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						                        <title>Navigating New Zealand&#8217;s OECD Pillar Two rules</title>
						                        <link>
						                        https://williambuck.com/nz/navigating-new-zealands-oecd-pillar-two-rules						                        </link>
						                        <pubDate>Wed, 17 Sep 2025 23:41:42 +0000</pubDate>
						                        <dc:creator>Charles Tang</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=38890						                        </guid>
						                        <description><![CDATA[The global tax landscape is undergoing a significant transformation. Leading this change are the OECD&#8217;s Pillar 2 Global Anti-Base Erosion (GloBE) rules, which introduce a global minimum corporate tax rate of 15%. New Zealand has now adopted these rules into its domestic law, with the changes taking effect for income years beginning on or after [&#8230;]]]></description>
						                        <content:encoded><![CDATA[The global tax landscape is undergoing a significant transformation. Leading this change are the OECD's Pillar 2 Global Anti-Base Erosion (GloBE) rules, which introduce a global minimum corporate tax rate of 15%. New Zealand has now adopted these rules into its domestic law, with the changes taking effect for income years beginning on or after 1 January 2025.

The primary goal of the GloBE rules is to prevent the practice of base erosion and profit shifting (BEPS), where multinational companies shift profits to low-tax jurisdictions. By enforcing a minimum tax rate, the rules aim to ensure large multinationals pay a fair amount of tax in the countries where they operate.  For Australian businesses with operations in New Zealand, understanding these changes is critical to ensure compliance and manage potential tax liabilities.

Who do these rules apply to?

The GloBE rules specifically target large multinational enterprise (MNE) groups that operate across multiple jurisdictions, including those with a corporate presence in New Zealand.  The rules would apply to MNE groups that have recorded global annual revenues of €750 million or more (approximately NZD 1.3 billion) in at least two of the four preceding income years.

Certain entities are generally not subject to these rules, such as government bodies and agencies or specific investment and pension funds. If your MNE group meets the revenue threshold and has a constituent entity in New Zealand, you will need to prepare for these new obligations.

What do affected businesses need to do?

Compliance with the GloBE rules is a multi-step process that requires careful assessment and preparation.  Key actions for affected businesses in New Zealand include:

Registration: The first step is to comply with the necessary registration requirements in New Zealand.

Assess Safe Harbours: Businesses should assess if they meet the thresholds for any available safe harbours, which may allow for simplified calculations.

Calculate the Effective Tax Rate (ETR): A core requirement is to determine the ETR for the MNE group in each jurisdiction in which it operates. If the ETR is below the 15% minimum, a ‘top-up tax’ may be payable.

Prepare Information Returns: Affected MNEs must assess if a GloBE Information Return (GIR) needs to be filed with Inland Revenue. A New Zealand-headquartered MNE will be required to file a GIR with Inland Revenue. A foreign-headquartered MNE may need to file a GIR in New Zealand if its parent jurisdiction does not have an information exchange agreement with New Zealand.

File Top-up Tax Returns: Businesses must prepare and file a Multinational Top-up Tax Return (MTTR) for each New Zealand constituent entity to determine if any top-up tax is payable.

Review Financial Reporting: It is crucial to assess the impact these rules will have on the group’s financial reporting disclosures and tax effect accounting.

Key deadlines are approaching

The deadlines for compliance are strict and depend on the MNE's balance date. For the first fiscal year, the GIR must be filed within 18 months of the year-end and the MTTR within 20 months. For subsequent years, these timeframes shorten to 15 and 16 months, respectively.

Filing and notification deadlines based on balance date (for illustrative purposes)



Balance Date
First Fiscal Year
Registration Due (6 months)
First GIR Due (18 months)
First MTTR Due (20 months)


31 December
1 Jan – 31 Dec 2025
30 June 2026
30 June 2027
31 August 2027


31 March
1 Apr 2025 – 31 Mar 2026
30 September 2026
30 September 2027
30 November 2027


30 June
1 Jul 2025 – 30 Jun 2026
31 December 2026
31 December 2027
29 February 2028



Failure to comply can result in significant penalties, including a NZD 100,000 penalty for non−compliance and a NZD500 penalty for a late or incomplete MTTR filing.

How to prepare

The first step is to confirm whether your MNE group meets the €750 million revenue threshold. If so, you will need to prepare for the annual reporting obligations by implementing policies and procedures to collect the necessary data for the GIR and MTTR filings.

Given the complexity of the GloBE rules, especially for businesses with intricate group structures or operations in low-tax jurisdictions, seeking specialist advice is essential.

The introduction of Pillar 2 rules in New Zealand marks a fundamental shift in international tax. Proactive preparation will be key to navigating this new environment successfully. If you require assistance in understanding your obligations under these new rules, please reach out to your William Buck advisor [1].

&#160;

[1] https://williambuck.com/nz/contact/]]></content:encoded>
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						                        <title>Investment boost a step in the right direction but SMEs need more support</title>
						                        <link>
						                        https://williambuck.com/nz/investment-boost-a-step-in-the-right-direction-but-smes-need-more-support						                        </link>
						                        <pubDate>Mon, 02 Jun 2025 04:34:43 +0000</pubDate>
						                        <dc:creator>William Buck</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=38289						                        </guid>
						                        <description><![CDATA[William Buck welcomes the government&#8217;s &#8216;Investment Boost&#8217; initiative, announced within the 2025 Budget, as a constructive measure for encouraging business investment. However, we believe the Budget could have offered a wider range of support to assist New Zealand&#8217;s Small to Medium Enterprises (SMEs) more comprehensively. The new &#8216;Investment Boost&#8217; permits businesses a 20% upfront deduction [&#8230;]]]></description>
						                        <content:encoded><![CDATA[William Buck welcomes the government's 'Investment Boost' initiative, announced within the 2025 Budget, as a constructive measure for encouraging business investment. However, we believe the Budget could have offered a wider range of support to assist New Zealand's Small to Medium Enterprises (SMEs) more comprehensively.

The new 'Investment Boost' permits businesses a 20% upfront deduction for new eligible assets, supplementing normal depreciation.

Jayesh Kumar, Head of Tax at William Buck NZ, said that while this initiative and other budget measures would help small businesses, more was needed.

“'The 'Investment Boost' is a positive development. It will offer tangible support for New Zealand businesses, particularly SMEs, looking to invest in their capital base and enhance productivity, which is certainly valuable,” said Mr Kumar.

“While this specific initiative is certainly beneficial, we believe the Budget overlooked opportunities for more impactful direct assistance to SMEs and meaningful regulatory simplification. There was scope, we believe, to do more to ease the day-to-day pressures on these businesses and foster greater resilience across the small and medium-sized business sector.”

Along with the ‘Investment Boost’ initiative, SMEs did benefit from other measures in the budget, such as the $150 million extension for the Apprenticeship Boost scheme, the new $5,000 digital adoption grants for qualifying businesses, access to a $200 million Regional Development Fund for innovation projects and $50 million for a new programme to help small businesses improve energy efficiency.

Mr Kumar emphasised that while they offer valuable short-term assistance, the creation of a truly conducive and sustainable environment for long-term business growth requires ongoing and more fundamental policy attention.

“For SMEs to truly flourish and drive sustainable national growth, they require a consistently supportive environment that looks beyond individual incentives to address their broader operational needs and growth aspirations. We hope future fiscal measures will continue to build towards creating these optimal conditions for our vital SME community,' added Mr Kumar.
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						                        <title>William Buck strengthens Auckland Audit team with appointment of Jigs Bellosillo as Partner</title>
						                        <link>
						                        https://williambuck.com/nz/william-buck-strengthens-auckland-audit-team-with-appointment-of-jigs-bellosillo-as-partner						                        </link>
						                        <pubDate>Wed, 30 Apr 2025 00:44:48 +0000</pubDate>
						                        <dc:creator>William Buck</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=38118						                        </guid>
						                        <description><![CDATA[]]></description>
						                        <content:encoded><![CDATA[[vc_row][vc_column][vc_column_text]William Buck is pleased to announce the appointment of Jigs Bellosillo as Audit Partner in its Auckland office, effective 1 May 2025. With over 18 years of comprehensive audit experience, including a significant tenure at Big Four firms, Jigs brings a wealth of expertise and a proven track record to the firm.

Jigs' extensive experience spans a diverse range of industries, equipping her with the skills to provide strategic and insightful audit services to William Buck’s clients. Her appointment underscores William Buck’s commitment to strengthening its audit capabilities and delivering exceptional value to businesses in the Auckland region.

Darren Wright, Managing Partner, William Buck New Zealand, said Jigs’ experience would allow William Buck to continue to meet the growing demand for its services.

“We are thrilled to welcome Jigs to our Auckland team. Her deep understanding of audit practices, coupled with her extensive experience at leading firms, will be invaluable as we continue to grow and enhance our
service offerings,” said Darren.

Jigs’ appointment reflects our ongoing commitment to attracting top talent and providing our clients with the highest quality of expertise.”

Jigs Bellosillo expressed her enthusiasm about joining the William Buck team in Auckland.

“I am excited to join William Buck and contribute to the firm’s continued success in Auckland. I am particularly drawn to William Buck’s client-centric approach and its commitment to fostering a collaborative and supportive environment. I look forward to working with the talented team here and leveraging my experience to deliver exceptional audit services to our clients,” said Jigs.

Jigs' arrival further reinforces William Buck’s position as a leading provider of audit, accounting, and advisory services in New Zealand.[/vc_column_text][/vc_column][/vc_row]
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						                        <title>Practical applications of AI for business owners</title>
						                        <link>
						                        https://williambuck.com/nz/practical-applications-of-ai-for-business-owners						                        </link>
						                        <pubDate>Wed, 12 Mar 2025 23:00:33 +0000</pubDate>
						                        <dc:creator>Chris Leahy</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=37844						                        </guid>
						                        <description><![CDATA[AI isn’t just a tool for big corporations—it’s rapidly transforming how businesses of all sizes operate. Those who embrace AI are gaining efficiency, reducing costs and making smarter decisions. Those who don’t? They’re already falling behind. This article dives into the practical applications of artificial intelligence for businesses, exploring how AI-driven platforms are automating tasks [&#8230;]]]></description>
						                        <content:encoded><![CDATA[AI isn’t just a tool for big corporations—it’s rapidly transforming how businesses of all sizes operate. Those who embrace AI are gaining efficiency, reducing costs and making smarter decisions. Those who don’t? They’re already falling behind.

This article dives into the practical applications of artificial intelligence for businesses, exploring how AI-driven platforms are automating tasks like bookkeeping and invoice processing, freeing up business owners’ time for strategic decision-making. But it's not just about saving time; AI is also about gaining a competitive edge through advanced tools that can provide real-time cash flow forecasting and dynamic pricing insights, helping business owners make data-driven decisions.
AI in Accounting and Finance: a must have; not a luxury
AI-powered tools are revolutionising financial management, helping businesses streamline processes, reduce errors and make more informed decisions.

 	Automated bookkeeping and reconciliation
AI-driven platforms like Xero, MYOB, QuickBooks and Dext eliminate tedious data entry by automatically categorising transactions and reconciling accounts, as well as drafting AP/AR entries and attaching relevant paperwork from uploads and email inputs. This not only saves time but also significantly reduces human errors.
 	Real time cashflow forecasting
Tools like Fathom, Float and Futrli analyse spending patterns, upcoming payments and seasonal fluctuations to provide accurate cash flow predictions—helping businesses avoid cash shortages before they happen.
 	AI-Driven accounts payable and receivable
Software such as Bill.com and Ramp automates invoice processing, payment approvals and collections. Businesses can cut down the time spent on chasing payments while improving cash flow management.
 	Dynamic pricing and financial insights
AI-driven analytics tools like Pricefx and ProfitWell help businesses set optimal pricing by analysing market trends, competitor pricing and customer behaviour. These insights allow for smarter pricing strategies that maximise revenue without losing competitiveness.
 	Fraud detection and risk analysis
AI-powered fraud detection solutions proactively analyse transaction patterns and flag potential fraud before it happens. Businesses relying on manual checks are at a severe disadvantage when it comes to identifying financial risks in real time.

AI beyond Finance: transforming every aspect of business
AI isn’t just about finance—it’s reshaping sales, marketing, customer service and operations. Here’s how businesses are using AI outside of finance:

 	AI-Powered customer support
Chatbots and virtual assistants like Intercom, Drift, and ChatGPT-powered support tools handle customer inquiries instantly, reducing response times and improving customer satisfaction without overloading staff.
 	Sales and lead generation
AI-driven platforms such as HubSpot and Apollo analyse customer behaviour, automate outreach and refine marketing strategies based on real-time data, helping businesses close more deals with less effort.
 	Predictive maintenance for equipment
Businesses in logistics, construction, and manufacturing are using AI-powered predictive maintenance tools like Uptake and Avathon to monitor machinery health, preventing costly breakdowns before they happen.
 	AI-Optimised inventory management
Retailers and wholesalers use AI solutions like Luminate, Unleashed and Cin7 Core to predict demand, optimise stock levels and automate reordering—preventing stockouts and excess inventory.
 	Automated content creation and marketing
AI-powered tools like Jasper and Copy.ai help businesses generate marketing copy, social media content and ad campaigns in minutes, allowing teams to scale their marketing efforts with minimal manual input.

The bottom line: AI isn’t optional—it’s essential
AI is no longer a ‘nice-to-have’ for businesses—it’s a key to staying competitive. Companies that integrate AI into their operations gain efficiency, cut costs and make smarter decisions while those that hesitate risk inefficiency, lost revenue and falling behind more agile competitors.

If you’d like to discuss how artificial intelligence and data driven decision making can help your business, contact your local William Buck Advisor [1]

[1] https://williambuck.com/our-people/]]></content:encoded>
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						                        <title>Navigating Not-for-Profit financial reporting changes</title>
						                        <link>
						                        https://williambuck.com/nz/navigating-not-for-profit-financial-reporting-changes						                        </link>
						                        <pubDate>Wed, 12 Mar 2025 04:02:26 +0000</pubDate>
						                        <dc:creator>Richard Dey</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=37841						                        </guid>
						                        <description><![CDATA[The New Zealand not-for-profit (NFP) sector is facing a wave of changes to its financial reporting requirements. These changes, which include a new threshold for Tier 2 and Tier 3 reporting, updated requirements for incorporated societies under the Incorporated Societies Act 2022, and a revised Tier 3 reporting standard, will impact a wide range of [&#8230;]]]></description>
						                        <content:encoded><![CDATA[The New Zealand not-for-profit (NFP) sector is facing a wave of changes to its financial reporting requirements. These changes, which include a new threshold for Tier 2 and Tier 3 reporting, updated requirements for incorporated societies under the Incorporated Societies Act 2022, and a revised Tier 3 reporting standard, will impact a wide range of organisations.
Who is affected?
These changes affect several groups:

 	Current Tier 2 NFP entities with expenses less than $5 million that do not have public accountability.
 	Incorporated societies that are not registered charities and have not previously adopted NFP standards.
 	All Tier 3 NFP entities.

These changes are mandatory for most entities with financial year-ends on or after 31 March 2025.
Incorporated Societies
The final deadline for re-registering under the new Incorporated Societies Act 2022 is 5 April 2026. Before then, incorporated societies will need to ensure their new constitution complies with the new Act and is approved by members at a general meeting. We recommend that you register as soon as possible to avoid any complications.

For the first reporting period after the new constitution is registered, a society will need to prepare its annual report under the XRB’s standards. E.g. if your new constitution was registered in February 2025 and your financial year end is March 2025, you will need to follow the new Tier 3 reporting standard when preparing your 2025 annual report.
Key changes for Tier 3 entities
Whether an existing or new Tier 3 entity, the revised Tier 3 reporting standard introduces several key changes:

 	Service performance reporting: There is new terminology to use in your service performance report and better guidance on how to select your ‘significant activities and achievements’.
 	Asset valuation: Tier 3 entities can now revalue property, plant and equipment based on independent valuations or rateable values, and publicly traded financial investments can be measured at their current market value.
 	Opting up: The opting-up provisions now allow Tier 3 entities to recognise certain transactions directly in accumulated funds rather than in comprehensive revenue and expenses when opting up to Tier 2 standards. This simplifies the process and reduces the reporting burden for entities choosing to opt up.
 	Accumulated funds: The new disclosure requirements for accumulated funds enhance transparency and accountability. Entities must now provide detailed information about how they manage their reserves, including the purpose, plans and expected application of each reserve. This helps stakeholders understand how the entity is using its resources to achieve its objectives.
 	Revenue and expenses categories: The revised categories for revenue and expenses provide greater clarity and make it easier to aggregate and report financial information. The new categories are more clearly defined, and entities can still relabel them using terminology more appropriate for their specific circumstances. This flexibility allows for customised reporting while maintaining consistency and comparability across entities.
 	Revenue recognition: The new model for revenue recognition replaces the previous ‘use or return’ conditions with a focus on ‘documented expectations’ for significant grants, donations and bequests. This change aligns Tier 3 reporting with Tier 2, promoting consistency and accuracy in revenue recognition.

Next steps
We recommend that Tier 3 organisations should take the following steps to prepare for these changes:

 	Understand the specific impact of the changes on their organisation. In particular, all entities will be affected by the changes in service performance reporting and the new revenue and expense categories
 	Work with their accounting provider to ensure compliance. Make contact before the end of your financial year so that you are well prepared.

Relevant resources

 	Incorporated Societies website: https://is-register.companiesoffice.govt.nz/ [1]
 	Getting ready for re-registering: https://is-register.companiesoffice.govt.nz/assets/IS-Guide-to-reregistering.pdf
 	Financial reporting standards for small societies: https://is-register.companiesoffice.govt.nz/help-centre/financial-reporting-standards-for-small-societies/
 	Charities services: https://www.charities.govt.nz/ [2]
 	XRB website: https://www.xrb.govt.nz/standards/accounting-standards/ [3]
 	Tier 3 (NFP) standard: https://www.xrb.govt.nz/standards/accounting-standards/for-profit-standards/tier-3-not-for-profit-standard/ (for detailed information on the new reporting requirements)

By proactively addressing these changes and utilising the available resources, NFP organisations can ensure they meet their reporting obligations and maintain transparency and accountability in their financial reporting.

If you’d like help in navigating these NFP reporting changes, contact your local William Buck Advisor [4] today.

[1] https://is-register.companiesoffice.govt.nz/
[2] https://www.charities.govt.nz/
[3] https://www.xrb.govt.nz/standards/accounting-standards/
[4] https://williambuck.com/our-people/]]></content:encoded>
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						                        <title>End-of-Financial-Year considerations for taxpayers in New Zealand</title>
						                        <link>
						                        https://williambuck.com/nz/end-of-financial-year-considerations-for-taxpayers-in-new-zealand						                        </link>
						                        <pubDate>Fri, 28 Feb 2025 03:47:45 +0000</pubDate>
						                        <dc:creator>William Buck</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=37794						                        </guid>
						                        <description><![CDATA[As the financial year in New Zealand ends on 31 March, individuals and businesses must take action now to ensure they are financially prepared. With smart tax planning, you can maximise deductions, avoid penalties and start the new financial year on a strong footing. As 31 March approaches, are you ready to wrap up the [&#8230;]]]></description>
						                        <content:encoded><![CDATA[As the financial year in New Zealand ends on 31 March, individuals and businesses must take action now to ensure they are financially prepared. With smart tax planning [1], you can maximise deductions, avoid penalties and start the new financial year on a strong footing.

As 31 March approaches, are you ready to wrap up the financial year with confidence — or risk penalties and missed savings?

Here are the top considerations to keep in mind before the end-of-financial year (EOFY) deadline.
1. Income and tax obligations: plan smart, pay less
Provisional tax payments

Missing your provisional tax deadline could result in unnecessary penalties and interest. Check your IRD payment schedules now — your final payment needs to be made by 7 May to avoid penalties and keep your business tax strategies [2] on track.

Don’t leave bad debts hanging

If you’ve got unpaid invoices that aren’t going to be recovered, write them off before 31 March. Claiming a reduction by finalising bad debts helps maintain accurate records and lower your tax bill.
2. Maximise your deductions and expenses
Prepaid expenses = more savings

Depending on IRD thresholds, expenses like rent, insurance, and subscriptions could be deductible expenses you may be able to claim in advance. Look ahead and consider early payments to maximise tax benefits. [3]
For example, under IRD rules, prepaying $2,000 in business insurance before 31 March could qualify as a deduction this year.

Review last year's fixed asset register

Review your fixed assets to ensure they are all still in use and note any that need removing. Removing obsolete or sold assets ensures your depreciation claims stay accurate and your balance sheet reflects current operations to ensure you do not leave any surprises during future auditing activities.

Stock valuation: reduce taxable income

A proper stocktake can reveal slow-moving, obsolete or damaged inventory that should be written off. Lower stock values can reduce taxable income, so don’t overlook this simple adjustment.

Employee bonuses and benefits

If you’re rewarding your team with bonuses or incentives, make sure these are paid within 63 days of the balance date — for most taxpayers, payments need to be made by 31 March to qualify for a tax deduction this year. Bonuses should also be settled by 2 June to ensure they count for this tax year.
3. GST and PAYE compliance: stay on the right side of the IRD
GST adjustments matter

Ensure proper adjustments are made to offset the private use of business assets, bad debt write-offs and other necessary transactions before filing your final GST return. These adjustments are vital to tax compliance and should not be rushed or overlooked at EOFY.

Payroll and KiwiSaver: no room for mistakes

Double-check that all PAYE and KiwiSaver obligations are met. Late payments can lead to unnecessary penalties, so ensure all payroll deductions are up to date to stay compliant.
4. Trusts and Companies: take action before 31 March
Trust distributions

With recent trust tax rate changes, trustees should review and finalise distributions before 31 March to avoid unnecessary tax burdens and minimise your exposure to the new trust tax rate.

Dividend decisions

If you own a company, should you declare dividends now or later? Reviewing dividend options can help optimise shareholder tax efficiency. Now is the time to evaluate if declaring a dividend will benefit shareholders before the new financial year.
5. Get organised and file with confidence
Sort your financial records

A cluttered tax season is a stressful tax season. Maintaining accurate records by ensuring all invoices, receipts, and records are in place helps reduce risk in case of an IRD audit and supports faster, stress-free filing.

Seek professional advice

A tax expert can help you uncover savings and ensure full compliance with IRD regulations. If you’re unsure about anything, now’s the time to get expert guidance. Tax planning shouldn’t be left to guesswork. Work with a financial advisor to ensure you are prepared for the End of financial year

EOFY is more than just a deadline, it’s a golden opportunity to review your financial health, cut down your tax bill, and prepare for a prosperous new financial year. Take proactive steps now, and you’ll thank yourself later!

Contact your local William Buck advisor [4] today to optimise your end-of-financial-year position.

[1] https://williambuck.com/nz/services/tax-services/
[2] https://williambuck.com/nz/services/tax-services/tax-issues-for-private-businesses-and-individuals/
[3] https://williambuck.com/nz/news/business/general/preparing-for-tax-time-the-dos-and-donts-that-will-maximise-your-tax-position/
[4] https://williambuck.com/nz/our-people/]]></content:encoded>
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						                        <title>Why data-driven decision making is critical for business success</title>
						                        <link>
						                        https://williambuck.com/nz/why-data-driven-decision-making-is-critical-for-business-success						                        </link>
						                        <pubDate>Thu, 27 Feb 2025 05:35:53 +0000</pubDate>
						                        <dc:creator>Chris Leahy</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=37787						                        </guid>
						                        <description><![CDATA[In today’s fast-paced business environment, success hinges on your ability to make informed decisions quickly, and efficiently. Businesses that rely on ‘gut instinct’ or outdated information risk making costly mistakes, while those that leverage accurate and timely data can adapt, grow and gain a competitive edge. But what does it mean to be truly data-driven? [&#8230;]]]></description>
						                        <content:encoded><![CDATA[In today’s fast-paced business environment, success hinges on your ability to make informed decisions quickly, and efficiently. Businesses that rely on ‘gut instinct’ or outdated information risk making costly mistakes, while those that leverage accurate and timely data can adapt, grow and gain a competitive edge.

But what does it mean to be truly data-driven? And how can businesses ensure they are collecting, interpreting and applying data effectively?
The power of data-driven decision making
Data-driven decision-making (DDDM) involves collecting and analysing relevant data to guide strategic, financial and operational choices. When executed correctly, it provides businesses with a clear picture of their current position and future trajectory, helping you:

 	Identify growth opportunities
 	Optimise cashflow and financial planning
 	Improve operational efficiency
 	Mitigate risks and adapt to market changes
 	Enhance customer experiences and engagement, and
 	Understand employee engagement.

A business that embraces data-driven strategies is better positioned to respond proactively rather than reactively to challenges. However, to maximise the benefits, businesses must ensure that the data they use is accurate, timely and relevant.
How to collect reliable business data
To make intelligent business decisions, you need access to the right data. The key is to collect data from multiple reliable sources and ensure it is both comprehensive and up-to-date.

1. Financial reporting systems

A robust accounting system allows businesses to track revenue, expenses and profitability in real time. Most good systems allow automation of bank feeds, invoice creation and reconciliation, so you should use it where available. Using the software the way it is supposed to be used also minimises errors and improves the accuracy of reports.

2. Customer Relationship Management (CRM) software

A CRM system records customer interactions, sales trends and buying behaviours, helping businesses tailor marketing strategies and improve customer retention.

3. Operational data and Key Performance Indicators (KPIs)

Tracking operational data—such as production efficiency, inventory levels and workforce productivity—ensures businesses can optimise their processes and reduce inefficiencies.

4. Market and industry analysis

Staying informed about industry trends, competitor performance and economic conditions allows businesses to benchmark their position and adjust strategies accordingly.

5. Garbage in, garbage out

The quality of business decisions is only as good as the data being used. If inaccurate, incomplete or poorly structured data enters your systems, the insights drawn from it will be flawed. Businesses must implement strict data governance protocols to ensure that:

 	Data is consistently recorded with clear formatting and categorisation
 	Input errors are minimised through validation rules and automation
 	Only authorised personnel handle and modify key financial and operational data, and
 	Duplicate or outdated information is regularly cleaned and removed.

