Like the idea of simply emailing your PDF formatted bills direct from your inbox straight into your accounting software? Well now you can if you subscribe to Xero online accounting software.

Xero have introduced another accounting efficiency and all you have to do is grab your organisation’s unique email address and send those pdf bills direct to your Xero organisation.

Xero then automatically creates a draft bill that also has a side by side view of your PDF bill.

If your organisation is in the Premium beta group not only can you email the PDF bill through - you may see all details such as the contact, date, total, due date and reference populate automatically.

Snapshot of how it works:

Grab your organisation’s unique bills address in the Bills To Pay section and click on Create Bill From Email.Copy and paste this unique email address to email your PDF bills to your organisation’s bill address. Remember it must be an email attachment, not an invoice embedded in the email body.To view the invoice simply go into Xero and it will have been created and attached as a draft billIf you receive a scanned copy of the bill or an image (in other words not in PDF format) details won’t automatically be populated but you can easily update the details whilst having the ability to use the side by side view.

Once you log back into your purchases section and go into draft bills you’ll easily identify any emailed pdf bills by the comments forwarded bill next to your supplier’s name. Here you can review the details to ensure the bill is correct.

It might pay you to ….

Tidy up any duplicate supplier contacts or spelling mistakes in your supplier account details in Xero to help prevent error messages bouncing backYou have an option to set up a rule in your email box settings to automatically forward PDF bills to your Xero organisation to save even more timeCheck any fields that may automatically populate just to make sure the details are correctYou can email multiple PDF’s in a single email to ensure details automatically populateSave your organisation’s unique email bill address in your address book in your email program

Any issues …

Simply give our expert team of Xero accounting gurus a call on 07 578 5416 and we’ll have to sorted in no time.

Get ready for payday filing - it’s compulsory from April 2019

From 1 April 2019, employers will be required to file payroll information every payday.

If you’re a New Zealand employer paying more than $50,000 PAYE and Employer

Superannuation Contribution Tax (ESCT) per year, you have to file electronically through payroll software or myIR from 1 April 2019.

If your total PAYE/ESCT is less than $50,000 for the previous year ended 31 March 2018, you can either: file online, or file on paper (but only from April 2019)

PAYE payment dates and methods of payment remain the same – all that is changing is how often you provide your employment information.When you begin payday filing, you will no longer file an IR348 (the employee schedule). You’ll begin payday filing from the

beginning of the month, because your final IR348 must cover a full month. Until you begin payday filing, continue to file your IR348 as usual. For the time being you’ll need to continue filing an IR345 (Employer deduction form). The due dates for the IR345 and payment haven’t changed. Have any further questions about this - talk to one of our team on 07 578 5416

Provisional tax due 15 January 2019!

With the rush of Christmas and the holiday season it’s timely to remind you that Provisional tax is due for payment on the 15th January. If you are concerned about the amount of your payment (especially if your profit is down on last year), or have any issues in regard to meeting this payment date, please let us know so we can help you out! Ring either Brigette or your Client Manager and we will help to get you sorted.

Holiday Pay calculations

When there’s a public holiday on a day your employee usually works, they’re entitled to a paid day off — no matter how long they’ve worked for you. You can only require employees to work a public holiday if it’s written in their employment agreements. Also, if they agree to work, you must:

* Pay them at least time and a half

* Give them another paid day off later.

If you need any assistance calculating annual leave, statutory holidays and taxes on holiday pay lump sums please phone Sue or Kristen.

If you haven’t already, it could be time to take your accounting system online

Better understand your finances.

Getting a clearer financial picture is essential to maximising your profits. Many online accounting software packages have a dashboard as the opening screen, which summarises the most important information in a single page so you can easily see things like your account balances and the status of invoices, overdue debtors and outstanding creditors.

Save you time.

Many packages offer a direct connection between your bank and your accounting software. This eliminates the need for manual data entry and bank account reconciliation, saving you time. In some packages, you can set up automatic coding of payment, eg so payments to stationery suppliers are automatically coded as office expenses.

Better manage your cash flow.

One of the biggest cash flow problems facing small businesses is late payment of invoices. Many accounting software packages offer automated invoice reminders. Online accounting software can be reconciled daily, which makes month end easier. Allow access to multiple users at the same time.

With many cloud-based accounting packages, you can grant access to your accountant or employees if you choose.

Increased data security.

Because the data is not stored only on your computer, it’s also in the cloud. More reliable than desktop software. If your computer crashes, the accounting data file isn’t affected. Backups,

upgrades and bug fixes are handled automatically by the software company.

Different businesses suit different types of online accounting systems and we can help guide you to what will best suit your business operation. We can also assist with implementation across your business so chat with us today and get online!

Call Shelley on 07 578 5416 to make a start for 2019.

Time to back up 2018 and start 2019 fresh

It’s that time of year! If you’re like us at Grace Team, you’ll be taking time away from your business over the next three weeks (or four if you’re lucky!) to relax and enjoy this special time of year. With time away from the business comes time to reflect and often this is the perfect time to think big picture and formulate business plans for the new year. Use this time to assess what’s worked in your business this year and to make plans to reach your financial goals, and grow your influence in the market next year.

A few things to think about:

The Numbers

How well do you understand the figures? It’s always busy being an owner/ operator so it’s easy to lose focus of the numbers. Are margins too tight? Expenses too high? Do you have your finances under control or need to put more focus on your financial plan?

Products & Services

Do you need to cull a product or service that is eating margin or cutting into staff time? Do you need to look at adding services or complimentary products to add value to the client relationship or to transaction value? Have you looked at the true cost and impact a new product or service might have on the business?

Team culture & staff planning

Staff levels needing review? Has the business grown and staff levels need adjusting or have roles changed within the business so staff remuneration needs to reflect these changes?

Brand positioning

Where does your business sit in the market? What stories are your customers telling about your business? What do you do differently to your competition? Are your prices competitive? What offers are you making? How does your brand look and feel? All these things combine to give you your brand positioning.

Final thoughts

Set goals. Know what your specific goal is for any week, month, quarter, or for the year. Do you need to bring in revenue? Do you need to build your base? Do you need to optimise your

internal systems? And allow your specific goal to become leverage for getting those things done as well.

Have you booked a 2019 budget and cashflow session yet?

Cash is the lifeblood of any business. Budget and cashflow is an important area of the business to focus on for real improvement in the coming year. Whilst this can be a daunting task, we are here to help and put you in control to make the strategic business decisions that will count

in 2019. Call us to book your session today.

Just like their logo suggests, Supacrete have a few powers we can all benefit from so let’s hear what Don Mahoney - Owner/Operator and Jeff Burgess - Right Hand Man, have to say about what makes Supacrete the marvel it is today.

Highlights over the last 30 years?

As you can imagine there’s been plenty! Both of us have sat on the NZ Ready Mixed Concrete Association Council and also both had a stint as the President of the Association. Projects wise it has to be our involvement in the Victoria Park Tunnel to local projects such as the Hewletts Road Flyover and and the majority of concrete in to Tauranga Crossing at The Lakes, Tauriko to name a few.

Another highlight is winning the Regional Business of the Year Award in 1997. Since then we’ve also won best regional business category awards in 2009 for Innovation Enterprise, Health and Safety and Manufacturing Distribution. All proud moments.

Some of the biggest challenges during this time?

The difference between “then and now” is concrete limits are continuing to be pushed. If you look back to 30 years ago to the types of projects we were involved with to the projects like the Tauranga Crossing you can see just how far the concrete industry has come. What concrete is being asked to do today is miles ahead of where it used to be. This new concrete technology is a landscape that we thrive in whilst also being continuously challenged around an anomaly of factors.

With 3 operations to manage; manufacturing, on-road and on site; we know we must adapt quickly and communicate clearly across operations that naturally incorporates health and safety. It’s at the top of our list to ensure the job is done right, done safely and to the highest standard.

Best advice you’ve ever received?

Customer is King is one! We believe this wholeheartedly and we also think that our loyal suppliers are King too. Without the product coming in we can’t get the product out - it’s that simple.

The other piece of advice was from Lindsay Grace of Grace Team Accounting himself. He told us “Build It and They Will Come” so we did and they did! We set up the manufacturing plant and haven’t looked back. We’ve always focused and will continue to focus on our smart supply chain formula that works efficiently for ourselves and our valued customers.

Best business advice you could give?

Possibly not very exciting but be conservative, make sure you can “tick all the boxes” which includes financials. It may have taken us longer to grow the company but having a rock solid foundation was important to the way we wanted to run the business.

What services and support have you received from Grace Team?

Lindsay Grace has by far been a constant support over the last 30 years. He tells you like it is and that style suits us to a tee. He’s different from other accountants because he doesn’t go back and look at what you’ve done he wants to know what you’re doing next year and in our case the year after that, year after that and so on. This stargazing approach has allowed us to grow and drive continuous improvement year on year.

Lindsay is the guy we ring when we need up front advice we can trust. We remember Lindsay when he’d rock up to a meeting and he’d be in shorts and long socks. Shows you how long we’ve been working together!

Proudest achievement so far at Supacrete?

The fact that we’re still here after 30 years! Some of our proudest achievements by far have to be winners of the Business Award in 1997 as well as our category awards we’ve won. It’s gratifying for all our team to be recognised in our speciality field.

Last but not least, where did the logo come from by the way?

When Don’s son James was around 4 (he’s now 18), he came home with this very cool colouring picture that he’d done at pre-school of Superman but instead of being coloured in the traditional colours he was coloured in our brand colours; the yellow and green. We sent this idea off to the sign writer and it’s been our proud company logo ever since.

Whether you are at the beginning of building a new business or you are considering the future sale of your business, a carefully considered exit strategy reflects the hard work and capital

you’ve invested in your business. We want to work with you to develop your Succession Plan to ensure the expectations of all parties are addressed and achieved.

Do you feel your business would be unable to cope without you?Do you worry about being able to recover your investment (and more) when you exit?Are you concerned about the expectations your family may have for your business?Do you have clear expectations and goals for life beyond your business?Do you know what’s required to support your lifestyle after you’ve exited?

Succession Planning is about clarifying what you want for the future and defining the steps required to turn that vision into a reality, while taking into consideration business, personal and family expectations.

The earlier you start the more likely you are to achieve your goals within the timeframe you set. The longer the planning phase, the more time you have to groom your business for sale and attract the right successor.

Find the time to create your succession plan and you will be rewarded for all that hard work and effort.

Talk with us today and book your planning session 07 578 5416 or email brigette@graceteam.co.nz

NEW AML LEGISLATION NOW IN FORCE

From 1st of October 2018 new legislation called the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 will take effect for accountants.

The purpose of this new law is aimed to help combat money laundering and terrorist financing, and to help Police bring the criminals to justice keeping NZ at the top of the list of low risk countries with a reputation for low corruption and strong protocols to prevent money laundering activity.

WHAT WE NEED FROM YOU

In order to comply with these requirements, we need to request more information from our prospective and existing clients:

Your full name, your date of birth; and your address.

Therefore, one of the following must be brought into our offices and sighted when required:

NZ Passport; NZ Firearms Licence;NZ Drivers Licence and either a bank statement, ratesdemand or utility bill less than 3 months old.

If you are seeing us about company or trust business, we will also need information about the company or trust including the people associated with it (such as directors and shareholders, trustees and beneficiaries).

CHOOSE THE RIGHT GIFT

While a bottle of wine or a box of chocolates may have been the easy go to for client gifts in the past they are only 50% deductible.

An example: Real estate agent Bob delivers a bottle of champagne to the owner each time he arranges the sale of a house. He can only deduct 50% of the cost of the bottle of champagne as he is providing entertainment away from his business premises in the form of drink.

Bob also sends a gift basket containing a bottle of wine, some cheese and various household items such as tea towels and soaps to the purchaser. He can deduct the full cost of the tea towels and soap, because these items are not food and drink. But he can only deduct 50% of the cost of the wine and cheese. If the cost can’t be identified separately, then an appropriate amount should be apportioned.

CHECK YOU'RE NOT CLAIMING GST INCORRECTLY

If you use or subscribe to an overseas company for a use of their product or service you need to ensure you are not claiming GST if they are not registered in New Zealand.

