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Common employment agreement mistakes

Every employee in NZ must have a written employment agreement, whether they are full-time, part-time or casual.As the fundamental legal document between an employer and an employee, the employment agreement sets out the terms and conditions of employment, establishes entitlements and expectations, and provides a reference if there are any issues down the track.While they're not hard to get right, there are some common errors that every business wants to avoid:Not having an agreement at all ...

Will a 4 day week work in your Trade Business?

Picture mastering a 4-day workweek in your flourishing trade business? Michael Chaplin of Tweed Electrical is making this vision a reality. His secret? Streamlined systems and valuing life beyond work.In an article by Tradify, they delve into the game-changing potential of the 4-day workweek in the trade sector. They share a success story of a landscape business that unveils how this shift can elevate your business.Attain improved work-life equilibriumAmplify employee well-being and efficiencyCu...

Can business automation streamlines your business?

How can business automation streamline your business? Business automation uses technology to streamline and simplify all the repetitive manual tasks, processes and workflows that are part of the everyday running of your business.Instead of spending hours of business time doing everything manually, automated systems can take on most of the heavy lifting. You can automate the data-entry of your bookkeeping, the sending of recurring invoices or the coding of transactions when doing your bank reconc...

5 things to know when you’re applying for a home loan

Thinking of applying for a home loan? Here are some tips to help you prepare an application that’s more likely to be approved.You may need to go on a financial diet before you apply - When you apply for a mortgage, a bank will typically analyse the statements for all your accounts for the past three months. Some types of spending will dent your chance of being approved, such as any betting, buy now pay later accounts (like Afterpay), or regular trips to the bottle shop. For three months b...

What will a National-led government mean for your taxes?

We don’t yet know exactly how the new National-led coalition government will be formed. But we do know that National pledged to make some major changes to tax if it came into power. Here are some of the changes that could affect you:Tweaks to tax bracketsNational has proposed changes to tax brackets, designed to adjust for inflation and boost incomes:Restored interest deductibility on rentals and a two-year bright line testOn investment properties, National has said it will gradually reinstate...

Bookkeeping vs Accounting. What's the difference?

In the world of finance, bookkeeping, and accounting are often used interchangeably, but they serve distinct roles in managing a company's financial health. Let's break down the differences:📘 Bookkeeping:Bookkeeping is like the foundation of a financial house. It involves the systematic recording of daily financial transactions, such as purchases, sales, receipts, and payments. Bookkeepers ensure accuracy and organize data into ledgers, providing a clear snapshot of a company's financial posi...

2023 Mental Health Awareness Week

In 2023, Mental Health Awareness Week (MHAW) will be held on 18 – 24 September.MHAW is run annually by the Mental Health Foundation and has been since 1993. MHAW is endorsed by the World Federation for Mental Health and is marked in over 150 countries at different times of the year.  This year’s Mental Health Awareness Week theme is Five Ways, Five Days. Life has been a rollercoaster lately, with stress and overwhelm hitting us from all angles. We've faced uncertainty, un...

How to grow your Trade Business

Ready to scale your trade business? Imagine it as climbing a challenging peak – your venture starts at the base, and ascending to the summit demands smart strategies. This summary is your roadmap, leading you step by step towards success.Let’s talk about staff. Hiring matters – from apprentices to subcontractors and full-timers, each has perks. Financials are crucial. Understand your cash flow and set optimal rates for sustainable growth.Streamline admin. We explore easy quoting, invoicing...

5 ways to overcome economic uncertainty

Economic uncertainty is an ongoing worry for any business owner.You can control your own financial management, but you don’t have any direct control over the wider macro-economy. And in the first few years of the 2020s, there have certainly been plenty of tricky ups and downs for your business to navigate.Current economic uncertainty stems from a number of factors, including:Fluctuating marketsGeopolitical tensionsPandemic recoveryThe impact of climate change.This unpredictability poses signif...

Who might look at my business credit score and why?

Business credit reports are a summary of your business’s credit status and payment history. Anyone who extends credit to your business can access your business credit report, such as utility companies, banks, and suppliers. The report is a vital tool to help businesses decide whether to offer your business credit, based on your financial track record and potential risk of payment default. The report features a credit score that indicates how likely your business is to pay its bills on tim...

Consumer credit reports explained

A consumer credit report summarises how often a person has bought products or services on credit, and how reliable they are at paying for these items. If you’re considering offering money, goods or services on credit to a consumer, it’s the best way to know how likely they are to pay their bills on time.The information in consumer credit reports is collected from multiple sources including banks, utility companies, debt collection agencies and payment history data from creditors. Anyone who ...

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...

5 tips for running good performance reviews

When times get tough, it can be easy to let some of your people processes fall away as you concentrate on the basics of the business.Take the performance review. They can be unpopular, sucking up a lot of time and making employees and managers stressed. So why not skip them?Because good performance reviews work. They’re an effective way to track people's progress, provide feedback, gain insight, support development, and align individual performance with company goals, which helps the business ...