By establishing these controls, businesses can avoid misleading reports that result in poor decision-making, ensuring they extract meaningful and actionable insights from their data.
Interpreting data for better decision making
Collecting data is only half the equation. Businesses must also know how to interpret and apply this information effectively.

1. Look for patterns and trends

Historical data can reveal trends in customer demand, seasonal fluctuations and market shifts. Identifying these patterns helps businesses forecast future cash and inventory requirements, expected performance and plan accordingly.

2. Use visualisation tools

Dashboards, graphs and charts make complex data easier to understand. Tools such as Power BI can be used with Access Point Interfaces (API’s) to collect data from multiple sources and present them in consolidated reports. Most accounting platforms have in-built or add-on reporting structures to create similar reports to help businesses analyse financial and operational data at a glance.

3. Apply scenario planning: What if?

By modelling different business scenarios—such as revenue drops, increased expenses or supply chain disruptions—businesses can prepare contingency plans and reduce risk exposure. ‘What if’ scenarios can also be used to assess business cases for expansion, acquisitions or other investment decisions.
The Importance of 3-Way cashflow Forecasting
One of the most critical aspects of data-driven decision-making is 3-way cashflow forecasting, which integrates three key financial statements:

 	Profit and Loss statement – Shows business revenue, expenses and net profit.
 	Balance sheet – Provides a snapshot of assets, liabilities and equity.
 	Cashflow statement – Tracks the movement of cash in and out of the business.

Unlike traditional cashflow forecasting, which only considers cash inflows and outflows, a 3-way forecast provides a holistic view of a business’s financial health. It allows business owners to:

 	Predict future cashflow issues before they arise
 	Ensure sufficient working capital for growth
 	Identify opportunities for reinvestment or debt reduction, and
 	Gain a clearer picture of financial sustainability.

For businesses looking to scale or secure financing, a well-prepared 3-way forecast is essential in demonstrating financial viability to investors and lenders.
Applying data insights to business strategy
Once businesses have collected and analysed their data, the next step is turning insights into action.

1. Align data with business goals

Whether the goal is increasing profitability, reducing costs or expanding into new markets, decisions should be backed by concrete data rather than assumptions.

2. Implement real-time reporting

Regularly reviewing financial and operational data ensures business leaders can make adjustments promptly rather than waiting for month-end reports. There should be a strict month-end reporting timeline that produces financial statements and updates to all forecasts and budgets.

3. Foster a data driven culture

Encouraging employees at all levels to utilise data in their decision-making processes ensures consistency and improves accountability.
Use AI and generative tools to enhance decision making
Artificial intelligence (AI) and generative tools are transforming how businesses interpret and apply data. These technologies provide real-time insights, automation and predictive analytics to enhance decision-making. Businesses can leverage AI in many ways, a few of which are:

 	Predictive analytics – AI models can analyse historical data to predict future sales trends, customer behaviour and financial risks.
 	Automated reporting – AI-driven tools can generate financial reports, detect anomalies and highlight key trends without manual intervention.
 	Conversational AI and chatbots – Businesses can use AI-powered assistants to quickly extract insights from large datasets, making data more accessible.
 	Scenario analysis – AI models can simulate different business scenarios to assess potential risks and opportunities.

By integrating AI into data analysis, businesses can streamline decision-making, improve accuracy and free up time for strategic planning. However, it is important to be careful what you upload into AI as, in many cases, that data will then be publicly available.

In a world where uncertainty is a constant, businesses that embrace accurate, timely data are better positioned to succeed. By implementing effective data collection, interpretation and forecasting methods, business leaders can make more informed decisions, mitigate risks and drive sustainable growth.

For businesses looking to refine their approach to financial planning and cashflow forecasting, engaging with an experienced advisory team can provide the expertise needed to unlock long-term success.

If you’d like to discuss how William Buck can help your business become more data-driven, contact our team today [1].

&#160;

[1] https://williambuck.com/our-people/]]></content:encoded>
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						                        <title>Navigating the impact of the current economy and planning to thrive</title>
						                        <link>
						                        https://williambuck.com/nz/navigating-the-impact-of-the-current-economy-and-planning-to-thrive						                        </link>
						                        <pubDate>Thu, 20 Feb 2025 00:26:38 +0000</pubDate>
						                        <dc:creator>Scott Harrington</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=37680						                        </guid>
						                        <description><![CDATA[In today&#8217;s economic landscape, private businesses face a myriad of challenges that can significantly impact their operations and profitability. The current economic conditions, characterised by rising costs and high interest rates, necessitate strategic planning to maintain your business’s financial health and competitive advantage. This article explores the key economic factors affecting private businesses and offers [&#8230;]]]></description>
						                        <content:encoded><![CDATA[In today's economic landscape, private businesses face a myriad of challenges that can significantly impact their operations and profitability. The current economic conditions, characterised by rising costs and high interest rates, necessitate strategic planning to maintain your business’s financial health and competitive advantage. This article explores the key economic factors affecting private businesses and offers some ideas as to how you can manage costs and drive profitability.

Some of the impacts on businesses from the current conditions are putting upward pressure on your cost structures. Some of the key areas of pressure include:

Rising inflation – Inflation remains a significant challenge for businesses, with many costs increasing across their supply chain and their cost of materials and inputs continuing to increase year on year.

Staffing pressure – Australia and New Zealand are still facing a talent competition challenge, as a shortage of staff in certain industries is driving staffing costs upward for most businesses.

Interest rates – Many businesses that rely on financing, whether for the short or long term, will be feeling the pressure of the current high interest rates. While there are expectations that rates may begin to decrease, they remain elevated and can impact not only existing cashflow but also any plans for growth.

Energy costs – While all businesses will be suffering from increased energy bills, those in energy intensive industries like manufacturing will feel a significant impact on their bottom line. Many states currently have incentives for renewables that may help offset these costs.
How can businesses deal with these pressures?
There are a number of strategies that businesses can use to manage their costs:

Review your pricing models – As cost structures on businesses rise, business owners must regularly review their pricing strategies and consider necessary updates to their prices.

If the cost impacts are not passed on to customers your own profitability will suffer. It is crucial that you track the costs in your business and make sure you are proactive in reviewing and updating your pricing where appropriate.

Other changes referenced below may also help alleviate pressure on your pricing and a review of your pricing model should be conducted to consider these positive impacts.

Review your major costs – Start by reviewing your Profit and Loss and identify the main costs to your business. Consider the following questions –

 	What can you do to renegotiate or adjust the cost that your business incurs?
 	Are there other suppliers that you could use that may offer a better price?
 	How long has it been since you went to the market to consider the price for your key materials for the business?

Analyse your significant costs and conduct research. For example, if a significant part of your costs is tied to communications, explore how other companies are cutting expenses in this area or which suppliers they are choosing. Where practicable, preparing a tender document of your needs and using that to canvass potential suppliers, including your existing supplier, can lead to cost savings.

Consider better leverage of technology – Investing in technology can help the business streamline its operations, reduce costs and improve efficiency and accuracy. This may include adopting automation, data analytics and digital tools to enhance decision making and operational performance.

Businesses that embrace and invest in technology tend to outperform their competitors and are positioned to seize opportunities, even in a tough market.

Effective financial management - Effective financial management is crucial in an environment where costs are increasing. To begin with, businesses should focus on:

 	Having an up-to-date and accurate financial budget for your business, ideally including a cashflow forecast
 	Tracking and monitoring your performance against the budget and forecast
 	Improving your cash flow, chasing debtors and using allowed terms on your creditors
 	Reducing debt and exploring alternative financing options to maintain financial stability
 	Collecting and using financial data to be able to make informed decisions about what you can do to improve your business performance

Invest in employee development – Investing in employee training and development will have a number of positive flow-on effects for your business, including reduced turnover and increased productivity and efficiency.

The current economic conditions in Australia present significant challenges for businesses, but with the right strategies, you can navigate these obstacles and continue to thrive. By managing costs effectively, reviewing pricing models and leveraging technology, businesses can drive profitability and maintain a competitive edge in a challenging economic environment.

If your business needs help in reviewing your costs, planning your budgets and cashflows and updating your pricing models, contact your local William Buck advisor in Australia [1] and New Zealand. [2]

[1] https://williambuck.com/our-people/
[2] https://williambuck.com/nz/our-people/]]></content:encoded>
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						                        <title>Government should use upcoming Budget to provide NZ businesses with much-needed lifeline</title>
						                        <link>
						                        https://williambuck.com/nz/government-should-use-upcoming-budget-to-provide-nz-businesses-with-much-needed-lifeline						                        </link>
						                        <pubDate>Wed, 22 May 2024 05:52:56 +0000</pubDate>
						                        <dc:creator>William Buck</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=32327						                        </guid>
						                        <description><![CDATA[While the Government’s efforts to balance the cost-of-living crisis are commendable, William Buck believes more can be done to alleviate the pressures faced by small and medium enterprises (SMEs) – the backbone of New Zealand’s economy. Jayesh Kumar, Head of Tax at leading accounting and advisory firm William Buck New Zealand, said the country’s SMEs [&#8230;]]]></description>
						                        <content:encoded><![CDATA[While the Government’s efforts to balance the cost-of-living crisis are commendable, William Buck believes more can be done to alleviate the pressures faced by small and medium enterprises (SMEs) – the backbone of New Zealand’s economy.

Jayesh Kumar, Head of Tax at leading accounting and advisory firm William Buck New Zealand, said the country’s SMEs are up against an unprecedented number of challenges as they grapple with the repercussions of a global recession and the lingering effects of the COVID-19 pandemic. These include a lack of access to finance, economic uncertainty, skills shortages and an increasing regulatory burden.

“Managing the cost-of-living crisis for individuals is critical, but we urge the government to understand that so too is fostering a thriving business environment,” said Mr Kumar.

Small and medium-sized businesses account for 97% of all businesses in New Zealand, employing over 679,000 individuals and contributing more than a quarter to our gross domestic product, according to the New Zealand Ministry of Foreign Affairs and Trade.

As these businesses struggle to cope with the current recession, Mr Kumar said the government needs to allocate resources to SMEs and introduce policies that directly address the barriers to growth and sustainability for these businesses.

“A reintroduction of initiatives like low-interest loans and grants similar to the Business Finance Grant Scheme, which was concluded on 30 June 2021, could prove to be a lifeline for businesses in these challenging times,” said Mr Kumar.

“Additionally, bolstering venture capital initiatives, expanding apprenticeship and internship opportunities and simplifying regulatory processes could all help nurture business growth.”

The introduction of these policies would be an investment in the future of our businesses, creating a conducive environment for SMEs to thrive while also helping New Zealand’s economy take a positive step forward.
]]></content:encoded>
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						                        <title>Unlocking success: strategies for SMEs in a competitive landscape</title>
						                        <link>
						                        https://williambuck.com/nz/unlocking-success-strategies-for-smes-in-a-competitive-landscape						                        </link>
						                        <pubDate>Mon, 18 Mar 2024 22:00:02 +0000</pubDate>
						                        <dc:creator>Scott Harrington</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=31848						                        </guid>
						                        <description><![CDATA[Small and medium-sized enterprises, or SMEs, play a significant role in the economic landscape, creating jobs, fostering innovation and driving economic growth. However, if you’re the owner of a small or medium-sized business, you’ll also be well aware of the many challenges for SMEs, which can impede growth and expansion. SMEs face stiff competition in [&#8230;]]]></description>
						                        <content:encoded><![CDATA[Small and medium-sized enterprises, or SMEs, play a significant role in the economic landscape, creating jobs, fostering innovation and driving economic growth. However, if you’re the owner of a small or medium-sized business, you’ll also be well aware of the many challenges for SMEs, which can impede growth and expansion.

SMEs face stiff competition in the current economic conditions and to succeed, they need to plan and manage this challenge effectively. In this article, we look at some strategies that SMEs can use to do just that.

 	Conduct a competitive analysis: A competitive analysis is the first step in planning and managing competition. SMEs should identify their competitors, understand their strengths and weaknesses and evaluate their market position. This can help them develop effective strategies for differentiation and competitive advantage.
 	Develop a unique value proposition: Developing a unique value proposition can help set a small and medium enterprise apart from its competitors. It can involve offering unique products or services, providing exceptional customer service or adopting innovative marketing strategies.
 	Focus on customer needs: Customer needs are a key point of focus for most SMEs. They can conduct market research to understand customer preferences, provide personalized service and develop customer loyalty programs.
 	Monitor and adapt to market trends: Market trends change constantly and SMEs must adapt to them. They can do this by keeping up to date with industry news and developments, adapting to changes in customer preferences and taking advantage of new opportunities.
 	Build a strong brand: Building a strong brand can help SMEs differentiate themselves from their competitors. They can build one by developing a consistent visual identity, creating a strong brand message and developing a strong online presence.
 	Foster innovation: Fostering a culture of innovation can help SMEs stay ahead of their competitors. This can involve encouraging employees to generate new ideas, investing in research and development and adopting new technologies.
 	Collaborate with other businesses: Collaboration with other businesses can benefit SMEs in many ways. It can help them gain access to new markets, share resources and reduce costs while also helping them form strategic partnerships, join industry associations or participate in trade shows.

Your SME business is likely to face a lot of competition Planning and managing competition is essential for the success of SMEs. By planning and managing your competition, you can position your business for success both now, and in the future.

You can read more about the issues SMEs face in our article here. [1]

If you need help with strategic business planning for SMEs, contact your local William Buck Business Advisor in Australia [2] or New Zealand. [3]

[1] https://williambuck.com/news/business/general/understanding-the-top-10-challenges-for-smes-today/
[2] https://williambuck.com/services/business-advisory/#specialists
[3] https://williambuck.com/nz/services/business-advisory/]]></content:encoded>
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						                        <title>Managing and clearing tax debts with the Inland Revenue Department</title>
						                        <link>
						                        https://williambuck.com/nz/managing-and-clearing-tax-debts-with-the-inland-revenue-department						                        </link>
						                        <pubDate>Wed, 28 Feb 2024 01:05:34 +0000</pubDate>
						                        <dc:creator>William Buck</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=31721						                        </guid>
						                        <description><![CDATA[Managing outstanding debts can feel overwhelming, particularly when dealing with obligations to the Inland Revenue Department (IRD). Whether you are an individual, company, partnership or trust, when tax is due and not paid on time, you will be charged late payment penalties. If it’s not paid in full then interest is applied, which is currently [&#8230;]]]></description>
						                        <content:encoded><![CDATA[Managing outstanding debts can feel overwhelming, particularly when dealing with obligations to the Inland Revenue Department (IRD). Whether you are an individual, company, partnership or trust, when tax is due and not paid on time, you will be charged late payment penalties. If it’s not paid in full then interest is applied, which is currently set at 10.91%. With added penalties and interest, your tax debt can quickly add up to a significant tax bill.

Understanding how the IRD deals with overdue debts and the payment options they offer is important to stay on top of those obligations. In this article, we look at ways you can manage tax debt and what options are available for repaying your debt.
How does the IRD approach debt?
The IRD acknowledges there might be occasions when your tax payments are delayed for valid reasons. To address this, they have established grace periods, instalment plans the possibility of waiving penalties and in certain cases, interest. However, anyone making overdue payments will have penalties and interest added to their bill.

If you do find yourself in a position where you have a debt owed to the IRD and you are unable to settle it in full, the IRD has two options available: payment by instalment or financial relief.

Paying by instalment

You can choose to go with this option if you cannot afford to pay the tax you already owe or will owe in the future. You can apply to split what you owe over weekly, fortnightly or monthly payments.

Before applying you need to decide what you can afford to pay towards your debt, whether you will pay by direct debit or another method and when you require your instalment payments to begin.

You will need to proactively communicate with the IRD if there are any issues with repayments. The IRD may apply the Use Of Money Interest (UOMI) and penalties on any overdue balances and if they do not receive engagement or response, they may take further collection measures.

Financial relief

The IRD may be able to write off penalties or certain amounts if you cannot meet your payments. However, they require you to provide financial details that showcase what is stopping you from repaying the debt and why the overdue amount was not paid on time before making a decision. For companies, partnerships and trusts, the IRD also requires information on whether you have tried getting a loan to pay this debt.
Tax pooling and how it could help you
Tax pooling is a helpful way for businesses and individuals to manage the uncertainties associated with tax obligations. It allows taxpayers to pool their funds in a central account managed by specialised financial institutions or platforms.

The idea is that if someone owes more taxes than expected, they can use money from the pool to cover it. On the other hand, if someone has overestimated their taxes, the extra money goes into the pool. This system is great when you are not sure how much tax you will end up owing. Tax pooling helps smooth out cash flow fluctuations and minimises the impact of unexpected tax bills.

In running a business, it is important to implement good practices for keeping records and filing on time. This helps ensure that you meet the requirements set by the IRD for repayments and stay in compliance with their rules.

If you currently owe the IRD money and are not sure what to do next, contact your local William Buck advisor [1] for a discussion on how best to resolve and plan for the future.

[1] https://williambuck.com/nz/our-people/]]></content:encoded>
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						                        <title>Transitioning to the 2022 Act: A guide for Incorporated Societies</title>
						                        <link>
						                        https://williambuck.com/nz/transitioning-to-the-2022-act-a-guide-for-incorporated-societies						                        </link>
						                        <pubDate>Tue, 19 Dec 2023 22:57:00 +0000</pubDate>
						                        <dc:creator>William Buck</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=31336						                        </guid>
						                        <description><![CDATA[Existing Incorporated Societies must start preparing to re-register as the new Incorporated Societies Act 2022 came into force on 5 October 2023. This Act, which replaces the Incorporated Societies Act 1908, means that societies that are incorporated under the Incorporated Societies Act 1908 will need to re-register and confirm they comply with the 2022 Act [&#8230;]]]></description>
						                        <content:encoded><![CDATA[Existing Incorporated Societies must start preparing to re-register as the new Incorporated Societies Act 2022 came into force on 5 October 2023. This Act, which replaces the Incorporated Societies Act 1908, means that societies that are incorporated under the Incorporated Societies Act 1908 will need to re-register and confirm they comply with the 2022 Act requirements by 5 April 2026 to remain as an incorporated society.

Societies need to ensure they meet this deadline because, if a Society does not re-register by the end of this period, it will automatically be de-registered and wound up. Under the new legislation, if a society is removed from the register or liquidated, the distribution of the society’s surplus assets (after all costs, debts and liabilities are paid) may only be distributed to nominated not-for-profit entities. As for new societies, they will be automatically registered under the 2022 Act.

In addition to re-registering, existing societies must also adhere to further changes including:
1. Under section 45 [1], societies are required to have a governing body (board/committee) with three or more qualified officers to manage the operation and affairs of the society. An officer is defined as a person in a position that allows them to exercise significant influence over the management or administration of the society. The officer must be a natural person, must have consented to be an officer, and have certified they are not disqualified for election, appointment or any other position as an officer of the society.
2. The Act sets out required duties for officers, including acting in good faith and in the best interests of the society, complying with the Act and constitution of the society, acting with reasonable care and diligence and avoiding creating a substantial risk of serious loss to creditors.
3. As per section 26 [2], every society must have a constitution (rules) covering purpose, membership, committee powers and functions, management of finances, dispute resolution, general meetings and winding up the society.
4. Societies are required to maintain a minimum number of 10 members (previously 15). A company or body corporate counts as three members. Members must give their consent to become a member of the society and a membership register must be kept.
5. Societies will need to have documented dispute resolution procedures to address disputes and other grievances between members and between members and the society. This includes a procedure on how to make a complaint. Societies may need to add new rules or change existing ones to comply with the new law.

Financial reporting and audits
Under section 102 [3], all societies must prepare and register annual financial statements.

Small societies, defined in the Act as having operating payments and current assets that are both less than $50,000, can opt to use either External Reporting Board (XRB) Accounting Standards or provide minimum requirements as set out in section 104. [4]

Larger societies are required to prepare financial statements using the XRB Accounting Standards as defined by tiers of reporting (section 29 [5]). Societies with expenses or operating payments that are around the tier threshold levels, fluctuate between the threshold levels or will exceed the threshold in the future, may want to consider reporting at the higher tier. The charities.govt.nz [6] website provides further information on the financial reporting and audit requirements based on the tiered system.

Incorporated societies with total operating expenses of $3 million or above in each of the two preceding years will need to have their financial statements audited by a Qualified Auditor.

This does not apply to a charitable entity, which instead must prepare an annual return under the Charities Act 2005.
Re-registering
Close to 24,000 societies in New Zealand will need to re-register under the new Act. While there is a transition period of around two and a half years to re-register, societies should be starting to plan what they need to do to comply with the 2022 Act. It will take time to prepare a constitution, hold a general meeting(s) to approve it, and put new processes in place.

You can access information and guidance on how to prepare for re-registering here [7]. The government facilitates the registration process online through the RealMe login.

If you would like further information or advice on these changes and how this might affect your incorporated society’s operations, contact one of our William Buck advisors [8] – we are here to help.

&#160;

[1] https://www.legislation.govt.nz/act/public/2022/0012/latest/LMS100913.html
[2] https://www.legislation.govt.nz/act/public/2022/0012/latest/LMS100890.html
[3] https://www.legislation.govt.nz/act/public/2022/0012/latest/LMS100991.html?search=sw_096be8ed81dce6e4_audit_25_se&#38;p=1
[4] https://www.legislation.govt.nz/act/public/2022/0012/latest/LMS154402.html?search=sw_096be8ed81dce6e4_audit_25_se&#38;p=1
[5] https://www.legislation.govt.nz/act/public/2013/0101/latest/DLM4632934.html?search=sw_096be8ed81cb5355_audit_25_se&#38;p=1
[6] https://www.charities.govt.nz/reporting-standards/
[7] https://is-register.companiesoffice.govt.nz/help-centre/reregistering/getting-ready-for-reregistering/
[8] https://williambuck.com/nz/our-people/]]></content:encoded>
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						                        <title>Agreed tax plans and policies of the New Zealand Coalition Government</title>
						                        <link>
						                        https://williambuck.com/nz/agreed-tax-plans-and-policies-of-the-new-zealand-coalition-government						                        </link>
						                        <pubDate>Mon, 18 Dec 2023 05:58:56 +0000</pubDate>
						                        <dc:creator>William Buck</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=31327						                        </guid>
						                        <description><![CDATA[The New Zealand National Party has successfully formed coalitions with ACT New Zealand and New Zealand First to establish the 54th parliament. National’s coalition agreements with ACT and with New Zealand First set out the frameworks for collaboration aligned with the policy priorities of each party. Additionally, the government has unveiled its 100-day plan. We [&#8230;]]]></description>
						                        <content:encoded><![CDATA[The New Zealand National Party has successfully formed coalitions with ACT New Zealand and New Zealand First to establish the 54th parliament. National’s coalition agreements with ACT and with New Zealand First set out the frameworks for collaboration aligned with the policy priorities of each party. Additionally, the government has unveiled its 100-day plan. We outline below what specific agreements the Coalition Government have made regarding taxation.
First 100-day plan

 	The Auckland Regional Fuel Tax, which was introduced in July 2018, will be repealed.
 	Fuel tax increases proposed by the previous Government will be cancelled. Fuel excise taxes will, in time, be replaced with electronic road user charging for all vehicles, starting with electric vehicles.
 	The Clean Car Discount scheme will be repealed by 31 December 2023.
 	All work on the proposed Income Insurance Scheme, that was to be funded through employee and employers’ contributions, will be stopped.

Income tax

 	Adjustments to income tax thresholds will proceed from 1 July 2024, in line with the Government’s commitment to delivering tax relief.
 	Under the National and Act agreement, the Parties have confirmed there is no ongoing commitment to income tax changes, including threshold adjustments, beyond those to be delivered in 2024.
 	Under the National and New Zealand First agreement, the Parties have agreed to assess the impact inflation has had on the average tax rates by or before 2026, and to progress “tax relief of up to $100 per fortnight for an average income household and a Family Boost childcare tax credit of up to $150 per fortnight.”

Property

 	Mortgage interest deductibility for residential rental properties will be restored with 60 per cent deductibility in 2023/24, 80 per cent in 2024/25, and 100 per cent in 2025/26.
 	The proposed 15 per cent foreign buyer tax on residential properties sold to non-residents for $2 million or more will not proceed.
 	The Government will introduce “financial incentives for councils to enable more housing, including considering sharing a portion of GST collected on new residential builds with councils."

IRD

 	Funding for Inland Revenue tax audits will be increased to expand the IRD tax audit capacity and minimise taxation losses due to insufficient IRD oversight.
 	In response to ACT's concerns, National's proposed "Taxpayer's Receipt" requiring Inland Revenue to provide taxpayers with Government expenditure details, will not proceed.

The coalition parties have agreed to progress the policies set out in the National Party’s Fiscal Plan, Tax Plan, 100-day plan and 100 point economic plan, with some modifications, as above.

As part of its mini-Budget on 20 December 2023, the Government has confirmed it will be:

 	Returning the bright-line test to a two-year period from 1 July 2024.
 	Removing depreciation deductions for commercial and industrial buildings.

For more information:

Coalition Agreement: New Zealand National Party and ACT New Zealand [1]

Coalition Agreement: New Zealand National Party and New Zealand First

If you have any questions or need advice on any of the above, please contact your local William Buck advisor [2] – we’re here to help.

[1] https://assets.nationbuilder.com/actnz/mailings/6945/attachments/original/National_ACT_Agreement.pdf?1700781466
[2] https://williambuck.com/nz/our-people/]]></content:encoded>
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						                        <title>Navigating succession planning: key considerations for taking on a partner in your medical practice</title>
						                        <link>
						                        https://williambuck.com/nz/navigating-succession-planning-key-considerations-for-taking-on-a-partner-in-your-medical-practice						                        </link>
						                        <pubDate>Tue, 12 Dec 2023 03:58:38 +0000</pubDate>
						                        <dc:creator>Belinda Hudson</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=31274						                        </guid>
						                        <description><![CDATA[It’s a common scenario, you&#8217;ve been running a successful practice for many years and are starting to think about slowing down or perhaps even selling, but you aren&#8217;t sure which option is right for you. The recently released, RACGP’s &#8216;Health of the Nation&#8217; report, found that 3 in 10 (29%) of GPs intend to retire [&#8230;]]]></description>
						                        <content:encoded><![CDATA[It’s a common scenario, you've been running a successful practice for many years and are starting to think about slowing down or perhaps even selling, but you aren't sure which option is right for you. The recently released, RACGP’s 'Health of the Nation' report, found that 3 in 10 (29%) of GPs intend to retire in the next five years. This coupled with the fact that there are a reduced number of graduates taking up a future in general practice means it is increasingly harder to find a buyer for your practice from within the GP community.