Examples we have seen recently are: Google Adwords, Facebook, Spotify, Adobe, Shopify to name a few. Make sure you double check you’re not claiming when you shouldn’t. If in doubt give us a call on 07 578 5416.

PAYDAY FILING

From April 2019 all employers will need to file their employment information every payday. This means instead of filing an Employer monthly schedule (IR348) every month, you’ll file employment information every payday in line with your payroll cycle. Providing IRD with more timely information means employees will have more certainty about what they will receive, eg Working for Families Tax Credits, and/or have to pay. Now’s the time to get your business processes in order and plan for the shift to payday filing before April 2019.

Mail order seed company, Kings Seeds in Katakati have just celebrated 40 years in business so we thought it’s the perfect time to get in touch and find out what makes this successful business thrive. We caught up with Barbara who has owned Kings Seeds with husband Gerard since 1999 to dig a bit deeper (no pun intended!) and share some well earned wisdom with our business community.

Top 3 business standout moments?

First one that comes to mind is going online with our successful e-commerce store in 2008. We’d tried back in 2004 but our second attempt in 2008 was when our interactive website became a fantastic sales generating tool and we haven’t looked back since.

The second stand out that comes to mind is gaining our organic certification in 2014. We’d been selling organic seeds since 2000 but getting our organic certification stamp of approval was a very proud moment.

Last but not least is when we bought a separate property for the business in 2010. Prior to that we had always shared our residential space with our work space so it was nice to finally separate the two.

Top challenges & learning curves?

We were pretty much thrown in the deep end right from the beginning and even though Gerard had a fair amount of good growing knowledge and experience neither of us had first hand knowledge of the 1000 or so varieties that featured in the catalogue even then. Thankfully the catalogue was our “bible” in the beginning and lots of updates later, remains so to this day. Another challenge, as many in and around the agricultural field will understand, is the ever changing world of MPI regulations and compliance. It never ends to be fair.

In the beginning Gerard found all the red tape extremely frustrating around the import of seeds etc but we quickly learnt you have to just accept that’s the way it is and work with it.

We’ve always wanted to be leaders, not followers, in the sense of sourcing new varieties of seeds and keeping up with the trends but with so much compliance it’s an ongoing challenge but I think we’re a lot more used to that now!

Best advice you’ve received?

To not jump on the technology bandwagon too quickly. This was from my brother-in-law and it’s some of the best advice we ever received. Basically work out what you really need first before spending a lot of money on what you think you need in terms of technology.

What advice would you give someone going into their own business?

Give it a go! Neither Gerard or I had any business background and we’ve done it. Another key piece of advice is ask for help when you need it. You can’t be experts at everything so there’s no point trying to muddle through.

What services and support have you received from Grace Team?

Grace Team Accounting have been our accountants from the beginning so Lindsay has been with us since the get go. Besides the normal accounting services we receive, more recently we’ve been working with Michael in a business coaching capacity.

It’s great to have a fresh pair of eyes helping us with the next stage around our business goals. Being held accountable and keeping us on track with actions and goals is a huge advantage we find engaging with a coach. At the stage where we’re at now it’s nice to work with someone who can bring different ideas to the table to help us with the next phase. What a relief!

It was a little over a year ago when we first caught up with Amy and Todd from Alliance RV to share their business story so far. What have they been up to since then?

In the last 12 months they’ve shifted to bigger and better premises. This is no mean feat when you have to keep running “business as usual” whilst developing a whole new business operation. As they said in their last interview; “if we’re going to do this let’s do it” and we think they absolutely have done it again!

Top 3 challenges or learning curves over the last year?

Todd: Letting go of things was certainly challenging. I’m so used to being hands-on all the time the letting go part was a tough one. I had to trust that the team were more than capable of doing the job. That doesn’t mean I’m never hands on, it just means I can’t do it all of the time.

Amy: I’m sure many people can relate to this and that is perhaps we were a little naive around exactly what’s involved with not only the move but around the growth of the business. There’s so much to think about; it’s pretty intense but of course now we can look back and think how proud we are of what we have all achieved.

Let’s face it when we first considered quarterly coaching with Michael we found that a challenge in the sense that we felt quite vulnerable. We weren’t sure about the cost versus the benefits plus add in the time and of course we weighed it all up and decided to go for it. How pleased are we now. To see how far we have come takes stepping out of your comfort zone and not being afraid of being held accountable.

Best advice you’ve received over the last 12 months?

Without a doubt sitting down and goal setting with Michael.

Having the process documented means you actually have to do what you say you are going to do. Reviewing your business plan and goals consistently ensures accountability and achievability which is great for motivation and keeping you on track.

Right from beginning working with Michael has helped us lay solid foundations. Now as we reflect back it’s the confidence you gain working together that allows you to take the next steps for your business. Without that confidence we couldn’t have done what we’ve done.

What support and services have you received from Grace Team Accounting during this time?

As we’ve mentioned the goal setting with Michael has been invaluable and it’s a huge reason why we’re sat here today feeling like yes, we’ve done this!

There are certainly tangible results we can tick off like increased profit, an overall better understanding of the business as a whole with a clearer plan in place for now and into the future.

We’ve measured what that increase actually looks like and so far our turnover has increased by 24.6%, gross profit increased by 28.5% and net profit has increased by 25%. The numbers are starting to stack up that’s for sure.

Time away from the day to day operations to focus on business development every quarter is probably one of the most enjoyable aspects we can think of.

Without having the accountability every quarter and every 12 months it’s too easy to give up so we’re very thankful to have someone we have to answer to in that sense. Of course we have to answer to ourselves, but working with someone like Michael who is genuinely invested in our success is huge.

Michael is fantastic at making you think about the big picture; your vision, and where you think you want to be in 5, 10, 15 years down the track which is something you tend not to do on your own.

Would you recommend quarterly coaching? If so, why?

Without a doubt. The support of another person outside of our business has been a real game changer. There’s a lot of trust involved and open and honest discussions but that’s what helps guide us and keeps us on track.

Proudest achievement over the last 12 months?

We didn’t just talk about it, we did it! That’s something we’re very proud of, we’re very thankful to all of those who helped us along way and we’re still smiling. Now that’s an achievement in itself!

The way Bitcoin works seems difficult to understand for anyone but a financial wizard. However, it could determine the future of banking and it’s receiving plenty of attention from central banks.

This article explains the basics. Bitcoin is a digital currency, unlike fiat (conventional) currency. It’s different because it’s not just money stored in a bank account. Its value is not necessarily linked to fiat currency (ie $100 equals one Bitcoin).

You can buy Bitcoins with normal money by contacting a crypto currency broker (just Google it). You can then trade with it or simply hold it as an investment. Bitcoins are essentially blocks of secure data. Moving this data from one person or place to another verifies a transaction a bit like paying by credit card. But it requires huge computing power. Users called “miners” allow their computers to be used by the system to safely verify the transactions. A miner who successfully generates a new block gets new Bitcoins, which can be spent on goods and services.

So if it’s a digital currency that creates “wealth” defined in crypto-graphic terms, how can it be spent? It’s not a lot different than paying for something using a debit card.

Your Bitcoins are kept in a program called a wallet, which has your password and a connection to the Bitcoin system. If you want to trade, you send a transaction request to another user, buying or selling, and you both agree. The system verifies the transaction and securely transfers the value from one user to the next.

There’s no centralised bank or credit system – the peer-to-peer network completes the transaction with the help of Bitcoin miners. The transaction is anonymous because the buyer and seller are represented only by random numbers.

There’s so much more to Bitcoin than this newsletter can hope to cover. Our advice if you’re looking at investing in Bitcoin or any crypto currency is to do your homework. While many companies now accept Bitcoin currency, its long-term viability is unclear. Fortunes have already been made – and lost – with Bitcoin. Don’t be one of the losers.

The recent scandal revealing Facebook information has been shared without the knowledge of users, has highlighted the need to review data privacy. It’s been revealed that third parties have had access to information about almost everything we do in our everyday lives. Individuals create huge amounts of digital information each day, visiting websites, through mobile phones and smart watches - all collecting data that could identify us. Most

people have no idea it’s even happening, but companies like Google and Facebook are tracking so much information about each of us.

The scandal has also created the largest review of the EU General Data Protection regulations (GDPR) in over 20 years and the new EU GDPR has come into effect from the 25th May 2018.

Not only does the GDPR give people more control over how their personal data is used, it also significantly streamlines the regulatory environment for businesses.

Even if your business only processes data on behalf of other companies, you still need to abide by the rules.

This can mean that if you have data relating to an EU citizen in your database, you may be subject to the GDPR regulations. You will probably want to weigh up how much of that data you hold, how sensitive it is and how strategic to your business, to help you decide what steps you take to comply.

Five key points that companies in New Zealand need to understand:

Customers have the right to be informed: the right to ask you about their personal data, how it is used, and why it is being used at any time.

Customers have:

Right of access: customers can request a copy of personal information at any time.

Right of rectification: people can update (or request updates to) personal information at any time.

Right of erasure: people may request that you erase their personal data, cease further dissemination of the data, and have third parties halt processing of the data.

Right to object: people can unsubscribe at any time from emails or communications.

For Personal facebook use here’s some advice that will keep most of your information private to you only. Go to Facebook’s Settings. It’s a good idea to review all the tabs and make appropriate changes. The Privacy tab is the biggie here. It’s where you can limit who sees your Facebook information, such as your posts, photos, email address and phone number. If it’s only friends who you want to see your information, change the list in “Your activity” and “How people can find and contact you” to “Only friends”.

Make sure you click “Limit” for the audience for past posts, and select “No” for the setting “Do you want search engines outside of Facebook to link to your profile?”.

Don’t use Facebook to log in to another service or application. It makes login simple, but by doing so you’re giving both Facebook and the third-party service access to your data. Examples of this might be spotify, instagram or Pinterest.

Use a separate password unique to that service. In Facebook’s Settings is a link “Apps and websites”. This shows the apps and websites you’ve logged into using Facebook. Delete any or all. And finally, turn off your location setting on your mobile device (usually Settings > Privacy > Location Services). This will stop Facebook and other apps knowing where you are – and where you’ve been. You might have to put up with some of your apps asking you to turn it on again to use them (though why using the Lotto app to check a ticket requires Location Services seems odd).

After all this, you have to remember that Facebook will still keep track of all your Facebook activity, including what ads you click on, what you “Like” and what you read.

Step into CBK Craft Bar and Kitchen and you’re immediately met with full on enthusiasm and energy from owner Billy Emeny. After purchasing the new bar and kitchen from previous owners of what was then known as Bravo in the Red Square we asked Billy a few questions on what makes CBK unique and what discoveries he has made along the way as a fairly new business owner.

Top 3 business standout moments?

One that immediately comes to mind is our opening day, 20th July 2016. Call it an epiphany but it was at that moment that I realised I DID IT!

I genuinely love being my own boss and having the freedom to run the business my way. Freedom doesn’t mean sitting around doing nothing, in fact it’s the opposite when you have your own business!

Another stand out has to be the fact whatever we are doing here at CBK it is working. That is extremely satisfying and seeing the vision come alive is so rewarding.

Top challenges/learning curves?

Learning the difference between cashflow and profit. Wow - that’s a steep learning curve and I’m sure a lot of business owners can relate to that on some level. The art of running a consistently profitable business comes down to having a results driven business plan and hard work that’s for sure.

Another challenge is working with the external powers that be in the area who make decisions that can have a direct impact on your business. As you can imagine there are all sorts of bylaws we have to work around so you have to work on relationship building and effective

communications.

Best advice you’ve received?

No one got to the top by standing at the bottom saying I want to run my own business, you actually have a take a huge leap of faith, jump out of your comfort zone and do it.

The other one is you don’t know what you don’t know ...as we all know hindsight is a wonderful thing, but really and truly I wouldn’t change a thing as you learn invaluable skills and what your key strengths are along the way.

What advice would you give someone going into their own business?

I did a business plan and it was a good business plan but I wish I’d done more. A biggie for me is to do your research, research and more research! I can honestly say Michael, Lindsay and Shelley have been amazing to work with; not only providing accounting services but business support as well.

