Blog JDW: Jobs Done Well

What to Measure

What to Measure – Key Metrics for Start-ups

Manage What You Measure

Traditional accounting methods and timescales don't work for start-up businesses. A lot of start-up businesses are not well-funded. Those which are well-funded can still hit financial trouble if they don't have warning signals in place.

Timescales

An annual reporting cycle is too long. Even quarterly may be too long, if funding is tight. Some metrics need to be measured daily and weekly so that founders can show investors that they are tracking well.

Profit vs Cashflow

Profit and cashflows are not the same. If you have a subscription model with customers paying 12-months on signing up, for cashflow purposes you have the cash inflow up front. For tax purposes, some of that income is in advance. If your balance date is March and the customer signed on at the start of January, then you have received 9 months in advance. Your profit is not as high as your cashflow because you still have to provide 9 months of services to that customer.

Conversely, if you buy stock upfront or employ staff to fulfil services and invoice on completion with payment on the 20th of the month following, you'll have cash flowing out of the business even if you are profitable.

Traditional Metrics

Here are some metrics which we use frequently with established businesses. Some of these may be useful for start-ups but not all start-ups will find these relevant.

Revenue or TurnoverSales, expressed in dollar amounts or percentage increase. Are your sales reliant on one or two large customers? Consider broadening your customer base, to spread the risk of losing your biggest customer.

Gross profit­Revenue - Cost of sales. Analyse gross profit by customer or by project. What if you were losing money every time you made a sale to your biggest customer because of the big discounts they received?

Net profitGross profit – Operating expenses. Expressed before or after tax.

Return on investment – Net profit / Owners' equity. This measure tells you how well your investment is performing.

EBITDA (Earnings before interest, tax, depreciation & amortisation)Net profit + Interest + Depreciation/Amortisation. Takes the source of funding out of the picture when considering profitability.

Stock turn – Cost of sales / Average inventory. Slow moving stock (a low number) is inefficient as it ties up money that could be used elsewhere. It may point to having the wrong stock or obsolete stock.

Accounts receivable daysAverage receivables / Revenue x 365 days. How long it takes to receive payment.

Accounts payable daysAverage payables / Cost of sales x 365 days. How long it takes to pay bills. A high number may suggest that a company is struggling to meet its obligations. But on the other hand a low number may suggest that suppliers are unwilling to allow trade terms, so this might also be a warning sign.

Current ratioCurrent assets / Current liabilities. Should be higher than 1 to show that a company is able to pay debts as they fall due.

Liquidity ratio or Quick ratio(Cash or equivalents + Accounts receivable) / Current liabilities. More conservative than current ratio, as it recognises that it can be difficult to sell inventory in a hurry to pay bills.

Start-Up Metrics relating to Customers

Monthly recurring revenue (MRR) – For subscription services, the sum of the monthly fees paid by your customers. Could be calculated as average fee per customer times the number of customers. Net New MRR = New MRR + Expansion MRR – Churn MRR

Customer lifetime value (LTV) – Ave purchase value x frequency x lifespan. How much revenue they can expect one customer to generate over the course of the business relationship. The longer a customer continues to purchase from a company, the greater their lifetime value becomes.

Customer Acquisition Cost (CAC) – total marketing and sales cost to gain a customer over time. Direct costs such as Facebook or Google AdWords, sales commissions, but also indirect costs such as overheads.

Compare LTV with CAC to assess the effectiveness of your marketing spend.

Customer Churn Rate – the percentage of customer who cancel or don't renew their subscription. It's generally cheaper to retain existing customers than to attract new ones so this is an important measure.

Start-Up Metrics when you don't have Customers

Some metrics like gross profit are reliant on sales. What if you're not selling anything yet? Profitability and return on investment are not as important as subscriber numbers, conversion rates and cashflow.

If you can track and measure these, you can prove whether you are performing, even without a sale.

User Engagement – How often they open your app, number of interactions inside the app, how long they spend using it, how many recommend to friends.

Conversion Funnel ratio – How many potential customers move from one stage in your sales funnel to another, expressed as a percentage. For instance your sales funnel may be made up of various stages: website visit, selecting products, adding them to a cart, paying for the goods. This may help you to identify friction, such as difficulties completing a signup form or abandoning a shopping cart because it took too long.

Retention Analysis – How many users return to your app without a given timeframe. See cohort analysis below.

Forecasting and budgeting is critical to making sure that a business survives until the next cashflow injection. Budget your spending in advance and keep to your budget.

