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Cutting costs or increasing your prices? We can help

With many businesses expecting a lower profit this financial year, the more prepared you can be for the unexpected, the better. Managing expenses is a good idea at any stage in your business and you can also consider increasing your prices to improve your margins.Smart ways to get your costs under controlCashflow has been a big issue for thousands of businesses this year, and when the money’s not rolling in, it can help to rethink your costs. To do it effectively involves more than just keepin...

Give your small business a healthcheck

How healthy is your business? With all the day-to-day operational and management tasks to deal with, finding the time to stand back and look at the business objectively can be tricky.But making sure your business is healthy and running well is a vitally important responsibility as a founder, owner, managing director or CEO.The good news is that the Government has created a helpful Healthy Business Checklist.Helping you check the important areas of your businessThe Healthy Business Checklist is e...

Five big business challenges for 2025

‘Uncertainty’ has been the defining phrase for the first half of the 2020s. The markets are unstable, supply chains have been wobbly and finding talent has been difficult.But as we head into 2025, and the second half of the decade, what are the major threats, opportunities and challenges that your business should focus on?We’ve highlighted five of the big business challenges.Five big business challenges for 2025 (and beyond)However well-organised you are, there are elements in the external...

Costs are rising: what can you do?

The ANZ Business Outlook survey for December 2024 shows that some Kiwi companies are reporting a significant increase in activity. But there was also a rise in expected costs, with 70% of surveyed businesses expecting their running costs to rise as we start the new year. Costs are one of those external factors that can have a major impact on your cashflow. But what can small business owners do to lessen the impact of these rising costs?Let’s look at five ways to overcome these cost issues. Fiv...

Understanding Your Statement of Cash Flows

The statement of cash flows, (also known as the cash flow statement), shows how your business has generated and used cash (and cash equivalents) within a specific time period.For each of the reporting categories, receipts and payments are listed (money in and money out), and this is reported as a net increase or decrease in cash held for that category.The net change in all categories is added to the amount of cash on hand at the start of the reporting period to arrive at the current cash on hand...

What does a cut to the Official Cash Rate mean for your business?

On 27 November 2024, the Monetary Policy Committee agreed to reduce the Official Cash Rate (OCR) by 50 basis points to 4.25%. This cut to the Reserve Bank of New Zealand (RBNZ) rate is aimed at improving the economic conditions in Aotearoa over the coming year.But what is the OCR? And how will a drop to a 4.25% rate affect your small business?What’s the Official Cash Rate? The Official Cash Rate (OCR) is the interest rate set by the Reserve Bank of New Zealand. The OCR is a key economic tool t...

Managing stress at tax time

Tax time doesn’t have to be stressful. With good planning and clear processes, you can make it easier on yourself. Learn three tips for reducing stress at tax time.  ...

Paying your employees for leave

Paying your employees for leaveWorking out what you need to pay employees when they’re taking leave can be complicated — but with the right systems and processes in place, it doesn’t have to be difficult.Read this guide from business.govt.nz to understand the management of employee leave.Download the Financial Plan Template HERE under 'Financial Matters'...

Financial management and your wellbeing

Reducing the stress of financial management is good for your mental health and wellbeing, good for your business and good for the people around you. Learn three practical ways to make financial management easier. ...

Forecasting: taking the guesswork out of your finance strategy.

As a business owner, it’s increasingly difficult to ride out the changing economic conditions and manage the financial ups and downs of doing business in 2024. According to recent data from the Ministry of Business, Innovation and Employment, company liquidations are up 40%] in the first eight months of 2024 when compared to 2023.Knowing what’s around the next corner would be incredibly helpful. This is where forecasting tools and financial projections can become a real game-changer. Why you...

Cash flow and cost control

More than ever, cashflow is a vital part of staying afloat, whether your business is in recovery or growth mode. Revenue, profit and your bottom line all deserve your attention. But keeping everything running is the baseline. Regular cashflow forecasts help you keep that in focus. Here’s why:- Cost control - If you can't reach your targets for income, reining in your costs may give you a little extra head room to manage cashflow while you plan your next move.- Visibility on outgoings - Cost co...

Data-driven decision-making: cashflow and financial health

In this series, we continue to look at how data-driven decisions sit at the heart of running a successful business in 2024.Today, we’re looking at how proactive use of data can improve your small business cashflow, and the overall financial health of your company.Do you know the positive impact that data analysis could have on your cashflow?We all know that ‘cash is king’, but keeping tabs on the unpredictable path of your business finances can be hard work. Cashflow can ebb, flow and sudd...

Why bookkeeping is essential for your small business

What's the difference between a bookkeeper and an accountant? And how can a bookkeeper help you run your business?Bookkeepers and accountants are not the sameIf you’re a small business owner, you’ll be familiar with juggling several tasks at once. As well as keeping things running, you need to generate income, keep your customers happy and look after financial information. Tracking the financials can be a chore though, and one of the biggest questions you might have is who you get to help wi...