Having Michael to work alongside us breaking down ways to improve revenue and profit and provide support and guidance is worth its weight in gold. Hand on heart I would recommend them to anyone in business. It’s the best money I’ve spent.

What services and support have you received from Grace Team?

Of course we get the standard accounting services and Shelley is brilliant but it’s the support and guidance that I get from Michael and the team that has had the biggest impact.

You have to have that key support and advice and once or twice a year I meet up with Michael and we go over the strategic plan. It is so worth it and as I say hand on heart these guys are amazing to work with. They have supported me in business in so many ways it’s been invaluable.

One thing you’d do differently?

Probably right at the beginning with the construction I would have a much better handle on contractors accountability to avoid the budget blowing out. In saying that though I love what we have created and the space has a great vibe and layout so I’m very pleased with the results.

Proudest achievement so far at CBK?

Best food, best customer service and best drinks is what we’re all about and when I get that feedback I’m extremely proud of what we’ve achieved. Being on the producing side of things is a great experience for me.

Also the fact that I go to bed every night knowing I support 18 people in my business. It’s nice to know you employ local people who get to live, work and play in the Bay.

Changes to Bright-line Test

For residential property the bright-line test has been extended from 2 years to 5 years from the 29th March 2018.

This only applies to any properties where an agreement to buy the property has either been entered into on or after 29th March 2018, and not before that date. If the agreement was made to purchase a property prior to 29th March 2018 the 2-year bright-line test still applies.

The 5 year bright-line test works in the exact same way as the 2 year bright-line test.

What is the bright-line test?

Gains from residential property that is disposed of within two years of acquisition, subject to some exceptions will be taxable.

Payday reporting

When: Voluntary from 1 April 2018, compulsory from 1 April 2019

What: Businesses will need to file payroll information every payday, rather than once a month. This will replace the employer monthly schedule (EMS).

Why: To make a business’s tax requirements part of its payroll process, rather than being a separate step.

What you need to do: Start thinking about how and when you’ll opt in.

You may find payday filing easier if you use payroll software, because this allows your payroll information, including salary, wages, PAYE and other deductions, to be automatically sent to Inland Revenue at the same time as you pay your employees.

If you already use payroll software, ask your provider how they can support payday filing.

If you don’t use payroll software, start planning now. You’ll have time after your payday to file the returns. Payment due dates for PAYE and other deductions won’t change.

We are here to help if you have any queries so phone your account manager on 07 578 5416.

AIM - The New Cashflow Game Changer for Small Businesses

AIM (accounting income method) is a new option for paying provisional tax and GST. This applies to the financial year starting 1st April 2018. Election is made by filing the first AIM activity statement with your first GST return for period starting 1 April 2018.

What it could mean is you pay provisional tax when you have profit, there are a lot of exclusions so you will need to check with us if this applies to you.

As IRD state - this could be a cash flow game changer but check with us if this applies to you first.

Last But Not Least

ACC Invoices for CPX Cover Are Being Issued

It is imperative these are paid on time otherwise the cover is automatically cancelled and you have to restart the process again. Please contact our office if you have received your invoice and want us to check the details or if you are unsure of anything.

Payment Plan An Option For Accounting Fees

If you prefer to pay your accounting fees more regularly please talk to us about our fixed fee/service plan options – we can spread the fees annually or quarterly. It’s sometimes nice to spread the cost instead of paying one lump sum so talk to us and we’ll get it set up for you.

Here at Grace Team Accounting we’re currently celebrating our 30 year anniversary and with a fresh new looking brand and office space we thought it would be a good idea to get some valuable insights and wise words from founder, Lindsay Grace by looking back over some of his key highlights and asking him just what does it take to be successful in business for 30 years? We also wanted to tell you about what’s happening in the future for Grace Team Accounting.

Over to you Lindsay ….

I arrived in Tauranga at the end of 1985 and worked for another local accountant. After a few years there I decided to go out alone and set up Grace Team Accounting. I wanted to lead a company that communicated efficiently and from the very start my belief has always been if it’s important to the client, it’s just as important to us.

Starting out in 1988 we had two staff members plus myself, Wendy and my wife Glenys who is still working with us in the business today. Fast forward 30 years and we’re now a great team of 17.

Highlights over the last 30 years?

There’s been many but a stand out is still having a number of clients we had when we started. It’s been a real privilege helping them and other clients reach their goals both personally and professionally.

Many of our core staff like Sue and Kristen have been with us around the 25 year mark. Maria, Jane, janine and Janet all 15 years plus.To think we’ve enabled them to achieve personal growth and they were able to work and build relationships that made them feel like they were making a difference is something to be proud of.

One of the reasons I think we have a loyal customer base is because of how we communicate. It’s just as important to listen as it is to give clear and concise advice. We know at times when

dealing with problems clients can feel uncomfortable so we like to make sure we give our clients confidence because we know there’s a solution.

I come from a construction background which meant when you had a problem you had to solve it quickly and communicate clearly so that is what I wanted to bring into the company. As I said before if it’s important to the client, then it’s important to us.

Another highlight is we’re working with 3rd generation clients where we have worked with the grandparents, we’re now working with the grandkids. It’s great stuff and working with the future generation is exciting.

Where to from here?

Goal setting and helping others achieve their goals has always been a big part of who we are but Michael is taking this a lot further and formalising how we offer these services. Instead of waiting for our clients to come to us with an issue we’re working hard at being proactive and offering services and solutions before they arise.

We always had a bend towards helping clients and giving them confidence to be in business and taking a more formal approach to how we can do this is what we want to do now and into the future. You can’t live long enough to make all the mistakes yourself so why not learn from others?

Almost everyone is now making financial transactions of some sort online.

We need to be aware of how to stay safe and stay protected every day. There has been a significant increase in scam emails disguised to look like a typical accounting invoices calling

for payment. Here’s a list of do’s and don’ts to improve your online security.

ALWAYS:

Choose a password containing a combination of characters, at least eight characters long.Update your website, software and apps as soon as a new update becomes available.Be cautious when receiving an email from an unknown sender.Keep your anti-malware and antivirus software up to date.Report all phishing scams to the official organisations they are trying to replicate.

NEVER:

Give out your bank details unless you are on a legitimate shopping site with https in the url, or your official bank website.Use the same password for your online accounts.Store your personal information in unprotected documents.Re-enter your passwords and private information in pop-up boxes.Click on links that look suspicious.

find out more about phishing scams here

Attention landlords

At present you must hold a residential property (that isn’t your main home) for at least two years to avoid paying income tax on any capital gain. Labour has firmly stated they intend to increase this period to five years and also because its just tweaking legislation already there it will be sooner rather than later. The good news is they are not planning on making the legislation retrospective so it will only apply to properties purchased after the law is changed. The Government also plans to abolish the tax benefits of negative gearing but has provided no specifics yet. One scenario is to only allow rental property losses to be offset against rental property profits. Also, we don’t know yet whether the law change will apply to residential rental only, or whether it will include commercial property.

The magic of property leverage

If you’re using rental properties for your nest egg, consider adding value by making alterations to your property worth more than their cost. For example, you buy a house for $500,000. You subdivide it into two flats for $100,000 and, because of the increased rent, the property becomes worth $670,000. This is called leverage. It increases your equity. You should keep money aside, when you buy, and leverage at the beginning. Pick locations which lend themselves to subdivision into flats or rooms such as near a hospital or university.

New Ideas

The new Government has introduced Best Start, a $60 a week payment for a year following paid parental leave. If your household income is less than $79,000, the payment will continue until the child is three years old. It has also enacted a “winter energy” payment of $450 a year spread over five months for people receiving superannuation or a main benefit. These

payments will not be means tested. Couples will get $700 between them to spend how they wish.

IRD seeking more data, quicker

Inland Revenue is aiming to get as much data from you, in electronic format, as it can. It also wants to get this data much more quickly so it can make regular adjustments to the tax rates to cater for the Working for Families tax credit etc. More and quicker data would also enable the Government to get rid of secondary tax.

Most of these changes will occur on 1 April 2019 or 2020. You’re going to have to file PAYE information electronically if your PAYE and ESCT deductions are $50,000 a year or more. This information will be required within seven working days of making the wage payment.

The department also wants details of interest and dividends reported monthly. It’s going to require this information to be filed electronically, unless to do so would cause great hardship. If you don’t supply your IRD number to a payer of interest or dividends, there will be a non-declaration rate of 45% applied to the payment you get.

The banks will no longer be required to send out certificates of annual interest as these will be available on the Inland Revenue website and taxpayers will be able to access them through MyIR.

Another plea from IRD

When paying withholding tax on dividends the payment account type is DWT. When paying withholding tax on interest the account type is IPS. Please ensure you use the correct payment account types.

AIM could be helpful

From 1 April 2018 you’re going to be offered another opportunity to avoid the interest charge on the shortfall of your provisional tax. If you use accounting software approved by Inland Revenue, you may be able to calculate and pay your tax on a two-monthly basis in tandem with GST. Provisional tax instalments will no longer apply to you. If you don’t pay GST, you can still use AIM.

You will need to make several adjustments, but these are not difficult. Those who wish to use the new system will need to notify Inland Revenue before the beginning of the financial year for which they wish to use it. We recommend checking with us, first.

ACC cover plus policy

If you have an ACC Cover Plus Extra Policy (agreed value) invoices will be issued soon - ensure you pay them by the due date otherwise the cover is cancelled and you have to start the process all over again. Also ensure your address is up to date.

Minimum wage

Note: Increase to minimum wage $16.50 from the 01/04/2018

Clients use all sorts of systems for keeping a tally on the money owing to them. From a tax perspective, the figure at balance date needs to be accurate.

Please note: Assuming a 31 March balance date, all work done up to 31 March which is capable of being charged must be included as income. For income tax purposes holding some of your invoicing over until April does not necessarily mean you can ignore it. You don’t have to actually send out an invoice but you do have to add the amount into your accounts receivable figure for tax purposes.

You won’t be taxed twice because once we have put in a figure for the amount owing to you, we then deduct it in the next year’s accounts. If work cannot be charged because it is not quite complete, it doesn’t get included in your accounts receivable.

Some businesses have work in progress, which is partly completed work. They must value this on the basis of the amount of material which has gone into jobs in progress and the value of the wages they have paid to do that work. Any other direct costs should also be included such as hire of equipment.

Cut off - Don’t deduct money received in April, until you have finalised the total owing to you at the end of March.Professionals, who have supplied partly completed work (not invoiced), do not need to include these services in their annual accounts unless there is a right to make progress claims.

The 31st of March is rapidly approaching. Now is a good time to think about getting organised for your annual accounts to minimise hassles.

The following comments are based on a 31 March balance date. If yours is different, please adjust accordingly.

Review your debtors and if you have bad debts, write them off before you get to 31 March or you’ll have to include the amount owing to you in your sales for the year. To write off the debt you must have taken reasonable steps to attempt to recover the amount owing. However none of the above actions prevent you from continuing to try to collect the debt.If you have invoicing to do in April for work done in March, remember these sales belong to the past financial year and must be included in your accounts receivable (sundry debtors). We find some professionals, particularly if they have only one invoice to issue, overlook this.Money owing by you at the end of the year (accounts payable or sundry creditors) needs to be listed so we can claim the expenditure for tax purposes. Some accounts, such as power, are easily overlooked. The easiest way of getting this list is to go through all your April payments and decide which ones relate to the previous financial year. We’re assuming you pay all your bills promptly.Fixed assets - Review your fixed asset schedule. Are there any fixed assets that have been scrapped? You could claim a deduction for their remaining adjusted tax value. You no longer have to apply to the IRD to write off these assets, so long as you or an associate do not intend to use them for a business purpose in the future; disposal would cost more than they were worth; and they are not buildings depreciated by the pooling method. Sales and Purchases - Examine significant intended sales and purchases to see which side of the balance date they should be made, that is assessable/deductible this year or the next.Some people think if they change their motor vehicle before balance date, it could save tax. It’s probably better to make your decision based on good business rather than on tax. If you’re going to change the vehicle shortly, have a look at the book value you would anticipate at 31 March 2018 and compare this with the market value. If you’re going to make a loss, change your vehicle before balance date. If you’re going to make a profit you can defer the tax on that profit for a year by changing the vehicle after balance date.

