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Running payroll can be tedious and is often a thankless task. So if you’re not already using Payroll software, now might be the time to start! Payroll software simplifies payroll to just a few clicks which saves you time, admin and hassle by calculating gross wages, deductions and entitlements for you. Benefits of payroll software Some of the benefits of using payroll software include: 1. Time tracking To accurately calculate wages, employers must be able to record the working hours and any overtime. Payroll software that allows you (or your employees) to record their working hours and overtime means that wage calculations will be accurate. 2. Calculates employee deductions Employers must process payroll deductions, including: KiwiSaver PAYE student loan repayments insurance premiums mandatory deductions, like child support payments. Payroll software can manage all these deductions and calculate the employees’ correct net or “take home” pay. 3. Complies with payroll regulations The IRD requires employers to keep payroll records for every employee and contractor. As an employer, you need to keep comprehensive records of wages, time worked, leave and other details. Payroll software generates and stores these records for you. 4. Provides employees with pay slips and keeps employee data secure. With payroll software you can send your employees their payslips and then also send this information onto the IRD at the same time you run your payroll. The best payroll management systems use state-of-the-art security to protect sensitive employee data. They can run updates for you, automate your account security and remediation activities, and inform you immediately about any suspicious or fraudulent activity they detect. 5. Provides anywhere access The best online payroll management systems provide 24/7 access so that you can manage payroll queries on the go. If you’re not already using a payroll system, it can be a bit of a daunting task to know which payroll software to use and what to look for. When you’re comparing payroll software systems, here are some additional things to consider: 1. Enables employee self-service Some cloud-based payroll systems come with an extra benefit: employee self-service. For instance, employees can submit their bank, tax and KiwiSaver fund details through a secure self-service portal. Employee self-service takes a heap of work off your shoulders and empowers employees to manage their details. 2. Integrates with your existing accounting software Look for payroll management software that can integrate with your existing accounting software as well as any other software you use such as onboarding, rostering, leave requests and time tracking, so you can operate more efficiently, reduce repetitive data entry and prevent errors. 3. Provides analytics and reporting Payroll software drives better decision-making with comprehensive analytics and accurate reporting that you can control and customise. You can access key information online, including leave, personal info, payslips and timesheets, whenever and wherever you want. If you need help deciding on the right payroll software for you, get in touch, we’re happy to help you find one that works for you.

The season of giving is nearly upon us. If you're thinking about giving a gift to your clients, here's a reminder of the tax rules when giving these gifts. When giving gifts to clients, remember that depending on the gift, some will be fully tax deductible while others will be only 50% deductible. The rule of thumb is that if they consist of food or drink, you can only claim 50% of the expense as a tax deduction. If you are giving out gift baskets or hampers and some of the contents are food or drink, but not all, the food or drink items are 50% deductible, but the other gift items are 100% deductible. When you come to claim the tax deduction, you will need to apportion the expense between the 100% deductible items and the 50% deductible items. And you will need to make a GST adjustment for expenses which are 50% deductible. Examples of gifts which are 50% deductible include: · Bottle of wine or six pack of beer · Meal voucher · Basket of gourmet food · Box of chocolates/biscuits · Christmas ham Examples of gifts which are 100% deductible include: · Calendars · Book or gift vouchers · Tickets to a rugby game (but not corporate box entertaining) · Movie tickets · Presents (but not food or drink) If you’re unsure whether a planned gift is 50% or 100% tax deductible, gives us a call and we can advise you.