Burn rate – How much money you spend a month.

Runway – how long before you run out of money in your bank account based on your burn rate. Compare this with your investment cycle, how long it takes to obtain another cash injection.

Vanity Metrics

Vanity metrics should be avoided in reporting. Vanity metrics are measures which make you look good, but don't help you with decision-making. E.g the number registered users vs the number of users who engage regularly. Just about any measure could be a vanity metric if they aren't driving decision making.

Making Useful Comparisons

Using cohort analysis and AB testing you can provide a truer picture of a start-up's progress. Cohort analysis might be grouping users who started using your app at the same time and comparing the retention rate against an earlier group of users. Ideally you should be seeing a higher retention rate with each cohort.

AB testing might be showing one version of your website to half your visitors and another version to the other half. Then you can see which version is more successful at converting visitors to customers.

You can only manage what you measure, according to Peter Drucker. Make sure that you are measuring the right things on a regular basis, so you can manage your start-up effectively.

Download a PDF version here or contact the author by email. Like our Facebook page for regular tips.

Serena Irving is a director in JDW Chartered Accountants Limited, Ellerslie, Auckland. JDW is a professional team of qualified accountants, auditors, business consultants, tax advisors, trust and business valuation specialists.

End of Year Housekeeping

End of Year Housekeeping

As another financial year rolls around, it's time for a little accounting and tax housekeeping. For most taxpayers the year end is 31 March, but even if your year end is 30 June or 31 December, you would still be advised to read on.


Figure 1: Waterfalls in Bali - Photo by Robert Collins on Unsplash

Trading Stock (Inventory)

Inventory is valued at the lower of cost or market selling price. If you sell an item below cost just before balance date, then you can value the remaining items at that price. Dispose of stock that is unsaleable before your stocktake.

Inventory should be counted as close to balance date as possible. Remember to include stock in transit, if the purchase cost has been paid or included in creditors. If your turnover is $1.3m or less for the year and you estimate your inventory on hand is less than $10,000, you don't have to do a stock take; you can use your opening stock figure for your closing stock figure.

Prepaid Consumables and Expenses

If you estimate your consumable aids on hand cost less than $58,000 then you don't have to make a prepayment adjustment at year end. Source: IRD technical tax

Similarly, you can claim these expenses invoiced in one income year even if they are for the next income year. Just remember, you still need to pay for the invoices, so don't go incurring costs you don't need:

Accounting costs (mandatory) and audit fees

Advertising (under $14,000, up to 6 months)

Insurance (contract under $12,000, up to 12 months)

Periodic charges (under $14,000, up to 12 months)

Postage and courier tickets

Professional subscriptions (under $6,000, up to 12 months)

Rates

Rent (under $26,000, up to 6 months)

Services (under $14,000, up to 6 months)

Stationery

Subscriptions for newspapers, magazines

Telephone maintenance (up to 2 months)

Travel and accommodation (under $14,000, up to 6 months)

Vehicle registrations, road user charges

Warranties or equipment service contracts as inseparable part of the asset

Repairs and Maintenance

With the ring-fencing of rental losses from 1 April 2019, many landlords will be trying to ensure their repairs are done before 31 March. Expenditure on an asset may be a repair or an improvement. Chat with us about any major work you have done, so that we can appropriately analyse the costs.

Write off Bad Debts

To claim a tax deduction for bad debts, they must be written off before the end of the financial. In your accounting software raise a credit note to clear the debt or write Bad Debt across the invoice in your invoice book. To decide whether a customer balance (debtor) is a bad debt or merely doubtful, consider the age of the debt, how much effort has gone into chasing the debt and the likelihood of the debt being collected. Writing off bad debts give a more accurate reflection of the business's financial results but does not prevent the business from continuing to seek recovery of the debt.

Holiday Pay

Note any holidays (except for public holidays) taken by staff within 63 days of balance date, so that you can claim a tax deduction.

Property, Plant & Equipment

Purchases of assets costing less than $500 (excl GST if registered) can be automatically expensed, unless they are part of the construction of a larger asset. Review your depreciation schedule from last year. Assets which have been disposed of or put in a dingy corner because they are too costly to dump can be written off from the books so that a loss on disposal can be claimed.

You may want to defer the sale of a significant asset until after balance date, to push the depreciation recovery income into the next tax year.

Retentions

Retentions on building contracts are generally taxable in the year the contractor becomes legally entitled to receive them. Let us know of any retentions so we don't include them in income.