Find out more about getting your debtors correct at 31st March here

Setting goals is not as easy as it sounds is it? It is vital for business growth and development though so we sat down with Michael Grace to find out how they do this at Grace Team Accounting.

Let's Get Started

One important task we’ve implemented at Grace Team Accounting last year is participating in our Values Journey exercise.

We know core values help support our company purpose and vision. They help shape a positive workplace culture created around a set of beliefs and principles.

Looking within at how we operate and our workplace culture is the starting point for our internal growth and development. We think it’s key that when we talk about the benefits of business coaching we practice what we preach.

As A Group - Let The Values Journey Begin

As a team we’ve been working with an external consultant who’s helping us put together the framework around our Values Journey. It’s pretty revealing so we’re getting some real insights into each other as a group and as a team. The good news is we’re growing and moving in the same direction.

We are being asked to look at our own structure in terms of what we stand for and what our workplace culture looks and feels like.

One of our objectives is to run a daily “huddle”. It’s usually made up of a group of 4 or 5 people only and runs for no more than 10 minutes. It’s where we talk about our achievements and what our focus is for the day. We want to know of any hurdles or barriers; real or perceived. It’s time well spent checking in on our shared workplace values.

There’s a number of benefits from participating in this exercise such as improving communication which then leads into better team spirit and teamwork. We know with a clear values map the vision is made clearer.

We also hope to stimulate innovation not just because it sounds good but because it inspires and motivates us all.

As An Individual

So when you ask your team to step out out of their comfort zone, participate and challenge themselves; you have to be willing to do the same too.

I’m part of a group of 7 - 8 accountants from different firms around New Zealand, who gather on a regular basis for our own exercise programme that sits alongside the Values Journey team exercise.

It’s a trusted forum where the group can contribute any new ideas and we share challenges and barriers and what we did to remove them. We share success stories as another learning tool. The idea is we consistently step outside our comfort zone to make things better for our own businesses and our teams.

So What Do We Know?

This we do know; and one we as a group are very familiar with, is one of the biggest challenges for small businesses is overcoming the failure to implement actions.

One of the biggest benefits of having a business coach is learning ways to implement actions. It’s about accountability so key objectives are met and then last but not least; maintained.

There’s a powerful quote from Sir Edmund Hillary that says - ‘it’s not the mountain we conquer; it’s ourselves”. Very true

To find out more about our professional business coaching services click here or call us today on 07 578 5416.

If your business is doing well and you can no longer do it all yourself, you need to hire staff. That’s when the real work begins. Employing the right staff members to join your business is vital to achieving your business goals so getting it right from the start is critical.

Hiring the right staff is what small businesses say is one of the most difficult tasks. It’s one that can so often lead to problems. Potential staff might look good on paper and in person; interview well, but you’ll only know whether you’ve made the right decision when they begin to do the work. Because it’s not just the skills they will bring to the table but it’s the people fit too.

Here are a few tips to help you get the right staff:

Tip #1

Do your reference checks. Too many companies in New Zealand don’t check to see whether qualifications are genuine, or follow up with previous employers. The experience of those employers could be critical.

Tip #2

Three key questions to ask previous employers should include:

Why did the employee leave?

Did you have any specific or general problems with their work, their behaviour or their attitude?

And perhaps most crucial, would you hire them again?

Tip #3

Identify the role and first and foremost make sure your potential new recruit has the right attitude and of course skills to do the job. Don’t be sidetracked by a good candidate who’s

not suited to the role you need to be filled.

Tip #4

Consider experience, but also learning ability. Your

company will always operate differently to someone else’s, so a staff member’s ability to learn how you do things is important. They are also more likely to use their initiative to suggest

improvements in work practices.

Tip #5

Include someone you trust in your interview team. If you can afford to hire a professional recruiter, you should do so.

There are self-employed recruitment consultants or HR Specialists who can step in and help.

As a business owner, your focus is going to be different than the specialist of your choice. You will ultimately make the decision, but another person’s perspective can often provide insights you might never think of.

Tip #6

Whatever your business, if you’re expanding, it means a new staff member is going to be part of a team. Always look for people who are able to work in a team. Then also look for good written communication skills and an ability to solve problems. Whether you’re hiring waiting staff for a cafe or an IT specialist, these qualities will matter.

Need help? Contact Tauranga accountants Grace Team Accounting

Payment of Wages to Spouse or Partner

Inland Revenue has recently reminded accountants that employers who want to claim deductions for payments to a spouse or partner need to get approval before filing a tax return. Inland Revenue will not back-date their approval. If you are trading as a limited liability company, this does not apply. Limited companies do not have spouses.

IRD Plea: Get the Details Correct

Many electronic payments are being made with incorrect details. The correct methods are described on the IRD website. Use the following information for making electronic payments:

• Particulars: IRD number (if you have an 8-digit IRD number put a zero in front of the number)

• No punctuation is to appear on the IRD number Payee code: Account type and period (with a space), eg, IPS 31082017 or DED 15092017.

• Reference: Nothing is required. Using correct details will stop

incorrect statement of accounts or debt letters being issued in error.

Holiday Pay Calculations

When there’s a public holiday on a day your employee usually works, they’re entitled to a paid day off — no matter how long they’ve worked for you. You can only require employees to work a public holiday if it’s written in their employment agreements. Also, if they agree to work, you must:

• Pay them at least time and a half

• Give them another paid day off later.

If you need any assistance calculating annual leave, statutory holidays and taxes on holiday pay lump sums please phone Sue or Kristen.

IRD reminders

Inland Revenue has issued a reminder about student loans and any income created via Youtube. A student loan for borrowers returning from overseas becomes interest-free again after six months. If you know someone who is in this situation, suggest they contact Inland Revenue to fix this up. IRD also reminds people that income generated through YouTube can be taxable. Remember it’s income and just because it was fun doing it; it’s still taxable!

Change is on the Way

With the new government coalition now in place the intention to make increases to the minimum wage and paid parental leave have been announced. This is what it’s looking like so far:

• first increase to minimum wage to $16.50 per hour in April 2018

• further increase to $20.00 per hour by April 2021

• increase in paid parental leave in incremental stages; 22 weeks by July 2018 and further increase to 26 weeks by July 2020

Other changes in the works

• 90 day trial period under review

• Gender pay gap reduction and pay parity

• Overseas Workers – new regulations and penalties

• Medical certificates can be issued by a Health Practioner (includes Chiropractor, Dentist, Dietician etc)

We know this has a lot of business owners more than a little worried so let us help you be better prepared for these changes.

Ceasing to Let a Rental Property

You can claim expenses on your rental property so long as it’s available for rental. If you want to sell the property or move into it yourself, then the moment your tenant leaves the property it’s no longer considered available for renting.

Therefore, any expenses relating to the property, after this date, are not tax deductible. This includes major repairs caused by an unruly tenant.Remember, all repairs have to be done before the tenant leaves or they are not tax deductible.

Keep up-to-date with what's due when and any other useful websites on our Business Toolboxpage.

Phishing is a scam that tries to trick you into providing personal online information such as passwords, bank details and payments to legitimate sources.

Once the “phishers” have your details, they can steal your money, or even use your identity for their own gain – and your loss. Knowing how to spot a phishing expedition online will help ensure you’re not caught. Phishing is usually activated through a phony email. It often looks like it’s coming from your bank or other trusted sources.

It often suggests you need to reactivate your account, your account will be closed, or you need to claim a prize. With logos and corporate-style wording, it looks legitimate.

They’re very clever these scammers so you do need to be extra vigilant. So how can you tell if it is legitimate or not?

BANKS VERY, VERY RARELY ASK YOU TO VERIFY ANYTHING ONLINE.

Firstly, don’t trust emails from someone you don’t know. If it’s legitimate and important, they’ll ring you. Many phishers don’t have English as a first language, so look for poor spelling and grammar, and the quality of logos and other images. Look at the email address it’s coming from. It might have a bank name in it, but often along with something else, for example,

anzguest, or bnzinfo. If it’s not addressed to you personally, ignore it.

If you’re asked to click to a website, beware. Look for https in the url – the ‘s’ means it’s secure. Just http is not secure, so don’t go there. However, even https doesn’t guarantee authenticity, so remain wary.

If you do feel you’ve been caught because you’ve clicked through and provided details in good faith, notify the appropriate organisation, such as your bank, or shutdown your browser, restart and change your relevant password immediately.

EcoMan by Malcolm Rands.

Co-founder of ecoStore Malcolm Rands has got what it takes to run a great business. Blurb says: The story of how Malcolm Rands, an organic gardener and hippy from Northland, built the pioneering global brand ecostore. Malcolm Rands started ecostore from New Zealand’s first permaculture eco-village with his wife Melanie in 1993. Twenty years on and Malcolm has

developed ecostore into a multi-million dollar business. This inspirational memoir gives an insight into the mind of an entrepreneur, activist and true Kiwi ‘superhero’.

Legacy by James Kerr

If you’re a bit of an All Blacks fan then this might be the one for you Legacy by James Kerr. Blurb says: “James Kerr goes deep into the heart of the world’s most successful sporting team, the legendary All Blacks of New Zealand, to reveal 15 powerful and practical lessons for leadership.Legacy is a unique, inspiring handbook for leaders in all fields and asks: What are the secrets of sustained success? How do you turn vision into action? How do you achieve world-class standards, day after day, week after week, year after year? How do you handle pressure? …. We can all relate to this! (Available from Paper Plus here)

The Pursuit of Happyness by Chris Gardner

An incredible rags to riches story about a homeless father who cared for his son on the streets of San Francisco who eventually made it to the top of Wall St. You can’t help but be inspired.

The Miracle Morning - The Six Habits That Will Transform Your Life by Hal Elrod.

At age 20, Hal Elrod was hit head-on by a drunk driver at 70 mph, was dead for six minutes, and doctors told his parents that if Hal ever came out of his coma, he would have permanent brain damage and may never walk again. After six days fighting for his life, Hal proved that we all have the ability to overcome any obstacle and create the life of our dreams. Not only did he walk, he became an ultra-marathon runner, hall of fame business achiever, international keynote speaker, success coach, husband, father, hip-hop recording artist, and multiple-time #1 bestselling author.

Find Your Why - A Practical Guide For Discovering Purpose for You and Your Team by Simon Sinek.

He started with Start With Why, did a cool Ted Talk on How Great Leaders Inspire Action and now this little ripper. If you like workbooks and guidelines along the way then this smash hit is for you. (Available from Whitcoulls here)

If you would like to recommend your top business reads please come and tell us on our Facebook page. We’re always keen to hear what you think too! (find our facebook page here)

RNZ recently published an article that said according to research; four out of five small business owners feel isolated. A third of that group felt they lacked knowledge and need extra business planning support.

Maybe our good old kiwi DIY approach is sometimes causing too much stress. We’re not very good at asking for help are we? Seriously, we need to improve that.

Business planning is like holistic healthcare; it focuses on the whole business rather than just one part. Today; we urge you to take a few hours out of your day and give your business a full health check.What’s your financial blood pressure like? Margins too tight, expenses too high, debtors on the increase? Having staff “heart” palpitations? Blimey no wonder you feel isolated. Take a deep breath - help is here.

Suffering with growing pains or stuck in a rut? Discover easy ways to get you started and staying on the right track. These are common business health issues but the good news is there’s lots you can do.

Why not take your pick from our Top 5 Reads over Summer list? Inspirational and informational reads that will get you buzzing into 2018 (find them here)

Why not talk to our Client Managers who are here to help you get your business health running at optimum level. Book an appointment today on 07 578 5416. It’s time to take some of the pressure off.

One More Piece of Advice

As Business Advisors (we’re not just accountants!) one more piece of advice we’d like to offer you is to stop right now and look back at what you’ve done really well so far this year.

More often than not we’re running towards the future and that’s ok but you have to celebrate your successes too. It’s good for you, your team and it feels great.

