Back to Blog

The importance of goodwill in your business

Goodwill in accounting refers to the intangible value that a company can hold, above and beyond the pure financial value of its assets. This covers areas like brand reputation, intellectual property, and both external and internal relationships.A business that can show its goodwill in the marketplace is actually worth more – both intangibly and financially. When a company is up for sale, the price a buyer is willing to pay will be greatly increased if the seller can demonstrate this quality of...

Our Risk Management Meeting

Risk is a part of business life, with every decision carrying some degree of risk; whether financial, legal, or reputational. With economic uncertainty comes increased risk and increased stress. The best protection for your business comes from identifying, assessing, and managing risk.We can help you do this. Proactivity trumps reactivity, so the more time spent planning and preparing, the more we can minimise the potential impact of risks materialising.Our Risk Management Meeting helps you make...

Requesting payment of overdue accounts in an economic slowdown

Cash has always been king but it’s even more important during times of economic slowdown. The slower the economy, the less cash is available in businesses, and the more likely it will be for some customers to be unable to pay.To protect your business and minimise the risk to your cashflow, follow these six steps to help ensure you get paid.1. You must continue to enforce your Terms of Trade, however, your approach must change.Do not adjust your expectation to receive what you are owed but trea...

Open banking: What will it mean for you?

New Zealanders will soon have better access to open banking – but what is open banking – and what impact will it have on the way you shop and do business?Open banking is a secure shared infrastructure for moving financial informationOpen banking is a financial technology that uses an open API to send information safely. It creates a shared digital infrastructure to transport information securely between registered parties.The open API lets you send a business or institution a chunk of financ...

What's the difference between financial accounting and management accounting?

You’re running a business, so you know the legal requirements around producing accounts and submitting tax returns. But do you truly know WHY you’ve engaged an accountant? And do you understand the value that a good accountant and business adviser can add to your company?As a business owner, managing director or CEO, there are three main areas of the accounting proposition that you’re probably most interested in:Compliance work – this is the bookkeeping, financial accounting and tax...

Understanding Your Breakeven Point

Understanding your business breakeven point is essential to know how much money you need to make to stay in business. It can therefore help you make well-informed financial decisions and practical business plans.The breakeven point is the income or sales needed to cover all costs. Any earnings above this point generate profit. So your breakeven point tells you the minimum sales required to continue operating a viable business.Understanding the breakeven point in conjunction with financial report...

5 ways to get in control of your business finances

Having proper control of your business finances is a big advantage. It helps you make well-informed business decisions and keeps your organisation profitable.With so many digital tools for managing your bookkeeping, accounting and management reporting, it's never been easier to manage, track and forecast your financial position.But what are the main tools you need? And how do you set up your financial systems, apps, processes and reporting to put yourself back in the finance driving seat?1. Brin...

Could the Government help you grow this year?

How is 2023 working out for you so far? Are you pumped? Or ready to batten down the hatches?Either way, it pays to be prepared and have your finances in order. Now’s a great time to think about financial planning and how to meet your goals for the year.If you are a small business in New Zealand, you may be eligible for Government support, in the form of grants, mentoring or low cost business advice.Here are some of the business support programmes that you may be eligible for. Talk to us about ...

Top reasons why you should take employee retention seriously

Some businesses treat employees like cogs in a machine: lose a few and there are always plenty more to replace them with.But every person you employ means an investment of time and money. You've got to find them, bring them on board, and get them up to speed as quickly as possible.After all this effort, it makes no sense to treat them as expendable. Instead, it's far better to take a strategic approach to keeping good people with the company.If you create a work environment where employees are v...

Managing your marketing budget to improve your ROI

Having a well-planned marketing budget can help you allocate resources to the right digital marketing channels and maximise the effectiveness of your campaigns.But where do you begin when it comes to managing and tracking your budgets?Businesses spend between 2% and 5% of their revenue on marketing to promote their products and services. That might not sound like much, but bear in mind that it’s vital to use your working capital wisely. So, whatever the size of your marketing spend, you want t...

We're here to help you get through

Our thoughts remain with everyone impacted by Cyclone Gabrielle.We understand that many clients are still dealing with the immediate aftermath while others are starting to look towards the future. We’d like to reassure our clients that we’re here to help - when you’re ready.Firstly, we’re offering a 45-minute complimentary meeting to help establish your immediate needs and what support we can provide. Please reach out if you’d like to meet with us online, face-to-face, or on the p...

Top tips for getting your financial year end work completed quicker

A new financial year is upon us and that means that it’s time to check the accuracy of your financial information in your accounting software for the past financial year, and to gather the documentation that we, as your accountant, will need to finalise your accounts and file your tax returns.The sooner we have this information the sooner we can complete your accounts and notify you of your tax position. It’s a good idea to have this information as soon as possible so that you can make infor...