Preparation for 2019-2020 year

If you're changing accounting software, the start of a new year is a good time to do it. Set up now, so your bank feeds start from 1 April.

Have you checked that your payroll software is ready for payday filing? All major software companies claim to be ready, but desktop versions require a software upgrade at your end. The first time you sign in, you will need to allow the software to access IRD with your MyIR login and password.

The minimum wage increases to $17.70 per hour on 1 April 2019. Review all wages and salaries, not just those on minimum wages.

Consider how changes in your business will affect your income tax and talk to us about estimating your provisional tax or spreading your tax payments differently across the year.

 

It's time for some housekeeping: tidy up your end of year accounts and prepare for the year ahead. If you have any questions or concerns please contact us at JDW, so we can help you.

Download a PDF version here or contact the author by email. Like our Facebook page for regular tips.

Serena Irving is a director in JDW Chartered Accountants Limited, Ellerslie, Auckland. JDW is a professional team of qualified accountants, auditors, business consultants, tax advisors, trust and business valuation specialists.

Business Strategies to Overcome Wage Increases

If one-third of your costs rose by 20% over three years, would your business survive?

business_strategies

My first employer doubled my wages every year until Prime Minister, Sir Robert Muldoon, instigated a wage and price freeze to curb inflation. My employer was my Dad, I was aged six, and an increase from five cents to ten cents a week wasn't going to hurt his dairy's finances. The minimum wage increases are a different story.

On 1 April 2019 the minimum wage will rise to $17.70/hour, rising to $20/hour by 1 April 2021. Source: beehive.govt.nz Workers on higher wage rates will want to keep relativity to the minimum wages. ANZ analysts suggest that a typical hospitality business could see an overall wages & salaries increase of 20% between March 2018 and April 2021. Sales would need to increase by 7%, or other costs decrease to compensate.

Your businesses already struggle with skilled labour shortages, and stress for overworked owners. Now is the time to prepare for change.

Values, Purpose & Uniqueness

If your values, purpose and uniqueness resonate with your customers, they will be back time and again. The right business strategies will incorporate these.

Your business's core VALUES are at the heart of what you do. It provides clarity and makes decisions easier. When your actions align with your values, you feel confident and at peace. If a behaviour annoys or upsets you, it may be that it is conflict with your core values. It reflects in the look and feel of your establishment and the food you serve (E.g. Fast and Fresh, Tranquil, Family Friendly).

If your customers and employees relate to your PURPOSE, they will remain loyal. According to Simon Sinek, the Wright Brothers were the first team to achieve motorised flight because their purpose was inspirational. Source: www.ted.com  Your purpose may be to share your signature style of cuisine with the world, to feed families with wholesome food or it may be to build neighbourhood communities.

If you offer a UNIQUE experience, then you can price accordingly. Dans Le Noir at Rydges Auckland has a blacked-out restaurant, with blind wait staff. Customers are led into the restaurant in single file, cannot see to eat and have a few giggles when a neighbour spills a drink. They leave with more empathy for the visually impaired.

Business Strategies

Two-thirds of hospitality employers told the Restaurant Association they would raise prices. But raising your prices too high will cause customers to go down the road or dine at home. Look at the table of strategies and compare it with your values. Which strategies align? If you adopt one strategy, what is the flow-on effect? What else would need to change?

 

Basic Business Strategies

Sell more

Increase prices

Upsell

Flexible menu pricing

More advertising

Increase capacity

More tables

Breakfast service

Extra dinner service

Additional services

Rent space and equipment

Customer experience

Reduce food costs

Flexible menus

Seasonal produce

Reduce portion sizes

Supplier agreements

Reduce overhead costs

Better utility plans

Negotiate interest terms

Cut Staff Hours

Owner works longer hours

Reduce other staff benefits

Improve Efficiencies

Automate booking and/or ordering systems

Improve workflow

Cut wastage

 

Forecasting and budgeting

With business strategy in hand, how will you pay for it? Will you see a positive return from the effort? With the help of your accountant or bookkeeper, create a monthly or weekly budget of your expenses and capital expenses. Forecast your expected revenue considering seasonal fluctuations. Work out how much extra investment and borrowings you will need.

The minimum wage is rising and with it your labour costs, so the impact for your business will be huge. Increasing menu prices and working longer hours are not the only answers to this problem. Will you be ready with a clear strategy that aligns to your values, purpose and uniqueness?

 

First published in Savour magazine, March 2019 edition, alongside a Restaurant Association workshop "Business Strategies to Overcome Wage Increases".