We’ve covered a few client stories this year and here are some of our highlights we’re celebrating:

“Lindsay has a complete handle on our business so offering sound governance and understanding the business landscape in quite a vulnerable environment gives us the reassurance and durability we need now and into the future. The fact that we’re still hugely

passionate about our business and the industry is a clear indication we’ve got great people around us, including our staff and Grace Team Accounting” Ross Apiarists (find them here)

“Even though we had a lot of managerial skills and experience, we’d never owned our own business. As we’ve learnt, that’s a whole different kettle of fish. Janet at Grace Team Accounting is now like my new best friend!” SuperValue Pyes Pa (find them here)

“We needed someone who could offer us help and advice in all aspects of our business and personal entities; someone we could trust to listen and help us put all the pieces of the puzzle together. After meeting with Michael we both felt he was the right person to deal with because he listened, he explained in plain English the how to and where to from here and he genuinely cared about our objectives” Alliance RV (find them here)

Thank you all so much for your continued support and business, and of course your amazing feedback!

The latest Construction Pipeline Report, commissioned by MBIE, was released last month. The report projects overall construction activity for NZ overall and by region for the five years from 2017.

Overall the report predicts that construction activity in NZ will increase by a further 23% peaking 2019/2020 and that dwelling unit consents are forecast to reach a new peak for the next five years.

An interesting fact shown is that house sizes have plateaued and decreased in some regions over the past decade.Waikato/Bay of Plenty is measured as one region. The growth in residential building was a 19% increase in 2016 from 2015. The projections show that residential building activity will increase a further 34% before levelling out in 2021. Non

residential building activity is expected to grow by 29% before levelling out in 2020.

These are encouraging projections for all of our construction related clients as the projections are even more substantial than those made in the previous two MBIE annual reports. We suggest that the Construction Pipeline Report is a must read for any construction or related business owner as it will assist in making current strategic decisions on staffing, plant or investment in technology.

If you want a copy of the report you can donwload it here or if you need guidance or interpretation of what it means for you phone Lindsay.

Do you find yourself waiting on responses to emails you’re desperately waiting for an answer back on? From quotes sent to potential clients to a complaint you’ve made. In business we rely heavily on effective and efficient communications so here are a few top tips to ensure you follow up systematically:

Tip #1: One way to keep control is to transfer a copy from your sent file into a follow-up folder on your desktop which you review based on priority each week or month as necessary.

Tip #2: When you send emails from website forms, you don’t usually get to see the email address (for security reasons), so copy your email before sending off the form, noting the business or person it’s going to, and the date. Paste it into a text document for follow-up if necessary.

Tip #3: Two of the most important activities to follow up are outstanding debts and quotes you have issued. If you haven’t heard back from an important email it could be your email may have been caught in their spam folder so don’t wait to call to follow up.

Tip #4: If you’ve had a complaint, and it has been put right, build a follow-up process into your system. Nothing impresses a customer more than the firm which calls to check everything is right.

Tip #5: Persistence will win you more customers in the long run. Make sure you get your system right so you can renew contacts when you should.

Tip #6: Remember, when someone doesn’t want to buy from you they don’t really mean a permanent no. Your translation should be: “I’m not ready to buy from you at the moment but this doesn’t mean never.” Make a note to contact them again in a few months time.

It has never been trickier to analyse the costs and benefits of buying a new car, especially because of the claims about electric and hybrids cars saving you money. But will they in the long run? It’s worth comparing costs for equivalent petrol or diesel cars. List them, and include the loss in value of your car each year and calculate the annual cost of ownership.

The things you need to consider include:

Obsolescence: Electric and hybrid cars are new to the market. They will improve. For example, electric cars in the future are likely to have a longer range than at present. There’s a similar problem with petrol cars. With the trend towards electric cars one might expect less demand for second-hand petrol cars in the future.

Depreciation of petrol cars might be rapid. Will the hybrid be superseded by the fully electric car? If you think yes, how long might it be till this happens? Deciding on the cost of ownership has never been trickier.

Road user charges: There are no road user charges on hybrid and electric cars at present. However, it’s a reasonable bet the Government will eventually introduce them once there are plenty of electric cars on the road.

If you have a fleet you will constantly need to update your decisions on what to purchase.

Check out a case study article about Waste Management and their fleet of electric trucks and cars here. This example of sustainable and circular economy values systems shares some inspirational insights around electrical vehicles in NZ.

Back in 2009 Craig and Sue were both keen to buy another business but it seemed every time they approached Lindsay at Grace Team Accounting for purchasing advice the answer was a repetitive no. Until the day he introduced them to the honey business.

“We’d already been working with Lindsay for over 20 years so trusted his advice and as we’ve learnt over many years in business; building strong relationships is key.”

As like most things in business the first few years didn’t go quite so smoothly as anticipated. Hive placement was all done on a handshake back in the day so when Craig and Sue bought the business unbeknownst to them if another beekeeper came along and offered the farmer more money to place their hives on the land then it can and did happen. Add to that a bad honey year due to wet weather, there were the obvious challenges to overcome.

Now 8 years down the track Ross Apiaries has gone from 600 hives to 2500 hives and the majority of contracts with landowners are now in place. Winter is down time for both workers and bees so apart from repairs and a few smaller jobs it’s not until Spring rolls around is it all go again. November starts with most of the hives being transported from Bay of Plenty and Rotorua to the Central Region with a smaller amount taken over the hill to Port Waikato and collecting honey and looking after the bees continues until April.

“We’re both keen apiarists having learnt from the ground up. Over the years our children, other family members and friends have worked with us and still do to this day. We have an amazing Filipino beekeeper manager and his wife, who have a lot of experience so there’s a lot of team spirit in the business which you need in such a demanding role.

“When working with nature you have to adapt and focus on what you can control, not what you can’t. Being able to step out of our operational roles and sit down with Lindsay face to face at least twice a year means we get to discuss strategy and take our head out of the day to day running of the business. As a husband and wife business partnership this is something we find invaluable. When we need him to give us a quick answer he’s so approachable and obtainable and it’s nice to get a fresh perspective from someone who completely gets us and what we do. He has a complete handle on our business so offering sound governance and understanding the business landscape in quite a vulnerable environment gives us the reassurance and durability we need now and into the future”

“Grace Team Accounting also assisted with the implementation of cloud accounting software, Xero, which made life alot easier and even though now we’ve been able to step back and hand all our bookkeeping, tax and GST returns and annual reporting back over to Grace Team Accounting at least we know how it all works and what it means. It really been a great fit from day one”

“The fact that we’re still hugely passionate about our business and the industry is a clear indication we’ve got great people around us, including our staff and Grace Team Accounting”.

We’re here to make a real difference to our clients. Delivering a high-quality, efficient compliance service is just part of that. Find our more about our business planning, business coaching and accountant services here.

Find out more about Ross Apiaries here

In this sports mad country of ours we probably have the most exemplary examples of strategic planning and leadership to learn from.

Take a look at Team NZ - our America’s cup heroes. As you watch them go from one end of this incredible vessel to another working in synchronicity how do they achieve such amazing feats and come out winning? How does each member of that crew know what they should be doing at every single moment of the game?

What sort of leadership skills does their captain Peter Burling have to get them to perform at their absolute maximum? With the pressure of a whole nation on their shoulders what sort of strategic planning have they done before they’ve even hit the seas?

Strategic planning, whether it’s winning in sport or winning in business, needs the same approach - what do you want to achieve, what role does each person in the team play, what skills need developing and training and what leadership intelligence work best for the team.

Need help with strategic planning and business planning? We can help.

The All Blacks don’t just step out at Eden Park and expect to win just by dreaming it. They have trained, they have sacrificed and they have had to deal with the highs and lows that come with the game. Last but not least they have a strategy so every single team member knows what they are driving towards.

Strategic Thinking

Tip one: Get together, ask the hard questions and write it up in a shared space.

Strategic planning starts with strategic thinking. If you want the whole team to be on board it’s up to the leader to encourage ideas from all participants that start with open questions. Brainstorming ideas is a great way to create a positive team atmosphere where members feel valued. Very soon all those fresh ideas will be displayed on your game board and you’ll feel a sense of renewed energy and buzz in the room. Game on!

Strategic Planning

Tip two: Set your objectives clearly, review the competition and focus on creating a do’able plan

“Where are we going” is an opportunity for exploration and innovation. Doing the “same old same old” and not keeping up with the competition is risky as is change for changes sake.

Strategic planning is where you come together to map it all out. It is a time for openness and discussion but you have to be very clear what your primary outcome needs to be.

Just like the All Blacks this is also a time to look at the opposition - what do they do well, what perceived weaknesses has your team identified and therefore what can you do better? What gaps can you weave your way through to get to the top of your game?

Tip three: Don’t be afraid to ditch a few ideas that came out from the strategic thinking phase. You need to maintain a sense of togetherness as well as make the actual plan do’able.

Remember, if one wins we all win so that needs to be the primary focus.

Strategic Doing

Now you have your goals and objectives set realistic timeframes, delegate to the best person for the job and keep the encouragement flowing. This phase requires lots of energy and inspiration so what tools do you have that will keep those brains sparking, the adrenalin pumping and actions met?

Track and measure results, monitor financial results, keep the team fully informed of developments and when you discover what’s working - do more of that!

Tip four: Even the smallest steps will reap rewards so as long as everyone keeps momentum you’re heading in the right direction. If something’s not working, don’t be afraid to discuss why and move on swiftly. It is part trial and error but with clarity and purpose the try line will appear.

“I don’t believe in magic, I believe in hard work” Richie McCaw

At Grace Team Accounting we help you build winning teams to help your business succeed. We offer a number of powerful Business Development Services and One on One Programmes tailor made for you and your business success.

For more information contact Grace Team Accounting today.

TRY A PASSWORD MANAGER

If you’re not lucky enough to have a photographic memory, keeping track of passwords can be a nightmare. Every time we want to enter a subscription website or do internet banking, we need a password to verify we are who we say we are. Some of us write passwords in a book or in a text document on our desktop, others just use the same one everywhere because they can’t remember passwords for every site. Neither method is safe.

The answer could be a password app. There are many now available to download, and some are even free. These apps manage passwords as a browser plug-in. You need to remember only one master password – the one that opens the app.

Most products include a built-in password generator for the secure sites you want to visit, which means you don’t have to wrack your brain thinking up a password. These passwords are at least 16 characters long, usually too long for you to remember.

The apps are not for everyone. Some users are wary of any cloud-based program that might be able to access your password. However, the app hosts say their encryption means even they have no idea what your password might be. In the end, it’s your choice. Do the research by looking up ‘password managers’ in Google.

KEEPING A LOG BOOK MADE EASY

Keeping a vehicle log book is a bind. Inland Revenue requires you to note your opening odometer reading and closing odometer reading over a three-month period. It will allow you to record your business trips only, over that period. Unfortunately, if you overlook a business trip, it will become a private trip by default.

Apps are now coming onto the market to solve the problem. They will keep a track of all your trips and help you to analyse them.

We obtained a quote for using LogbookMe. A 12-week license costs $248 + GST and a 52-week license costs $480 + GST. There will be other logbook apps on the Internet. You may be able to put the log book app to other uses to get the best value out of it.

WINDOWS 10 TIPS & TRICKS

Find a file by clicking on the magnifying glass symbol on the toolbar. Type in the name of the missing file and if it exists, it will be located for you.

Press Alt + Tab and it will show you all the open programs so you can choose which one you want to go to. This is a great shortcut for switching between programs. It also shows you what programs are running and draining your memory resources.

For centuries, people have made big decisions and developed everyday preferences using the simple yet resounding power of word-of-mouth. It’s no coincidence that you and your best friend share a few of the same favorite things. Statistics sources: Neilsen, USM,

Bright Local and Oglivy/Google/TNS

RAVE REVIEWS!

Just imagine for a minute your business got instant online feedback such as the reviews you see on Trip Advisor? Does that thought make you feel a bit scared?

What do you think your customers would be saying about your business? What star rating do you think you would receive? With the power of word of mouth online and offline it pays to get it right and this review system has been in place longer than you might think.

Did you know Fair Go first aired in 1977? That’s a whole 40 years ago so things haven’t really changed that much. People want a “fair go” and today with facebook and online reviews being at the majority of consumers fingertips sales, service and support has gotten tougher.