How to apply for a business loan

Need some extra cash to take your business to the next level, but daunted by the loan process? You're not alone. There's a lot of paperwork and number-crunching involved.Before you get started, remember that banks wants your application to succeed as the interest you pay is a vital revenue stream. So it’s up to you to make their job easy by turning up with a good business case.Connect the dots for them. While banks are experts in money, they’re not necessarily knowledgeable about your area o...

Stressing about your work/life balance?

Trying to get perfect the work/life balance can be a cause of stress in itself. If you are feeling the strain of building your business and maintaining your life the good news is that stress and a productive existence can go hand in hand. Be mindful and you can find the balance that’s best for you.How much stress is good for you?The Yerkes-Dodson law shows that an individual's performance increases with stress (arousal) until cortisol levels get too high and then decreases again just as sharpl...

Which is more important? Cashflow or profit?

Cashflow and profit are two of the most important financial metrics for any business. But while they’re both related to the financial performance of a company, they measure different things.Knowing the difference – and how cash and profit contribute to your success story – is a vital skill if you want your business to have the best possible financial health.The difference between cashflow and profitUnderstanding the technicalities of financial reporting can be daunting as a new entrepreneu...

How to get employee remuneration right in NZ

For most people, earning money is a principal reason to go to work. It’s also one of the easiest ways for them to measure themselves and their achievements.Remuneration (how you pay and reward your people) can get left on the shelf, due to financial reasons or because constructing competitive pay packages can take a lot of effort. But there are risks to getting pay wrong, from potential legal issues to the damage it can do to employee motivation and retention, and the company’s reputation.Wh...

Getting your bookkeeping ready for a digital future

Keeping up-to-date records of your business transactions isn't the most glamorous part of being an entrepreneur, that’s for sure. But, in reality, having accurate and up-to-date bookkeeping is actually one of the core ways to keep your finances (and your business) under controlDigital bookkeeping is the future of your financeThe digital age has revolutionised the way many business owners carry out their bookkeeping. From digital accounting to real-time data, the modern bookkeeper is now equipp...

Cash flow forecasting puts you back in control

We all know that positive cashflow is the beating heart of any successful business. And with so many external pressures on your cash right now, it’s important to have one eye on the future.Cashflow forecasting is an increasingly important tool for any finance team. With a better view of your future cashflow position, you can make well-informed decisions about your finances.But how does cashflow forecasting work? And how does it help you maintain a positive cashflow position throughout the year...

Using data analytics to give your business a competitive advantage

Data analytics is rapidly changing the way businesses are operated. By making use of your financial and non-financial data, you can quickly start to gain a deeper insight into your operations, performance and financial management.Data-driven decisions are quickly becoming the norm, for even the smallest business. Data analytics allows helps you spot the patterns. Understand the data trends. And preview the upcoming threats and opportunities for improvement.Taking a deep dive into your dataData a...

Getting more from your procurement spending

Keeping the wheels of your business turning can be expensive. As part of your ongoing business cycle, you’ll need to buy the goods and services that keep you operational. This might be subscriptions to business software, raw materials for production or even accounting services.But if you’re going to get the maximum value from this procurement process, it’s important to be fully in control of what you’re buying and how you manage these costs.Managing your procurement in tough economic tim...

Driving your business with reporting

Do you wait for your Annual Accounts to arrive before you look at your numbers for the year?By the time your accounts have been finalised, the data is historical. Any changes you make, as a result of reading these, may not necessarily be helpful for your future.Would you drive your car forward by looking in your rear-view mirror? Talk about dangerous!If you want to take control of your business’s future, it’s essential that you set targets to achieve and regularly monitor your actual results...

B corp companies: business as a force for good

B Corp companies are a new type of business model that aims to make business a force for good. This means putting sustainability and a positive social impact at the heart of your mission.In a world where capitalism is increasingly being seen as the root cause of many of the world’s problems, the B Corp concept aims to revitalise the idea of what a business can do, and the good that can come from running an ethical, socially conscious and green enterprise.Does this sound like the kind of idea y...

The third cause of poor cashflow - Your stock turn

Carrying stock for too long means full shelves but an empty bank account. Similarly, if you’re a service provider and are taking a long time to bill for your services, then you’re carrying too much stock in the form of work in progress. Consider that work in progress a form of virtual stock.You can calculate your ‘stock turn’ by taking your cost of sales from your annual financial statements and dividing it by your average inventory (or work in process). Most clients need some help from ...

5 questions to ask when you are buying a business

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

Why your accountant is the mentor you didn’t know you needed

A business mentor can provide guidance and support, so you make the right decisions and stay focused on the end goal as a business owner. They can also help you move forward in your career by providing advice and feedback on what steps to take to reach the pinnacle of success.But have you ever thought of your accountant as a mentor?Why your accountant is the ideal mentorHaving someone who understands your business journey is incredibly important. You might see an accountant as someone who files ...