Over the next 12 months, William Buck will be covering the different challenges and opportunities that arise when succession planning for your practice. In a series of articles, we will provide insights into this life-changing decision with guidance on how to avoid the pitfalls and tips to maximise the opportunities for this next phase of your career.

One way you can start the transition away from your practice is to take on a partner. The ideal partner can share the load and responsibilities of running the practice. This is a significant decision that shouldn’t be taken lightly and requires evaluation of several factors. After working with many practices in taking this step, these articles share some key aspects to consider that can help you make that decision:
Alignment - Common goals and vision
Consider whether the potential partner's goals and vision align with yours. Most discussions and observations with potential business partners are done at a clinical level. That is, are they a good doctor? Do you share the same commitment to patient care? When considering a business partner, you need to widen the criteria to include common thoughts on the management and growth of the practice? The answers to these questions will help you determine if you are on the same page with your potential partner about the future of the practice.
Expertise
Do your potential partner's skillsets complement yours? When partners have differing skill sets, it can enhance the management of the practice and spread the load. It allows each of you to focus on your specialties and grow your practice. As the saying goes, two heads are better than one.
Financial
How you and your potential partner split the profits and share the revenue should be agreed upfront. While mulling this over, you should consider all contributions to the practice, including but not limited to patient fee levels, time managing staff, supervising registrars, or financial aspects. These are valid contributions that should be considered. We are also seeing an increased number of practices factoring in consideration for owners taking time off to care for family and agreeing on how this will impact financially is a huge consideration.
Transition plan
It is important to establish a transition plan upfront, especially when considering timeframes so that there is no confusion or miscommunication down the track. Where possible this should be documented in an agreement.
Ownership agreement
When going into business with a partner, you should ensure that your legal arrangements are documented, covering exit strategies, non-compete clauses, leave, and other relevant considerations. This will save you time and money down the track.
Exit strategy
Like with the transition plan, it is equally important to discuss the potential exit scenarios for one or both partners wanting to exit the practice at some point in the future. This can help prevent complications or misunderstandings.
Ultimately the decision to take on a partner in your medical practice should be based on a thorough evaluation of all the factors and be built on a shared focus for the future. Careful planning and communication are key to success.

Contact your local William Buck Advisor in Australia [1] or New Zealand [2] to learn more about the advantages of succession planning and how it can benefit your business.

[1] https://williambuck.com/our-people/
[2] https://williambuck.com/nz/our-people/]]></content:encoded>
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						                        <title>Elevating dental practices: the essential role of Virtual CFOs</title>
						                        <link>
						                        https://williambuck.com/nz/elevating-dental-practices-the-essential-role-of-virtual-cfos						                        </link>
						                        <pubDate>Tue, 21 Nov 2023 04:38:12 +0000</pubDate>
						                        <dc:creator>Angela Jeffrey</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=31005						                        </guid>
						                        <description><![CDATA[Running a successful dental practice requires careful planning, excellent patient care and effective management. While the quality of patient care is undeniably important, the financial health and stability of a dental practice are equally critical. This is where the role of a Virtual Chief Financial Officer (CFO) comes into play, to ensure the financial health [&#8230;]]]></description>
						                        <content:encoded><![CDATA[Running a successful dental practice requires careful planning, excellent patient care and effective management. While the quality of patient care is undeniably important, the financial health and stability of a dental practice are equally critical. This is where the role of a Virtual Chief Financial Officer (CFO) comes into play, to ensure the financial health and sustainability of the practice.

A CFO is traditionally associated with large corporations and established businesses, however, the concept of a Virtual CFO has gained significant traction in recent years, particularly in the healthcare sector, including the dental industry. Virtual CFOs are outsourced professionals who offer high-level financial expertise without the need for full-time, in-house staff. They provide an affordable and flexible solution for dental practices, ensuring they can -navigate complex financial challenges effectively.
Financial management and planning
In the dental industry, one of the Virtual CFO’s primary responsibilities is to oversee financial management and planning. They work closely with dental practice owners and managers to develop strategic financial plans that align with the practice's long-term goals. This includes budgeting, forecasting and creating financial roadmaps that optimise profitability while ensuring financial stability.

Budgeting: Virtual CFOs play a critical role in developing, implementing and monitoring budgets. By aligning financial planning with business goals, they ensure that resources are allocated efficiently.

Forecasting: Accurate financial forecasting is essential for anticipating future financial needs and enables your Virtual CFO to recognise potential risks and make informed decisions or guide you to make those decisions.

Profitability analysis: Virtual CFOs can analyse financial statements to identify areas where profitability can be improved by analysing expense reduction, revenue growth strategies and pricing adjustments.
Cost analysis and profit maximisation
In a highly competitive field like dentistry, it is crucial to control costs and maximise profits. A Virtual CFO can conduct an in-depth cost analysis to identify areas where expenses can be reduced without compromising the quality of care. They also develop strategies to increase revenue through optimised pricing structures and patient retention initiatives.
Strategic financial decision-making
Virtual CFOs play a vital role in providing the necessary financial insights for successful dental practices to make data-driven decisions. They analyse financial data and offer valuable information to practice owners, enabling them to make informed choices that drive growth and sustainability.

Whether it's considering new equipment, expanding the practice or upgrading facilities, Virtual CFOs provide financial analysis to support investment decisions. They can also evaluate potential opportunities for additional revenue sources to diversify the practice’s revenue stream and improve its financial stability.
Financial forecasting and scenario planning
Looking ahead and preparing for various scenarios is an essential aspect of effective financial planning. Virtual CFOs can help dental practices anticipate and plan for potential challenges, ensuring that the practice can adapt to changing circumstances effectively.

Crisis management: Virtual CFOs can assist in developing crisis management plans, enabling practices to navigate unexpected challenges, such as natural disasters or public health emergencies like the COVID-19 pandemic.

Business continuity: In the event of disruptions, a Virtual CFO can help implement measures to ensure that the practice can continue to operate and serve patients.
Investigative reviews
Investigative reviews are a crucial aspect of a Virtual CFO's role in the dental industry. These reviews comprehensively examine the financial records and processes of a practice to uncover any irregularities, inefficiencies, or potential issues that may impact the practice's financial health. This approach proactively detects and addresses problems before they escalate into full-blown crises.
Identifying fraud and embezzlement
To safeguard the practice's finances and reputation, Virtual CFOs can use their expertise to carefully review financial records and transaction history, searching for discrepancies that could be indicative of fraudulent activities. By identifying and addressing these issues in a timely manner, they can prevent potential financial losses and protect the practice's reputation.
Process optimisation
As part of investigative reviews, virtual CFOs can evaluate the financial processes and procedures of the practice. They can assess the efficiency of these processes and look for opportunities to streamline operations and reduce costs. This not only improves the practice's financial health but also enhances overall productivity.
Performance metrics
Virtual CFOs can establish and monitor key performance metrics for the dental practice. By tracking financial performance indicators such as revenue, expenses and profitability, they provide practice owners with valuable insights into their practice's financial health. If any metrics deviate from expected targets, the CFO can promptly address the underlying issues and recommend corrective actions.
Crisis management
The dental industry, like any other, is not immune to unexpected crises. Whether it's a global pandemic, natural disaster, or other unforeseen challenges, the ability to navigate such crises effectively is crucial. Virtual CFOs can play an essential role in managing the financial aspects of these crises.
Cash flow management
To maintain a healthy cash flow during a crisis, a dental practice needs to develop and implement strategies. A Virtual CFO can help the practice by negotiating with creditors, optimising the use of credit lines or exploring government assistance programs to ensure that the dental practice has access to the necessary liquidity to cover its operating expenses and obligations.
Risk mitigation
In times of crisis, risk mitigation is crucial. Virtual CFOs can work with dental practices to identify potential financial risks and implement strategies to minimise their impact. Whether it's insurance coverage, emergency funds or diversifying revenue streams, these professionals ensure that the practice is better prepared to weather the storm.
Conclusion
The dental industry is not immune to the financial challenges and crises that can impact businesses across the board. Having a Virtual CFO on your side can make all the difference in effectively managing your practice's finances, conducting investigative reviews to proactively address issues and navigating unexpected crises.

Their expertise in financial management, compliance and strategic planning can help ensure your dental practice's long-term success and financial well-being in an ever-changing landscape. In a world where adaptability and resilience are keys to success, a Virtual CFO is an asset for dental professionals seeking to thrive and prosper in the industry.

To chat to our team about engaging a Virtual CFO to elevate your dental practice, contact your local William Buck health advisor. [1]

[1] https://williambuck.com/industry/health/#health-specialists]]></content:encoded>
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						                        <title>Many SME businesses in Australia and NZ are set to lose big on returns when exiting their business</title>
						                        <link>
						                        https://williambuck.com/nz/many-sme-businesses-in-australia-and-nz-are-set-to-lose-big-on-returns-when-exiting-their-business						                        </link>
						                        <pubDate>Thu, 02 Nov 2023 05:44:03 +0000</pubDate>
						                        <dc:creator>William Buck</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=30861						                        </guid>
						                        <description><![CDATA[A large amount of small to medium business owners on both sides of the Tasman are looking to exit their business within the next 10 years, William Buck’s leading Exit Smart Report 2023 has found. William Buck’s fourth Exit Smart Report, which interviewed a wide cross-section of business owners from a variety of different industries, [&#8230;]]]></description>
						                        <content:encoded><![CDATA[A large amount of small to medium business owners on both sides of the Tasman are looking to exit their business within the next 10 years, William Buck’s leading Exit Smart Report 2023 has found. 

William Buck’s fourth Exit Smart Report, which interviewed a wide cross-section of business owners from a variety of different industries, has found that nearly 72% of small-to-medium business owners are looking to exit their business within the next 10 years while 43% expect to exit in the next five years.

However, this report also found that 64% of business owners who were surveyed have not had their business valued in the last three years.

Mark Calvetti, Head of Corporate Finance at William Buck said that this year's report indicates a significant lack of planning that will leave business owners shortchanged when they hand over the reins of their enterprise.

“It’s never too late to undertake exit planning, particularly when you are looking to exit the business sooner rather than later.

“However, our report has found that nearly six in 10 business owners do not have an exit strategy in place and one in two have never sought advice on maximising the value of their business.

“These are concerning statistics that suggest many business owners will leave money on the table when selling their business,” said Mark.

The report also found that more than 40% of owners have substantial concerns about being able to find a buyer for their business and receiving their desired sale price, while a similar amount think that the business is heavily reliant on its current owners.

When looking to sell their business, 47% of business owners point to a trade sale as their most likely exit strategy, while more than 28% said they would consider selling to management. More than 25% we're likely to sell to private equity and over one in four assume the business will be handed down to the next generation of family members.

“I think it’s key for business owners to start planning for their exits at least three to five years before they actually expect to exit.

“This time frame also allows owners to make any changes to a business that will improve its performance.

“Even if you are among the 26% of respondents who expect the business to remain in the family, good succession planning can help ensure any ownership transitions go smoothly,” added Mark.

The report also recommends that businesses should seek advice on structuring their organisation in a way that maximises profit. Owners planning to retire are advised to prepare for longer handover terms as they transition away from their business.

Download your copy of William Buck’s leading Exit Smart Report here. [1]

[1] https://williambuck.com/exit-smart-report-2023/?utm_source=bow-oct-23&#38;utm_medium=email&#38;utm_campaign=exit-smart-report-2023]]></content:encoded>
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						                        <title>Tips to navigate family remuneration in family-owned businesses</title>
						                        <link>
						                        https://williambuck.com/nz/tips-to-navigate-family-remuneration-in-family-owned-businesses						                        </link>
						                        <pubDate>Mon, 30 Oct 2023 23:06:38 +0000</pubDate>
						                        <dc:creator>Chris Leahy</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=30837						                        </guid>
						                        <description><![CDATA[Family-owned businesses form the backbone of many economies, and a unique aspect of these businesses is the intersection of personal and professional relationships. This often leads to the question: How does one set remuneration for family members? Setting a fair and justified salary for family members is essential not only for the wellbeing of the [&#8230;]]]></description>
						                        <content:encoded><![CDATA[Family-owned businesses form the backbone of many economies, and a unique aspect of these businesses is the intersection of personal and professional relationships. This often leads to the question: How does one set remuneration for family members?

Setting a fair and justified salary for family members is essential not only for the wellbeing of the business but also for maintaining harmony within the family. Here are some guidelines to assist in this challenging task:
1. Objectivity is key
Separate personal emotions and biases from professional judgment. Assessing family members as you would any other employee is the first step. Understand their roles, responsibilities and the value they bring to the business. The remuneration package should reflect these elements rather than personal relationships.

2. Market rate as a guideline
Start with a baseline. Research the prevailing market rates for similar roles in your industry and region. There are numerous online tools that can offer insights specific to the market and industry. Ultimately it is about a 'fair day's pay for a fair day's work' and by aligning family salaries with the industry standard, you minimise the chances of overcompensation or underpayment.

3. Evaluate contributions
Regular performance appraisals aren’t just for corporate environments. Evaluating the contributions of family members can be a touchy subject, but it’s a necessary one. Quantifiable metrics such as sales targets, client retention or project completions can provide a fair basis for setting salaries and bonuses in family-owned businesses.

4. Transparency and open dialogue
Fostering a culture of open dialogue can alleviate many potential conflicts. Be transparent about how remuneration decisions are made. Engage in discussions with family members, ensuring they have a platform to voice their concerns and opinions.

5. Consider the financial health of the business
It’s tempting to offer generous packages to loved ones, but the remuneration strategy should always align with the financial health of the business. A good practice can be to benchmark remuneration against business profits. If the business is thriving, it may be appropriate to offer better packages, and conversely, during lean times, it might require some adjustments.

6. Incorporate non-monetary benefits
While salary is a primary concern, don't underestimate the value of non-monetary benefits. Flexibility, professional development opportunities and other perks can often hold significant value for family members and can be part of the remuneration strategy.

7. Engage external consultants
Sometimes, an external perspective can provide clarity. Consider engaging a Chartered Accountant familiar with the nuances of family-owned businesses. They can offer an unbiased viewpoint and help establish a framework that is both fair and competitive.

8. Review and revise
The business landscape is dynamic, and roles within a family business may evolve. Just like with any other employee, it is important to regularly review remuneration structures to ensure they remain aligned with individual contributions and market rates.
Setting family remuneration is a delicate balance of maintaining business viability and preserving familial relationships. By adopting a systematic, transparent, and market-oriented approach, family-owned businesses can ensure that remuneration is not just a financial decision but a tool for business growth and family cohesion.

For assistance with any element of your family business strategy, contact your local William Buck Business Advisor in Australia [1] or New Zealand. [2]

[1] https://williambuck.com/our-people/
[2] https://williambuck.com/nz/services/business-advisory/]]></content:encoded>
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						                        <title>Family succession planning for your business</title>
						                        <link>
						                        https://williambuck.com/nz/family-succession-planning-for-your-business						                        </link>
						                        <pubDate>Thu, 26 Oct 2023 04:14:58 +0000</pubDate>
						                        <dc:creator>William Buck</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=25857						                        </guid>
						                        <description><![CDATA[Owning and managing a family business can be immensely rewarding, especially for the older generation, who get to see their enterprise become part of the fabric of family life. But as families evolve and life goals change, the real litmus test of a family business can arise when older family members want to move on. [&#8230;]]]></description>
						                        <content:encoded><![CDATA[Owning and managing a family business can be immensely rewarding, especially for the older generation, who get to see their enterprise become part of the fabric of family life. But as families evolve and life goals change, the real litmus test of a family business can arise when older family members want to move on.

Family businesses have a lot of positives working in their favour. Family spirit, a shared sense of values, and a committed employee base can all bring strengths to an enterprise that money simply can’t buy.

But families are complex.

Decisions within a family business can be emotionally charged and lacking in objectivity. It can be difficult to separate ‘family’ from ‘business’, and ‘work’ from ‘home’.

On top of these hurdles, family businesses can face liquidity challenges if a key person within the venture – usually a founder or elder, wants to transition out of the enterprise.

These complexities go a long way to explaining why fewer than half of all family businesses in Australia make it through to the next generation.

The good news is that it is possible to ensure the longevity of a family business. But it doesn’t happen by chance.
The upsides of family succession
For families just beginning to consider a change in ownership, it’s worth noting the considerable benefits of formal family succession planning.

The family legacy is continued, and elders are still able to offer valuable support by remaining involved in the business after it has transitioned into the next generation. In a seamless succession, long-term customers and suppliers may not even be aware a transition has taken place.

In short, a successful transition can mean business as usual, especially during the all-important handover phase.

However, this sunny picture calls for planning – and plenty of it. It can take up to five years to achieve a smooth handover, so it pays to start early.
The need to lay early foundations
It makes good financial sense for all businesses to have an exit plan in place. For family-based businesses, this plan shouldn’t just focus on family succession.

The reality is that not everyone in the family will raise a hand to take over the business. In some cases, no one will be willing.

As disappointing as this possibility may be, it does highlight the need to lay early foundations for succession plans. It gives family elders time to rethink strategies to exit the business if necessary.
Key steps – and challenges – in family succession plans
Even when one or more family members are eager to take over the reins, it is still important for succession plans to be formalised in a written agreement – one where all parties are satisfied with the outcomes.

In our experience, which spans working with fourth-generation family businesses, one of the fundamental challenges of family succession planning lies in communication.

Different family members can easily assume various outcomes, which aren’t always aligned. This can be overcome by setting goals, expectations, and guidelines – and having lots of open conversations.

Holding regular family meetings to discuss the transition process is a must-do. These meetings should – as far as possible, involve all relevant family members, even if only one is taking over the business. That’s because each family member may have their expectations. Some, for example, may be concerned about how succession plans could impact a future inheritance.

Allowing time to resolve these issues from an early stage can go a long way to maintaining family harmony. The end goal is for all family members to be engaged, agree, and understand the transition process. It’s not always an easy topic to discuss but it is best to clear the air as soon as possible.
Expert advice is a wise investment
When it comes to potentially sensitive subjects such as succession planning for a family business, the involvement of a third party can be valuable.

The experienced team at William Buck understands the unique position of a family business – and we realise there is more to the succession process than business interests alone.

We can offer expert support in setting an agenda, goals and timeframes. By clearly articulating and documenting the process, we can highlight the various issues that your family needs to discuss while also providing insights into a range of considerations from taxation and funding to statutory compliance and how to fill any missing skill sets when a patriarch steps down from a business.

Importantly, we take the time to understand what is unique about your family and make sure we understand what you and your family are trying to achieve. The advice and guidance we provide can help you create a platform for your business to succeed for generations to come while bringing your family closer together.
]]></content:encoded>
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						                        <title>Understanding the top 10 challenges for SMEs today</title>
						                        <link>
						                        https://williambuck.com/nz/understanding-the-top-10-challenges-for-smes-today						                        </link>
						                        <pubDate>Thu, 12 Oct 2023 00:31:34 +0000</pubDate>
						                        <dc:creator>Scott Harrington</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=30642						                        </guid>
						                        <description><![CDATA[Small and medium-sized enterprises, or SMEs, play a significant role in the global economic landscape. These organisations serve as pivotal contributors that create jobs, foster innovation and drive economic growth. However, if you’re the owner of a small or medium-sized business, you’ll also be well aware of the many challenges for SMEs, which can impede [&#8230;]]]></description>
						                        <content:encoded><![CDATA[Small and medium-sized enterprises, or SMEs, play a significant role in the global economic landscape. These organisations serve as pivotal contributors that create jobs, foster innovation and drive economic growth. However, if you’re the owner of a small or medium-sized business, you’ll also be well aware of the many challenges for SMEs, which can impede growth and expansion. This is particularly the case in the current economic environment, characterised by heightened inflation and interest rates, supply chain disruption and geopolitical challenges. Here, we take a deeper dive into the top 10 issues facing SMEs in 2023.
1. Access to capital
One of the biggest challenges for SMEs is accessing capital. This is particularly the case for smaller businesses, with banks and other financial institutions often adopting a cautious approach to lending these businesses money, driven by reservations about their size and risk profile. This can make it challenging for small businesses to invest in new equipment, hire employees or expand their operations and means shareholders are often required to use their own assets as security for any borrowing.

2. Cash flow management
Cash flow management is crucial for SMEs. If you’re a business owner, you’ll need ensure your business has adequate money to cover its expenses and invest in growth. Preparing a budget and forecasting cashflows is key and should assist you with planning. Late payments from customers, unexpected expenses and fluctuations in revenue can all impact on your cash flow. This is exacerbated when inflation and price pressures affect your key inputs.

3. Competition
SMEs face intense competition from other businesses. Competing with larger companies can be particularly challenging, as they often have more resources and established brands. As the owner or manager of an SME business, you’ll need to find ways to differentiate your business and establish a foothold in the market.

4. Talent management
SMEs often have limited resources and significant competition from larger organisations, making the hiring and retention of skilled employees an uphill task. It can be challenging for you to offer competitive salaries and benefits compared with these organisations. Instead, identify your business’s strengths, particularly those that benefit your people and potential employees, and focus on these strengths in your hiring and retention strategies. For example, if your business has a great culture, you could use this as a focal point in your job ads and could provide testimonials from staff on your social media channels.

5. Regulatory compliance
SMEs must comply with and navigate various regulations and laws. This can be expensive and time-consuming as you’ll need to ensure you’re meeting tax and employment regulations. You also need to comply with any industry-specific regulations. To streamline the process and ensure compliance, it’s wise to engage a professional such as an accountant or a lawyer to assist.

6. Digital transformation
Digital transformation can be one of the key challenges for SMEs, particularly if they lack the necessary resources and expertise SMEs must adapt to digital technologies to stay competitive. Exploring the implementation of new technologies like cloud computing or e-commerce can help you to reach new customers and increase revenue. Moreover, automation can in some cases increase the speed and efficiency of your operations. Treat digital transformation as an opportunity rather than a challenge.

7. Marketing and customer acquisition
SMEs need to invest in marketing and customer acquisition to attract and retain customers. The key is focusing on how you can develop a strong brand and overall marketing strategy. This could mean investing in external help to reach new customers and build your brand.

8. Managing growth
Rapid growth can be a double-edged sword for SMEs, bringing both new opportunities and challenges. Managing cash flow, hiring new employees and scaling operations can all be challenging, so it’s imperative you plan for growth and ensure you have the resources to navigate this growth effectively.

9. Cybersecurity
Like all businesses, SMEs are vulnerable to cyber threats. However, many lack the resources and expertise to implement effective security measures. To protect your data and systems from cyber-attacks, hacking and viruses, you need to invest in cybersecurity services or at the very least, appropriate level security software on any devices connected to the internet.

10. Economic uncertainty
Recent economic volatility and uncertainty has impacted heavily on SMEs, making it more difficult than usual to anticipate changes in consumer demand and supply chain disruptions. This highlights the need for you to prepare for economic uncertainty. Strong contingency planning will assist you to weather any downturns.
Your SME business is likely to face a number of challenges with the potential to impede its success. By having an awareness of the key issues you’re likely to face and mitigating risks through business and contingency planning, you’ll strengthen your business, enhancing resilience and positioning it for greater success.

For help with strategic business planning or addressing any of the challenges for SMEs we’ve explored above, contact your local William Buck Business Advisor in Australia [1] or New Zealand. [2]

[1] https://williambuck.com/our-people/
[2] https://williambuck.com/nz/services/business-advisory/]]></content:encoded>
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						                        <title>New Zealand general election: tax plans and policies of the main parties</title>
						                        <link>
						                        https://williambuck.com/nz/new-zealand-general-election-tax-plans-and-policies-of-the-main-parties						                        </link>
						                        <pubDate>Wed, 27 Sep 2023 23:30:53 +0000</pubDate>
						                        <dc:creator>William Buck</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=30420						                        </guid>
						                        <description><![CDATA[]]></description>
						                        <content:encoded><![CDATA[[vc_row][vc_column][vc_column_text]Updated 9 October 2023

As the upcoming election draws near, discussions on goods and services tax (GST) and income tax are becoming increasingly relevant to anyone who earns or spends money - which essentially includes all New Zealanders.

With the main political parties providing more details about their tax policies and proposed actions if they win the election, we've compiled a brief overview of the key tax policies announced so far.[/vc_column_text][vc_empty_space height="20px"][vc_toggle title="Labour Party" style="arrow" css=""]The focal points of Labour's tax policy coming into the election include the GST announcement and modifications to the Working for Families Tax Credit. Their plan proposes no adjustments to income tax rates, and no plans to introduce new taxes, such as a Wealth Tax or Capital Gains Tax.



Key policy
Details




Remove GST from fruit and vegetables
From 1 April 2024, fresh and frozen fruit and vegetables will have GST removed, but this won’t apply to canned and dried items or juices.


Increase In-Work Tax Credit
Labour will increase the In-Work Tax Credit for families with children earning less than $120,000 from $72.50 to $97.50 per week from 1 April 2024.


Increase Working for Families abatement threshold
From April 2026, Labour will lift the Working for Families abatement threshold to $50,000.

&#160;

This year, the party adjusted Working for Families tax credits in line with inflation.


Trustee tax rate
Increase to 39% from 1 April 2024.


Commercial building depreciation
Labour will remove the depreciation for non-residential buildings that was introduced in March 2020 to support commercial property owners through the pandemic.


Digital Services Tax (DST)
If a multilateral solution isn’t found in an appropriate period of time, Labour would be ready to implement a DST from 1 July 2025 if required. The final rate for this would be set once the international position is clear.



[/vc_toggle][vc_toggle title="National Party" style="arrow" css=""]



Key policy
Details




Adjust income tax brackets to reflect inflation
From 1 July 2024, National will make the following adjustments to tax thresholds:

&#160;



Tax Threshold Adjustments


Existing Threshold
Proposed Threshold
Threshold Rate


$14,000
$15,600
17.50%


$48,000
$53,500
30%


$70,000
$78,100
33%



The $180,000 income tax threshold will remain in place. National has ruled out removing the 39% top tax rate in their first term due to fiscal and economic pressures.