A few tops tips to help you get those rave reviews:

Treat your staff well and that way they will treat your customers well. Happy team = happy customers.

Don’t be afraid to apologise and come up with better solutions.

Pick up the phone every now and again and ask your customers how they’re finding things. Better still, meet with them face to face. It might help to have a rotating schedule so you catch up with valued customers regularly.

You never know what your competitors are up to but if you’re looking after your customers, 9 times out of 10 they’ll keep looking after you.

One way Grace Team Accounting can help is to analyse your sales reports. Data is a clear of indication of what’s working and what’s not working and we’re on hand to identify any gaps you may be missing.

Key takeouts:

84 PERCENT of people trust online reviews as much as a personal recommendation 7 out of 10 consumers will leave a review for a business if they're asked to 54 percent of people will visit the website after reading positive reviews74 percent of consumers identify word ofmouth as a key influencer in their purchasing decision On social media, 58 percent of consumers share their positive experiences with a company, andask family, colleagues, and friends for their opinions about brands.B2B buyers are influenced by word of mouth when making their buying decision.

With a 35 year track record in supermarkets, Tony and Julie Bruce wanted to put personality and quality fresh produce at the forefront of their new SuperValue Supermarket in Pyes Pa.

Set up as an entirely new business in October 2016, owner/operators Tony and Julie have a wealth of knowledge. Tony was a Supermarket Manager for the last 35 years and Julie was

the Territory Manager with Reckitt Benckiser (RB), a global cleaning and health supply organisation.

Having experienced the corporate dynamics of one of the largest national supermarket chains the couple wanted a fresh approach where the customer, the staff and the suppliers all experienced value throughout the chain; at the heart of the business a sense of community.

Their vision is based on the convenience and style of the metro supermarket stores you see in large cities like London, where their Supervalue store is “johnny on the spot” for the neighbourhood who need what they want when they want it without the hassle of going too far away from home topped off with great service and competitive pricing.

“We’ve been in Tauranga for a year and opened the doors last October and even though we had a lot of managerial skills and experience, we’d never owned our own business” says Julie.

“As we’ve learnt, that’s a whole different kettle of fish. Janet at Grace Team Accounting is now like my new best friend!

One of our first priorities to help us run the business side of things efficiently was getting set up on MYOB accounting and payroll software which Janet was able to help us with. What a relief!

As business owners being introduced to these intelligent business tools was a whole new learning curve. Having the reassurance that we are fully IRD compliant with a system that

allows us to process payroll, GST, invoicing, expenses and reporting it has everything you need to take care of business. Janet and the team are so approachable and being able to contact them anytime has been extremely helpful”

Both Julie and Tony are extremely thankful that the local community has got right behind them and now with their first two quarters under their belt their focus is on planning ahead.

“We will be sitting down with our team at Grace Team Accounting and confidently putting a future plan in place“ says Julie.

Getting started in business you need all the help you can get. We'd love to help so come and see what accountant services and starting up a business assistance we offer here.

Don’t be taken in by very low interest rates for hire purchase, or even those offering zero percent.

Many retailers occasionally offer “special deals” of 0% percent interest on hire purchases. Does it mean you pay only the ticket price over the term of the loan?

The answer is no, and in fact the total price can be very expensive.

If you add up establishment fees, annual fees and any other cost the vendors may add, you will get some idea of the cost of the borrowing.

For example, an appliance costing $700 could be financed by one of the leading dealers at 0% finance. The deal included an establishment fee of $55 and what appeared to be an annual account fee of $52. The salesperson was a bit vague.

That would make a total of $211 ($55 + 3 times $52) for a 30-month agreement.

If you take the average between the debt at the start of the contract and the debt at the end of the contract, you get an average debt of $350. You can now see why the $211 is such an enormous figure to be paying.

Divide it by 30 months and multiply by 12 months and you have the cost per year of about $84. That's an interest rate of 24% ($84 divided by the amount borrowed being $350).

Even if these figures are not entirely accurate, do your homework and determine the true cost of borrowing. You might be a lot better off with a bank overdraft.

Having a clear vision not only gives you direction and motivation but it needs to inspire your whole team. The company vision doesn’t have to be over complicated or long winded, it just has to say what you see for yourself, your business and your people in the future.

If you’re worried your internal communications aren’t delivering the right message and members of the team seem to be going off in the wrong direction and you are drained from the feeling of “herding cats”, a crystal clear vision is a great start.

If the task seems daunting, why not make it into a team exercise and ask each member to give their version of what they think your company vision could be? There are fantastic tools available to create your vision statement. You might like to try Mind Mapping - visit this link to help you get started http://www.tonybuzan.com/about/mind-mapping/

Are you feeling overwhelmed and underproductive even though you’re running around trying to do it all? Take a look at our quick and easy productivity tips to help eliminate chaos to help give you some breathing space:

The most important things to remember in business is you don’t have to go it alone. Having a business coach is your number one accountability partner. Contact Grace Team today and talk with us about our coaching programmes.

A new survey has confirmed what many small business operators around the country will know from hard experience – many of those running their own business are working well over the average week.

The poll of over 300 small and mid-sized business owners by accounting and business solutions provider MYOB highlights that 41% of local business operators work more than 35 hours per week, with 21% working more than 45 hours, and 4% with a working week longer than 65 hours.

A recent OECD report highlighted that just 9% of people in the OECD work ‘very long hours’ – defined as more than 50 hours per week.

The amount of time required for business owners to manage the day-to-day running of their business is also constraining their ability to develop it.

One of the key findings of the survey was that over half – 57% of the owners surveyed spent less than two hours per week on business activities that were not related to the day-to-day operation. This means only two hours are available to focus on key development areas like business planning, training and networking.

Only 16% of owners spend more than half a day per week on non-operational business activities.

We often talk in New Zealand about the benefits of turning our dynamic, entrepreneurial businesses into large ones – but clearly one of the key hurdles we have to overcome is finding the time for owners to focus on growth.

Online accounting software can automate many tedious tasks such as data entry, and the feedback from this MYOB survey suggests clients can save up to 10 hours a month. But it’s also clear that ambitious business owners would appreciate even more time to spend on growing their business.

The survey also asked business owners what they would do if they had one day of free time in the next week to spend on their business. The most pressing tasks weighing on time-poor business owners are the administrative ones they struggle to get to, with 48% saying they would spend the day on general administration like filing and cleaning out the email inbox.

For others, the gift of an extra day’s time to spend in their business would be spent on networking with new clients (22%), attending training or studying up on industry trends (19%) or developing a plan to grow their business (18%).

For small business owners, having limited time also spills over into their non-work lives, with 25% (and 34% of female business owners) wishing they could outsource their house cleaning, 11% their gardening and 11% their general home maintenance.

For over half of the owners surveyed, one of the key aspirations they have for their business over the long term would be to be able to take a day off during the working week without worrying that it would have an impact on their business.

It shows that most of us lead busy lives and everyone would appreciate the gift of more time to focus on the things that matter – whether it is pursuing your passion or spending more time with family and friends. But for New Zealand’s small business owners, being pushed for time is having a real effect on their ability to grow and develop in the way they would like.

Finding ways to create even an extra day in the calendar on local business owners could make a real difference not only to the health of their business but the opportunities for the small business sector to reach its potential for growth – with flow-on effects for us all.

We don’t know whether you were aware but the ever youthful and high-spirited Sir Richard Branson has recently visited our beautiful shores to present the event - “An Evening with Sir Richard Branson”.

Sadly, we weren’t in attendance but it’s always nice to be reminded of the way Mr Branson does things:

Surround yourself with great people. Look at Mr Branson’s guest list … Rachel Hunter, Beauden Barrett, Bret McKenzie, Eliza McCartney and Liam Malone to name just a few. Now we know that’s a star-studded line up but we all have bright stars within our grasp to be inspired and influenced by so invite them along to your next event.“Don’t look back, you’re not going that way”. Liam Malone, Paralympian affectionately posted on Instagram how he can’t believe how far he has come over the last 4 years. He encourages everyone to go after their dreams and celebrate where you started from. Even in crutches Sir Richard Branson is having fun and doing what he loves best; making the most of every moment. If he focused on his perceived “weaknesses” do you think he would be where he is today? It’s when you focus on your strengths and others’ strengths that you can achieve great results.

“A passionate belief in your business and personal objectives can make all the difference between success and failure. If you aren’t proud of what you’re doing, why should anybody else be? Richard Branson

Continuing to develop and nurture their business we talked with Amy and Todd from Alliance RV about their business developments.

Step into the new and improved Alliance RV workshop and retail outlet and you’ll feel immediately welcomed by Owner/Operators - Todd and Amy. It’s hard not be caught up in the enthusiasm these two have for their business with the latest technologies and accessories for RV’s or Motorhomes on offer.

Todd, as a qualified electronics technician, originally bought the residential electronics business over 20 years ago at the bright young age of 21. Back then the business was primarily operating in the residential market but they could see an emerging RV and motorhome market and began to take more of this work on.

Fast forward to today, the residential side of the business has been sold to focus solely on the RV business. Anything on your RV wish list from a flat screen TV to solar panels can be purchased and installed here.

With change comes major decisions so “If we’re going to do this let’s do it!” they knew it was time to get all their “ducks in a row’ both personally and professionally. After hearing about Grace Team on more than one occasion they decided it was time to meet.

With a blended family, two family trusts, a joint lifestyle property and now Amy on board as a shareholder, there was a lot to think about and get right.

“We needed someone who could offer us help and advice in all aspects of our business and personal entities; someone we could trust to listen and help us put all the pieces of the puzzle together. After meeting with Michael we both felt he was the right person to deal with because he listened, he explained in plain English the how to and where to from here and he genuinely cared about our objectives. We weren’t afraid to ask the 'dumb questions'.”

There have been some major business transactions that Grace Team have now been involved in from preparing the financials for the residential sale side of the business, the acquisition of another business that had been operating in the same RV arena, right through to setting Alliance RV up on Xero that helps the business run smoothly on a daily basis.

Another area that Amy and Todd are totally on board with is ongoing coaching. After taking Michael’s advice from the beginning they bravely took themselves off for a weekend of hard questions and challenges. It was totally worth it then and now.

Next on the list this year for Amy and Todd is quarterly coaching with Grace Team. They know this will provide them with the accountability and continuous improvement they strive for.

“There are some real standouts working with Grace Team that range from their personal service, ability to actively listen and their professionalism. They’re not afraid to receive constructive feedback. It means to us they walk the talk.”

Grace Team Accounting Tauranga accountants are passionate about helping local business thrive. Talk to us today about what you most need and we'll get to work.

Most of us know very little about computers. When we need a new one, we go to a shop and the salesman usually seems more concerned about making a sale and everything he shows you looks shiny and new.

Here are a few useful tips to think about before you buy.

1. Consider why you are buying. If the computer is more than three years old (a good rule of thumb), it’s probably time to upgrade. But if everything is working fine, keep your money. Most operating systems can be upgraded for free online, so make sure you’ve got the latest. If the new system slows down all your programs, then you’ll need to consider installing more RAM, or getting a new computer.

2. If you decide to buy a new computer, you’ll future-proof yourself by getting as much RAM as you can with the purchase. It will cost you more than the basic computer, but it will make a

difference to efficiency.

3. Likewise with disk space (storage capacity). The more you have, the more you can store. Consider what you store most. Photographs and videos downloaded from your smartphone or digital camera can chew up space. Complicated programs, such as MS Office and design programs, can also take a lot of space, but most files, such as Word, take minimal space.

4. Another thing to consider is whether you need a desktop computer, a laptop or a tablet. You might find the flexibility of a laptop or tablet useful, but if you’re mostly desk-bound, nothing beats a robust desktop computer.

Whatever your considerations, talk to the salespeople about the above points, checkout the product reviews online and make sure you understand what they’re telling you. If you feel you’re getting a sales pitch more that information go somewhere else.

WRITE OFF BAD DEBTS!