Plain English guide to cashflow

What is cashflow?Cashflow refers to the movement of money into and out of your business over a specific period.In the most basic terms, cashflow is the process of cash moving out of the business (cash outflows), and cash coming into the business (cash inflows). The ideal scenario is to be in a ‘positive cashflow position’. This means that your inflows outweigh your outflows – i.e. that more cash is coming into the business than is going out.When you’re cashflow positive, the main benefit...

Scam Savvy Business

What is a scam?Scams are deceptive, uninvited approaches designed to trick you into giving away your money, login credentials, payment card details, or personal information.Every year BNZ updates and promotes their Scam Savvy website. This is a fantastic resource which provides information, resources, and a quiz, on how to spot and avoid scams.  This is a very friendly, easy to use, and useful resource, and I would encourage you all to look at this and share this with those who you think co...

How to conduct workplace trials

Workplace trials are a great tool for evaluating potential employees, but it's important to approach them carefully to ensure they are fair and lawful.Here are some important factors to consider during the trial process:The business can’t benefit financially - don’t get a person to do work one of your paid employees would typically do, e.g. serve paying customers.Don’t pay the person - trials are voluntary and only for assessment purposes.Keep it short - the longer a trial g...

What’s the difference between employees and contractors? And why does it matter.

Does your business use both employees and contractors? It’s important to distinguish between them as they are paid and taxed differently.Despite what you may call the individual concerned, that description is not definitive. If the status of the worker is questioned in the Employment Court or Employment Relations Authority, for example, the Employment Relations Act 2000 requires a consideration of the ‘real nature of the relationship’.Common law tests assist in determining what that is. Th...

Which business expenses can you claim against tax?

Incurring expenses is an unavoidable fact of running a business. But which expenses can you claim tax deductions against and which don’t meet the tax-free criteria?Here’s our lowdown on which expenses you can claim against tax.Which business expenses can you claim deductions against?If your business expense is directly related to earning your assessable income then you should be able to claim a tax deduction against this particular cost.For example, everyday business expenses that you may be...

Proving your ongoing business viability through 5 financial reports

Whether you’re applying for government subsidies, taking out a business loan or seeking investor support, you need to be able to demonstrate your ongoing viability as a business.To prove this viability, it’s important to have the right financial information at your fingertips. This information is also just as important for your own internal planning and decision-making.So, where do you start and what are the reports that you’ll need?The numbers that prove you’re a business with a futureA...

5 top lead magnets for your marketing

Bringing leads into your business is what drives sales. So, how do you create the most effective lead magnets to draw potential customers into your sales funnel?Yes, we know, there’s a lot of jargon in sales and marketing. But, ultimately, every business wants to attract customers, get their details and try to convert them into a sale. It’s this continual process of pulling leads into your funnel that gives you stable sales and solid revenues.To help you, we’ve highlighted five of the top ...

Have you got a plan for growth in your business?

Growth doesn’t need to mean more risk, more hours and more headaches.It may be as simple as identifying where the opportunities for growth are in your business and industry. Once you've done this you can establish what you and your team are going to have to do in order to maximise these opportunities, and how you will navigate the likely obstacles.Here are a couple of tips to get you thinking about growth:Do an audit to document your growth over time. Analyse all the information you have to un...

5 questions to ask when you are buying a business

Purchasing an existing company is a great way to expand your business empire. You can buy out a close competitor, or dip a toe into a new industry and expand your reach as a business group. But whatever the reason for the acquisition, you need to ensure you’re not buying a lemon!Doing your research is a crucial part of the purchase process. As is asking some probing and insightful questions to help you determine if this acquisition is a good (or bad) idea.Questions to ask before you make an of...

Withdrawing a job offer - What are the rules in NZ?

You’ve found a great candidate for the role, after reading through piles of CVs and conducting interviews, and have offered the person a job.But what happens if something comes to light that makes you change your mind? You might have done some reference checking and found out something about them that means they’re no longer the right fit for the position or the organisation. Or there might be some sudden pressure on your bottom line or you need to quickly change direction to meet new market...

Keeping your business cash liquid – the difference between cashflow and profit

The foundational goal of any business is to make a profit. As a business owner, that’s one of your key financial aims – to make enough sales, at a big enough margin, to generate profit from your enterprise. But how does profit differ from cashflow? And why is cash king?How do profit and cashflow differ?To really understand the difference between generating profit and managing cashflow, we need to look at what both these terms mean. You might think that delving into the accounts is a job for ...

5 challenges for small business - and how to beat them!

Founding, building and growing your own small business is a hugely rewarding experience for many entrepreneurs. But the road ahead isn't always smooth.There are common challenges that crop up and ongoing issues that need to be factored into your business plan, your strategy and your own personal thinking.So, what can you do to beat these challenges and make the journey as frictionless as possible?5 proactive ways to overcome your business challengesWe’d all love to know what lies around the co...