National has indicated it will assess the impact of inflation on the average tax rates at least once every three years, including in 2026.


Expand tax credits
From 1 July 2024, National will increase eligibility for the Independent Earner Tax Credit to compensate for inflation.

 	The upper limit of eligibility will be extended from $48,000 to $70,000, with abatement of the payment starting from $66,000.
 	The lower limit of eligibility will remain the same at $24,000.




Introduce a FamilyBoost childcare tax credit
From 1 July 2024, all families earning up to $180,000 with childcare costs will be eligible for a rebate on these expenses.



Household Income
Maximum fortnightly rebate


Up to $140,000
$150


$150,000
$112.50


$160,000
$75


$170,000
$37.50




 	This rebate will be calculated on childcare costs paid, paying back a 25% rebate for childcare costs up to $300 a week.
 	National will end Labour’s extension of 20 hours early childhood education (ECE) policy for two-year-olds because this policy will be replaced by the FamilyBoost childcare tax credit.




Increase Working for Families tax credits
National will increase the support available through the Working for Families policy by:

 	Increasing the value of the in-work tax credit by $25 a week (from $72.50 to $97.50), from 1 April 2024.
 	Adjusting the abatement threshold for Working for Families payments, up to $50,000 from 1 April 2026.
 	Keeping the automatic increases to Working for Families payments that currently exist in law.




Rental Property Tax Changes
National will restore interest deductibility for rental properties, to be phased in as follows:

 	Interest deductibility will be kept at 50% in April 2024 (rather than being reduced to 25% as planned by Labour).
 	Interest deductibility will be increased to 75% in April 2025 (rather than being removed fully as planned by Labour).
 	100% interest deductibility will be fully restored from April 2026.
 	Take the bright-line test for rental properties back to two years, from Labour’s existing 10 years by July 2024. Properties acquired before July 2022 will not be subject to the bright-line test at sale.




Trustee tax rate
Retain 39% rate proposed in May 2023 Tax Bill but this is subject to review.


Removal of taxes


 	National will remove the Auckland Regional Fuel Tax and ensure fuel taxes will not be increased in the party’s first term.
 	National will remove the Ute Tax. Details on this, including costings, will form the basis of a future announcement.
 	National will also remove Labour’s new App Tax on services like Uber and Airbnb and ensure the same GST rules apply to all services.




Introduction of new taxes
National will partly fund the package mentioned above by introducing:

 	A new tax on offshore online gambling operators on proceeds from New Zealanders’ online gambling.
 	Higher immigration visa processing fees from 1 July 2024 (there will be no increase to visa fees for the Pacific Islands). National will not allow any fees to cost more than 90% of Australia’s equivalent fees.
 	A new 15% foreign buyer tax on the purchase of residential properties worth more than $2 million, and
 	Removing the depreciation of commercial buildings for commercial property investors.





Source: National’s Back Pocket Boost 30 August 2023[/vc_toggle][vc_toggle title="Act Party" style="arrow"]



Key policy
Details




Create a Three-Rate Tax System
The thresholds would change as follows:



Up to
Labour 
2023/24
2024/25
2025/26
2026/27


$14,000
10.50%
&#160;

17.5%


$48,000
17.50%


$60,000
&#160;

30%


$70,000
30%


$180,000
33%
33%
30%


+
39%
39%
33%






Low and Middle-Income Tax Credit
To offset the costs of a higher bottom rate for low-and-middle income households, the ACT Party would introduce a new tax credit for those on low and middle incomes.


Carbon Tax Refund
ACT's Alternative Budget will bring back the Government’s revenues from the Emissions Trading Scheme to New Zealanders through a simple per-person tax refund. Based on the Treasury’s forecasts for ETS revenues, per-person tax refunds would be as follows:




2023/2024
2024/2025
2025/2026
2026/2027


Per-person refund
$243
$140
$119
$98






Rental Property Tax Changes
ACT is proposing to reinstate interest deductions for rental properties and completely remove the bright-line test.


Remove the NZ Income Insurance Scheme
Act will reverse the introduction of the Income Insurance Scheme.



Source: ACT's Alternative Budget [1][/vc_toggle][vc_toggle title="Green Party" style="arrow"]



Key policy
Details




Introduce an Income Guarantee
The Green Party will introduce a new tax-free threshold on the first $10,000 and adjust the tax rates.



Income tax bracket 
Tax rate


$0 - $10,000
0%


$10,000 – $50,000
17%


$50,000 – $75,000
30%


$75,000 – $120,000
35%


$120,000 – $180,000
39%


$180,000 +
45%




 	The Green Party will index the tax brackets and adjust them for wage inflation every three years.
 	It will introduce a payment of $385 to anyone out of work or studying - with an extra $135 each week for people caring for kids on their own.
 	Replace Working for Families with a single payment for parents or caregivers of $215 every week for the first child, and $135 a week for every other child, with an extra $140 a week for every child under three years.
 	It will increase the abatement threshold from the current $42,700 to $60,000.
 	The abatement rate will change to 18% from the current 27%.
 	It will transform the ACC into an Agency of Comprehensive Care so that if anyone has to stop working, they will receive a minimum payment of 80% of the full-time minimum wage.




Changes to the tax system
The Green Party’s Income Guarantee will be funded through:

 	A 2.5% Wealth Tax on net assets (such as properties or shares) over the $4 million threshold for couples and $2 million for individuals. Mortgages and other debts will be deducted from the asset total. This will not affect most family homes or retirement savings.
 	A Trust Tax of 1.5% on all assets held in private trusts so people cannot move their money into a trust to avoid the Wealth Tax.
 	A new top rate of income tax of 45% on income over $180,000.
 	Raising the corporate tax rate back to 33%.





Source: Tax Full Policy Document 22 June 2023 [2][/vc_toggle][vc_toggle title="New Zealand First Party" style="arrow"]



Key policy
Details




Tax Reforms
New Zealand First will:

 	Establish a tax-free threshold of $14,000 by 1 April 2027.
 	Adjust tax brackets for inflation starting 1 April 2024, with the first adjustment taking place in 2027 and every three years thereafter.
 	Secure a Select Committee Inquiry into GST off basic fresh foods to examine if this would deliver real benefits for taxpayers before legislating for it.
 	Reinstate interest tax deductibility on rental property.




&#160;

&#160;

Business &#38; economy

&#160;

&#160;


 	Examine the feasibility of lifting the adult minimum wage to at least $25 an hour by allowing businesses a tax concession to do so.
 	Explore the feasibility of introducing a lower business tax rate for SMEs as in Australia.
 	Introduce a 100% depreciation rate for business equipment, and an agreed timeline with business, worth up to $20,000 for each item, or a higher sum for approved capital outlay.
 	Continue to streamline and simplify tax exemptions for small business.
 	Conduct a Select Committee review into the double-taxation of ‘tax like’ instruments such as GST upon rates and excise tax.
 	Amend Capital Limitation Rules in the Income Tax Act to treat seismic strengthening as “repairs and maintenance”.
 	Examine tax deductions for domestic news subscriptions, press patron subscriptions, and large corporate sponsorships of news outlets.
 	Establish a 40% refundable tax offset for eligible games developers spending at least $600,000 on qualifying NZ game development expenditure by 1 July 2024.
 	Increase the tax benefits for corporate givers when funding authorised community programmes to 50%.
 	Amend the way backdated compensation is taxed so claimants do not pay tax at a higher rate when receiving lump sum payments.
 	Undertake a Select Committee Inquiry on the introduction of an exporters tax of 20% for new business or product lines.
 	Increase the penalty framework for tax evasion.
 	Oppose a comprehensive capital gains tax.





Source: New Zealand First 2023 Commitments [3][/vc_toggle][vc_toggle title="Te Pāti Māori Party" style="arrow"]



Key policy
Details




Removal of GST from food
Te Pāti Māori are proposing to remove GST off all food.


Change income tax brackets
New tax rates from 1 July 2024.



Income tax bracket
Tax rate


$30,000 or less
0%


$30,001 and up to $60,000
15%


$60,001 and up to $90,000
33%


$90,001 and up to $180,000
39%


$180,001 and $300,000
42%


$300,001 and above
48%






Introduction of new taxes
Te Pāti Māori are proposing to introduce several new taxes.


Wealth Tax: The new tax rates will be:

 	0% Net wealth under $2million will not be taxed.
 	2% Tax rate for net wealth over $2million.
 	4% Tax rate for net wealth over $5million.
 	8% Tax rate for net wealth over $10million.
 	These rates will be less mortgages and other debts owing and will be for individuals and the combined net wealth of couples. The Net Wealth Tax will not affect most family homes or retirement savings. The tax will be payable annually and will capture capital gains accrued.

Raise the Company Tax Rate back to 33%.


Overseas Financial Transfer Tax, with the rate set at 2%. This will apply to all overseas-owned companies operating in Aotearoa and will be additional to the Company Tax Rate.


Undeveloped Land Tax, which will be payable on all land that has not begun to be developed within four years of purchase. The tax rate will be 33% of the increased land value.


Vacant House Tax, which will be payable on all properties that do not have a tenant after a six-month period. The tax rate will be 33% of the market value.



Source: Tax Policy Executive Summary July 2023 [4][/vc_toggle][vc_column_text]The tax policy proposals that have been unveiled reflect the prevailing economic circumstances and inflationary pressures affecting both individuals and businesses in New Zealand. Every main political party, except the Labour Party, is looking at changing or adjusting the existing income tax rates. Also on the radar are revisions to property tax regulations and raising corporate tax rates. Some parties are also proposing the introduction of new taxes. The full impact of the proposed tax plans and policies on taxpayers and businesses will become more apparent following the election.

If you have any questions or need advice on any of the above, please contact your local William Buck advisor [5] – we’re here to help.[/vc_column_text][vc_empty_space height="30px"][/vc_column][/vc_row]

[1] https://assets.nationbuilder.com/actnz/mailings/6681/attachments/original/ACT_Alternative_Budget_-_End_the_waste__fix_the_economy.pdf?1695252857
[2] https://assets.nationbuilder.com/beachheroes/pages/17574/attachments/original/1687385898/Tax_Full_Policy_Document_22June.pdf?1687385898
[3] https://www.nzfirst.nz/2023_policies
[4] https://www.maoriparty.org.nz/2023_tax_policy
[5] https://williambuck.com/nz/our-people/]]></content:encoded>
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						                        <title>Governance in family businesses: its critical role in nurturing success</title>
						                        <link>
						                        https://williambuck.com/nz/governance-in-family-businesses-its-critical-role-in-nurturing-success						                        </link>
						                        <pubDate>Thu, 21 Sep 2023 05:46:55 +0000</pubDate>
						                        <dc:creator>Chris Leahy</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=30382						                        </guid>
						                        <description><![CDATA[Family businesses are the engine-room of our economy, contributing significantly to job creation, innovation, and economic growth. With their strong values, long-term vision, and commitment to quality, these businesses often stand the test of time. Yet, beneath the surface of their apparent success, family businesses face many unique challenges, particularly when it comes to governance. [&#8230;]]]></description>
						                        <content:encoded><![CDATA[Family businesses are the engine-room of our economy, contributing significantly to job creation, innovation, and economic growth. With their strong values, long-term vision, and commitment to quality, these businesses often stand the test of time. Yet, beneath the surface of their apparent success, family businesses face many unique challenges, particularly when it comes to governance.

In this five-part series, we'll explore the captivating world of family businesses, highlighting why governance is not merely a buzzword but an essential ingredient in their recipe for success. We'll delve into the significance of governance structures and processes, showcasing how they help preserve the essence of family businesses while nurturing sustainable growth.
The family business advantage
Family businesses hold a distinct charm—a sense of unity, history, and purpose that is often absent in larger corporations. The founders' entrepreneurial spirit, shared values, and close-knit relationships contribute to their appeal. However, this proximity can also create complexities that require adept management. This is where governance is key.

At its core, governance in family businesses is about achieving harmony between family values and business objectives. It's about ensuring that the legacy built by one generation can be preserved, nurtured, and passed on to the next. Governance provides the framework for balancing familial bonds with the ever-evolving dynamics of entrepreneurship.
The pillars of governance
Effective governance in family businesses is akin to constructing a sturdy bridge between the family's aspirations and the company's goals. It's built on several pillars, each crucial for maintaining equilibrium:

 	Defining roles and responsibilities: One of the earliest and most vital steps in family business governance is clarifying the roles and responsibilities of family members within the business. By establishing clear boundaries, you minimise potential conflicts and ensure everyone understands their contribution to the company.
 	Establishing decision-making processes: Governance structures create a roadmap for decision-making. They delineate how important choices are made, who has authority, and how conflicts are resolved. These processes are invaluable for ensuring that decisions align with the company's strategic goals.
 	Setting up a family council: A family council is a core component of family business governance. It provides a forum for family members to discuss matters related to the business, fostering open communication and a shared vision. A well-functioning family council is a cornerstone of successful governance.
 	Creating robust policies: Governance involves creating policies that govern various aspects of the business, from employment and compensation to ownership and succession. These policies serve as a set of rules that everyone agrees to follow, ensuring fairness and transparency.

Conflict resolution and mediation
No business, family-owned or otherwise, is immune to conflicts. In family businesses, these disputes can be particularly sensitive, as they intertwine with personal relationships. Effective governance structures are designed to anticipate and address these conflicts proactively.

Family councils, for instance, provide a forum for discussing differences and finding common ground. Additionally, governance structures may involve the appointment of independent advisors or mediators who can offer unbiased guidance when disputes arise. These mechanisms help ensure that conflicts are managed in a way that preserves both family bonds and the business's bottom line.
The generational shift
The transition from one generation to the next is a defining moment for a family business. It's a pivotal juncture where governance plays a starring role in determining the company's future. Successful succession planning is contingent on clear governance structures.

In many family businesses, the next generation brings fresh perspectives, skills, and ambitions. Governance facilitates the seamless transfer of leadership and decision-making from one generation to the next. It ensures that the transition is not merely about continuity but also about innovation, growth, and relevance in a changing marketplace.

To navigate this shift effectively, family businesses often rely on professional advisors, such as accountants, lawyers, and consultants, who specialise in succession planning. These advisors can help create a comprehensive plan that addresses leadership, ownership and management transitions, preserving both the family legacy and the company's financial health.

Governance in family businesses is the silent orchestrator, ensuring that the harmony between family values and business goals remains intact. It's a delicate balancing act that requires clear structures, open communication and a commitment to preserving the legacy while embracing change.

In the ever-evolving landscape of entrepreneurship, family businesses equipped with robust governance structures have a competitive edge. They're better prepared to tackle challenges, capitalise on opportunities and chart a course for long-term success.

In the next instalment of this series, we'll explore conflict resolution and mediation in greater depth, shedding light on how effective governance can turn disputes into opportunities for growth and learning.

Please read our other articles in the series:

Article 2: The family business advantage: nurturing legacy and success [1]

Article 3: Building strong foundations: the pillars of governance in family businesses [2]

Article 4: Bridging bonds: conflict resolution and mediation in family businesses [3]

Article 5: Passing the torch: navigating the generational shift in family businesses [4]

[1] https://williambuck.com/news/business/general/the-family-business-advantage-nurturing-legacy-and-success/
[2] https://williambuck.com/news/business/general/building-strong-foundations-the-pillars-of-governance-in-family-businesses/
[3] https://williambuck.com/news/business/general/bridging-bonds-conflict-resolution-and-mediation-in-family-businesses/
[4] https://williambuck.com/news/business/general/passing-the-torch-navigating-the-generational-shift-in-family-businesses/]]></content:encoded>
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						                        <title>Large companies prepare for new business payments disclosure regime</title>
						                        <link>
						                        https://williambuck.com/nz/large-companies-prepare-for-new-business-payments-disclosure-regime						                        </link>
						                        <pubDate>Thu, 31 Aug 2023 01:29:00 +0000</pubDate>
						                        <dc:creator>William Buck</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=30188						                        </guid>
						                        <description><![CDATA[Effective 26 May 2024, large businesses will be required to publicly disclose their payment terms and how long they take to pay their bills. For small businesses, late payments and lengthy payment terms can have a negative impact on cash flow. With more certainty on business-to-business payment practices, small businesses can make informed choices about [&#8230;]]]></description>
						                        <content:encoded><![CDATA[Effective 26 May 2024, large businesses will be required to publicly disclose their payment terms and how long they take to pay their bills. For small businesses, late payments and lengthy payment terms can have a negative impact on cash flow. With more certainty on business-to-business payment practices, small businesses can make informed choices about whether to engage with certain large entities.
Who will this new regime apply to?
Under the new Business Payment Practices Act 2023, ’large’ businesses will be required to disclose certain information about their payment practices.

This will generally impact entities for which in each of the two preceding accounting periods:

 	Total assets of the entity and its subsidiaries exceeded $66 million, or the total revenue of the entity and its subsidiaries exceeded $33 million, and
 	Its total expenditure (excluding wages, salaries and goods and services supplied by related parties) was equal to or greater than $10 million.

The new system will be rolled out to the largest organisations first – those with $100 million revenue turnover.
What will need to be disclosed?
Large entities will need to make disclosures on certain business-to-business payment practices every six months to a government-appointed Business Payment Practices Register. This information will be publicly available.

Relevant entities will be required to disclose information on:

 	Invoices received or paid in full or in part by the entity or its subsidiary during the reporting period. For example, this will cover information about the proportion of invoices paid in full and the time taken to pay invoices, and
 	Invoices issued by the entity or its subsidiary during that period, and
 	Any other information required about the entity’s payment practices during that period.

If an invoice allows payment by instalments on certain dates, each instalment will be treated as a separate invoice.

However, information won’t be required for invoices or payments for salary or wages to an employee or office holders; income tax, goods and services tax, or any other form of tax; rent or a lease, and/or charges for utilities and local body rates.

Entities will also be required to disclose identifying information, including their legal and trading names, registered addresses, their NZBN and industry classification.

A director or person occupying an authorised position will be required to sign off the disclosure to confirm the information is compliant and accurate.

Payment practices information will be removed from the register after seven years from the disclosure date. However, any information that relates to an individual may be omitted or removed if the Registrar considers that public access to that information would be likely to prejudice their privacy or personal safety.
What are the consequences of non-compliance?
A compliance notice may be issued if a business fails to comply with the disclosure obligations. Failure to comply or providing false or misleading information may see the business liable for infringement fees and penalties. Penalties of up to $50,000 can be handed down to an individual and up to $500,000 for an entity.

If you have any questions about the new business-to-business payment disclosures or need assistance with the design of the disclosure requirements or registering with the Register, please contact one of our advisors. [1] We are here to help.

[1] https://williambuck.com/nz/our-people/]]></content:encoded>
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						                        <title>Business lessons from the turnaround of Australian entertainment giant Foxtel</title>
						                        <link>
						                        https://williambuck.com/nz/business-lessons-from-the-turnaround-of-australian-entertainment-giant-foxtel						                        </link>
						                        <pubDate>Mon, 31 Jul 2023 02:47:05 +0000</pubDate>
						                        <dc:creator>Kyle Wathen</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=29831						                        </guid>
						                        <description><![CDATA[Disruption The Foxtel IQ product was world leading technology throughout the 2000s. However, Foxtel faced allegations in 2015 of rushing out new boxes to customers to counter the threat of Netflix to its business. Foxtel (and many others) failed to identify early enough the threat of new entrants with new technology (streaming) that could completely [&#8230;]]]></description>
						                        <content:encoded><![CDATA[Disruption
The Foxtel IQ product was world leading technology throughout the 2000s. However, Foxtel faced allegations in 2015 of rushing out new boxes to customers to counter the threat of Netflix to its business. Foxtel (and many others) failed to identify early enough the threat of new entrants with new technology (streaming) that could completely transform the market away from lineal distribution channels for entertainment into the multi-channel world we live in today.

As a business owner, it’s important to not only monitor the market to adapt to disruptors, but ask yourself how could I be the disruptor? Strategic business planning can help you to quickly identify shifts in the market and act accordingly to maintain market position and capitalise on opportunities before your competitors.
Business planning - zero basing your business
Business planning provides a framework to effectively address the challenges facing businesses. By starting with a well-designed plan, companies can strategically navigate the turnaround process, improve performance and increase the chances of long-term success.

 	Assessing the current state: Foxtel conducted a comprehensive analysis of its operations, financial performance, market trends and customer feedback to gain a clear understanding of the challenges and areas that required improvement.
 	Realigning the business model: Foxtel identified the need to adapt its business model to the changing media landscape. This included diversifying its offerings, embracing streaming services, exploring digital distribution channels and introducing new content formats to meet evolving customer preferences.
 	Cost optimisation and efficiency: Foxtel identified that its traditional business model had a limited lifespan and the cost to acquire new customers was capital intensive. It needed to diversify its revenue streams.
 	Customer-centric approach: Foxtel deep dived to understand its customer base, their preferences, and emerging trends. Through this, the company could tailor its offerings and customer experience to better meet the evolving demands of its target audience. This included launching new services such as Kayo and Binge.
 	Embracing technology and innovation: Initially, Foxtel was slow to adopt innovative technologies to enhance its content delivery, user experience and operational efficiency. However, through strategic planning, it invested in streaming platforms, advanced analytics for personalised recommendations and digital marketing strategies to reach a wider audience.
 	Strategic partnerships and acquisitions: Foxtel identified the need to pursue strategic partnerships and acquisitions to access new markets, gain competitive advantages and expand its content library.

Undertaking a regular business planning process is critical for startups through to mature companies. Following this, you must have a system in place to maintain accountability and ensure your key goals are actioned – this process is often overseen by an independent advisory board.
Crisis stabilisation
The urgency of Foxtel’s turnaround was increased by the emergence of COVID-19. One of the direct impacts on Foxtel’s business was that no live sport could be played during the initial wave of lockdowns. Foxtel had to move quickly to protect cash flows needed to survive and it did so by gifting movie packages to sports subscribers to reduce cancellations.

The most likely cause of failure by a small business is running out of cash and not being able to pay critical costs such as wages and rent. Accurate three-way forecasting (Profit and Loss, Balance Sheet and Cashflow) is crucial to assessing the critical payments, when they fall due, what assets are available to meet the payments and whether a funding shortfall exists. Without this knowledge, it would be impossible to implement any kind of strategy to counteract the crisis.
Management shakeup
Culture. Perhaps one of the most critical elements that can transform an organisation.

Initiating internal disruption within a company necessitates a cultural transformation and Foxtel CEO Patrick Delany took inspiration from other disruptors by operating in a distinct office environment (Fox Sports), separate from the one that had nurtured a culture of complacency at Foxtel HQ.

For leaders, it’s crucial to surround yourself with high performers. A well-crafted remuneration strategy holds the power to not only attract, retain, and motivate employees but critically drive them to achieve the strategic goals and objectives for your business.

An effective reward system goes beyond monetary payment. To align employees with organisational goals, consideration should be given to structuring a remuneration strategy that encompasses:

 	Base compensation
 	Short-term and long-term incentives, and
 	Non-monetary benefits or rewards.

Financial restructure
At the time of its turnaround, Foxtel was part of the News Corp empire and could rely on related party support to fund the process. As an SME business owner, it’s unlikely you’ll have this type of funding available. Considerations for SMEs when undertaking a financial restructure include:

 	Resisting unreasonable requests from creditors for funding support in short-term. The granting of unreasonable security may conflict with your duties as an owner/director to consider the interests of all stakeholders.
 	Any financing obtained should include an exit plan. Typical short-term financing options such as debtor factoring can be expensive, so should only be used to execute a turnaround plan and return a business to sustainability.
 	Can a balance sheet deficiency be addressed by future trading profits or does a more drastic restructuring need to occur via a Deed of Company Arrangement or the Small Business Restructuring regime.

Foxtel’s turnaround is a great success story. Importantly, the strategies highlighted above can be applied to almost any SME to improve its performance and add value. To discuss strategies to turn your business around, please reach out to your local William Buck Advisor. [1]

[1] https://williambuck.com/our-people/]]></content:encoded>
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						                        <title>Supply chain management: prepare for disruption to stay on track</title>
						                        <link>
						                        https://williambuck.com/nz/supply-chain-management-prepare-for-disruption						                        </link>
						                        <pubDate>Thu, 13 Jul 2023 05:48:29 +0000</pubDate>
						                        <dc:creator>William Buck</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=29642						                        </guid>
						                        <description><![CDATA[Geopolitical tensions, shipping delays and rising freight costs are compounding the bleak global supply chain situation – which remains marred by issues that emerged during the pandemic, including labor shortages and shifts in demand. As a business owner, you might feel that there is little you can do to mitigate the impacts of supply chain [&#8230;]]]></description>
						                        <content:encoded><![CDATA[Geopolitical tensions, shipping delays and rising freight costs are compounding the bleak global supply chain situation – which remains marred by issues that emerged during the pandemic, including labor shortages and shifts in demand.

As a business owner, you might feel that there is little you can do to mitigate the impacts of supply chain disruption, besides looking into other suppliers. Luckily, that’s not the case, and here we explore some strategies you can implement to stay on track and even reposition your business for growth.
Issues with suppliers
Unreliable suppliers can be a major cause of contention for your business. They might be chronically late with deliveries, providing incorrect paperwork or simply not providing the stock you require. To help ensure your business is not dealing with risky suppliers and that you can continue to source resourced and meet customer needs into the future, you should include a thorough review of your existing suppliers. In fact, you should review your business-critical suppliers regularly – perhaps yearly to begin with.

You should also conduct a review as required if you are having issues with your supplier.

Some common red flags that could trigger a review of your supplier are:

 	Late deliveries or under supply
 	A reduction in the quality of goods and/or services
 	Material changes in terms and conditions
 	High staff turnover
 	Your supplier changing its own suppliers such as transport company.

Strategies to help alleviate issues
A contract: to alleviate issues and misunderstanding of terms and obligations, it’s imperative you have a formalised contract with your suppliers that stipulates the terms under which you will trade and obligations of both parties. Such stipulations could include: time to provision of supply from order, standard and quality of the goods and services and minimum stock on hand that they need to hold for you.