On average, according to recent research by OnePoll, business owners needs an additional four hours in their working day to complete their admin. If your people are spending 20 hours per week wading through tedious and unproductive admin, that’s bad for the business and for your efficiency. Fortunately, technology and software automation can go a long way towards automating these low-level admin tasks. Better productivity through automation Automation is an important way to ease your business workload, with a host of different business apps and cloud solutions offering ways to automate your admin. With ‘smart business tools’ increasing in number and choice, software is utilising automation algorithms, artificial intelligence (AI), machine learning and cognitive solutions to help remove the mundane admin tasks from your workflows. Core processes that will benefit from automation include: 1. Automated bookkeeping Simply take a photo of your receipts, expenses and invoices and ‘optical character recognition’ (OCR) technology will digitise the output and pull it through to your accounts software. No data entry, no human error and no lost receipts! We can do the rest to ensure your records are accurate. 2. Automated credit control Cha sing up debts and late-paying customers takes time. Automated credit control apps track your debtor numbers and automatically sends out customised chaser emails as soon as an invoice is late. This reduces your credit control time, speeds up cash collection and cuts your aged debtor figure. 3. Automated payment collection The easier it is to pay you, the faster your customers will pay. Automated card payments and cloud-based Direct Debit solutions allow you to automatically take payment from a customer as soon as an invoice is due. Some solutions will even automate the invoice matching and bank reconciliation process. 4. Automated reporting and forecasting The better your reporting and business intelligence, the easier it is to make informed decisions about your company strategy. Accounting platforms and fintech tools now offer automatic, real-time reporting and forecasting, giving you access to the important numbers and metrics, fast. 5. Automated digital marketing Digital marketing is key to raising your brand’s profile. Marketing platforms offer important time-saving ways to create, schedule and post social media content, or email automations to send a pre-programmed cadence of emails to specific target audiences within your wider customer base. Talk to us about how you could use automation in your business If your admin is holding you back, come and talk to us about how automation can pick up some of the heavy lifting as well as giving you the metrics you need for decision making. We can review your business processes and identify the automation opportunities, helping you choose the best apps to drive your business efficiently.

Purchasing an existing company is a great way to expand and diversify your business. Whether you're looking at buying out a competitor or dipping your toe into a new industry, 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 offer Buying another company is a major business decision. It’s a large outlay of capital and a big responsibility to take on. If you’re going to take the leap, it’s important to make sure the company in question is stable, well-managed and has a good future ahead of it. Here are five vital questions to ask before entering into a purchase: 1. Why is the business for sale? There are many reasons why an owner might want to offload a company, not all of them good. Their sales may be dropping, they may have rising debts, there may be internal problems with staff or the market for their product/services may be coming to an end. Find out why, so you don't buy trouble. 2. Is this a good industry to step into? Do your research on the industry, competitors, and marketplace that the business currently trades in. It's important that you step into an industry sector that has potential for sales, growth, stable revenues and potential profits. With volatile markets post-pandemic, looking at predictions and forecasts for your chosen industry niche makes good sense and helps you make an informed decision. 3. Have you done your due diligence? Do your due diligence to make sure there are no financial, legal or HR skeletons in the cupboard that may jump out to surprise you. Is there an unpaid tax bill? Are there loans that are being defaulted on? Are there any legal cases being brought against the company? Has the business filed all its returns and accounts? As the new owner, any of these issues become your responsibility, so you want to check out the company’s records and history in as much detail as possible. This will prevent some major headaches further down the line. 4. Does it have an existing business plan? You'll need a business plan that takes the company forwards and gives you a pathway for your next steps as the owner. Is there a business plan you can use? When was the plan last updated? How well are they tracking against the milestones in that original plan? No business plan is written in stone, so you’ll almost certainly need to review, update and refine this strategy post-acquisition. 5. Are your management team and staff up to scratch? When you buy the business, you'll usually also be inheriting the team behind that company. Do you have a management team with the skills, experience and motivation that's needed? Are your employees engaged and do you have a big enough team to meet your own goals for the business? This team will be vital to your future success, so you want the best possible people and talent behind you as you steer a new course for the company. Talk to us if you’re considering buying a company Purchasing a company can be a complex and protracted process, even once you’ve completed all your due diligence and background checks. If you’re in the market for a business acquisition, do come and talk to us, so we can help you sort the top deals from the big risks. We’ll help you complete the relevant checks and will work with you to create a new business plan and strategy that’s designed to turn your new purchase into a business success.