With 31 March looming as the end of many businesses’

financial year, there’s always the prospect of paying too much tax. It doesn’t need to be this way. One of the biggest issues is the importance of writing off bad debts. It seems almost every year we have a client for whom we prepare the annual financial statements, who has a large amount of money owing to them. When we get the results for the year we find there is a big profit, which has been inflated by an excessive accounts receivable figure. Discussion reveals some of this money is never going to be collected.

Can we fix the problem?

No. The law will not permit us to write off bad debts back-dated to the previous year. The client has to pay the tax and wait until next year to get these bad debts written off.

In the end the result is the same but in the meantime our client has to pay his tax earlier than would have been necessary.Look at the debts owing to you. Are there some you have been pursuing and who won’t pay you? Have you taken every reasonable step to get paid?

If yes, you must physically write off the bad debt before balance date if you want to reduce your accounts receivable and hence your profit and tax. It depends on the system you are using as to how you go about this. If it’s a very basic system like keeping copies of the invoices you have sent out, just write on your copy the words “written off as a bad debt on…” and insert the date. Do this now. It is not something you want to overlook. You should tell us the amount you have written off as Inland Revenue likes us to record this separately.

Can you continue to try to collect a bad debt? Definitely yes. If you’re lucky enough to get some money it becomes part of your taxable income.

GET YOUR DEBTORS RIGHT AT 31ST MARCH

Clients use all sorts of systems for keeping a tally on the money owing to them. From a tax perspective, the figure at balance date needs to be accurate.

Please note: Assuming a 31 March balance date, all work done up to 31 March which is capable of being charged must be included as income. For income tax purposes holding some of your invoicing over until April does not necessarily mean you can ignore it. You don’t have to

actually send out an invoice but you do have to add the amount into your accounts receivable figure for tax purposes.

You won’t be taxed twice because once we have put in a figure for the amount owing to you, we then deduct it in the next year’s accounts. If work cannot be charged because it is not quite complete, it doesn’t get included in your accounts receivable.

Some businesses have work in progress, which is partly completed work. They must value this on the basis of the amount of material which has gone into jobs in progress and the value of the wages they have paid to do that work. Any other direct costs should also be included such as hire of equipment.Cut off - Don’t deduct money received in April, until you have finalised the total owing to you at the end of March.

Professional services

Professionals, who have supplied partly completed work (not invoiced), do not need to include these services in their annual accounts unless there is a right to make progress claims.

TAX DEDUCTIONS ON FOOD & DRINK

IRD has informed us it considers the supply of all food and drink, whether in the course of entertainment or not, is tax deductible only to the extent of 50%. Thus, under this new interpretation, if you give your client a bottle of wine or a food hamper you can no longer treat this as a fully tax deductible cost. If you want a 100% deduction, think of something different such as a bunch of flowers or something else which cannot be consumed.

BODY CORPORATES

A lawyer’s newsletter has drawn our attention to the personal liability of committee members of body corporates registered under the Unit Titles Act 2010. If you are asked to serve on one of these committees, we suggest you require the body corporate to take out insurance to cover your risk.

BEWARE THE DEBT COLLECTOR

Inland Revenue now has the power to disclose tax debts to debt collectors. If the debt is more than 12 months old and greater than 30% of the taxpayer’s gross income, the tax department can release the information.

These disclosures are going to be very dangerous. They will damage the credit rating of those who offend. If you are in this situation, be sure to make an arrangement with the Inland Revenue to catch up and make sure you stick to it. Don’t agree to anything you are not going to be able to sustain. Obviously, if you are in tax trouble, it might be wise to talk to us first.

GET CONTROL OF DONATIONS

If you put all your donations through your company, you can keep a record of each one. When your annual accounts are completed, you can get a list of all donations for the year past

and this would tell you what you gave last year.

Set a budget for the new year. Work out which charities you want to support and how much you would like to donate. This also gives you a polite way to say No to charities that cold call you. “I’m very sorry but we have already set our budget for donations this year”.

Another way of keeping control is to save up all donation requests until one day each year, then pay them all out just the once.

Note: if the company makes a loss, you won’t be able to claim that loss to the extent it is caused by making donations, so only do this if the company always makes profits.

HOT OFF THE PRESS

The nation’s independent publishers are banding together, creating a new national news service. Newsie is a collaboration of New Zealand owned and independent news companies, pooling resources throughout the nation to bring a new, balanced and locally owned news organisation.

The news service is co-ordinated by Sun Media, the New Zealand owned publishing company that operates the highly-successful SunLive news website based in the Bay of Plenty.

Regional newspapers and websites are being added every week to the Newsie stable. It is a unique and powerful new concept: A cooperative effort of independent publishers the length and breadth of New Zealand, united in their commitment to pool resources and to create a truly independent and balanced national news service.

Newsie is in the early stages of development, says Sun Media director Brian Rogers. “We’ll be adding many more independent publishers to the pool in coming months, along with freelancers throughout the country and offering New Zealanders their own voice. We have secured reliable and balanced sources of international and national news, and sports feeds, so as Newsie grows and expands there’ll be more to read, opportunity to comment and give feedback. This is truly a news-site for New Zealanders, by New Zealanders, who at last have the chance to make it their own.”

DID YOU KNOW?

Grace team have been accounting advisors since Sun Media’s inception in 2000 by Bryan and Claire Rogers. Through 17 years Brian and Claire have built an independent regional newspaper business that is unrivalled in New Zealand. Their current news stable includes: The Weekend Sun, Coast & Country, Waterline and Bay Driver along with their awarded online news for the region Sunlive.

We congratulate them on Newsie and are proud to have been part of the journey providing ongoing advice, planning and strategic assistance throughout the 17 years.

If you want to develop strategies for growing and developing your business talk with one of our team today.

Newsie is an old term, coined circa 1875 as a historical nickname for newsboys, journalists and the like whose mission it was to deliver the real, important news to the readers – exactly what Newsie is looking to achieve.

To find out the latest news check out www.newsie.co.nz

How many times have you heard someone say, “I’m just not a money person”? Have you ever been that person? It’s a common expression and an easy escape hatch to fall through when you’re staring at spreadsheets full of numbers and formulas. But it’s a phrase, and an attitude, that’s ultimately unproductive and stopping you from taking your business to the next level.

The truth—one that many people wish they could ignore—is that money is the blood that pumps through every part of your business. It fuels your marketing efforts and product initiatives. It keeps the lights on. And, hopefully, it pays the wages that support everyone in the business having a quality of life you’re proud of. Especially you.

If you stop and think about it, there’s literally no aspect of your business that money doesn’t touch in some way.

Take customer service. It’s easy to reduce it to phone calls, emails, and scripts—not having anything to do with finances. But what does creating an unbelievable customer experience do for your business? Is it creating a customer for life? How much is that worth to you?

Growing your understanding of money is about digging down to see the very real impacts and implications of how money moves through every aspect of your business.

This pivot can be especially hard to make if you’re someone who doesn’t naturally focus on the money side of your business. Maybe what drives you is having an impact on your local community, or creating a legacy that goes beyond you, or maybe it’s all about a passion to create your specific product or service. Whatever those other drivers are, money always ends up playing a role. It increases your ability to impact your community, it sets the scope of the legacy you’re creating, it enables you to invest even more in developing a product that disrupts and revolutionises your industry.

Here are some important things to think about as you look for the motivation to shift your relationship with your numbers:

People who are money-savvy end up running the most successful businesses. There’s no guarantee that your business will prosper just because you learn how to read financial statements. But without this skill in your arsenal, you’re fighting an uphill battle.

When you stop worrying about money, it frees you up. When you hide behind the mask of not being “a money person,” it often causes the opposite effect you’re intending: your lack of understanding doesn’t decrease your anxiety, it increases it.

You worry about whether you have enough cash to cover your bills next month. You don’t know if you have enough set aside to pay your taxes this year. Imagine taking all of the energy you spend worrying and putting it into your marketing or product development instead. How much better off would your business be?

You’ll make better long-term decisions and avoid the “ping-pong effect.” When you have a solid understanding of your financial performance and its impact on all aspects of your business, you’ll automatically start making better decisions. Without this perspective, you’ll find yourself too often making the best guess based on what you know or feel at the moment.

It’s not that gut feelings aren’t important, but relying on them too much results in the kind of ping-ponging that probably sounds familiar: growing your staff too quickly and then having to lay them off, investing in a new piece of software for your company and then abandoning it months later when you realise you can’t support it. These unfortunate events all have a serious financial and emotional impact on you, on your team, and on your business as a whole.

Here’s the best news: no matter how long you’ve been hiding from your finances, you still have the choice to change it. It comes down to whether you’re ready to take control of your financial future or want to continue to feel victimised by it.

Given the right tools and careful explanations, you can change your relationship to money—and the results will follow. The challenge is stepping over that escape hatch and saying, “I’m up for the task.”

What have your struggles in understanding the finances of your business been? Where are you stuck right now? What are you doing to change this? Talk with one of our Client Managerstoday and take the step to maximise all the hard work you’ve put into your business! We’re here to assist you on 07 578 5416.

Putting that money management off? Check out our blog around procrastination and what you can do about it.

If you’re anything like us you’ll be thinking where the heck did January go?

If you were one of the many who made New Year’s resolutions around working smarter not harder, we hope that’s going well. If it’s not do you recognise any of these greedy time wasting habits that tend to creep into our working day?

Procrastination - this is real killer when it comes to wasting time. Our quick and easy tip is tell you to Eat Your Frogs first everyday. Your frogs are those tasks you keep putting off like dealing with a difficult email or processing your accounts regularly. Eat a Frog every day and you’ll have so much time on your hands to do all the things you love in your businessMeeting after meeting after meeting - we’re not saying meetings are a bad thing but do you need so many and are the outcomes aligned with your key objectives? The clearer you are around what you need to get out of each meeting and reviewing if they’re adding value is an important part of good time management Planner or spanner? - having a good, solid plan to follow is great for time management. Breaking that plan into bite-sized daily tasks is even better because it helps you stay focused and energized. So be a planner and don’t let others throw unnecessary spanners in the works.

Note: Eat That Frog!: 21 Great Ways to Stop Procrastinating and Get More Done in Less Time by Brian Tracy is a great book for simple and effective advice on getting more done.

Make a checklist of the things you need to do to streamline your annual accounts. Here are some suggestions to start you off:

• Answer all questions in our questionnaire link here

• Make sure you have everything asked for in the questionnaire.

• Sign the completed questionnaire.

• Arrange for a stocktake to be done on 31st March (if needed)

• Count cash in the tills and petty cash at the end of the last working day.

• Work out money you have earned and not been paid as at the end of the financial year. If it’s earned but not invoiced, it must still be counted.

• Work out money you owe your creditors at balance date.

• If you have a high income (more than $179,030 after deducting expenses) make sure you’ve paid enough tax.

• Write off bad debts – see guidelines below.

GOT A BAD DEBT LOOMING?

Be quick and be persistent applies particularly to debt collection.

If you’re offered a cheque and you don’t like to suggest it might bounce, see if you can get two cheques for half each. Your debtor might have the funds to let $500 through but not $1000.

WRITE OFF THOSE BAD DEBTS

With year end fast approaching remember to review your debtors now.

If you think you’re not going to be paid, write off the amount. Don’t delay beyond balance date, because you can’t backdate a write-off.

Show evidence to confirm when you wrote off the bad debt. For example, if you type out your bills and keep copies as your record of what is owed to you, write on your copy something like “written off as a bad debt on . . . . . (write in the date)”. Initial the note, too.

IRD requires you to do everything reasonably possible to collect the money before you deem it a bad debt.

Once you have written off a debt as bad, you don’t have to stop trying to get the money. Sometimes you are lucky and get paid even though you had good reason to

believe it wouldn’t happen. That is a “bad debt recovered” and becomes income when you receive the money.

Keep up to date with our Business Toolbox.

WE ALL HATE BAD DEBTS. So remember - Prevention is better than cure when reducing the number of bad debts.

Here are a few tips;

Avoid giving credit to a stranger, without undertaking a credit check. If you have to give credit without doing a proper check, be sparing. Giving credit can help you gain customer loyalty, but be careful. There is no obligation to give credit to anyone. Try to make it a habit, if your type of business will permit, to assume you will be paid on the spot. People don’t walk into a shop and expect to leave with goods without paying first. Why can’t we adopt this practice more in our business?