Alternate supplier/suppliers: have an alternate supplier as backup. This supplier should have enough capacity to maintain the needs of your business in the short term and even in the long term – should you need to replace a current supplier.

Extra stock: ensure you always have sufficient extra stock on hand, buying you time to find an alternate provider should you need to.

Digitising supply chain management: Implementing IT programs with end-to-end supply chain transparency and real time order monitoring will ensure you can track inventory and spending, and whether your suppliers are delivering on time and meeting their obligations. This extra visibility can uncover problem areas for you to address and help you to redirect your investments where needed.

Evaluate worst case scenarios: Run simulations that will enable you to predict how your business will react to and overcome certain disruptions.
Issues with customers
When your customers aren’t paying you, this can cause an impact on your supply chain, particularly if you’re then unable to pay your suppliers. Strategies that provide varying levels of protection include:

 	Having a rigorous accounts receivable function
 	Seeking personal guarantees from a director or directors of a business customer
 	Placing a Personal Properties Security Act charge over your customer for goods and services provided
 	Understanding the ability to exercise a lien if applicable, and
 	Taking out debtor insurance.

While we can’t control supply chain disruptions, we can certainly prepare for them by maximising visibility over your supply chain, having strategies in place to mitigate risks with and addressing warning signs as and when they occur.

Contact your local William Buck advisor in Australia [1] or New Zealand [2] if you’d like assistance with reviewing your supply chain and / or developing risk mitigation strategies that align with your business plan.

[1] https://williambuck.com/our-people/
[2] https://williambuck.com/nz/]]></content:encoded>
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						                        <title>Staffing your practice &#8211; are they employees or contractors?</title>
						                        <link>
						                        https://williambuck.com/nz/staffing-your-practice-are-they-employees-or-contractors						                        </link>
						                        <pubDate>Mon, 29 May 2023 23:00:19 +0000</pubDate>
						                        <dc:creator>Courtney West</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=29098						                        </guid>
						                        <description><![CDATA[Article first published in the New Zealand Dental Association (NZDA) News Vol. 212 March 2023. Owning a clinic usually means you will have people working for you, and it is important you can distinguish between whether they do so as employees or independent contractors. Last October, the New Zealand Employment Court ruled against Uber in [&#8230;]]]></description>
						                        <content:encoded><![CDATA[Article first published in the New Zealand Dental Association (NZDA) News Vol. 212 March 2023.

Owning a clinic usually means you will have people working for you, and it is important you can distinguish between whether they do so as employees or independent contractors.

Last October, the New Zealand Employment Court ruled against Uber in what may be a landmark case, determining four of their drivers to be classed as employees rather than independent contractors. This means that they are entitled to the rights and protections of employees which they had not been subject to as independent contractors. This has returned the spotlight to the debate of having employees or independent contractors.

It may not be as simple or as obvious to define as you may think. It is an important distinction to make however as the rights and obligations for both you and the employee or independent contractor are very different. The obligations you have to employees are much greater as an employer compared to those you have towards an independent contractor.

Employees are granted protection under employment laws such as the Employment Relations Act 2000, Minimum Wages Act 1983, and the Holidays Act 2003. This affords them entitlements to holidays, sick, bereavement, and parental leave and safeguards against minimum wages and salaries. It also ensures that they have recourse to pursue grievances for unfair dismissal or treatment during their employment.

Independent contractors are not covered by these laws and as such are not afforded these entitlements. They are generally covered under common law and therefore rely upon the terms set out in their contract for services or independent contractor agreement.

From a tax perspective, the treatment of employees vs independent contractors impacts all of those involved as it varies between the two.
Tax deductions
It is the responsibility of the employer to make PAYE and any other payroll deductions from employees’ salary or wages and ensure these are paid to the Inland Revenue. The employer must also file all payroll reports.

Independent contractors are responsible for declaring their own income and making income tax payments to the Inland Revenue. However, they can elect into schedular payments, subject to withholding tax deductions which the clinic is then also responsible for deducting and declaring to the Inland Revenue.
Goods and Services Tax (GST)
Payments made to employees are not subject to GST so employers cannot make a GST claim on these costs.

Independent contractors can register for and charge GST, which the payer can then claim back.
Claiming expenses
Generally, employees are not entitled to claim deductions against their income for employment-related expenditure, although some may be reimbursed by their employer.

Independent contractors can claim deductions for business related expenses they incur.
Accident Compensation Corporation (ACC) levies
Employees pay this as part of the PAYE income tax that employers must deduct and pay to the Inland Revenue on their behalf.

Independent contractors are invoiced the levies directly from ACC and are responsible for making payments themselves.

If you are an employer, you hold significantly higher obligations and responsibilities on behalf of your employees, compared to what is required of you on behalf of independent contractors.

It is also clear that it impacts both sides in the working arrangement. It is in both parties’ interests to make the distinction between employee or independent contractor clear so that each party knows what their rights and responsibilities are.
The tests
Simply having an employment agreement or contract for services in place does not draw a definitive line in the sand as to what type of employment relationship there is. While they are a starting point when determining the employment relationship, they can be overturned in light of the real nature of the relationship.

When determining if someone is an employee or independent contractor, there are four main tests that have been developed by Inland Revenue and are applied by the courts to determine what the actual relationship is between the two parties.

1. Control test

What control does the dental clinic exert over the independent contractor or employee?

An employer would usually be in control of what the employee does, including their hours of work and how that work is done. The more control exerted, the more likely the relationship will be seen as that of employer and employee.

Employees tend to have a regimented set of hours and days to be at work and have little control over the tasks they need to perform. Independent contractors however have more freedom to set their working schedules and tend to require less supervision.

In the Uber ruling, an important factor was the control Uber had over the particular times drivers had to work and how drivers were motivated or incentivised. While the drivers were not required to work specific hours, it was determined that not working meant they had less access to information around passenger journeys which impacted their ability to earn money when they were working.

2. Integration into the organisation test

This test looks at whether the work performed by the employee is integral to the employer’s business. A person is more likely to be considered an employee of the organisation if the work is continuous and for the benefit of the business rather than for the benefit of the person undertaking the work.

In a typical employer-employee scenario, the employer would usually provide all of the necessary tools and equipment required for the employee to undertake his or her work tasks. Any work-related expenses would usually be reimbursed or paid for by the employer (i.e. an employer may cover the employee’s annual registration costs or training costs).

Whereas an independent contractor would be left to cover their own costs as this would form part of their business operations including supplying their own tools and specialist equipment where appropriate.

Employees are typically paid an hourly wage or salary regardless of their output (i.e., the number of patients they see), compared with independent contractors whose payments are dependent on results—for instance a commission percentage of the patients they see.

“In whose interest is the work done?” was the main question raised in the Uber case when assessing the extent of the drivers’ integration into the business. This removed the focus from the fact the drivers were providing their own equipment—vehicles.

3. Intention test

A written agreement between the parties can clearly lay out their intentions. The description given in the agreement can be a strong indication of what is intended but is not conclusive. The actual behaviour of both parties cannot contradict this description.

If the written contract labels one of the parties as an independent contractor but the way they are treated by the dental practice is no different to the other employees, then this can negate what is in the written agreement.

The Employment Court highlighted in the Uber case the importance of the practical relationship between the parties over how it was described in the contract.

4. Economic reality (also referred to as ‘The Fundamental Test’)

Is the independent contractor carrying out a business separate from the dental practice? This can easily confirm the intention test, by looking at how both the dental practice and the contractor are operating. An independent contractor is someone in business on their own account. Some factors that would be taken into consideration include:

 	What expenses are they paying for (i.e., an NZDA membership, business insurance, managing and paying their own taxes)?
 	Are invoices for work being generated for payment to the contractor?
 	Is GST being charged and accounted back to the Inland Revenue?
 	Are they free to take up subsequent contracts for other dental clinics or does their contract prevent this?
 	Lastly, what is common practice in the industry? How the industry operates in real terms is also reviewed and taken into consideration when making a determination.

While the Uber case is important and will hold influence in future employment court decisions, it does not mean that all independent contractors are now deemed to be employees. It is not the first case where the courts have found in favour of employee status over that of being seen as an independent contractor. There are also Working Groups tasked with making a recommendation that clarifies the definition of ‘employee’ to the Government.

Case law has shown the courts will look at the whole picture rather than any specific test when making a determination.
Impacts of getting it wrong
If an employee has been incorrectly defined as an independent contractor, there can be significant monetary implications as the benefits afforded to employees can be back dated. This means that as an employer, you could be liable for the payments of leave, minimum wage, KiwiSaver contributions, and PAYE from the start of your employees employment.
How should your practice protect itself?
Practice owners and dentists should have a clear and agreed understanding of the proposed working relationship. This should be clearly documented to show the ’intention’ of both parties. How each party acts or performs going forward should be consistent with what is agreed to in the document. If the dentist is an ‘independent contractor’ they need to operate as a separate business owner, be registered for GST, pay their own taxes, carry their own business insurance, and provide their own equipment where applicable.

With the Uber case putting the spotlight on the employee vs independent contractor debate, it’s a good time to review the contracts you have in place and review what is actually happening in your practice to see if anything is being contradicted. It’s important you seek professional advice if you are unsure about any of the contracts you have.
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						                        <title>Financing your business for growth</title>
						                        <link>
						                        https://williambuck.com/nz/financing-your-business-for-growth						                        </link>
						                        <pubDate>Fri, 21 Apr 2023 01:24:55 +0000</pubDate>
						                        <dc:creator>Brian Cao</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=28395						                        </guid>
						                        <description><![CDATA[When it comes to financing your business for growth, you generally have two options; either you use your own funds, or you look at external options to provide additional debt or equity into the business. We consider your options below. Funding through equity or debt If you don’t want the complexities that come with spending [&#8230;]]]></description>
						                        <content:encoded><![CDATA[When it comes to financing your business for growth, you generally have two options; either you use your own funds, or you look at external options to provide additional debt or equity into the business. We consider your options below.
Funding through equity or debt
If you don’t want the complexities that come with spending other people’s money, then you will need to provide the extra funding the business requires. This can come from your savings, or you may borrow from family. The advantage here is that you have complete control over your business, and you retain equity.

You could also borrow personally either by extending your mortgage or taking a personal loan. This can then be advanced to the business. A personal loan will probably come with a lower interest rate, as it is likely the bank will secure the lending against your personal assets.

From an equity perspective, additional capital for the business could be sourced through new investors - from angel investors, private equity, or venture capital.

 	Angel investors typically assume a greater risk than other funders, with the expectation of a high return. They often invest at an early stage of a business’s development compared to venture capitalists.
 	Private equity investors actively seek to enhance a business’s profitability and operations and seek a profitable exit through either a sale or public listing.
 	Venture capital investors, a form of private equity, provide funding together with a strategic focus to the business.

Financing growth by introducing more owners will dilute your equity in the business. New owners may also want to have a say in how the business operates. They may want to be actively involved in the day-to-day management of the business or be part of the governance and sit on a board of directors. Additionally, there is an increased potential for conflict among investors. All of these issues need consideration when looking at additional investors.
Financing through a bank or non-bank lender
Another option is the business obtaining a loan from a bank or non-bank lenders. The Five Cs of Credit (capital, capacity, collateral, character and conditions) have traditionally been used by bank lenders to determine if a potential borrower is capable of servicing and repaying a loan.

Many time-poor business owners lack the resources to thoroughly research all available funding options and, as a result, they often turn to banks. However, if unsuccessful, they may resort to personal finances without realising there are alternative funding options available to them.

Non-bank lenders tend to be more specialised, flexible, and willing to take on different level of risks. They also tend to finance for certain requirements, with options including invoice finance, trade finance, and equipment finance.

While equity and debt are the main funding streams for a business, you should not overlook other funding sources.
Crowd-sourced funding
Crowdfunding or crowd-sourced funding for example is a funding source popular in certain sectors including tech. Crowd-sourced funding is whereby a business raises money from a crowd of investors through a licensed online platform. One benefit is that you don’t necessarily need to relinquish equity or take on debt. There are different types of crowd-sourced funding models that vary in what the business provides in exchange for funds. Funds can even be given as a donation or in exchange for goods or services. The most common model is equity-based crowd-sourced funding through which a company issues shares to a crowd of investors in exchange for their funds and in return, the investors gain part ownership of the business.
Employee buy-in
Allowing an employee, or employees to buy into the business could be part of an effective succession plan. It is important to consider this person or people closely to make sure in addition to accepting their financial contribution, you can work effectively with them as part of a team. If they do not work out as a business partner, unwinding the arrangement could be difficult and unsettling for the business.
Grants and incentives
Another source worth exploring is whether there are any grants available from government agencies that could fund growth, exporting or research and development. Grants can be a good source of funding for businesses that meet the criteria, but the application process can be time-consuming and competitive. Using professional assistance when accessing grants will increase your chances of being approved.

Ensuring your business is properly financed is critical to growing your business. Business owners need to have a clear understanding of the most suitable option based on their business stage, industry, business model, and financial requirement.

If you would like assistance in funding your business for growth, please contact your local William Buck Business Advisor. [1]

[1] https://williambuck.com/our-people/]]></content:encoded>
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						                        <title>Monitoring your business performance: tips on setting KPIs and remaining accountable</title>
						                        <link>
						                        https://williambuck.com/nz/monitoring-your-business-performance-tips-on-setting-kpis-and-remaining-accountable						                        </link>
						                        <pubDate>Tue, 04 Apr 2023 01:55:41 +0000</pubDate>
						                        <dc:creator>Gil Abras</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=28110						                        </guid>
						                        <description><![CDATA[Business owners are often occupied with the operational requirements of running a business and as a result, fail to put the required effort and focus into strategic tasks such as monitoring business performance. This is despite often putting effort into developing key performance indicators (KPIs), budgets and targets at the beginning of the financial year. [&#8230;]]]></description>
						                        <content:encoded><![CDATA[Business owners are often occupied with the operational requirements of running a business and as a result, fail to put the required effort and focus into strategic tasks such as monitoring business performance. This is despite often putting effort into developing key performance indicators (KPIs), budgets and targets at the beginning of the financial year. With the new financial year, it’s a great time to consider reviewing the way you develop your targets so that they’re measurable, will drive growth, and can be easily monitored throughout the year.

Setting up a complex set of monthly reporting metrics might be tempting, however if reviewing these metrics is too time consuming, chances are you and your team will abandon the process quickly. Keep your metrics simple initially to get everyone used to the process. Then, add new items as necessary. You’re far better off regularly monitoring a simple set of KPI and reports rather than not reviewing anything at all. Start with simple but critical KPIs which are specific, measurable and quantifiable, and track your progress against these first.

What metrics could you consider?

Below are some examples of key performance metrics for revenue, growth, productivity and cashflow. Start by thinking what metrics indicate your business is performing well. Once you’ve identified these and tracked them for some time, you’ll have a benchmark against which to set targets.

Revenue: Monitor your sales and/or income for a period – whether that’s monthly, quarterly, etc – against your budget, against last period and against the same period last year (year-on-year). You could consider breaking the revenue targets by key product groupings or explore the KPI further later on by reporting sales by division, location or even currency.

Growth: Monitor movements in number of clients for a period against targets. Or, if more appropriate, you could measure dollars spent by clients for the period and compare with your target as well as the spend last period and the spend that occurred year-on-year.

Productivity/efficiency: A good indication of productivity is to measure your employees hours (measure of input) against fees issued or items produced (measure of output). This of course depends on the industry you operate in.

Cashflow and working capital: Monitor your debtors days, creditor days, and stock turnover. There are many KPIs that fit into this category subject to the industry you operate in, but the main point is to monitor the items that affect your cashflow the most.

Most accounting software, including Xero, Quickbooks, Netsuite and Reckon, can produce reports against your KPIs with little effort, saving an enormous amount of your time. In fact, a lot of financial KPIs are already built into these programs.

Sharing the task and increasing accountability

If you are the only one in your organisation tasked with preparing and reviewing your reports, you might find yourself skipping this task due to the general operation of the business taking precedence. It is often a good idea to share the task and include management or other team members. Bringing staff and management along this journey has been proven to increase engagement and morale. They will also gain a better understanding of the business which means they’re better placed to support the business in achieving its strategic goals.

To ensure consistency with your reviews, you could set fixed and regular times in the diary for this process. For example, set the second Wednesday of every month at 4pm to present and review your reports. Invite others to attend the meeting. You can invite members of your team and external parties such as your accountant, shareholder, business partners, etc. This will increase the amount of feedback and enable more diverse feedback from those with different skillsets.

In summary, as the old saying goes, “What gets measured, gets managed”. If you’re tracking your progress consistently against key performance indicators and measuring your spending against budgets and cashflow forecasts, you’re better able to identify discrepancies and manage outcomes.

For more information on setting measures that matter, contact your local William Buck Business Advisor in Australia [1] or New Zealand [2].

[1] https://williambuck.com/our-people/
[2] https://williambuck.com/nz/our-people/]]></content:encoded>
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						                        <title>How can I achieve a 3-day month-end?</title>
						                        <link>
						                        https://williambuck.com/nz/how-can-i-achieve-3-day-month-end						                        </link>
						                        <pubDate>Mon, 13 Mar 2023 23:29:53 +0000</pubDate>
						                        <dc:creator>Cameron Martin</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=27646						                        </guid>
						                        <description><![CDATA[As a CFO, the buck stops with you to ensure the month-end close is efficient and as timely as possible. More and more, we’re seeing CFOs and their finance teams struggling with the month-end close, which then becomes an arduous process that creates significant pressure. This is particularly the case in companies with outdated or [&#8230;]]]></description>
						                        <content:encoded><![CDATA[As a CFO, the buck stops with you to ensure the month-end close is efficient and as timely as possible. More and more, we’re seeing CFOs and their finance teams struggling with the month-end close, which then becomes an arduous process that creates significant pressure. This is particularly the case in companies with outdated or inefficient processes. Our experts in CFO services have collated a list of best practice processes to streamline your month-end close, and ensure your numbers are reliable and accurate. If implemented correctly, these strategies will reduce the time it takes to process any month end accounting adjustments and finalise management reports to just three days.
Common month end activities
Processes that commonly make up the month-end close include:

 	Accruals and prepayments
 	Updating Fixed Asset Register and posting depreciation
 	Reconciliation of balance sheet items
 	Posting journals for payroll, income recognition, etc, and,
 	Preparation of month end reports.

Your business might be efficient at some of these processes but lagging with others, so it’s important to assess your month-end and consider where you need to improve.

To do this, ask yourself:

 	How long is it taking you to close each month?
 	How efficient is the process?
 	What are your pain points?
 	Are you waiting for other parts of the business so you can close?
 	How much time are you spending in Excel?

Benefit of a quick month end
The main advantage of reducing your month-end close to three days is that key decision makers have the information needed to make effective decisions sooner. Decisions are made faster and are based on timely information. Information that comes in later than three days can be outdated and either irrelevant or ineffective at supporting good decisions.

Another benefit is that it frees up the finance team to undertake analysis on the month-end results and make recommendations to management. It also enables other business units to maintain focus on their day-to-day as opposed to pulling information together for the finance team.

Importantly, it can also take off some of the heat. If your staff are anticipating a long and inefficient process, they’ll likely experience some stress which could impact their performance. On the other hand, if they’re looking forward to a streamlined process, their morale is probably going to be higher, their performance better – and you might even find staff are taking less sick days around month-end.
How to prevent bottlenecks
When talking with our CFO clients, we’re commonly told that they’ve already reduced their month-end process to as few days as possible. And this is often from clients that are closing in 14 days. In our experience, there is no reason why the month-end close can’t be reduced to three days. Here we discuss some common bottlenecks and how to overcome them:

Delays to invoices being issues and received

This is one of the most common impediments to reducing the month-end process. If the business is still invoicing customers on day five or day six, the finance team can’t even begin the close.

Communicate with the entire business that this makes a big impact, not only on month-end but cash flow. Getting paid faster improves cash flow and frees up the admin team from constantly chasing customers. Implement a process whereby invoices are issued immediately. If your invoices are currently issued at day 10, transitioning from this to issuing immediately will be difficult. You should do this over the course of a few months, perhaps even a year, making the process tighter each month and communicating that immediate invoicing is the end goal.

Similarly, supplier invoices should be in prior to month end. In most cases, you should be able to communicate to your supplier why this is important, and they will accommodate. If not, you could look at accruing those expenses, particularly if you have a reasonably good idea of their amounts.

Delayed credit card statements

This is another common bottleneck. We suggest using expense management software. This allows those that are key in the business and spending money on their credit cards to tell you what those expenses are during the month.

Time pressure at month-end 

Our suggestion here is to consider the tasks that you could undertake earlier in the month. For example, if you’re doing a month-end creditors run and you’re paying them on the end of the month, bring that forward until the 24th or 25th. You can still date the payments on the final day of the month for cash flow purposes, but there’s no reason why you can’t complete the majority of this task a little earlier.

Producing the report pack is time consuming

Consider using a monthly template. There’s myriad software available to produce the report pack. If this doesn’t interest you, you can still build a template into Excel. If you’re providing commentary on variances or other areas of the report, make these notes throughout the month. Finally, talk to the users of the reports and find out exactly what they need. We regularly see clients producing 20 or 30 pages, half of which are unnecessary as no one uses this information.

Other bottlenecks and their solutions include:

 	Month end journals not completed on time: Enter your journals during the month, or better yet, automate them.
 	Incomplete payroll entries: Enter during the month and send reminders to staff.
 	Inventory: stocktake during the month and adjust at the end
 	Bank reconciliation: Continuous bank reconciliations will prevent build up
 	Revenue recognition: Estimate WIP and income in advance.

Change management
Achieving the holy grail doesn’t happen without a good deal of change management. As a CFO, you will need to lead the execution of a change management program and follow the steps below to effectively achieve change:

Identify: First, you need to identify and understand the change required. This includes the bottlenecks mentioned above that might cause your close to be inefficient.

Prepare: The next step is to prepare your organisation for change. It’s critical that you communicate to the business that it’s a business-wide project rather than a finance project. Each business unit needs to understand the purpose of this change and their role in the process for it to occur effectively.

Plan: Once you’ve prepared the organisation, you need to set the scope for the project and determine how its success will be measured.  This includes setting KPIs for different business units.

Evaluate: Test the processes. Its key here to ensure communication between different business units and management. We need to ascertain whether the steps we’re going to implement to drive change will actually work.

Armed with our top strategies for reducing the month-end close and critical steps to follow to achieve the change, we hope you can begin the process and alleviate some unnecessary stress at month-end.

William Buck recognises that the rapid evolution of the CFO mandate has left resources within the finance function of many organisations stretched to capacity. Subsequently, we have developed a full range of specialist services covering all CFO and finance function competencies. For tailored advice, contact William Buck [1], and visit our CFO services page [2] to find out the other ways in which we can help.

[1] https://williambuck.com/nz/our-people/
[2] https://williambuck.com/nz/services/business-advisory/virtual-finance-management/]]></content:encoded>
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						                        <title>Is your internal finance function stretched to capacity?</title>
						                        <link>
						                        https://williambuck.com/nz/is-your-internal-finance-function-stretched-to-capacity						                        </link>
						                        <pubDate>Wed, 01 Mar 2023 05:15:45 +0000</pubDate>
						                        <dc:creator>Nick Kenny</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=27459						                        </guid>
						                        <description><![CDATA[Several factors have combined to leave many internal finance functions stretched to capacity. These include rising costs, a deep skills shortage, and rapid evolution of the CFO mandate to include functions such as risk, governance and HR. The good news is, there are outsourced Virtual CFO options that can be engaged on a project basis [&#8230;]]]></description>
						                        <content:encoded><![CDATA[Several factors have combined to leave many internal finance functions stretched to capacity. These include rising costs, a deep skills shortage, and rapid evolution of the CFO mandate to include functions such as risk, governance and HR. The good news is, there are outsourced Virtual CFO options that can be engaged on a project basis or in more of a permanent capacity to close gaps and provide your business with access to valuable skills and expertise that can deliver measurable benefits across the internal finance function.
The Virtual CFO is one of these cost-effective options.
In today’s environment of rising costs and higher interest rates, businesses need to be mindful of keeping overheads as low as possible. This is driving a trend for Australia’s small to medium enterprises (SMEs) to engage a Virtual CFO – a finance professional who performs the role of a traditional Chief Financial Officer, or fills specific requirements, though on a contractual rather than full-time basis, often with services delivered remotely.

While many startups and SMEs, particularly those in their scaling phase, cannot afford a permanent CFO, the majority are in dire need of their skills. Indeed, a virtual CFO often fills a skills gap that exists across many SMEs and this is where the appeal of a Virtual CFO lies. It gives a business the ability to tap into the expertise of an experienced CFO on an ‘as-needed’ basis.

This makes a Virtual CFO, also known as a VCFO, a highly affordable resource, and the experience and insights of a VCFO can deliver a variety of benefits across the business including developing strategy and making key decisions. When it comes to your business’s internal finance function, a Virtual CFO can play a critical role.

Here we look at four key areas where a VCFO can add value to your internal finance function.

 	Review of current processes and resources
Business owners are often too close to their enterprise, or are simply too time-poor, to undertake meaningful analysis of their current teams, processes followed, and the availability of resources.A VCFO can recognise whether your team is under-resourced, which can lead to employee burnout and high rates of turnover. Conversely, analysis may reveal your team is over-resourced, which can mean you’re incurring unnecessary costs.In a similar vein, a VCFO can identify bottlenecks and inefficiencies, subsequently developing a plan to eliminate waste to provide actionable insights on how your finance team is interacting with other business units.
 	Provide best practice solutions
By drawing on their wealth of experience, a Virtual CFO can suggest best-of-breed technology-based solutions to eliminate a range of possible roadblocks that can slow the finance function.Potential solutions may include automating the flow of information between systems and software, strategies to implement a 3-day month-end close [1], and more efficient ways to collate data from multiple sources. The result is more timely financial information, allowing business owners to make critical decisions faster.
 	Setting meaningful financial and non-financial KPIs
A Virtual CFO will be able to work with your finance and operations teams to set financial and non-financial KPIs that will allow the business owner to measure their business performance. The KPIs should provide insight on the future performance of your business (i.e., lead indicators) and of its past performance (i.e., lag indicators).A Virtual CFO will be able to include the businesses performance against the KPIs as part of the reporting process of the business.
 	Education and training
Upskilling your team is a worthwhile investment – one that gives your business the benefit of high-quality talent leading to better risk management, greater understanding of growth-generating strategies and the skills to navigate future growth. Demonstrating that you value your team through supporting them with ongoing training and development has also shown to greatly improve retention rates.A VCFO can be an outstanding resource, one that SMEs can leverage through education, training and ongoing mentorship to help their finance team reach their full potential. A Virtual CFO can also be tasked with assisting and mentoring permanent staff with their technical development.