Artificial Intelligence (AI) is no longer the stuff of science fiction. AI solutions and business tools are here right now, demonstrating new ways to operate, manage and staff your business. According to the World Economic Forum, we're in ‘The Fourth Industrial Revolution' with AI as one of the formative technologies of this revolution, but only 50% of Australasian businesses are using AI in their business. Keeping pace with the speed of technological change is a key responsibility for any business owner. If competitors are using AI to gain efficiencies and streamline their operations, it stands to reason that your business must match this innovation and find ways to embrace AI. Where could AI be lending a helping hand in your own business? As with any technological or software investment, there has to be a fundamental role for the new AI tools you take on. ‘Going AI’ just to be seen to be at the cutting edge, is not the goal here. Your aim is for AI to have a function and to make your life easier. Here are four areas where modern AI tools can help the average business: 1. Record and summarise meetings. Pulling out the key points from in-house and customer meetings can be time-consuming. A tool like Fireflies records your in-person and online meetings and then forwards you an AI summary of the meeting, with bullets of the key themes, a full transcript and clear action points for everyone to follow. 2. Generate content Generative AI tools, like ChatGPT and Google Gemini can revolutionise your marketing efforts. You can ask AI to draft you an email campaign, sales deck or web page, based around your foundational knowledge of the product. But make sure to edit and personalise the output to make it your own. 3. Answer customer calls and improve customer service Fast responses to customer queries are essential for good customer service. AI-powered phone agents, like Lucy from Curious Thing . can have human-like conversations with customers, answer routine customer enquiries and free up your team to focus on high-value customer interactions. 4. Automate your social media posting. Being present on social media is vital for brand awareness and connecting with customers. A social media tool like Buffer helps you manage your social media accounts while also using the built-in AI tool to generate posts and repurpose existing posts, keeping your feeds fresh. The world of business-focused AI solutions is growing at a fantastic rate, so the suggestions above are just the tip of a very large AI iceberg. Remember, when considering which AI tools to implement in your business, make sure they will improve efficiencies and add value.

In order to effectively manage future cash flow, it's important to forecast your cash flow. This allows you to project your financial position for the upcoming months and take necessary steps, where needed, to protect your cash reserves. This allows you to maintain financial stability, plan for various scenarios, reduce costs, and develop strategies to maintain your cash flow. Effective Cash flow forecasting strategies Remaining control of the cash coming into and out of the business is the key focus so you can accurately predict your financial position and resolve any issues. Here are some key ways to get more from your cash flow forecasting. Conduct regular forecasts : The financial landscape is changing on a daily basis so a cash flow forecast is not a document that remains static. Variables and external drivers are changing each day, so it’s vital that you run frequent forecasts and react swiftly to any projected cash issues as they become apparent. Explore new revenue streams : In light of recent changes in sales and demand for services across many industries, it’s essential to explore new income opportunities. Consider introducing new products or services or partnering with new businesses to boost revenue and manage unavoidable expenses. Implement cost-cutting measures : Minimising cash outflows is crucial for maintaining healthy cash flow. Evaluate and reduce unnecessary expenses, such as software subscriptions, or excessive inventory. Negotiating better rates with suppliers can also contribute to cost savings. Assess staffing requirements : Nobody wants to make anyone redundant, and there are alternative ways to reduce staffing costs and resourcing without getting rid of staff completely. Reducing working hours or redeploying staff in different roles are options that reduce payroll costs, while also looking after your staff. Run various scenarios : When running scenarios, changing the financial drivers in your forecast model allows you to scenario-plan different strategies and options. Many of these will be in a long-term plan once conditions improve. Scenario-planning lets you answer questions and will give you some hard evidence on which to base your decision-making and strategic outlook over the coming months. Explore funding options : If your cash flow forecasts show a major cash flow deficit coming up, you’ll likely need additional funding to get through. We can assist your business to investigate funding opportunities from grants, banks, loan providers, alternative lenders, and crowd-sourcing funders. Get started with cash flow forecasting Talk to us about setting up cash flow forecasting in MYOB. Effective cash flow forecasting is key to in having the right information for sound decision-making. If you’re not already running cash flow forecasting, let us help you enhance your cash flow management and ensure you’re well prepared for the future.

