all employment income over $180,000 is now in force. Consider how the new rate will affect you and your business. The 39% tax rate and… Trusts? From now on, you’ll need to disclose a lot more information to Inland Revenue in your annual trust tax returns.…
Good communication = repeat customers = more profit
Did you know customer retention is faster and, on average, costs up to seven times less than customer acquisition? If you’re looking to improve your bottom line by turning your current customers into lifetime customers, here’s the best way to communicate with them. Communicate kindly Customer service is key, whether it’s in-person, on the phone,…
Paid parental leave applications online
Now’s the time to let staff know applying for paid parental leave just got easier. As of March 2021, your staff can apply for paid parental leave via myIR on the Inland Revenue website. The site can now pre-populate information it already holds for customers, such as contact details, name of employer(s), and an estimate…
Six things you should know before filing your EOY Tax post COVID-19
New rules to keep cash flowing If money is a bit tight as the financial year draws to a close, here are four tax measures focused on providing and enabling cashflow that you might like to consider: 1. The tax loss carry-back rule, which means if you’re expecting a tax loss for the year ended…
Trusts Act 2019, What you need to know
Trusts Act 2019 As of 30 January 2021, there will be significant changes to New Zealand trust law. Therefore, 2020 is the year for trustees to review trust arrangements and to make any necessary changes, and to be ready to comply with the Trusts Act 2019. The Trusts Act 2019 is the first major rewrite…
Keeping you and your staff pain free in 2021
Whether you and your staff are sitting or standing at work, there are risks to physical and mental wellbeing that can be easily avoided. Here are some top tips from Erin Holland from Active+, who’s an experienced physiotherapist in occupational health. What are the key health and safety risks when you’re working in an office?…
Lead by example: be a mental health champion
Did you know the main reason people take time off work is due to poor mental health? So, it’s in your best interest to promote positive mental health at work. Plus, stats show investing in building and maintaining good mental wellbeing at work boosts productivity, sales, creativity, and customer satisfaction. Here are some straightforward, effective…
Implementing health and safety so it sticks
Have a health and safety policy and plan in place? Great! But how can you ensure everyone’s 100% on board? Here are four simple steps from Livewire HR to get your crew on the same page. Make it relatable. To engage staff in health and safety at work, they need to understand why health and…
Health and Safety: Do I need help getting it right?
Since the Health and Safety at Work Act 2015 came into place, specialised advisors and consultants have been popping up all over New Zealand. But how do you know who’s genuine? We talk to Rebecca Jenkins from Livewire HR, who says it’s all about doing your groundwork. What should businesses look for when seeking help?…
From Airbnb to boarders: What’s new for property owners?
Renting your home or bach online? If you rent a property for short periods, you need to know your tax commitments. New rules announced last May come into force this financial year. Here’s what you need to know: 2,500 If your tax due at end of year is more than $2,500, you’ll have to…
What’s new in 2020?
Partnership Law gets a makeover: The Partnership Law Act 2019, which governs business partnerships …
Are you a landlord? Keep up with the changes
With a third of New Zealanders renting homes, and some for a lifetime, it’s key to have clear, fair rules for tenancies. The Government’s tenancy law reforms announced late last year aim to improve tenants’ security and stability while protecting landlords’ interests. The Residential Tenancies Amendment Bill is now making its way through Parliament,…
Five steps to a healthy rental property
To boost the quality of rental properties in New Zealand, the Healthy Homes Guarantee Act was passed in 2017. If you’re a landlord, there are five actions you need to take to ensure your property meets the Healthy Homes Standards. By 1 July 2024, you need to provide: Fixed, efficient and healthy heating devices…
New kilometre rate for claiming motor vehicle expenses
Are you using your car for business purposes? It’s timely to outline the process for claiming tax on your work vehicle expenses. If you’re using a vehicle for business purposes, you can claim tax back on expenses. If you use the vehicle only for business, you can claim the full running costs. If you…
Four-week checklist to keep tax time low-stress
Week 1: First things first Talk to your accountant or bookkeeper. They’ll tell you what you need to do before 31 March including what you can claim for and what you can’t. Remember, tax time is busy for them too, so the more prepared you are, the smoother the process, and the better the…
Family Trusts
Introduction Family trusts have become a popular way of conducting small business operations in New Zealand. There are a number of persons who form and operate the trust. Settlor This is the person who establishes the trust and signs the trust document. They may transfer property other than the initial settlement to the trustee to…
Pricing and Profits
This guide contains the following topics: What is profit? How to increase profit Developing a profit improvement strategy Adding value What is profit? Profit is residual The important thing to note is that profit is ‘what’s left over’. In other words, profit is residual. It is the consequence of what happens in and to your…
Terms of Trade