The best of both worlds

The upshot is that a Virtual CFO offers the best of both worlds – the financial acumen and experience that all SMEs can benefit from, at a fraction of the cost of a permanent CFO.

If you would like more information on William Buck’s Virtual CFO service and how it can help your business reach its goals, please contact your local William Buck Business Advisor in Australia [2] or New Zealand [3].

[1] https://williambuck.com/news/business/general/how-can-i-achieve-a-3-day-month-end/
[2] https://williambuck.com/our-people/
[3] https://williambuck.com/nz/our-people/]]></content:encoded>
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						                        <title>Darren Wright new Managing Director for William Buck New Zealand</title>
						                        <link>
						                        https://williambuck.com/nz/darren-wright-new-managing-director-for-william-buck-new-zealand						                        </link>
						                        <pubDate>Fri, 27 Jan 2023 01:55:00 +0000</pubDate>
						                        <dc:creator>William Buck</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=27028						                        </guid>
						                        <description><![CDATA[Pictured L to R: Darren Wright and Clyde Young. We are pleased to announce that Darren Wright will be assuming the position of NZ Managing Director (MD) from January 2023, taking over from outgoing MD, Clyde Young. Under Clyde’s leadership, which has spanned six years, the firm has experienced significant growth in turnover, growth in [&#8230;]]]></description>
						                        <content:encoded><![CDATA[Pictured L to R: Darren Wright and Clyde Young.

We are pleased to announce that Darren Wright [1] will be assuming the position of NZ Managing Director (MD) from January 2023, taking over from outgoing MD, Clyde Young.

Under Clyde’s leadership, which has spanned six years, the firm has experienced significant growth in turnover, growth in staff and director numbers to over 100 and 15 respectively, growth in our client base across various industries and services and the establishment of an office and team in Tauranga. Clyde will continue working with clients as a director in our Business Advisory team before transitioning into retirement at the end of this year after 33 years with the firm.

Darren continues as a director in our Audit and Assurance team, in addition to his new role as Managing Director.

Darren has been with William Buck for 13 years and believes in open communication and ‘rolling up the sleeves’ at work. In audit and assurance, he has worked with clients in a variety of industries, from not-for-profit organisations to some of New Zealand’s largest public companies. Prior to joining William Buck, he worked for several years as a business coach, where he gained a strong understanding of businesses and industries through the eyes of a business owner.

When announcing the appointment, Clyde said Darren’s desire for success and his competitive nature that pushes him forward to achieve and accomplish his goals makes him a natural choice to lead William Buck New Zealand.

“I am certain Darren will work hard to get the firm to its next milestone and I wish him all the best in the MD role.”

As Managing Director, Darren will also be a board member on the William Buck Australia NZ Board.

[1] https://williambuck.com/nz/people/darren-wright/]]></content:encoded>
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						                        <title>William Buck announces three new directors in latest NZ promotions</title>
						                        <link>
						                        https://williambuck.com/nz/william-buck-announces-three-new-directors-in-latest-nz-promotions						                        </link>
						                        <pubDate>Tue, 24 Jan 2023 23:29:37 +0000</pubDate>
						                        <dc:creator>William Buck</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=26989						                        </guid>
						                        <description><![CDATA[Pictured (from left to right): Courtney West, Brian Cao and Diana Li. William Buck New Zealand has appointed three new directors to start the 2023 year. Courtney West, Diana Li and Brian Cao have been promoted to the position of Director within the local Business Advisory team. These promotions boost the number of directors in New [&#8230;]]]></description>
						                        <content:encoded><![CDATA[Pictured (from left to right): Courtney West, Brian Cao and Diana Li.

William Buck New Zealand has appointed three new directors to start the 2023 year.

Courtney West [1], Diana Li and Brian Cao [2] have been promoted to the position of Director within the local Business Advisory team. These promotions boost the number of directors in New Zealand to 15.

Courtney West advises clients on tax issues and business structuring and planning, with a particular interest in the health industry. Starting as a graduate with the firm, she has quickly ascended to now be an integral part of a growing senior leadership team.

Diana Li and Brian Cao have established experience in the business and tax advisory space working with national and international businesses. Diana advises clients on property tax issues and business structuring and has a special interest in litigation support work. In addition to business and tax advisory services, Brian provides outsourcing services to clients and works with multinational companies from Europe, US and Asia when establishing their businesses in New Zealand.

These promotions demonstrate the firm’s commitment to promote from within where possible and develop staff to their full potential. All three are based in our Auckland office and have an exciting future and role to play as the new generation of directors at William Buck.

Also recognised for their excellence and leadership, Tania Snowdon [3] has been promoted to Principal, Business Advisory and Craig Rossouw [4] has moved to an Associate Director role in the Tauranga Audit and Assurance team.

Tania Snowdon works as a team with director Dennis Munn [5] to provide expert accounting, tax planning and structuring services to high-net-worth individuals, trusts and other investment entities.

Craig Rossouw has a wide range of experience in audit and accounting, including running his own Accounting, Audit and Assurance practice, prior to relocating from South Africa. As Associate Director he moves to a leadership position in the Tauranga office working alongside director Richard Dey [6].

We also congratulate the following team members on their recent promotions:

To Manager:
— Ryan Burgess, Audit and Assurance
— Marina Falcon, Audit and Assurance
— Reem Younis, Audit and Assurance

To Assistant Manager:
— Manon Caloin, Audit and Assurance
— Grace Xu, Business Advisory

To Senior Auditor:
— Logan West, Audit and Assurance
— Logan Holland, Audit and Assurance
— Bryce Cunningham, Audit and Assurance, Tauranga
— Allison Howie, Audit and Assurance

To Senior Accountant:
— Michael Zhang, Business Advisory
— Kiki Yu, Tax Services
— Harrison Stutt, Business Advisory

Other promotions:
— Sonali Nagar, Senior Technical Administrator, Operations
— Melissa Li, Assistant Manager, Training and Special Projects, Tax Services

[1] https://williambuck.com/nz/people/courtney-west/
[2] https://williambuck.com/nz/people/brian-cao/
[3] https://williambuck.com/nz/people/tania-snowdon/
[4] https://williambuck.com/nz/people/craig-rossouw/
[5] https://williambuck.com/nz/people/dennis-munn/
[6] https://williambuck.com/nz/people/richard-dey/]]></content:encoded>
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						                        <title>Preparing for changes to GST invoicing requirements</title>
						                        <link>
						                        https://williambuck.com/nz/preparing-for-changes-to-gst-invoicing-requirements						                        </link>
						                        <pubDate>Wed, 21 Dec 2022 23:16:34 +0000</pubDate>
						                        <dc:creator>William Buck</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=26886						                        </guid>
						                        <description><![CDATA[In 2022, the Government enacted changes to the GST invoicing and record-keeping requirements. From 1 April 2023, the current tax invoice requirements are being relaxed to reduce compliance costs for businesses and facilitate the introduction of e-invoicing. Since the inception of GST in New Zealand in 1986, there has been significant changes to technology and [&#8230;]]]></description>
						                        <content:encoded><![CDATA[In 2022, the Government enacted changes to the GST invoicing and record-keeping requirements. From 1 April 2023, the current tax invoice requirements are being relaxed to reduce compliance costs for businesses and facilitate the introduction of e-invoicing.

Since the inception of GST in New Zealand in 1986, there has been significant changes to technology and the business environment. However, the rules and requirements governing tax invoices have largely remained unchanged. That’s about to change with the latest Tax Bill introducing new recordkeeping requirements for GST purposes and in particular the rules around tax invoices.
What will be changing?
From 1 April 2023, sellers won’t need to issue and hold a tax invoice to be entitled to claim GST input tax credits. Instead, the GST requirements would be met if relevant new ‘taxable supply information’ is provided and held, regardless of the source(s), as evidence of a transaction. This could include:

 	documents containing contractual information
 	systems and databases holding key supplier/customer information, or
 	sales and purchasing documentation issued.

However, the taxable supply information requirements will operate in parallel with the current tax invoice requirements, which means organisations will be able to choose to maintain the status quo or adopt the new requirements.

There will be three value thresholds for taxable supply information:



Value of supplies
Taxable supply information required to claim GST tax input credits
Information required for buyers




For supplies of $200 or less
Sellers will need to supply:

 	Name of supplier
 	Date of invoice, or where no invoice is issued, the time of supply
 	Description of the goods or services
 	The consideration for the supply (payment or amount)


Sellers are not required to provide taxable supply information to the buyer but are required to keep a record of the supply.

&#160;


For supplies over $200
Sellers will need to supply:

 	Name of supplier and GST number
 	Date of invoice or when no invoice is issued, the time of supply
 	Description of the goods or services
 	The GST-exclusive amount, GST amount and GST-inclusive amount, or
 	The GST-inclusive amount and a statement GST is included when it is charged at the standard rate for goods and services.


Taxable supply information must be provided to GST registered buyers within 28 days of a request for the taxable supply information (or by an alternative date agreed to by the parties) for supplies over $200.


For supplies exceeding $1,000
Sellers will need to supply:

 	Name of supplier and GST number
 	Name of buyer and identifier details
 	Date of invoice or when no invoice is issued, the time of supply
 	Description of the goods or services
 	The GST-exclusive amount, GST amount and GST-inclusive amount, or
 	The GST-inclusive amount and a statement GST is included when it is charged at the standard rate for goods and services.





Preparing for this change
With tax invoices no longer required to be issued and collected, businesses will need to ensure they have systems in place to satisfy the new taxable supply information requirements. This may require a shift in focus from purely GST compliance to the maintenance of supply and buyer information and checks on the validity of this information.

If you have any questions or need advice, our William Buck advisors [1] can provide additional support – we’re here to help.

[1] https://williambuck.com/nz/our-people/]]></content:encoded>
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						                        <title>Why you should regularly review your pricing strategy</title>
						                        <link>
						                        https://williambuck.com/nz/why-you-should-regularly-review-your-pricing-strategy						                        </link>
						                        <pubDate>Tue, 11 Oct 2022 05:36:10 +0000</pubDate>
						                        <dc:creator>Shane Taylor</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=26077						                        </guid>
						                        <description><![CDATA[Despite the many challenges faced by small businesses over the past few years, those that have forged ahead and seen success have done so by adapting to the environment as required. As the ‘new normal’ has so far been marred with economic uncertainty, a widespread labour and skills shortage and a deteriorating global situation, successful [&#8230;]]]></description>
						                        <content:encoded><![CDATA[Despite the many challenges faced by small businesses over the past few years, those that have forged ahead and seen success have done so by adapting to the environment as required.

As the ‘new normal’ has so far been marred with economic uncertainty, a widespread labour and skills shortage and a deteriorating global situation, successful businesses will need to continue to adapt and readapt regularly. One element of your business that will require this approach is your pricing strategy.
What is a pricing strategy?
A pricing strategy is the way your business determines its price for products and services. There are many models that can be adopted to set your prices, including:

 	Cost-plus pricing: the cost to provide your product or service plus a percentage mark-up.
 	Competitive pricing: what your competition charges.
 	Value based pricing: what your customer is prepared to pay.
 	Price skimming: initially pricing high due to high demand then slowly decreasing.
 	Penetration pricing: initially pricing low to gain market share then slowly increasing.
 	Loss leader pricing: selling a product or service low to sell other related products or services at higher margins.
 	Dynamic pricing: changing the price in real-time depending on demand for the product or service.
 	Freemium pricing: providing basic aspects of a product or service for no cost and charging a premium for additional or advanced capabilities.

Regardless of the pricing model your business adopts, the primary goal of your pricing strategy should be to maximise short and long-term profits.
Why is an appropriate pricing strategy important?
Your pricing strategy is one of the key factors that will determine your success. This is because it’s largely responsible for the revenue and profits your business makes.

If your prices are too high, you might find that while margins are also high, volume is low. This is due to customers choosing a lower priced competitor, resulting in poor profitability. Conversely, if your prices are too low, volume may be high, but margins may be low, which will also result in poor profitability.

To maintain the delicate balance between volume and profitability, it is critical that your pricing is appropriate with a view to market and economic conditions.
Why should your pricing strategy be reviewed?
As we are all aware, Australia and New Zealand are currently experiencing a rapidly changing economic environment with high inflation, high demand, increasing interest rates, low unemployment and permeating supply chain issues. It is therefore critical that your pricing strategy is reviewed in light of the challenging and evolving situation.

If your business is operating in an industry that is facing high demand, low supply and increasing costs, then not raising prices will most likely lead to foregone profits. Similarly, if you are in an industry that is facing increased competition, not decreasing prices will most likely lead to reduced income and profits.

Importantly, this assessment needs to be made on an individual basis and needs to be continuously addressed. No two businesses face identical issues and conditions can change quickly.
How often should your pricing strategy be reviewed?
You should review your prices regularly and more often than you have previously, due again to the changing conditions. The market you operate in and the products and services you offer will dictate how often prices should be reviewed.

If you are in an industry that relies heavily on raw inputs, you have likely been reviewing your prices every three months or so. In the current market it may be appropriate to review prices monthly.

If you are in an industry that relies heavily on labour, you have likely been reviewing your prices every year or so. In the current market it may be appropriate to review prices every six months, inline with the salary review process.
Don’t forget to communicate
As with most things in life, communication is key. Communicating price changes with your customers and the reasons for the change will likely lead to greater acceptance.

If you would like assistance with reviewing your pricing strategy or to book a ‘William Buck Hour’ (Australia [1] or New Zealand [2]) consultation in which we will review your complete business strategy, please contact your local William Buck Business Advisor. [3]

[1] https://williambuck.com/tools/william-buck-hour/
[2] https://williambuck.com/nz/tools/william-buck-hour-new-zealand/
[3] https://williambuck.com/our-people/]]></content:encoded>
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						                        <title>How startups can successfully execute their first capital raise</title>
						                        <link>
						                        https://williambuck.com/nz/how-startups-can-successfully-execute-their-first-capital-raise						                        </link>
						                        <pubDate>Tue, 30 Aug 2022 00:16:55 +0000</pubDate>
						                        <dc:creator>Alex Zinzopoulos</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=25533						                        </guid>
						                        <description><![CDATA[Undertaking a capital raise is complex and often daunting. It requires time and planning. If you’re considering launching a capital raise, particularly if it’s your first, read on for tips from our experts on what to expect and practical steps that could improve the outcome. Runway To ensure your startup can keep trading until funds [&#8230;]]]></description>
						                        <content:encoded><![CDATA[Undertaking a capital raise is complex and often daunting. It requires time and planning. If you’re considering launching a capital raise, particularly if it’s your first, read on for tips from our experts on what to expect and practical steps that could improve the outcome.
Runway
To ensure your startup can keep trading until funds are raised, you must determine its ‘runway'. [1] A runway is the length of time your business can operate before it exhausts capital, which is crucial in determining when to begin your capital raise.

Importantly, founders should commence the capital raise well before the funds are needed, as a capital raise can take anywhere from three months to as long as twelve months in more complicated scenarios, and is very dependent on market conditions.
Which investor is right for you?
Once you have determined the amount of capital required, it’s important to identify the most appropriate source of capital for your business requirements. The type of investor you choose will depend on the amount you are looking to raise, the maturity of the business and the timing of an exit, among other factors.

The three most common types of investors for startups are:

 	Venture Capital (and Private Equity) firms
Venture Capitalist (VC) firms provide capital to early-stage businesses with high-growth potential in exchange for an equity stake and some operational control. VC’s tend to invest at the Series A+ funding rounds and the length of time they choose to hold an asset will depend on their strategic objectives and composition of their portfolio. Private Equity firms (PE) operate in a similar way however generally tend to invest in mature businesses with a proven track record rather than early-stage businesses.
 	Angel Investors
Angel investors are individuals who provide financial backing to early-stage startups in exchange for equity in the company. In contrast to VCs and PEs, angel investors are more passive investors and typically provide seed funding, prior to a Series A raise.
 	Family Offices 
A Family Office or Private Office is a family-owned and controlled structure that manages private wealth and other matters for high net-worth families. Family offices often make longer term investments in startups and high-growth businesses.

In choosing which type of investor to partner with, you will need to consider how much equity and operational control you are willing to divest. Choosing an investor that shares your values and goals is also critical.
Setting up your corporate structure
Choosing the appropriate structure for your business is a crucial step that needs to be done prior to starting the capital raise process. The corporate structure you implement will have various flow-on effects for asset protection, tax liabilities and laying the groundwork for international expansion or a future exit. When raising capital, you also need to consider which corporate structure is most suitable to your investors. Trying to change the corporate structure after a capital raise is difficult and not ideal, particularly once your investors are already on board and there is a market value now attached to the business. Read our top five tips for structuring and restructuring your startup here. [2]
Getting your business valuation right
The lack of information on a startup’s past performance can make it difficult to value, and in turn affect the willingness of individuals or groups to invest. It is important that you establish a clear business plan that includes a financial model with all relevant assumptions underpinning the business. This will enable an investor to understand the business model and growth potential.
Attracting investors
Finding the appropriate investor for your business can be difficult, so you need to think like an investor. Some questions to ask yourself are:

 	Can I clearly and succinctly articulate my startup’s value proposition?
 	What is my go-to-market strategy?
 	How is my product different to what’s currently available?
 	How and when will I get a return on investment?
 	Do I have an ESOP in place to retain and incentivise staff?
 	Am I making the most of government grants or the Research and Development Tax Incentive?
 	What is my exit strategy, and will an exit occur in Australia, New Zealand or overseas?

These questions would typically be answered in your pitch deck. A successful pitch deck goes through the fundamentals of the startup as it scales towards an exit. Typical items investors expect to see in a pitch deck include:

 	Business model
 	Go-to-Market plan
 	Competitor analysis
 	Management team
 	Financial projections and key metrics (financial model)
 	Business valuation
 	Accomplishments to date
 	Timeline of key business goals, and
 	Runway and use of funds.

For more on how to stand out from the crowd and attract investors, read Six ways to make yourself a VC magnet. [3]
Structuring and capital raise
Once the startup and investor have agreed to work together, the next decision is what type of investment instrument to issue. Besides ordinary shares, the most used instruments issued by startups undertaking their first raise tend to be Convertible Notes, SAFE Notes and KISS Notes.

 	Convertible notes (con notes)
Convertible notes are debt instruments (i.e. they have an interest rate and an obligation to repay the debt) but also come with an ability to convert into equity at a future equity round. The conversion typically occurs at a discount to the price per share of the future round, usually around 10%.
 	Simple Agreements for Future Equity (SAFE)
SAFE notes are similar to convertible notes in that they convert to equity at a future round. However, they are not a debt instrument, so there is no requirement for the startup to repay the investor if there is no future funding round. Since there is greater risk for the investor, the discount for SAFE notes tends to be higher, between 15-25%, and may work in conjunction with a valuation cap (the maximum amount per share the investor is required to pay for the shares upon conversion).
 	Keep It Simple Security (KISS)
This is an alternative funding instrument to SAFE notes that has gained popularity in recent years, particularly in the U.S. Like a SAFE, a KISS converts to shares at a future point in time, but KISS notes tend to have more investor-favoured terms such as participation rights in future funding rounds on terms comparable with prior investors via a most favoured nation (MNF) clause.

For more on how to best structure your pre-IPO capital raise, with Con notes, Shares or SAFE notes, read our article here. [4]

In our experience, SAFE notes have been the most common type of funding instrument used by startups in Australia in recent years. An additional benefit of using SAFE Notes (as well as KISS and Con notes) is that a valuation of the startup at the time of investment is usually not needed since shares are not being issued until a future funding round.

Once VCs and PEs come on board (typically in Series A+ rounds), you can expect to issue preference shares. As the name suggests, preference shares provide their holders with preferential rights to other shareholders such as anti-dilution, right of first refusal, drag-along rights and priority rights to dividends and capital returns.

Which type of funding instrument is right for you will depend on the circumstances of your startup and the investors you are looking to work with.

If you would like more information on raising capital for your startup and how we can assist by sourcing investors and leading the raise, please contact your local William Buck [5] Corporate Advisor [6].

[1] https://williambuck.com/news/em/technology/why-every-startup-needs-to-get-the-accounting-basics-right/
[2] https://williambuck.com/news/business/technology/5-tips-for-structuring-and-restructuring-startups/
[3] https://williambuck.com/news/gr/technology/six-ways-to-make-yourself-a-vc-magnet/
[4] https://williambuck.com/news/ex/general/how-to-best-structure-your-pre-ipo-raise-con-notes-shares-or-safe-notes/
[5] https://williambuck.com/nz/service/corporate-advisory/
[6] https://williambuck.com/nz/service/corporate-advisory/]]></content:encoded>
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						                        <title>William Buck announces internal promotions amid record year of growth in Director appointments</title>
						                        <link>
						                        https://williambuck.com/nz/william-buck-announces-internal-promotions-amid-record-year-of-growth-in-director-appointments						                        </link>
						                        <pubDate>Thu, 07 Jul 2022 04:50:16 +0000</pubDate>
						                        <dc:creator>William Buck</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=24955						                        </guid>
						                        <description><![CDATA[William Buck has announced four internal promotions to Director and seven to Principal from 1 July, to complete a record year of appointments that’s seen 28 new Directors appointed and taken our total to 118. Promotions span several divisions, strengthening William Buck’s service capabilities across Business Advisory, Tax Services, Restructuring and Insolvency, Superannuation and Audit [&#8230;]]]></description>
						                        <content:encoded><![CDATA[William Buck has announced four internal promotions to Director and seven to Principal from 1 July, to complete a record year of appointments that’s seen 28 new Directors appointed and taken our total to 118.

Promotions span several divisions, strengthening William Buck’s service capabilities across Business Advisory, Tax Services, Restructuring and Insolvency, Superannuation and Audit and Assurance.

Achieving growth both organically and through strategic mergers has positioned the firm to make the appointments and respond to heightened demand for our depth of knowledge and breadth of services.

“It’s the underlying strength and continuity of our relationships that enable us to maintain our strong client base in the middle-market – a segment we’ve remained true to for 125 years,” said Jamie McKeough, Chair of William Buck Australia and New Zealand.

“To become a Director at William Buck, in addition to outstanding technical skills, you need a proven ability to form meaningful client relationships, provide value to clients and develop staff.

“Those that we’ve welcomed to key leadership positions this year have not only delivered exceptional client service consistently, but they have demonstrated this relationship-driven approach and a strong alignment with our CARE values.”

Of the 28 directors appointed in the last 12 months, nine were lateral hires while 19 were internal promotions. Further to this, a quarter began their careers at William Buck – testament to the firm’s commitment to promote from within where possible and develop staff to their full potential.

“Our commitment to learning and development continues to evolve to meet shifting needs and support sustainability and succession. The rapid rise of many of our younger directors is evidence of this, and that we support the personal and professional growth of our people.”

“In addition to expanding our capabilities across our traditional service lines, we’ve appointed two senior-executives, a promotion to the newly created roles of Chief Learning Officer, and the appointment of a new Chief Risk Officer.

“People and Collaboration are two of our key strategic pillars and these new roles will support us to deliver on our other strategic pillar of delivering superior client value.”

We congratulate our newly appointed leaders and thank them for their significant contributions.

New William Buck Directors

Nicola Bird, Tax Services (NSW)
Cain Meschiati, Business Advisory (SA)
Garth O’Connor-Price, Restructuring and Insolvency (VIC)
Marisa Cursio, Chief Learning Officer (VIC)

New William Buck Principals

Peter Andreassen, Business Advisory (QLD)
Zeb Ashton, Wealth Advisory (VIC)
Lloyd Crawford, Audit and Assurance (NSW)
Berrin Daricili, R&#38;D Tax Incentives (VIC)
Jennie Morrison, Business Advisory (VIC)
T’Shona Panton, Business Advisory (VIC)
Alistair Taylor-Spry, Audit and Assurance (SA)
Daniel Sander, Business Advisory, Associate Director (NZ)
]]></content:encoded>
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						                        <title>Exit your business effectively and avoid deal fatigue</title>
						                        <link>
						                        https://williambuck.com/nz/exit-your-business-effectively-and-avoid-deal_fatigue						                        </link>
						                        <pubDate>Sat, 04 Jun 2022 06:39:34 +0000</pubDate>
						                        <dc:creator></dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=25439						                        </guid>
						                        <description><![CDATA[&#160;]]></description>
						                        <content:encoded><![CDATA[[vc_row][vc_column][vc_column_text]So you’ve decided to exit your business.

But what is the best route to the door?

There are various options for business owners to consider when it’s time to sell and each comes with a range of pros and cons.

It’s not simply a matter of money. Other aspects will require contemplation, including the preferred buyer's profile, objectives and culture; future of your current staff; your own involvement in the business; and tax considerations.

Many business owners prefer to consider all possibilities, welcome all offers and then work through a process of elimination.

While this process can bring a variety of options to the table, it can also be lengthy and expensive. This is where deal fatigue can set, in as sellers are gradually worn down during a protracted process with the risk of ultimately succumbing to an inferior offer.
Does your exit path match your personal goals?
In our experience, it’s important to identify the key objectives of you as the exiting business owner, right from the outset. That way the most appropriate exit strategies can be identified, focused on and pursued without unnecessary distraction.

These may include:

Exit your business via a trade sale

One of the most popular ways to exit your business is to sell 100% of the business to a strategic buyer such as a competitor supplier or customer. This allows for a full and clear exit from the business.

Exit your business through partial sale or merger

It may be more appropriate to pursue a partial divestment (either a minority or majority stake) to a strategic investor or consolidators. Consolidators being large firms, some listed, looking at acquiring businesses in a particular sector. This option may also involve a merger with a counter party and usually comes with the owner’s commitment to ongoing involvement in the business for an agreed period of time.

