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Walsh & Associates are not your every day Chartered Accountants. We are business professional with real management experience. That means we don't just know accounting - we know all aspects of business and what it takes to become successful. How can your business benefit from smart accounting?
Contact us today - first consultation is FREE!!
VAUGHAN WALSH
P 06 833 6295 | 027 450 4475
www.walshassociates.co.nz
BUSINESS MAKEOVER CHALLENGE 2009
TROUBLE FREE TAXATIONIt is very important that all profits derived from a business activity are treated in such a way so as to charge against income the maximum allowable deductions. We do this by looking at all the issues under the following: Stand on the corner of Bridge & Waghorne Streets and look ...
Open Wed to Sun
3 Waghorne Street, Ahuriri, Napier
P 06 834 0835
CALCULATORS & KEY TAX DATES
Need a calculator or want to know key tax dates? Visit our website www.walshassociates.co.nz or click on links below.
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In these difficult times, it is important to keep a good flow of cash coming into the business. How do you do this? Here are some suggestions:
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Give credit only when necessary.
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Get your debtors to use their credit of eftpos cards rather than monthly accounts.
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Have a rigorous system of follow-up for slow payers. Give it top priority. Get commitments and confront
customers who do not honour them.
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Be prepared to turn away bad business. Bad payers take so much time they can cost your firm money in
wasted staff effort. They can also cost in lost opportunities.
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Insist on deposits, unless you know your customer well enough and you are confident it is OK to give credit.
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Include regular progress payments in your contract.
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Check out a new customer before giving credit.
- Negotiate time, in advance or purchasing ie "Can I have three months to pay this?"
- Pay your bills on time
- If cash flow gets very difficult and you have been a good payer, you may not have too much trouble negotiating extra time to pay your bills. Those who are upfront about their difficulties can usually be trusted.
- Buy only when you need to.
- Be realistic. If you are having cash problems, one solution is to take less out of the business for yourself.
- Prepare a personal budget, ensure it is accurate and stick to it.
- Reduce your investments. Can you still afford to keep a cottage in Taupo or Tekepo?
- The tax department is worst of all possible banks. It is enormously expensive to use IRD's money.
- If tax problems loom, deal with them early. There are ways and means.
- If you get behind, you can save money by entering into an arrangement with the IRD.
- Never default on an IRD agreement. There will be repercussions if you do. The department gives you just one chance. If you get into further trouble, we might be able to renegotiate the arrangement for you.
Some client's often wonder if they should use surplus cash to repay a bank loan. The alternative is often to invest the money back with the bank. A client recently sold on of his rental properties and had $100,000 left over. The bank was paying him 4% and he had two other properties with mortgages on each of these properties and was paying 8.5% interest. Generally, you are better off to use the savings to reduce your mortgage. The interest income is taxable and the interest expense if tax deductible so, from a tax point of view, you have a neutral situation. It is trust the rental property may well make a profit as a result of repaying the debt, however, if you do the math you will find you are better off repaying a debt, even through your taxable income rises.
Contact us if you need assistance with any of the above.
Advertising in newspapers is a blunt instrument. One-off advertising is usually a waste of money. If you are not a regular advertiser, avoid the special deals offered by newspapers. Plan your marketing. There are other ways to promote your business other than advertising.
In the fickle world of advertising it is important for your customer to remember you. One way to do that is to use a clever slogan - but make sure it is not so clever they remember the slogan and not who it is promoting. What do you recall about Tui beer? "Yeah right!" Maybe not even be too fussy about correct grammar or spelling. In fact, a deliberate error can work nicely in the memory stakes.
Perceived value: People buy based on their perception. Customers of "The Warehouse" are told "everyone gets a bargain". Whether this is true or not is not the issue. The perception is the reality for the purchaser.
We are pleased to introduce the winners of the HB Business Makeover Challenge 2009. iFarm is the leading source of livestock market information to NZ farmers & agribusiness. iFarm produce a unique range of publications & market information services to suit all market information needs. Access the latest livestock prices, market commentary, news, analysis & forecasting with:
Market Insight - Learn More>
Livestock Eye Saleyard Reports - Learn More>
Market Outlook - Learn More>
Specialised Market Reports & Analysis - Learn More>
iFarm is an innovative and growing company that is driven to provide NZ farmers with the best possible market information services they need to make fully informed buying and selling decisions. Contact us today.
Engineering tailor-made solutions for customers is a trademark activity of the business and many successful projects have been undertaken for a wide range of industries, including; meat, dairy, transport, horticulture and aviation. The Metalform portfolio is as diverse as the ideas created by an innovative design team. A team of 40 staff combine their skills to deliver a high standard of in-house design and development, production engineering
and sheetmetal fabrication and CNC equipment. Metalform uses state-of-the-art 3D modelling design software and CNC production machinery to provide customers with products and solutions to support and grow their businesses. Contact us today.
P +64 6 374 7043 | Freephone: 0508 747040 | F +64 6 374 9316 | enquiries@metalform.co.nz
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