Download a PDF version here or contact the author by email if you would like a copy of the workshop booklet. Like our Facebook page for regular tips.

Serena Irving is a director in JDW Chartered Accountants Limited, Ellerslie, Auckland. JDW is a professional team of qualified accountants, auditors, business consultants, tax advisors, trust and business valuation specialists.

 

JDW Celebrating 60 Years in Service

Our Village Locals - A History of Business

JDW_CharteredAccountants_Christmas2018

Look up above the Bakers Delight in Main Highway and you will see a large Chartered Accountants sign. From the street level, it's almost imperceptible. But JDW Chartered Accountants Limited is a hidden gem. When you walk up the stairs, you are greeted by Carol or Kimberley or one of the directors as an old friend, and then you notice that the offices are larger and more comfortable than you expect. There are thirteen in the team, ready and willing to help.

Frank Jolly and Don Stanway created their accounting partnership in 1958. Murray Wells joined the firm in 1971, and in 1973 he and Gerald Duncan teamed with Frank Jolly & Don Stanway to form Stanway & Partners. Don Stanway left four years later. Jolly Duncan & Wells moved to Ellerslie in 1986. Auditor Brian Sheridan was promoted to director in 1996 and the business incorporated in 2000. They have refurbished a couple of times since then, and recently rebranded to JDW Chartered Accountants Limited. Serena Irving became a director in June 2018 and Rupesh Parikh will become a director in April 2019.

Frank Jolly, Don Stanway and Gerald Duncan have passed on, but JDW continues to serve the second and third generation of their original clients. This gives JDW a unique insight into succession planning, trust and estate management from these long associations.

JDW supports the Ellerslie community in many ways. It hosts the Ellerslie Village Business Association bi-monthly meetings and offers workshops to its members. Murray and Sharon Wells have been active members of Ellerslie Community Patrol for many years, and JDW provides administration support to the patrol. Murray is also a trustee of Ellerslie Community Arts Trust, which puts on the annual Ellerslie Spring Fairy & Pirate Festival. JDW sponsors One Tree Hill College and Ellerslie Bowling Club regularly and sponsored the Ellerslie Santa Parade for the first time in 2018.

Murray Wells has been chairman of Bucklands Beach Yacht Club Marina for the past 30 years. Brian Sheridan is a trustee of the Saint Patrick's Festival Trust and a committee member of the Irish Business Network New Zealand Inc. Serena Irving has been a Toastmaster for 20 years and is currently Division N Director for central Auckland clubs. Rupesh Parikh has an active involvement in the Gujarati Indian community in Auckland.

JDW's mission is: We help business owners to succeed by giving them the financial, tax and business information and support they need to make better decisions. With their core values of integrity, empathy, simplicity and partnership, people are their most important asset. The team speaks a variety of languages: English, Afrikaans, Cantonese, Gaelic, Gujarati, Hindi, Marathi, Mandarin, & Niuean. As Murray said in their 60th anniversary function, "We have friends who have become clients, and clients who have become friends."

Being a Chartered Accountant in 2019 is not just about producing financial statements, GST returns and tax returns. With cloud accounting, machine learning and process automation making compliance tasks easier, JDW Chartered Accountants are focussed on helping business owners make sense of their numbers, plan for the future, build relationships, providing expertise and friendly advice when required.

Happy Anniversary JDW – Here's to the next 60 Years!

JDW Values

Integrity – We stand by our moral and ethical principles. We are honest and reliable.

Empathy – We identify with the feelings of others. We care for our clients and our community.

Simplicity – We use words that are easy to understand. We look for straight-forward solutions to complex problems.

Partnership – We work alongside our clients. We offer our experience and advice when they need it. We look for opportunities to help them in their business.


How can you get the most from your Chartered Accountant?

Out-source what you aren't good at. Focus on your strengths. We help you:

            Understand your balance sheet and profit or loss reports.

            Structure your business and investments for asset protection and tax minimisation.

            Price your goods or services.

            Focus on your key performance indicators.

            Plan for growth.

            Manage your accounting fees.

            Move your data into the cloud.

First published in Ellerslie village magazine, March 2019 edition.

Download a PDF version here or contact the author by email. Like our Facebook page for regular tips.

Serena Irving is a director in JDW Chartered Accountants Limited, Ellerslie, Auckland. JDW is a professional team of qualified accountants, auditors, business consultants, tax advisors, trust and business valuation specialists.

Should I Change Accounting Software?