Exit your business via an IPO

Floating on the Stock Exchange as a listed company may or may not be a suitable way to exit your business, depending on the nature, financial stature and scale of your business. There are a number of additional rules, responsibilities and costs that come with a public float and these need to be carefully considered and balanced against the benefits such as access to capital and ultimate price/value received.
Casting the net for buyers
In assessing the most appropriate strategy, it’s important to identify the range of potential buyers. These may include:

 	Buyers that are introduced through existing business relations such as suppliers and customers
 	Similar businesses wishing to expand geographically
 	Businesses providing similar products and services but focusing on different customer segments
 	Direct and indirect competitors subject to a level of confidentiality you wish to maintain.

It’s vital to engage a trusted advisor early in the planning process, someone with experience across both sides of corporate transactions and who understands the market. Such an advisor can help the business owner navigate the most effective path to an exit that best meets his or her goals.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_empty_space height="40px"][vc_cta h2="Want to find out more?" style="3d"]Access our 2023 William Buck Exit Smart Report [1][/vc_cta][/vc_column][/vc_row]

&#160;

[1] https://williambuck.com/nz/exit-smart-report-2023/]]></content:encoded>
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						                        <title>Succession planning for your Business</title>
						                        <link>
						                        https://williambuck.com/nz/succession-planning-for-your-business						                        </link>
						                        <pubDate>Thu, 12 May 2022 22:24:51 +0000</pubDate>
						                        <dc:creator>Mark Calvetti</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=3655						                        </guid>
						                        <description><![CDATA[]]></description>
						                        <content:encoded><![CDATA[[vc_row][vc_column][vc_column_text]At some point in your business' lifecycle, you must consider its succession. Deciding the best options for the future is both an important and sensitive issue.

In most cases, business owners have a strong emotional connection to their business after countless hours of hard work and dedication. Yet, despite this, many business owners take a one-dimensional approach to considering exit strategy and succession planning, asking 'do I want to sell my business?' rather than taking a much wider view of where the business is positioned in its lifecycle, as well as the financial and personal needs of the owner or owners.

Approaching the consideration from this angle would lead to asking a better question, such as 'how can I prepare the business for an orderly succession at some point in time?'

Many owners consider the process only when they are ready to exit their business. However, leaving succession planning to the last minute can heavily impact both financial and personal outcomes later down the track. That’s why we encourage business owners to consider their exit strategy well before the time comes.
Key considerations when exit planning
Decisions on whether to pass the business onto the next generation of family, going public or selling all or part of the business requires a well-considered plan. To achieve the right outcome for all key stakeholders, some important questions need to be considered:

 	Do you wish to continue owning the business? Are you ready to retire?
 	Is the business dependent on one key person (‘key-man risk’) and how can this be managed?
 	Is there sufficiently capable management to continue growing the business?
 	Is the business your main income-producing asset and how can this be unlocked?
 	What estate planning issues need to be considered?

Exiting a business is a two-step process, as shown in the following diagram. The first step involves determining your objectives and understanding the options available.

Issues to bear in mind:

 	When would you like to exit?
 	Do you understand the current value of the business and how it’s derived?
 	What do you hope the business will look like in the future?
 	How are you going to get there?
 	What are your expectations on sale?
 	Are there any impediments to achieving these expectations?

An advisor can work through these questions with you and develop a plan to improve the value of your business and align your personal and business objectives.

The second stage involves the practical steps involved in selling your business or handing it down to the next generation. Achieving a successful outcome in stage two often depends on the level of planning in stage one.

&#160;

[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_empty_space height="40px"][vc_cta h2="Want to find out more?" style="3d"]Access our 2023 William Buck Exit Smart Report [1][/vc_cta][/vc_column][/vc_row]

[1] https://williambuck.com/nz/exit-smart-report-2023/]]></content:encoded>
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						                        <title>Skills of a Virtual CFO: Accounting and financial reporting</title>
						                        <link>
						                        https://williambuck.com/nz/skills-of-vcfos-accounting-and-financial-reporting						                        </link>
						                        <pubDate>Tue, 03 May 2022 04:40:30 +0000</pubDate>
						                        <dc:creator>Jennifer Lau</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=24038						                        </guid>
						                        <description><![CDATA[Virtual CFOs can support busy business owners by identifying potential risks and implementing financial strategies to drive growth and achieve results. This added support has become increasingly in demand since the onset of the pandemic, as business owners have been faced with added pressures requiring their time and focus. Here we consider three accounting areas [&#8230;]]]></description>
						                        <content:encoded><![CDATA[Virtual CFOs can support busy business owners by identifying potential risks and implementing financial strategies to drive growth and achieve results. This added support has become increasingly in demand since the onset of the pandemic, as business owners have been faced with added pressures requiring their time and focus. Here we consider three accounting areas that skilled VCFOs can advise on to add value to a business and strengthen its capacity to make important decisions.
Accounting policies
A business, whether it be emerging and seeking capital to fund growth or progressing toward an IPO, must consider its accounting policies closely as investors will seek to understand the financials. Many accounting items have different values and treatment depending on accounting policies, reporting requirements and stakeholders involved. The main considerations here are the differences between general purpose financial reporting, special purpose accounts, and tax return reporting requirements.

General purpose reporting is governed by the External Reporting Board (XRB), which are primarily followed by large and listed organisations. Albeit at a cost, the benefits are that the standards are widely known by investors and easily comparable with other general purpose reporting entities. The reports are generally audited, providing investors with additional confidence and transparency of the business operations. Therefore, many companies see value in this and often opt in or are requested by key investors or stakeholders to prepare these reports.

Special purpose accounting policies provide more flexibility and are often the choice of small to medium sized entities. These policies commonly mirror tax reporting requirements as governed by tax legislation. The reports may satisfy stakeholders like banks and Inland Revenue, however they may not be as easily understood by investors and are often not reflective of the true value of a business.

For instance, an asset may be valued at cost under special purpose accounting but recorded at market or fair value for general purpose reporting; therefore, significantly influencing the story a set of financial statements tells its stakeholders. This is where VCFOs can advise on the right accounting policies to adopt to ensure the business is compliant and presenting the appropriate financial information to relevant stakeholders.
Tax losses
Tax losses occur when a business has more tax-deductible expenditure than assessable income. Tax legislation allows these losses to accumulate and be applied against future taxable income in most circumstances. Losses occur for various reasons, a common one being investment towards growth plans in the early years of a business. It is important that business owners are aware of the tax rules governing the ability to offset tax losses against future taxable profits.

The key considerations here are the continuity of ownership test (COT) and the business continuity tests (BCT). The eligibility and application of these rules are complex; however, a company will usually only be able to carry forward a tax loss provided it has maintained the same ultimate shareholders. If the company has not maintained at least 49% shareholder continuity, it will need to satisfy the business continuity test, which applies from 2020/21 income year onwards. The test applies to losses generated from 2013/14 income year onwards.

For instance, consider a sole founder tech company that incurred $2 million of tax losses while developing its IP. If the company undertook a capital raise and brought on two investors each with a 30% shareholding, the founder would now only own 40% of the company. The company would therefore fail COT and those tax losses may become unusable.

The BCT may facilitate the claiming of the tax losses, however, take the same example but now the business being impacted by the pandemic must close due to lockdowns. The business decides to change its business activity to find a new revenue stream. The company might now fail both the COT and the BCT rendering the tax losses unusable. Assuming a 28% corporate tax rate, the company may have to find funds to pay $500,000 in taxes that would have otherwise been reduced by the tax losses.

A VCFO could have averted this large tax liability by identifying and assessing how potential changes in equity and business models may erode the company’s ability to claim tax losses and impact on the value of the business.

Know your responsibility for company liabilities

Directors should be fully informed of their obligations and responsibilities to a corporate entity as prescribed under the Companies Act 1993 and other legislation. A fundamental duty of any director is to not trade while insolvent, and rather, to ensure the company is compliant and paying its debts as and when they fall due. Otherwise, a director may become personally liable for company debts such as PAYE and GST. Consideration should also be given to any finance agreements with a business which has individuals acting as guarantor for loans.

All directors have a responsibility for understanding the business and this is where the details matter. Has super been calculated correctly and paid on time? Has GST returns been lodged and paid on time? Is your home secured against a business bank loan? VCFOs play a crucial role in making directors aware of their personal exposures and helping them to fulfil their legal obligations.

If you’d like more information on William Buck’s Virtual CFO service and how it could drive growth for your business, please contact your Virtual Finance Management Team. [1]

You can read the other articles in our Virtual CFO series via the links below:

Technology and the future Virtual CFO  [2]

What is a Virtual CFO and how could they help your business [3]

Valuable skills of a Virtual CFO: Stakeholder engagement  [4]

[1] https://williambuck.com/nz/services/business-advisory/virtual-finance-management/
[2] https://williambuck.com/nz/news/gr/general/technology-and-the-future-virtual-cfo/
[3] https://williambuck.com/nz/news/business/general/what-is-a-virtual-cfo-and-how-could-one-help-your-business/
[4] https://williambuck.com/nz/news/gr/general/valuable-skills-of-a-virtual-cfo-stakeholder-engagement/]]></content:encoded>
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						                        <title>Reporting requirements for domestic trusts – what you need to know</title>
						                        <link>
						                        https://williambuck.com/nz/minimum-reporting-requirements-for-domestic-trusts						                        </link>
						                        <pubDate>Tue, 19 Apr 2022 01:41:38 +0000</pubDate>
						                        <dc:creator>William Buck</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=23869						                        </guid>
						                        <description><![CDATA[The Taxation (Income Tax Rate and Other Amendments) Bill that passed in December 2020 introduced new disclosure requirements for domestic trusts for the 2021–22 and later income years. These changes are intended to improve the transparency of domestic trusts and to help Inland Revenue assess compliance with the new 39% personal income tax rate and [&#8230;]]]></description>
						                        <content:encoded><![CDATA[The Taxation (Income Tax Rate and Other Amendments) Bill that passed in December 2020 introduced new disclosure requirements for domestic trusts for the 2021–22 and later income years. These changes are intended to improve the transparency of domestic trusts and to help Inland Revenue assess compliance with the new 39% personal income tax rate and understand the use of structures and entities by trustees.

The disclosure rules apply to trustees of trusts that derive assessable income in a tax year (excluding inactive, foreign, charitable trusts, employee share schemes, and trusts that are widely held superannuation funds, among others). The rules require trustees to prepare a statement of profit or loss and a statement of financial position.

The Government has now set minimum standards for financial statements prepared by domestic trusts subject to these new disclosure rules. These apply for income years ending on or after 31 March 2022.

We have outlined below what information must be provided in your annual return.

Reporting requirements

 	Trustees must provide financial statements that consist of:

 	a statement of financial position setting out the assets, liabilities, and net assets of the trust as at the end of the return year, and
 	a statement of profit or loss showing income derived and expenditure incurred by the trust during the return year. It will include net profit or loss before tax, any tax adjustments and any untaxed realised gains and receipts.


 	Trustees will need to provide details of the valuation methodology applied to the Land, Buildings and Shares/Ownership interests categories of assets. A trustee can choose to adopt a different valuation method for each of these categories. Valuation of assets and liabilities can be either at market value, cost or tax adjusted value at the discretion of the trustee.
 	Financial statements must be prepared using the double-entry method of recording financial transactions.

From the 2022 tax year onwards, more information will be required about a trust’s earnings, settlements and settlors, beneficiaries and distributions, and persons with powers of appointment.

Trustees will need to provide:

 	The details of any person who has made a settlement on a trust, as well as the amount and nature of any settlement made from 1 April 2021.




Settlors and Settlements
You will need to provide the settlors:

 	Full name
 	Date of birth or commencement date (for non-individuals)
 	Jurisdiction of tax residency
 	IRD number, or Tax Identification Number (for non-NZ residents).

You will also need to provide details of any settlements made during the year, including cash, financial arrangements, land, buildings, shares/ownership interests, services, settlements that have been valued at zero and other (with a description).




 	The details of any person who has received a distribution from a trust, and the amount of the distribution.




Beneficiaries and Distributions
You will need to provide the beneficiaries':

 	Full name
 	Date of birth or commencement date (for non-individuals)
 	Jurisdiction of tax residency
 	IRD number, or Tax Identification Number.

You will also need to provide details on any movements in beneficiary accounts, including:

 	Opening balance
 	Distributions (accounting income, corpus, capital, use of trust property for less than market value, distribution of trust assets and forgiveness of debt)
 	Amounts withdrawn or enjoyed, and
 	Closing balance






 	The details of people who have the power to appoint or dismiss a trustee, to add or remove a beneficiary, or to amend the trust deed.




Person with power of appointment
When adding a person with power of appointment, you must provide their:

 	Full name
 	Date of birth or, for non-individuals, commencement date
 	Jurisdiction of tax residency
 	IRD number, or, for non-NZ residents, the Tax Identification Number.

Persons with power of appointment cannot be added/edited when filing the income tax return, but they will be able to be added or updated at any time through myIR.



As mentioned in our earlier article 'New disclosures for domestic trusts', [1] the new requirements significantly increase compliance for domestic trusts. Trustees should be starting to think about how to collect this information, particularly in the first year this information will need to be provided (the 2021–22 income year). We hope the above provides some certainty to trustees regarding specific information to be collated and submitted to the Inland Revenue.

Our William Buck advisors [2] can provide additional support. If you have any questions or need advice – we’re here to help.

[1] https://williambuck.com/nz/news/business/general/new-disclosure-requirements-for-domestic-trusts/
[2] https://williambuck.com/nz/our-people/]]></content:encoded>
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						                        <title>The rise of inflation and its impact on business</title>
						                        <link>
						                        https://williambuck.com/nz/the-rise-of-inflation-and-its-impact-on-business						                        </link>
						                        <pubDate>Tue, 19 Apr 2022 01:17:12 +0000</pubDate>
						                        <dc:creator>Arran Boote</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=23886						                        </guid>
						                        <description><![CDATA[Inflationary pressures have been steadily increasing over the past year with prices being driven by rising global demand during the COVID pandemic and supply chain problems. There is no avoiding inflation when it happens, and it’s happening now, not only at home but globally. With international travel and logistics also unlikely to return to pre-COVID [&#8230;]]]></description>
						                        <content:encoded><![CDATA[Inflationary pressures have been steadily increasing over the past year with prices being driven by rising global demand during the COVID pandemic and supply chain problems. There is no avoiding inflation when it happens, and it’s happening now, not only at home but globally.

With international travel and logistics also unlikely to return to pre-COVID levels for some time, demand will continue to exceed supply, meaning inflation will be here to stay for the short to mid-term.

In addition, tight border restrictions have left many industries desperately short of skilled people. This has pushed demand beyond supply with the inflationary impact on wages and salaries resulting in a vicious cycle of increased costs causing wage demands which then result in higher costs and higher wage demands.
What can businesses do to manage the impact of inflation on their business?
A business must know its cost of funds and its marginal revenue to marginal costs ratios. These relatively simple tools will assist with key decision making during this period. If you’ve not calculated these for some time, contact your Business Advisor for guidance.

If your costs of funds are less than or equal to the running rate of inflation, then you might want to pre-order and prepay for key inputs now rather than wait for when they are needed. This will both limit the impact of supply logistics problems as well as provide certainty around the price you will pay.

If, for example, your costs of funds are 5% and the forecast inflation for the rest of this year is between 6 and 9%, then pre-ordering and prepaying means you’ll pay less for supplies than you would in the future.

Knowing your marginal costs and marginal revenue (and updating these regularly) will also help you to decide whether to accept or decline certain orders and indicate whether to increase your prices. Inflation will increase your marginal costs of providing certain goods or services. That could be a result of increasing prices for the components or increases in direct overheads or both. Either way, knowing what these are will help to ensure you don’t sell your products at a loss.

If you provide credit terms to your customers, be wary of terms creeping over longer periods. Inflation reduces the amount of ‘real cash’ you will receive if you get paid later. That was not such an issue when inflation was 1 or 2%. But when it creeps up to 6 or 7%, the impact of extended terms of credit reduces the value of that future payment. Consider introducing interest rate terms for payments after a fixed period. In short, be watchful of your clients using you as an interest free bank.

Talk with your key suppliers and customers. They will also be feeling the impact. If you can arrange pre booking purchases where you don’t need to place a deposit (or only need to place a relatively small deposit) and the price is fixed, this will certainly assist you.

As the owner of an avocado orchard, my family and I are faced with severe supply limitations and inflation running at close to 15% within the industry. To mitigate some of the impacts, we have extended our seasonal overdraft (and shifted some of that into fixed term loans) and pre-ordered goods for next year at prices fixed now. Our suppliers were open about what price increases they were about to implement so pre-ordering was a simple decision. In some cases, only a small deposit was required.

It’s also a great time to run your eye over costs and consider luxuries versus essential items, taking into consideration that luxuries or ‘nice to haves’ are probably significantly higher than they were last year. You may decide to keep them but be aware they might cost significantly more than last year. You will know what those items are.

Inflation also has a direct impact on employees. Businesses need to be conscious of the extra stress employees may be feeling as costs rise. They may be stretched as the interest rates on their mortgages increases or as rental rates rise. That stress can manifest into lower productivity or increased absenteeism. An employer who recognises these pressures and treats their people well with valued support, transparency and communication, will likely weather a period of rising inflation and a shortage of labour supply. Something you could offer employees is access to an external budget adviser or financial planner.

I do not expect we will return to the inflation seen during the late 1980s (when I was working for a major trading bank granting overdrafts at 33% interest), but the Reserve Bank is facing a challenging period where it must juggle many things, of which increasing inflation is one of them. Meanwhile, for businesses coming out of COVID and now heading into uncertainty around inflation, it is time once again to reassess costs and spending while addressing the impacts on businesses and their employees.
]]></content:encoded>
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						                        <title>Stakeholder engagement: Valuable skills of a Virtual CFO</title>
						                        <link>
						                        https://williambuck.com/nz/stakeholder-engagement-valuable-skills-of-a-virtual-cfo						                        </link>
						                        <pubDate>Thu, 31 Mar 2022 23:39:08 +0000</pubDate>
						                        <dc:creator>James Northcote</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=24311						                        </guid>
						                        <description><![CDATA[Virtual CFOs possess unique skills that enable them to assist growing businesses in many ways. Here, we explore one particular skill that a Virtual CFO can offer your business – effective stakeholder engagement. Engagement with key stakeholders external to your business, including bankers and lawyers, is crucial to its ongoing success. Virtual CFOs have significant [&#8230;]]]></description>
						                        <content:encoded><![CDATA[Virtual CFOs possess unique skills that enable them to assist growing businesses in many ways. Here, we explore one particular skill that a Virtual CFO can offer your business – effective stakeholder engagement. Engagement with key stakeholders external to your business, including bankers and lawyers, is crucial to its ongoing success.

Virtual CFOs have significant experience engaging with bankers, lawyers and other professionals, and can enhance your relationships with these providers. Your VCFO will often have an existing relationship with the bank or legal firm you’re working with. These relationships can provide insight into how to most effectively engage these stakeholders.
Engagement with bankers
For many businesses, their relationship with the bank will be one of their most important relationships. This is particularly the case for businesses with a large amount of debt, tight cash flow, or poor trading profits. Your VCFO can assist not only by providing the required supporting information, but also by advising on the most effective narrative and messaging your business should proffer to its bank or banks.

Information presented in a meaningful way will assist your banker to work constructively with and for you and can improve the working relationship. Information that your VCFO can prepare and present to a banker includes:

 	Monthly/quarterly reporting
 	Annual or three-monthly rolling budgets
 	Future year financial forecasts (usually up to three is appropriate)
 	Covenant reporting, and
 	Brief written summary, highlighting trends or key points.

When presenting the above information, your VCFO can highlight the key business drivers and trends and their impacts on the business. Your VCFO can also ensure a consistent message is communicated to aid the banker’s understanding of and confidence in the business. Importantly, your VCFO understands what banks want to see and will ensure this is presented clearly and concisely. The VCFO will also identify any potential issues with you in advance of the information being released to the bank.
Engagement with lawyers and other external stakeholders
Lawyers are extremely valuable business partners. A VCFO can understand when and how your business should engage with a lawyer. They can also ensure that a clear and concise explanation of the outcome of that engagement is provided to you, the business owner.

Similarly, your VCFO can direct your lawyer to ensure meaningful work is undertaken and that the outcomes achieved align with your business strategy. Your VCFO can also work constructively with the lawyer to provide commercial solutions for a particular transaction.

Engagement with other external stakeholders including property or business valuers, insurance brokers and other lenders, may also be required at certain times and your VCFO can provide appropriate direction to ensure the desired outcome is achieved.

If you’d like more information on William Buck’s Virtual CFO service and how it could drive growth for your business, please contact your local William Buck AU Business Advisor [1] if you live in Australia, or William Buck NZ Virtual Finance Management Team [2] if you live in New Zealand.

You can read the other articles in our Virtual CFO series via the links below:

Technology and the future Virtual CFO [3]

What is a Virtual CFO and how could they help your business [4]

Skills of a Virtual CFO: Accounting and Financial Reporting [5]

[1] https://protect-au.mimecast.com/s/gShpCE8kopHWQOJGtPhzt5?domain=williambuck.com/
[2] https://williambuck.com/nz/service/business-advisory/virtual-finance-management/
[3] https://williambuck.com/nz/news/gr/general/technology-and-the-future-virtual-cfo/
[4] https://williambuck.com/nz/news/business/general/what-is-a-virtual-cfo-and-how-could-one-help-your-business/
[5] https://williambuck.com/nz/news/gr/general/skills-of-vcfos-accounting-and-financial-reporting/]]></content:encoded>
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						                        <title>Technology and the future Virtual CFO (VCFO)</title>
						                        <link>
						                        https://williambuck.com/nz/technology-and-the-future-virtual-cfo-vcfo						                        </link>
						                        <pubDate>Mon, 14 Mar 2022 23:45:34 +0000</pubDate>
						                        <dc:creator>Eric Flammang</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=24316						                        </guid>
						                        <description><![CDATA[This article is the second in a series that looks at the VCFO role, how it differs from an in-house, full time CFO or bookkeeper, and how a VCFO engagement can drive growth for your business. In a previous article, we explained the role of a VCFO and how the service could help grow your [&#8230;]]]></description>
						                        <content:encoded><![CDATA[This article is the second in a series that looks at the VCFO role, how it differs from an in-house, full time CFO or bookkeeper, and how a VCFO engagement can drive growth for your business.

In a previous article, we explained the role of a VCFO and how the service could help grow your business. [1] Here, we consider why technology is increasingly fundamental to the role and how the future VCFO will possess a strong digital acumen and a wider range of skills including data visualisation and analytics, automation and process expertise, to add enhanced value to your business.
Why technology is fundamental to the VCFO role
In addition to proven accounting and business skills, we know that a VCFO should also have solid commercial experience, preferably in the industry or industries in which they’re employed to advise. It’s becoming increasingly important for a VCFO to also possess a knowledge, curiosity for and applied understanding of technology.

While performing their role, Virtual CFOs must quickly understand their client’s IT framework and software ecosystems as they grasp their business model, systems and processes.

They should constantly research and rethink technological environments and provide suggestions for safeguards or improvements. From collaborative platforms (including Teams, Zoom, Citrix), accounting and payroll software (such as Xero, MYOB, QuickBooks), to budgeting, forecasting and reporting tools (Fathom, Futrli, Castaway or Calxa), the VCFO of the future is aware of, if not proficient with, all of them.

Technology is also changing the way Virtual CFOs are engaging with the businesses they advise. From regular, timely and periodic meetings to shorter, more frequents meetings.

Today’s VCFOs establish integrated and automated links with their clients’ systems, enabling them to setup financial dashboards. These dashboards combine real-time data from multiple sources and provide the VCFO with a comprehensive snapshot of their clients’ most up-to-date financial data.

With a bird’s-eye view of their clients’ metrics, the Virtual CFO becomes an agile advisor engaging more proactively and strategically with their clients.
Data and the VCFO
VCFOs are aware that numbers are nothing without context, and that’s where data is key. VCFOs now need to layer on the skills of data scientists. The challenge is no longer gathering data, thanks to today’s technologies and connectivity, but what to do with the vast amount of information flowing into the business.

Technology can help VCFOs process large amounts of real-time data and turn it into insights that drive process improvements, ensure compliance and boost employee and customer satisfaction.

These insights alone allow the VCFO to leave uncertainty behind and engage in more confident and data-driven interactions with their clients.

So, the future Virtual CFO will develop a strong digital acumen which will assist them to drive financial management with a relevant approach to change as the notion of “enterprise value” transitions from tangible to intangible data assets. They will develop a wider range of skills (including analytics, automation, data visualisation, and process expertise), as well as functions such as IT, and use them to solve complex problems for business owners.

If you’d like more information on William Buck’s Virtual CFO service and how it could drive growth for your business, please contact your local William Buck AU Business Advisor [2] if you live in Australia, or William Buck NZ Virtual Finance Management Team [3] if you live in New Zealand.

You can read the other articles in our Virtual CFO series via the links below:

Valuable skills of a Virtual CFO: Stakeholder engagement  [4]

What is a Virtual CFO and how could they help your business [5]

Skills of a Virtual CFO: Accounting and Financial Reporting [6]

[1] https://williambuck.com/nz/news/business/general/what-is-a-virtual-cfo-and-how-could-one-help-your-business/
[2] https://protect-au.mimecast.com/s/gShpCE8kopHWQOJGtPhzt5?domain=williambuck.com/
[3] https://williambuck.com/nz/service/business-advisory/virtual-finance-management/
[4] https://williambuck.com/nz/news/gr/general/valuable-skills-of-a-virtual-cfo-stakeholder-engagement/
[5] https://williambuck.com/nz/news/business/general/what-is-a-virtual-cfo-and-how-could-one-help-your-business/
[6] https://williambuck.com/nz/news/gr/general/skills-of-vcfos-accounting-and-financial-reporting/]]></content:encoded>
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						                        <title>Compliance the biggest source of stress for business owners, but integral to success</title>
						                        <link>
						                        https://williambuck.com/nz/compliance-the-biggest-source-of-stress-for-business-owners-but-integral-to-success						                        </link>
						                        <pubDate>Fri, 04 Mar 2022 01:11:08 +0000</pubDate>
						                        <dc:creator>Neil Brennan</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=23209						                        </guid>
						                        <description><![CDATA[A staggering 85% of SME business owners have identified compliance as the biggest source of stress in a poll recently conducted by non-bank lender ScotPac. Given the pre-pandemic trend towards commoditisation of compliance across the accounting and taxation sector, COVID has proven to be an interesting litmus test for the importance of being compliant and [&#8230;]]]></description>
						                        <content:encoded><![CDATA[A staggering 85% of SME business owners have identified compliance as the biggest source of stress in a poll recently conducted by non-bank lender ScotPac. Given the pre-pandemic trend towards commoditisation of compliance across the accounting and taxation sector, COVID has proven to be an interesting litmus test for the importance of being compliant and has identified that while everyone can ‘do’ compliance, not all businesses do compliance well.
How compliance assisted business throughout the pandemic 
Assisting our clients to implement timely compliance has been critically important throughout COVID as it enabled them to respond effectively and reach a level of certainty required to forge ahead.