Areas to include When drafting terms of trade for a standard seller of goods or services consider the following areas: Terms Notes The Parties Clearly identify the legal entity you are contracting with Goods and/or Services An exact description of the nature of the goods and/or services is essential Price Payment Including whether the…
Debt Factoring
Introduction Factoring is not new, it originated in England in the 1300s. Today it is a common method of financing business transactions. The factoring company purchases a business’ debtors’ invoices for a fee. The benefit to the business is that it receives cash for a high percentage of its debtors’ invoices, virtually simultaneously with the…
Writing Position Descriptions
Introduction A position description is a final product of a process of thinking about what you really want from this position. Task Review Sometimes the tasks associated with the position you are recruiting to are very clear cut, such as a pastry chef, a machinist, a carpenter/joiner. However, in many businesses it is not…
Establishing the Key Performance Indicators in Your Business
Introduction A key performance indicator (KPI) is a measure designed to track critical success factors in a business. KPIs provide a statistical measure of how well an organisation is doing. To be effective, KPIs should be few in number and focus on vital areas in the business. KPIs differ by industry, business and even departments…
Customer Advisory Board
Introduction You can greatly improve your chances of succeeding in today’s marketplace if you focus your efforts on addressing the business issues that face your key customers. Consequently, it is more important than ever that you know ‘the voice of your customer’ and that you use this knowledge to create competitive solutions that deliver…
Marketing
Introduction Marketing is the art of ‘getting yourself out there’. It is the way you let your customers and prospective customers know what you do, how you do it and where you are. Marketing can be broken into three general areas: branding and promotion, advertising, and direct marketing. If done well, these steps will naturally…
Performance Management
Introduction When you have your employee’s employment confirmed as ongoing (after the trial or probation period) it is important to manage their performance. This should be delegated to the employee’s manager (eg customer service manager or business manager). This chapter contains the following topics: Feedback and Career Development Review Training your team Solving problems…
Key Traits of a Successful Business
Introduction What’s the secret to success in business? Here are 16 things to start you thinking. Contents This guide contains the following topics: Effective leadership Outstanding customer service Strong product and industry knowledge Strong management capability Effective staff performance management Tight working capital management Understanding the key drivers and therefore the key…
Succession planning
Introduction In New Zealand it is estimated 24% of small business owners are now over 60 years of age. A further 25% are between 50 and 60. A great question to ask yourself is ‘What if I were hit by a bus tomorrow?’ In other words, in the event of death or disablement how…
Family businesses
This guide contains the following topics: The eight fundamentals of family business Spouses in business Conflicts within family businesses Dispute resolution The eight fundamentals of family business Family involvement in any business has to be an integral part of the business’ successful future and therefore provided for in the business plan. Incoming family…
Should you be increasing your prices?
If you adopt a premium pricing strategy the following table shows the amount by which your sales would have to decline following a price increase before your gross profit is reduced below its present level. For example, at a 40% margin, a 10% increase in price could sustain a 20% reduction in sales volume. If…
Should you be discounting your price?
The following table indicates the increase in sales that are required to compensate for a price discounting policy. For example, if your gross margin is 30% and you reduce price by 10% you need sales volume to increase by 50% to maintain your profit. Rarely has such a strategy worked in the past and it’s…
Valuation of a Business
Introduction There is no topic about which greater differences of informed opinion may exist than the value of a business or shares in a private company. Contents This guide contains the following topics: Overview Valuation methods Developing the succession plan Valuing the business Valuation methods summarized Goodwill Overview Introduction The…
Direct Marketing
Introduction Direct marketing is contacting the seller personally to engage them in the sales process. This is generally done around a certain offer or event, as this type of marketing is not appropriate for general awareness marketing. Direct marketing is generally done by telephone, email or letter. Contents This guide contains the…
Computers in Small Business
Introduction Your computing needs will vary greatly depending on the type of business you run and how many team members you have. This guide will give you an idea of the basic options available. Contents This guide contains the following topics: Computer setup PC vs Mac Setting up a network Backing up…
Exporting Business
Introduction New Zealand relies heavily on exports to support its economy. Because of this, the New Zealand Government puts a lot of resource into its national economic development agency, New Zealand Trade and Enterprise (NZTE). Contents This guide contains the following topics: Setting up an export business Developing your intangible resources Going…
Customer service
Introduction Good customer service is easy. Once you have been through the hard work of attracting customers, and have successfully sold them something, you will want to encourage repeat business. It is far easier to sell more to your existing customers than it is to find new ones. One of the keys to attracting…