Article – Should I Change Accounting Software?

By Serena Irving


Photo by rawpixel on Unsplash

Are you using the most suitable Accounting Software for your business? If you are using a Desktop product, do you have the most recent version?

These are valid questions, considering:

·         Payday filing will be mandatory from April 2019

·         MYOB is ceasing support for its Desktop products from September 2019

·         Banklink and Xero have both put up their fees recently

Mandatory Payday Filing

From 1 April 2019 employers will be required to provide details of employees' incomes and details of new or departing employee within two working days of the payday. For employers with payday filing capable software, this will be either an extra push of the button through the software's gateway service (API) or a file download which can be uploaded using your MyIR login. This is very similar to how GST is lodged through the accounting software.

We suggest that you opt in early for payday filing as soon as your payroll software provider is ready. If you have any implementation and training issues around the software, the IRD and software provider helplines will be extremely busy in April 2019. By early adopting, you will be ahead of the rush.

MYOB Ending Desktop Support

From 30 September 2019 MYOB will no longer be providing compliance updates, feature patches or product support for its Desktop version of AccountRight v19. If you are happy to continue using the Desktop version you can still do so, but you may be missing out on additional functionality that the Online version has available. This may be the best time to move to a cloud-based solution because MYOB and Xero are offering free migration to their products.

Banklink and Xero Fees Increased

MYOB increased its Banklink subscription fees in January 2019. An insider has suggested that MYOB is gradually phasing out Banklink in favour of its MYOB Essentials Connected Ledger option, which is in the cloud, has more functionality and daily bank feeds. Other alternatives to Banklink are Xero Cashbook available only through Xero Partners such as us, and Reckon One Basics with Bank Reconciliation.

We will contact our Banklink clients before 1 April 2019 to discuss options.

Xero increased its Standard and Premium plans in late September 2018, soon after adding Xero Expenses to its Standard and Premium plans. We recently achieved Xero Gold Partner status, so our 25% discount which we pass onto our clients, will absorb most of the price increase.

Why Accountants Prefer Cloud-Based Online Software

We prefer online software to desktop options, because we are accessing the same data that you are working on, from wherever we are. No need to send us backup files, post year end journals. We can sign in any time of the year, so we can help you with issues and see how your business is tracking on a regular basis.

You get a high-quality product with dashboards to show your business health, real-time tracking of your customer balances and cashflow. No need to install new versions of software. Access your accounts from most devices, anywhere, as long as you have internet. Xero is introducing automation and machine-learning capabilities which will speed up your processing time.

Our preferred cloud-based accounting providers are Xero, MYOB and Reckon One. Their software is written for the NZ tax system, easy to learn, and rich in functionality. For micro-businesses there are some good free options, like Wave.

How Do I Move Accounting Systems?

Consult us first to help you choose the right accounting system and to ensure the transition is smooth. We have several years' experience and can help you to avoid the pitfalls.

Before switching accounting systems, make sure that the old system is as tidy as possible. Delete old contact and inventory records, tidy up the chart of accounts. Make sure that your bank, debtors, inventory and creditors balances are correct as at conversion date. Ideally choose a year end for your conversion date, otherwise a GST period end would be the next best option.

 

If you are moving from Banklink to MYOB Essentials Connected Ledger, or from MYOB (Desktop) AccountRight to MYOB (Online) AccountRight, MYOB will do the transition for you, for free.

http://help.myob.com/wiki/display/ar/Upgrade+to+the+new+AccountRight

If you are moving from MYOB (Desktop) AccountRight to Xero Standard or Premium, Xero's Jet Convert will do the transition for free, if you sign up before 31 March 2019. There are extra charges if you use tracked inventory, multiple currencies and/or need data beyond the previous two years.

https://www.xero.com/nz/freemove

For other types of migrations, we have skilled staff and contractors who can do this for you and train you in the new system. Contact us for a quote.

Download a PDF version here or contact the author by email. Like our Facebook page for regular tips.

Serena Irving is a director in JDW Chartered Accountants Limited, Ellerslie, Auckland. JDW is a professional team of qualified accountants, auditors, business consultants, tax advisors, trust and business valuation specialists.

Is It Worth Keeping a Rental Property?

Is It Worth Keeping a Rental Property?

By Serena Irving

Residential property investors were targeted in the latest tax Bill before Parliament in December 2018. The Bill is likely to have the numbers to pass into Law, so if you have rental property or are considering investing, keep reading.