Sometimes you just can’t prevent bad debts so;

Jump on new customers who start to abuse your credit arrangement. Make notes of every conversation you have with a debtor. If you have to make follow up calls, quote back to the customer what he/she undertook to do. Immediately after you have made a call, make a note in your diary of the day on which you will next call if the money has not been received and keep a record of what was said. Discontinue giving credit to the chronically bad payers. The time you put into them will destroy your profitability. You could be doing better things with the same time. And if you have to, use a debt collector. Often the threat of employing one enough to get your clients to pay – especially when you remind them that lodging a debt with a debt collector will “adversely affect their credit rating”

What about the big customer who will not pay on time?

Small businesses often find their biggest customer is their worst payer.

You feel you can’t afford to be too demanding, in spite of the fact you’re entitled to your money. What should you do?

The answer is not to have one major customer that dominates your business. You will always be vulnerable while you let this continue. Set a maximum percentage of total sales from any customer and do your utmost to see this is not exceeded. If your big customer goes broke it could take your business with it. Sometimes, this is easier said than done, which we realise. It really is a reminder that you have to be ‘hyper vigilant’, and if that one big customer starts reneging on their payment committments, limit the work you do for them, until you can sort it out.

Need help with getting set up on the rights systems and following a helpful process? Talk to us today and we'll get you on track. Click here to find out more.

Research suggests that approximately 50% of us make New Year’s resolutions – but only 8% actually achieve them. How can you join this elite few? How can you actually follow through on your plan to lose weight, get organised or to spend less and save more? Here are a few secrets to help you stick to those resolutions;

Clearly define your goals Many people in the spirit of New Year’s loudly proclaim, “This is the year I’m going to finally get in shape.” But what does that mean? Do you intend to lose a

certain number of kgs? Reach a body-fat percentage goal? Run three miles without rest? Do 10 pull-ups? Remember the old SMART rule – goals must be specific, measurable, achievable, relevant and time-bound. The first step to a behaviour change is to clearly understand what “it” is.

Track your progress “If you can measure it, you can manage or change it”. These measurements will be a source of motivation as you reflect on where you started and where you are. They will also help you to identify plateaus or “sticking points” in your progress so you can adjust your efforts.

Have patience You must set realistic goals and realise that progress is never linear. Some people will see rapid gains only to hit resistance later in their efforts. For others, initial progress may be painfully slow but then they suddenly achieve rapid breakthroughs. Making lasting changes takes time.

Publicise your goals to friends and familyAs embarrassing as it might be to announce your specific resolution to the world, social support is critical. Yes, it takes some personal courage and vulnerability to share something that you might actually fail at, but to dramatically increase your odds of success you’ll want support from those around you.

Put it on your schedule How often do you hear people say they can’t “find the time” to do something. Nobody finds time. We all choose to spend our time the way we do—whether that’s eating junk food or going to a spin class. Make your new goals a priority and actually schedule them into your calendar. Think of these time blocks as important appointments - just like an appointment with a doctor. Don’t automatically schedule something else over them. That which is scheduled gets done.

Stop “all or nothing” thinking It’s better do something than nothing. Are you guilty of “all or nothing” thinking? Do you ever think, “Well, I might as well get dessert since I already ate those french fries?” And then, “I blew my diet last night so I’ll just restart it next week.” The difference between doing something rather than nothing is huge. If you don’t have a full hour to workout at the gym, just decide to make it the best 20-minutes you can. If you have a slight cold or minor injury, decide to just walk the track for a couple miles. If you have a financial emergency and can’t save your full 10% this month, just save what you can. The

bottom line is, any effort towards your goal is better than no effort.

Get up, when you slip up. None of us are perfect As the great Vince Lombardi said, “It isn’t whether you get knocked down, it’s whether you get back up.” Resiliency is the key. Don’t turn relapses or temporary failures into total meltdowns or excuses for giving up. Instead, just acknowledge the mistake and recommit to the path.

Achieving our goals isn’t about willpower. It’s about developing the right skills and strategies that, with patience, will lead to success. Keep these seven secrets in mind in 2017, and you’ll join the elite 8% who will be celebrating their success later in the year.

TRUSTEES NEED TO MINUTE THEIR DECISIONS

If you have a family trust, be fussy about recording trustees’ decisions. One problem that arises is taking money out of the trust for your own use.

This can be:

A reduction of money owing to you A distribution of some of the trust income A payment out of the capital of the trust Reimbursement for trust expenses paid by you A beneficiary loan

It’s important to clarify these withdrawals. This is done by means of a trustee minute.If there could be any doubt about the reason for a transaction, be sure to prepare a trustee minute and make sure all trustees sign it before it is actioned.

SOME CONTRACTORS NOW ABLE TO CHOOSE THEIR OWN TAX RATE

From 1 April 2017, the Government is proposing to allow contractors whose income is subject to withholding tax deductions, to choose their own tax rates.Those who have typically been over-taxed might want to choose a lower rate. The minimum for New Zealand residents has been set at 10%. Others, who have a lot of year-end tax, might be more comfortable having higher deductions.

The maximum number of times you will be entitled to change your rate during the year is twice. After that, the payer will have to agree to your request to make the change.

If you haven’t been complying with your tax obligations, you might not be allowed to choose your own tax rate.

Do you contract yourself to a Labour Hire Firm...?

If you contract to a firm hiring labour, from 1 April 2017, the withholding tax deducted from your income will be at the rate of 20%. This will mess up your provisional tax payments from 28 August 2017 and the next two payments. Even if you are trading as a company, you will still have withholding tax deductions from income. You will be allowed to choose your own rate so long as it’s not less than 10% – see above.

Voluntary withholding agreements

SOME contractors don’t have to have withholding tax deducted from their income. As a consequence, they have substantial provisional tax liabilities. Some people prefer to have some tax deducted as they go. It’s proposed that from 1 April 2017 they will be entitled to require the payer to deduct withholding tax at a rate they choose, so long as it’s at least 10%.

DON’T GRAB ALL THE MONEY

If you sell your business, which you run through a company, the money does not belong to you. It belongs to the company.

You can only take it out if you are entitled to do so. If there is money owing to you, according to the balance sheet of the company, then that money can be paid out. However, any

more than this becomes a loan to you or may even be an illegal distribution.

A problem often arises when a business is sold. The seller gets paid for “goodwill”. This is the value of the customers who have been built up over the years. It is a payment for the potential to get a higher income. The sale of goodwill in excess of what was paid for it (if anything) is usually a capital gain. This capital belongs to the company.

You can get it out if your company happens to be a Look-Through company or one of those old qualifying companies. Otherwise, it must stay there until the company is wound up. If you take the cash out prematurely it has to be treated as a loan from the company to you. There are tax consequences as a result. If you want the capital gain paid out to you, without tax consequences, you must first have a signed special resolution of shareholders resolving to wind up the company.

Please contact us to discuss before taking the money out and we will navigate you through these issues.

NEW RULES FOR MILEAGE RATES

There is currently a bill before Parliament which has a section dealing with tax deductions based on mileage.

We won’t bore you with the new proposed calculations, the most important thing for our clients to note is that the Government plans to bring in these new rules from 1 April 2017. This new system provides a more accurate way of calculating mileage, but it is going to add to the amount of record-keeping. You’re going to need to tell us the total number of kilometres you travel in each year.

Therefore, please start now. Get a logbook and get into the habit of noting down your busines vs personal usage. Make a diary note to record your odometer reading when you finish work on 31 March 2017. Then make another diary note to do the same on 31 March 2018 and so on. If you change vehicles, you’ll need to get your odometer reading before you trade in your old

vehicle and then make a note of the reading on the new vehicle. We hope you’ve got a good memory for this.

Preparing for summer and the silly season ahead? At this time of year it's generally assumed that the majority of small businesses or offices close for a period of time over the festive season, however it varies from business to business and so it's extremely important to let people know you're away and when you will return.

It can be frustrating for those trying to get in touch with you about an urgent matter, only to get no response to their emails or voicemail. Setting up an automatic reply is a good way to communicate with clients and prevent them from going elsewhere to solve their issue. We thought it timely to share a few tips on preparing your out of office email If you are closing or will be away during the holiday season

Mention the date you'll be out of the office from and the date you'll return to workState whether you'll be clearing emails while you're awayEnsure you've listed other colleagues who can be contacted in your absenceEnsure the main company phone number is included in the emailRemember to keep it brief. Your clients will be contacting you because they need something, so they require a quick answer or solution - make sure you point them in the right direction.

There are the quick and the dead.

Although the phrase was originally seen in The Bible and “the quick” meant the living, its more modern meaning is apt in business.

Act quickly, or your business will die.

An example is Geoff, who rang Michael the tiler. Would he be interested in quoting for a job? Michael was keen and asked for contact details to be emailed, which Geoff did. Then the phone rang.

“How about 3.30 this afternoon to look at the job?” Michael asked.

When Michael had finished inspecting the site, he asked about Geoff's requirements and told Geoff what he needed to do before he started, then he sat in his vehicle for a while writing notes.

The next morning the quote arrived. Michael worked out how much time he would probably need and the number of visits to do the job. The cost appeared to be fair. It was about $1400 and fully detailed, so Geoff accepted.

Why would Geoff bother getting another quote? He might get a slightly lower price and he might get a lousy job. Michael had already proved his efficiency.

Our message to you: Be very quick with your quotes and give the appearance of efficiency. Not everyone gets multiple quotes and even when they do, half the time they never hear again from the tradesman. Yours could be the only quote, but if it’s not, you might be the only one who follows up on it.

Money loves speed.

Do you have or use a quoting document within your accounting software? Talk to our team today as there is options within many accounting systems for this and it can avoid delays. We can assist you with the addition of your products and services and maximising the tool. The beauty is you can include notations and custom products too and ensure you track acceptance rates.

Chat with one of the team on 07 578 5416

Hear from Karen Greenhalgh Financial Adviser (AFA), Risk and Investment Specialist for Apex Waikato Limited as she talks us through some valuable tips for understanding your Kiwisaver investments and how to get the most out of your returns between now and retirement.

As long as you do not meet an untimely death then you will face retirement one day - guaranteed, for most people this is around 66.

What you do today significantly affects what your retirement will look like and the choices you have it means you need to start planning today. A little bit of planning now can have a huge impact at retirement. You need to plan for requiring an income for 25 to 30 years

If you are already in KiwiSaver.... Are you with the right provider? Are you in the right investment fund? Do you understand your investment?

If you are not in KiwiSaver...Can you afford to contribute to KiwiSaver? Understand the rules and advantages and how it can work for you

If you are close to 65 ...What are your options? Take the lump sum or leave it in?

JOIN US FOR DRINKS AND NIBBLES

When: Thursday, 24th November 2016 at 5.30pm

Where: Grace team Accounting

Due to demand RSVP is essential:

Email: brigette@graceteam.co.nz or call us on 07 578 5416

If you're tired of typing up endless reports, or your arms ache from too much typing, you might want to consider some voice recognition software. This software can be easily installed on your computer or mobile device. Essentially the software recognises your voice and puts it into text.

Dragon is a market leader in this software, but others can be found if you Google “voice recognition software”. Dragon costs start at $122 + GST for a home version, $244 for the office, $280 for a Mac and $840 for the super-duper professional version. There's even one for medical professionals, which allows them to dictate appointment and medical record notes directly into their electronic health records.

So what does it do? The biggest advantage is hands-free dictation into your computer or device. It allows you to automate phrases and terms common to your work (such as medical or mechanical terms), and add punctuation. But it can also edit documents and spreadsheets, and use commands to surf the web, open and close email and other programs, and more.

It's great for small business people who have to type most reports and other documents themselves.

Most software comes with a headset and microphone in the pack. It takes an hour or so of dictation for it to recognise your voice. Transcriptions are still not perfect, but it's pretty good at picking up your vocal nuances. It will also dictate a recording you might have of someone else's speech, or an interview, but it might not be as accurate because it's someone else's voice.

Dragon claims accuracy is 99%.

Check out the Dragon naturally speaking video here