Slow sales can be a significant hurdle for any business, impacting revenue and growth. When sales are sluggish, you need to explore effective and cost-efficient strategies to boost sales, but traditional methods like paid advertising or broad marketing campaigns don’t always deliver immediate results. And, if sales are slow, it’s likely your budget for this has already been allocated elsewhere. This is where customer referrals can play a pivotal role. Deliver exceptional customer service The foundation of a successful referral programme is exceptional customer service. When a client has a positive experience with your service, they’re more likely to recommend you to others. Focus on delivering outstanding service that meets the needs of your client, and address any issues promptly. Happy clients make great brand ambassadors! Create a referral programme A structured referral programme can incentivise your existing clients to refer new clients. If your referral programme rewards clients for their referrals, they’re more likely to refer new clients. For example, you could offer a 10% discount on their next purchase or provide a free gift card for each successful referral. Keep your current clients engaged with your business Keeping your existing clients informed about new services, promotions, and updates helps to keep your business top-of-mind. Regular communication through newsletters, social media, or personalised emails helps build a strong relationship with your clients. When they are well-informed and excited about what your business has to offer, they are more likely to share their positive experiences with others. This ongoing engagement not only reinforces their loyalty but also increases the likelihood of them referring friends, family, and colleagues to your business, driving new leads and fostering growth. Leverage testimonials and case studies Encourage satisfied customers to provide testimonials to build credibility and attract new clients. Share these stories on your website, in your newsletter, and on social media. Prospective clients are more likely to trust your business if they see positive feedback from real people. By delivering exceptional service and creating a referral programme, you can turn satisfied customers into enthusiastic advocates. Engaging with your customers and leveraging their testimonials enhances your credibility and, with a well-executed referral strategy, you can tap into the power of word-of-mouth marketing and drive sustainable growth for your business.

In July, we talked about the changes to the Brightline rule for residential property sales – property sold after two years of its purchase date would not be liable to the Brightline rule. This change meant that those who held a property for at least this long were not automatically taxed on any gains made on the property. If you’re buying or selling properties for profit, you may get a tax bill, even if you’ve held the property for longer than two years or even if you’ve lived in the property. The Brightline rule for residential property sales was reduced to two years from 1 July this year which meant property purchased prior to July 2022 would no longer be automatically subject to the Brightline rule. However, if you purchased a property with the intention to resell it, regardless of how long you’ve held the property, you can be taxed on the gain/profit. The Inland Revenue (IRD) has recently released a property tax decision tool to help people understand whether their property was taxable under any of the land taxing rules. This includes those who bought a property intending to resell it, no matter how long they held it, or those who had a history of buying and selling that could have them count as a dealer, as well as those captured by the Brightline rule. Any property that is bought with the intention of sale can be taxed, irrespective of the Brightline test. The IRD has an information-sharing agreement with Land Information New Zealand (LINZ) which would prompt the IRD to contact people it had concerns about. Although they don’t have a fast or hard rule about the number of times that people could buy and sell, or renovate and sell houses, and not be taxed, generally three prior transactions would be needed for there to be a regular pattern. So, if you’re buying properties with the intention to resell them in the future, be aware, you could be taxed on the profit or gain you make on the property – even if you’ve held it for longer than two years.

Was your provisional tax amount more than you expected this year? Provisional tax is calculated by your previous year’s residual income tax plus 5%. But the provisional tax you’ve paid in the past may not reflect how your business has performed over the current financial year. Plus, if you underpay your tax, this can lead to use of money interest (UOMI) being charged by Inland Revenue (IRD), and UOMI has increased in recent years.  It can also be challenging for any business to keep a lump sum of cash aside to pay provisional tax on it’s due date, especially if you have cash flow issues or need money on hand. If paying provisional tax is challenging for you, tax pooling could be the perfect solution. The way it works is that IRD-approved intermediaries collect payments from many taxpayers and put them into a tax pool account with IRD. They then allocate these payments to the taxpayers’ accounts as needed. Once the pool has made the payment to IRD, it is considered to be ‘tax paid’. If you haven’t paid enough tax to meet your provisional tax liability, you can purchase tax payments made by the pool for lower interest rates than those charged by IRD. You can set it up so you can make payments to the pool to help you with provisional tax in future years. There are pros and cons to this and the pros include: Flexibility around when you pay provisional tax; you can overpay when you have a bit more money and have some breathing room when things get tight. Avoiding penalty charges and use of money interest (UOMI) charges for late payments; the pool will always make time-stamped payments for you. If you haven’t paid enough tax to meet your provisional tax liability, tax pools typically charge lower interest rates for purchasing tax payments than those charged by IRD. If you’re short on cash, you can dip into your tax pool payments as an emergency line of credit, as long as you top up the money later. If you do take money out of the pool, you’ll pay a lower rate of interest than banks charge. We work closely with Tax Traders so, if you’re finding keeping money aside for provisional tax payments difficult, talk to us today to see if tax pooling is the right fit for you.