Figure 1: Photo by Alex D'Alessio on Unsplash

The proposal to "ring-fence tax losses" means that investors who previously offset rental losses against other earnings will no longer be able to do so. Rental losses of one property can be offset against other rental profits in the person's portfolio, or against gains from the sale of properties, or carried forward to offset future rental profits/gains.

The change will take effect from the start of the 2020 income year (1 April 2019 for most taxpayers). If you are considering any major repairs, we suggest that you complete them before 31 March 2019. The rule changes do not affect a person's main home or mixed-used properties such as beach houses, but do apply to overseas residential rental properties.

Under the bright-line property rules from 29 March 2018, people who sell a house in New Zealand within five years of buying it must pay income tax on any gains, unless it's their main home or another exception applies.

In addition, there are increased requirements on landlords for giving notice, limiting rent increases and improving living standards. It may be tempting for some landlords to consider selling their investment properties, even though there is a rental property shortage.

Without the tax refund, would you have enough funds available to cover vacancies or major maintenance work? Auckland Property Investors Association board member Amanda Watts said in her June 2018 blog, Removal of Negative Gearing, "My concern is that for some landlords this may mean the difference between doing or not doing maintenance if there is no immediate tax relief. They might have to postpone the repairs until another year, increasing the risk that the property will deteriorate and that vacancies might result." Source: www.apia.org.nz/apia-blog

There are a lot of factors to consider other than the tax. What are your long-term investment objectives? Could you get a better return in other investments? Could you pay down the mortgage to reduce interest costs? Could you increase rents to improve your income?

If you would like to chat about how the ring-fencing of tax losses will affect you, please give us a call.

Download a PDF version here or contact the author by email. Like our Facebook page for regular tips.

Serena Irving is a director in JDW Chartered Accountants Limited, Ellerslie, Auckland. JDW is a professional team of qualified accountants, auditors, business consultants, tax advisors, trust and business valuation specialists.

Accounting For Success

Accounting for SUCCESS

"If you can't measure it, you can't improve it." - Peter Drucker

If numbers aren't your forte, you aren't alone. Thousands of NZ small business owners admit they struggle to understand profit & loss reports and balance sheets. Chartered Accountant Serena Irving says that is when they ask for help.

"Outsource what you aren't good at. Focus on your strengths." But if year-end accounts, GST and income tax returns are all you request from your Chartered Accountant, Serena says you are missing out on a valuable resource. See her hot tips below.

Pricing

"Don't compete on price, especially if you are creating something unique." Serena's cake topper client was struggling to get sales and profits. They discussed hourly rates and ingredient costs. They compared prices with competitors. They created set prices for standard icing toppers and increased her prices for one-off creations.

Key Performance Indicators (KPIs) and Dashboards

KPIs are your early warning systems for business health. It's difficult and costly to track them all. "We help you select and focus on the three or four which have the biggest impact on your business."

Xero and other accounting packages have basic dashboards. Chartered Accountants also create specific dashboards suitable to your needs. Using graphs and colour indicators, you get a snapshot of business performance.

Planning for Growth

Whether you are investing in people or capital to grow, your Chartered Accountant helps you manage it successfully. Serena's film editor client found spare capacity by re-organising his team's work and spacing out jobs more evenly. He grew his business without adding on more rent and wages costs.

Mentoring

A business issue arises with your customer or supplier. Your best friend is sympathetic but can't help. Your spouse suggests getting paid employment. Chartered Accountants can be mentors for those times. "We listen with understanding and experience. Other clients have worked through similar issues."

Cashflow Forecasting and Budgeting

Life and cashflow are hardly ever smooth. Your Chartered Accountant helps you through rough patches too. "A client owed over $300,000 income tax, GST and other taxes before he joined us. We set cashflow budgets, negotiated with IRD and arranged tax pool finance. He paid his tax bill off in 4 years."

Keeping Fees Down

If you already pay enough to your Chartered Accountant, chat with her/him about that too. Fix your regular coding errors. Negotiate an agreed fee with your Chartered Accountant so help is there when needed. Spread payments monthly to help cashflow.

Engage with your Chartered Accountant regularly and not just when your taxes are due. Get your Chartered Accountant working alongside you, improving your business success.

Download a PDF version here or contact the author by email. Like our Facebook page for regular tips.

Serena Irving is a director in JDW Chartered Accountants Limited, Ellerslie, Auckland. JDW is a professional team of qualified accountants, auditors, business consultants, tax advisors, trust and business valuation specialists.

 

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