Using invoice finance to improve your cashflow and liquidity.

Liquid cash is what keeps you trading, growing and hitting your goals as a business. But sometimes, that access to ready cash can slip. And when cash is in short supply, you need a fast and convenient way to bring increased cashflow into the company.One common way to do this is to look at invoice finance – a way to use the equity tied up in your unpaid invoices to raise cash quickly and with minimum hassle.How does invoice finance work?Invoice finance is a financial tool that allows you t...

Understanding your Revenue Drivers

For your business to make money, you need to generate revenue.You produce revenue through your usual business activity, by making sales, getting your invoices paid, or taking cash from paying customers. So, the better you are at selling your products/services and bringing money into the business, the higher your revenue levels will be.But what actually drives these revenue levels? And how do you get in control of these drivers?Knowing where your cash is coming from is more crucial than ever As a...

Measuring the health of your business with ratio measures

When you’re running a business, it’s easy to get caught up in the day-to-day activity and lose sight of the big picture. Taking stock of the health of your business is important. Knowing where you are allows for more effective planning, early warning about any issues, and the chance to better chart a course for success.There are some quick ratios that will help you to gauge the health of your business. We can help you to assess your business health and show you how to calculate these vital c...

The value of cashflow forecasting for your business

Projecting your cashflow pipeline forwards is vital. To be able to navigate the future path of your cashflow, you need to start forecasting – so you can map out your financial position over the coming months and can take the appropriate action to safeguard your cash position. Plus, when you have access to detailed forecasts you can scenario-plan, search for cost-savings and look for strategies that will preserve your cashflow position.Forecasting your future cash pipelineRemaining in control o...

The value of cashflow forecasting for your business

It takes guts to start a business. It also takes a strategic mindset to succeed.Business owners are no strangers to weighing risk and navigating uncertainty, but the recent economic climate has dialled everything up. Many business owners face the uncomfortable position of having to remap carefully thought-out succession plans and exit strategies and to consider selling their business before they’re ready and, possibly, for less than it's worth.Transition may be a better optionRob Young, Managi...

Applying for the Regional Infrastructure Fund

The Coalition Government has established a new $1.2 billion Regional Infrastructure Fund (RIF) to help invest in and improve New Zealand’s regional infrastructure.The aim of the fund is to boost regional infrastructure projects, outside of the main metropolitan areas. The RIF will encourage the building of new infrastructure and will improve existing structures to benefit regional businesses, organisations and communities.Funding will be provided through a mix of loan and equity investments, b...

NZ Business confidence soars: how to ride the wave

Business confidence soared in August, rising 23 points to +51, the highest level in a decade!Against the backdrop of dire economic outlooks and the ’Survive to ’25’ mantra that’s been so prevalent in business circles, this jump in New Zealand business confidence is a genuine boost for small business owners and the economy in general.But with tough times potentially still ahead, what can your business do to ride this ongoing wave of positivity?5 ways to ride this wave of business confiden...

Employer responsibilities for non-work related injury

Your Employee Gets Injured Outside of Work.What Are Your Responsibilities?When your employee gets injured in winter sports, this is considered a non-work-related injury, unless they play for the All Blacks of course.As an employer, there are a set of responsibilities and ways you can assist your employees with their injury recovery. ACC:✔ Non-Work-Related Injuries: ACC covers injuries that occur outside of work, such as those sustained at home, during sports, or in everyday activities.✔...

Managing stress at tax time

Tax time doesn’t have to be stressful. With good planning and clear processes, you can make it easier on yourself. Learn three tips for reducing stress at tax time.  https://www.business.govt.nz/wellbeing-support/brave-in-business-e-learning/reduce-financial-stress/managing-stress-at-tax-time...

Financial management and wellbeing

Reducing the stress of financial management is good for your mental health and wellbeing, good for your business and good for the people around you.Learn three practical ways to make financial management easier. https://www.business.govt.nz/wellbeing-support/brave-in-business-e-learning/reduce-financial-stress/financial-management-and-wellbeing...

Small Business Break-Even Analysis for Tradespeople

When you start a trade business, one of your priorities will be to make enough money to break even. Yes, you have to spend money to make money, but this can be a risky way to do business if you don’t know what your break-even point is.The break-even point is marked by the number of jobs you need to complete to cover your operating costs. Once you’ve reached your break-even point, you’re no longer losing money and your trade business is officially turning a profit. It’s an essential part ...

Following up on invoice payment in a down economy

It can feel challenging to chase up payment of invoices when the economy has been down, but it is important to keep cash flowing into your business so you can cover expenses and meet your obligations to others. As with all dealings in more difficult times, some empathy and a lot of open communication can go a long way.The following tips are useful to keep in mind when asking for payment.Communication - Connecting with your customers is important. Try to make it personal to their situation rather...