For some clients, strengthened compliance meant they were better positioned to access Government stimulus measures. Given the significant financial stress many businesses were placed under, this was imperative to their survival.

For others, sound compliance resulted in better cash flow management. This in turn meant they could continue to pay suppliers, retain staff, and maintain a budget forecast.

Some clients simply found that increased compliance led to more effective and timely management decisions.

Regardless of how it was able to support our clients throughout the pandemic, the implicit value of good compliance habits was realised.
Compliance automation 
Automation of compliance still presents as an important component of business evolution. The pandemic has highlighted though that automation does not mean autonomy. Business owners who do not understand the intrinsic metrics within their business or turn a blind eye to their compliance obligations (often due to fear of the outcomes), have been put under extreme duress throughout the past two years.

In many cases, this could have been avoided or at least reduced with the right systems and processes in place, especially given the flexibility and fiscal support that has been available to many small businesses.
Compliance beyond the numbers
As we find ourselves traversing the new normal, a common threat to businesses is the great resignation and the inability to attract and retain talent as easily as before. Businesses are going to many lengths to meet this challenge and introducing good compliance throughout the employee lifecycle will go a long way to doing so.

Businesses can do this by ensuring the correct processes are adhered to during the hiring and end of employment stages, keeping mandatory records, paying award rates including penalties and allowances and developing a Code of Conduct outlining appropriate behaviour.

Executing sound human relations compliance enables a business to protect its people and build its reputation as an employer of choice.

The new normal hasn’t only brought threats but also opportunities, one of which has been the opportunity to become more agile and intuitive in the face of a crisis. Increased agility leads to higher resilience, with businesses better able to respond to unforeseen circumstances and do so in a timely manner. There’s also evidence that agility leads to improved customer experience as the business is better able to meet the ever-changing customer demand; enhanced employee engagement through increased collaboration; and greater operational efficiency.

The lessons for SME business owners are clear: sound, accurate and timely information leads to effective and confident decisions, irrespective of the challenges faced and the uncertainty of the surrounding environment. Business owners that were forced to make decisions during the pandemic while playing catch up on their compliance requirements were always going to be placed under enormous stress. If you don’t already have complete confidence in your compliance function, now is the time to improve it before the next wave of uncertainty impacts your business.

For assistance enhancing your compliance function and to develop other areas of your business strategy, contact your local William Buck advisor [1] today.

[1] https://williambuck.com/our-people/]]></content:encoded>
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						                        <title>William Buck New Zealand strengthens Audit capability with two new Directors</title>
						                        <link>
						                        https://williambuck.com/nz/william-buck-new-zealand-appoints-two-new-directors						                        </link>
						                        <pubDate>Thu, 03 Mar 2022 23:04:38 +0000</pubDate>
						                        <dc:creator></dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=23188						                        </guid>
						                        <description><![CDATA[]]></description>
						                        <content:encoded><![CDATA[[vc_row][vc_column][vc_column_text]William Buck is delighted to announce the promotion of Bonita Swanepoel [1] and Myriam Gros [2] to Director, Audit &#38; Assurance. Bonita and Myriam join a growing leadership team of 11 established directors in New Zealand.

Bonita joined William Buck’s Audit team eight years ago when moving to New Zealand. Experienced working with organisations across the private and public sectors, Bonita focuses on developing strong relationships with her clients to understand their business and to provide the services and advice they need. Bonita specialises in Auditing and Assurance, Corporate Governance, Due Diligence, Financial Reporting and Risk Management.

Originally from France, Myriam joined the Audit Division of William Buck in 2015. Myriam’s work has encompassed a variety of clients from small companies and not-for-profit organisations to large New Zealand and France-based multinationals and public companies. Her Audit, Assurance and Due Diligence experience has positioned her as a trusted advisor who can be relied on to deliver great service.

When announcing the promotions, Darren Wright, Director, Audit &#38; Assurance at William Buck New Zealand noted that Bonita and Myriam consistently demonstrated the William Buck way, championing the positive culture and helping build the Audit division to what it is today.

“We are looking forward to them being part of the director team and leading us, as the next generation, into the future.”

William Buck maintains its commitment to promote within the firm where possible. Bonita and Myriam have continued to grow as leaders at William Buck and we are pleased to recognise their growth and increasing contribution to their teams and our firm with promotions to Director.

Bonita and Myriam are based in our Auckland office.

Congratulations also go to other members of our team who have been recognised for their excellence and leadership in our latest promotions.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_row_inner][vc_column_inner][vc_empty_space height="20px"][vc_single_image image="23190" img_size="full"][vc_empty_space height="20px"][/vc_column_inner][/vc_row_inner][vc_column_text]Lara Zhang and Mona Yang have been promoted to Manager roles in our Tax team and Ryan Burgess and Cherie Zou have moved to Assistant Manager roles in Audit &#38; Assurance.

We also congratulate Manon Caloin, Dean Schnell and Naz Fayaz for their promotions to Senior Auditor and Ben Lawson to Senior Accountant, Business Advisory.

It’s great to have such talented individuals in the William Buck team.[/vc_column_text][vc_empty_space height="20px"][vc_empty_space height="20px"][/vc_column][/vc_row]

[1] https://williambuck.com/nz/people/bonita-swanepoel/
[2] https://williambuck.com/nz/people/myriam-gros/]]></content:encoded>
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						                        <title>COVID-19: Further financial help available for NZ businesses</title>
						                        <link>
						                        https://williambuck.com/nz/covid-19-further-financial-help-available-for-nz-businesses						                        </link>
						                        <pubDate>Thu, 03 Mar 2022 06:30:16 +0000</pubDate>
						                        <dc:creator>William Buck</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=23183						                        </guid>
						                        <description><![CDATA[Most businesses are operating relatively normally, but there are some sectors which continue to experience a significant decline in consumer activity and revenue. Because of this, the Government has announced additional financial support for businesses that are experiencing cashflow pressures due to the Omicron outbreak. The package includes: Further COVID support payments Changes to the [&#8230;]]]></description>
						                        <content:encoded><![CDATA[Most businesses are operating relatively normally, but there are some sectors which continue to experience a significant decline in consumer activity and revenue. Because of this, the Government has announced additional financial support for businesses that are experiencing cashflow pressures due to the Omicron outbreak. The package includes:

 	Further COVID support payments
 	Changes to the Small Business Cashflow Scheme, and
 	Extension of Inland Revenue’s ability to remit penalties and interest.

New targeted COVID-19 Support Payment available
The COVID-19 Support Payment (CSP) will help support viable businesses or organisations which have experienced a 40% or more drop in revenue due to COVID-19.

The CSP will be available on a fortnightly basis over six weeks, with three payments in total. Each CSP will need to be applied for separately.

Eligible businesses will receive $4,000 per business plus $400 per full-time employee (FTE). This will be capped at 50 FTEs or $24,000.

Businesses or organisations with low revenue will have their payment capped at eight times their actual decline in revenue.

Eligibility criteria

Drop in revenue

 	To be eligible, a business or organisation must have experienced a revenue decline of 40% or more as a result of one or more COVID-19 circumstances. These being the widespread presence of COVID-19 in the community, legislative public health measures taken to reduce the spread of COVID-19 in the community, and any business circumstances that are, or are reasonably likely to be, a consequence of the first two circumstances.
 	There will be two time periods against which you can compare your current revenue to be eligible for the payment. To receive the first payment, you will need to show a drop in revenue of 40% or more in a seven-day period any time from 16 February compared to a typical seven-day period covering:
 	5 January 2022 and 15 February 2022, or
 	5 January 2021 to 15 February 2021 (when all of New Zealand was at Alert Level 1).
 	The dates of the affected revenue period for the second and third payments are still to be decided.
 	The affected revenue period and the comparison period must be calculated based on what has happened, not a forecast of what might happen.

Other criteria

In addition to the above, to be eligible for the CSP a business or organisation must:

 	have taken all reasonably practicable steps to minimise revenue losses.
 	been operating in compliance with the COVID-19 Vaccine Certificate requirements.
 	have been operating the business or organisation for a period of at least one month before 16 February 2022. If you have acquired a business or organisation after 16 January 2022, you may still be eligible for the CSP.
 	be living, or (if a non-natural person) registered or otherwise established in New Zealand.

Applying for the CSP

Businesses can apply for the CSP using the 5 Jan – 15 Feb 2022 revenue comparison period from 28 February, with payments starting from 1 March 2022. The first payment will be open for at least six weeks.

Inland Revenue will be making changes to its system to allow businesses to apply under the 5 Jan – 15 Feb 2021 comparison period. This is expected to be available from 14 March 2022. Businesses will be able to use this option to apply for each of the three payments.

For more information visit ird.govt.nz/csp. [1]
Changes to the Small Business Cashflow Scheme (SBCS)
New loans

The Government has announced the base SBCS loan will be increased to $20,000 (from $10,000). The amount that can be borrowed will be $20,000 plus $1,800 per full-time equivalent employee (up to 50 employees).

The loan repayment period remains at five years (60 months) and the first two years of existing loans will become interest-free (provided the loan is not in default). Interest will apply at a rate of 3% per year on the remaining loan balance from the first day of the third year of the loan period.

New borrowers, and those that have already paid back their loan before 31 December 2023, can borrow up to the new maximum amount as a lump sum or as up to four instalments before the end of the scheme. The first two years of the loan will be interest-free from the date the loan is made available to them.

Top up for loan existing borrowers

If you already have a loan (and have not defaulted on this) you will be able to apply for a top-up loan of $10,000. If you did not borrow the full amount you were able to in your existing loan, you will also be able to add this amount to your top-up loan.

The top-up loan will have a new five-year repayment period, with the first two years being interest-free. You can borrow the whole amount at once, or in four separate withdrawals taken out before the end of 2023.

Further information is available at ird.govt.nz/sbcs [2]. You can apply for the SBCS loan and the top-up loan through your myIR account at ird.govt.nz [3].
Extension of Inland Revenue's ability to apply flexibility for tax payment dates and terms
Inland Revenue’s ability to remove (remit) interest if a business is late paying its tax because they are adversely affected by COVID-19 has been extended.

It’s important that businesses contact Inland Revenue as soon as they know they will not be able to pay their tax on time. Inland Revenue can remit penalties and interest for tax payments that were due on or after 14 February 2020 up until 7 April 2024 (including provisional tax).

As Inland Revenue may check the declaration that the business was significantly affected by COVID-19, businesses should keep records such as bank and credit card statements, management accounts, and debtor and creditor lists.

More information on requesting financial relief is available on the Inland Revenue website [4].

Our William Buck advisors [5] are also able to provide support if you have any questions or need advice – we’re here to help.

&#160;

&#160;

&#160;

[1] https://www.ird.govt.nz/csp
[2] https://www.ird.govt.nz/sbcs
[3] https://www.ird.govt.nz
[4] https://www.ird.govt.nz/managing-my-tax/debt-and-insolvency/financial-relief-nz-individuals
[5] https://williambuck.com/nz/our-people/]]></content:encoded>
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						                        <title>Key year-end tax tips for business owners</title>
						                        <link>
						                        https://williambuck.com/nz/key-year-end-tax-tips-for-business-owners						                        </link>
						                        <pubDate>Tue, 01 Mar 2022 05:23:04 +0000</pubDate>
						                        <dc:creator>Jayesh Kumar</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=23110						                        </guid>
						                        <description><![CDATA[Financial year-end can be daunting, particularly for business owners that simply lack the time to pre-plan and leverage opportunities to reduce their tax exposure. In the lead up to 31 March, we’ve compiled below a list of key tax requirements that you must comply with to avoid penalties, and others that present an opportunity to [&#8230;]]]></description>
						                        <content:encoded><![CDATA[Financial year-end can be daunting, particularly for business owners that simply lack the time to pre-plan and leverage opportunities to reduce their tax exposure.

In the lead up to 31 March, we’ve compiled below a list of key tax requirements that you must comply with to avoid penalties, and others that present an opportunity to reduce your tax liability and improve cash flow into the new financial year.
Trading stock 
Trading stock (excluding livestock) on hand must be valued at cost or market selling value, depending on which is lower at year-end. Any changes with the valuation approach should be disclosed accordingly. General provisions for obsolete stock or stock write downs are not deductible for tax purposes. Therefore, it is important to perform a stock take and to make sure that all obsolete stock is physically disposed of or written down to its net realisable value before year-end.

A taxpayer with a turnover of $1.3 million or less during the current financial year is allowed to value their closing stock at the opening stock value, provided the total amount of closing stock can be reasonably estimated to be below $10,000.
Writing off bad debts
Bad debts must be physically written off from the debtor’s ledger before the balance date for them to be claimed as tax deductions, and this may allow you to recover previous GST payments. Recovery actions and sufficient information to support the debt as bad are required by the Inland Revenue Department (IRD).
Deducting employee-related expenses
Amounts accrued at balance date for employee related expenses such as holiday pay, long service, sick pay and bonuses, can only be deducted in the current year if they are paid out within 63 days of year-end (i.e. for a 31 March balance date, the 63rd day will be 2 June). Therefore, we recommend you pay bonuses to your staff or encourage them to take annual leave within this timeframe, where possible.
Imputation credit account and dividends 
The current imputation year for your company is 1 April 2021 to 31 March 2022. Regardless of your balance date, it is important to ensure your imputation credit account balance is not in debit on 31 March 2022. A penalty of 10% will be imposed on any debit balance at 31 March.
Filing your Fringe Benefit Tax (FBT) return
The filing and payment due date for the fourth quarter FBT return is 31 May 2022. It is important to note that the election to use the alternate rate should be made while filing this March quarter return.

FBT can become overwhelming, so it’s important you contact a chartered accountant if you need calculation assistance as you could end up with a large, unexpected bill due to tax underpayments.

Fringe benefit tax may apply to the next item as well.
Record your entertainment expenses throughout the year 
Not all business-related entertainment expenses are 100% tax deductible. Therefore, it is fundamental you record how and why these expenses were incurred to make sure they are correctly accounted for and the right amount is deducted.

GST adjustments are also required with respect to the non-deductible amounts.
Rules around deducting prepayments 
Prepayments are the expenses that have been paid during the current tax year but relate to a future period. Prepayments are also referred to as prepaid expenditure. Generally, the unexpired portion of prepaid expenditure/prepayments is not deductible in the current year.

However, under current tax rules, there are some exceptions available provided certain criteria are satisfied (i.e. whether the expenses have been claimed for financial reporting purposes, and the period of the unexpired portion including the prepaid amount are within the prescribed threshold).

Speak to a chartered accountant to understand whether any of your prepayments can be fully deducted in the current tax year.
Review the accuracy of your fixed assets registers
Review the accuracy of your fixed asset registers by year-end. Your business will be affected badly if you do not retain accurate fixed asset registers. An accurate fixed asset register is a wonderful asset tracking tool that can be utilised to improve profitability and decision making and to reduce money and time wastage in your business. Under certain circumstances, assets written off are deductible for tax purposes.

A fixed asset can be written off if it meets the following requirements:

 	The asset is no longer used in your business, and
 	The asset is not intended to be used in the future, and
 	The disposal cost of the asset would be higher than disposal proceeds, and
 	The asset is neither a building nor a pooled asset.

As part of the COVID tax relief, an instant write-off for assets costing $5,000 or less was allowed for the period from 17 March 2020 to 16 March 2021. Starting 17 March 2021, the amount was decreased to $1,000.
Complete your loss offsets and subvention payments by 31 March
Group loss offsets and subvention payments for the 2021 financial year are required to be completed by 31 March 2022. By this date, an election notice with Inland Revenue must have been filed by the loss company and the subvention payment must have been paid to the loss company.

Speak with a William Buck advisor or your chartered accountant before year-end if your company has incurred tax losses.
Reassess your provisional tax for the year-end 2022
Provisional tax in 2022 is calculated on the standard basis and is generally based on your 2021 results. If you believe your 2022 results will be significantly different from the previous year, we recommend you contact a William Buck advisor or your chartered accountant to discuss the need for a voluntary payment or if you wish to estimate your earnings.
Treatment of Goods and Services Tax (GST)
A key part of your year-end process should be reconciliation between your business’s GST return and the balance of the GST account. GST reconciliation is also generally requested as part of Inland Revenue’s audit procedures.

We recommend you undertake a GST review to identify any potential system/software issues if there are unreconciled discrepancies.

Through following these processes and ensuring all requirements are met by their respective deadlines, you will go a long way to avoiding penalties and ensuring compliance.

To gain a better understanding of any of the above points or for advice on how to approach tax time, contact your local William Buck Advisor. [1]

[1] https://williambuck.com/nz/our-people/]]></content:encoded>
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						                        <title>It’s red or orange for NZ – so, what support is currently available for businesses?</title>
						                        <link>
						                        https://williambuck.com/nz/its-red-or-orange-for-nz-so-what-support-is-currently-available-for-businesses						                        </link>
						                        <pubDate>Tue, 07 Dec 2021 06:14:08 +0000</pubDate>
						                        <dc:creator></dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=22286						                        </guid>
						                        <description><![CDATA[]]></description>
						                        <content:encoded><![CDATA[[vc_row][vc_column][vc_column_text]With the shift to the new COVID-19 Protection Framework, businesses will have more flexibility to open and operate. However, the Government has also announced it is moving away from the broad economic support provided under the Alert Level system. For businesses and organisations who continue to be directly affected by COVID-19, what financial and other support is still available to help get things back on track?

We outline below some of these key support programs:

Resurgence Support Payment (RSP) and transition payment

A one-off transition payment will be available on 10 December 2021 to support businesses, particularly in Auckland, Waikato and Northland, as we move into the new traffic light system. The transition payment will be available through the RSP system in myIR and has the same eligibility criteria as the RSP [1].

Eligible businesses will be able to apply for a payment of $4,000 per business plus $400 per FTE - up to a cap of 50 FTEs (a maximum payment of $24,000). This is higher than the current RSP rates.

Businesses must have experienced a 30% decline in income between 3 October 2021 and 9 November 2021 when compared to a typical week in the six weeks prior to 17 August 2021.

Applications for the 4th, 5th and 6th Resurgence Support Payments close on 13 January 2022. No further rounds of the RSP are planned. The RSP will be paid in addition to the transition payment.

From 10 December 2021, businesses that changed ownership on or after 18 July 2021 may be able to get the RSPs made available from 29 October. The RSP rules have required an applicant to be operating as a business for at least one month before 17 August, so businesses that were acquired after 17 July have not been eligible for any payment. To be eligible, the business will need to meet the RSP criteria and must have been operating for at least one month prior to 17 August. The business must also be carrying on the same or similar activity as before the change in ownership.

Wage Subsidy

Applications for the final Wage Subsidy close on 9 December. This is the last of the COVID-19 August 2021 payments.

Leave Support Scheme and Short-term Absence Payment

These payments will continue to be available under all levels of the traffic light system to businesses who have employees who are off work while isolating or need to take leave while waiting for test results.

However, the Leave Support Scheme will move to a weekly payment rather than fortnightly under the new system. This reflects the change in the isolation period.

Small business cashflow loan scheme

If you employ 50 or fewer staff, you may be able to apply for this scheme. This is a one-off five-year loan where you can borrow a maximum of $10,000 plus $1,800 per FTE employee. Applications are open until 31 December 2023. More information &#62; [2]

Temporary loss carry-back scheme

Businesses expecting to make a loss in either the 2020 year or the 2021 year can use that loss to offset profits they made the year before. A loss carry back can be claimed in your income tax return when you file it or by amending the return if filed. More information &#62; [3]

Managing your taxes

If you are having difficulties meeting tax obligations due to the impact of COVID-19, Inland Revenue may be able to assist with finding a solution for:
— filing and paying your tax
— claiming GST and income tax deductions for expenses and losses
— requesting a remission of penalties and interest. More information &#62; [4]

Digital Boost

The government-funded Digital Boost programme provides small business owners with free online training on becoming a digital business. More information &#62; [5]

Additional support for Auckland businesses

Under Activate Tāmaki Makaurau, businesses in Auckland will be able to apply for up to $3,000 worth of advisory support and up to $4,000 to implement that advice. This will be available through the established Regional Business Partners programme.

Business Advice will provide access to expert advice, strategy and planning to businesses in the Auckland region and includes business planning and strategy, financial planning and cashflow management, marketing planning and digital marketing, and health and wellbeing.

Businesses can register for Business Advice and/or Implementation Grants here [6].

Our William Buck advisors [7] are also able to provide additional support if you have any questions or need advice – we’re here to help.[/vc_column_text][/vc_column][/vc_row]

[1] https://www.ird.govt.nz/covid-19/business-and-organisations/resurgence-support-payment
[2] https://www.ird.govt.nz/covid-19/business-and-organisations/sbcs
[3] https://www.ird.govt.nz/covid-19/business-and-organisations/temporary-loss-carry-back-scheme
[4] https://www.ird.govt.nz/covid-19/business-and-organisations/
[5] https://digitalboost.business.govt.nz/s/?language=en_NZ
[6] https://www.aucklandnz.com/activateauckland
[7] https://williambuck.com/nz/our-people/]]></content:encoded>
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						                        <title>Tribute to Praveen Mistry</title>
						                        <link>
						                        https://williambuck.com/nz/tribute-to-praveen-mistry						                        </link>
						                        <pubDate>Mon, 22 Nov 2021 00:51:06 +0000</pubDate>
						                        <dc:creator>William Buck</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=22164						                        </guid>
						                        <description><![CDATA[William Buck and its directors were saddened to learn of the passing of Praveen Mistry on 6 November 2021. Praveen had a long history with William Buck after starting with the firm in 2011 as a Tax Consultant. He worked closely with Jayesh Kumar, Sinclair Guo and Arran Boote as they grew the New Zealand [&#8230;]]]></description>
						                        <content:encoded><![CDATA[William Buck and its directors were saddened to learn of the passing of Praveen Mistry on 6 November 2021. Praveen had a long history with William Buck after starting with the firm in 2011 as a Tax Consultant. He worked closely with Jayesh Kumar, Sinclair Guo and Arran Boote as they grew the New Zealand Tax team over a number of years and was appointed as a Director in 2018.

Praveen was also an enrolled Barrister and Solicitor of the High Court of New Zealand.

Praveen left William Buck in March 2020 to focus on his health.

Those of us who knew him remember his calm, positive manner. It was this manner that made him approachable to everyone, whether in need of technical or personal advice. His clients felt the same and knew with Praveen they would receive sound advice from a person that was truly invested in reaching the best outcome he could for them.

Praveen was a martial arts fan and tenacious football player, which helped William Buck score numerous victories. Well known for enjoying a good event, he was the life of the party at William Buck’s social club functions. For many of us, he was more than a director and coach, he was also a good friend.

Praveen will be sadly missed, and we honour his contribution to William Buck and the accounting profession.
]]></content:encoded>
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						                        <title>New disclosure requirements for domestic trusts</title>
						                        <link>
						                        https://williambuck.com/nz/new-disclosure-requirements-for-domestic-trusts						                        </link>
						                        <pubDate>Wed, 03 Nov 2021 03:56:28 +0000</pubDate>
						                        <dc:creator></dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=21992						                        </guid>
						                        <description><![CDATA[Following amendments to the Tax Administration Act 1994 in December 2020, trustees of certain domestic trusts will be required to prepare financial statements and provide extra information with their income tax returns. These statements must be included with the annual return for the 2021–22 and later income years. Who will be affected? According to Inland [&#8230;]]]></description>
						                        <content:encoded><![CDATA[Following amendments to the Tax Administration Act 1994 in December 2020, trustees of certain domestic trusts will be required to prepare financial statements and provide extra information with their income tax returns. These statements must be included with the annual return for the 2021–22 and later income years.
Who will be affected?
According to Inland Revenue, around 180,000 domestic trusts (with the exclusion of estates) report assessable income each year and may be affected by the new disclosure requirements. However, the financial statement disclosure requirements will primarily affect around 55,000 of these domestic trusts. These are trusts that report assessable income to Inland Revenue but do not currently report business income or file any financial statements.

Trusts that do not derive assessable income are not required to file a return and the disclosure requirements do not apply. These may include, for example, trusts that own holiday homes and derive no assessable income, charitable trusts registered under the Charities Act 2005, or non-active trusts where a non-active trust declaration has been filed with the Commissioner.
What will be required?
Minimum financial reporting requirements for financial statements have been proposed.

 	Trustees will need to prepare a statement of financial position setting out the assets, liabilities, and net assets (equity) of the trust as at the end of the income year, and a profit and loss statement showing income derived, and expenditure incurred, by the trust during the income year.
 	The financial statements must be prepared using the double-entry method of recording financial transactions and the principals of accrual accounting.
 	The financial statements must include a statement of accounting policies and changes.
 	Amounts may be disclosed using tax values, historical cost, or market values at the discretion of the preparer of the statements.
 	The statements should include a reconciliation of the trust’s financial statements and taxable income for the income year, and a reconciliation of movements from opening to closing balances, on a line-by-line basis, of all beneficiary accounts, including loans.
 	Transactions involving associated persons should be included in a schedule unless they are minor and incidental to the activities of the trustee.

Small trusts (where annual income or expenditure is under $30,000 and total value of trust assets is under $2,000,000 during the income year) will be exempt from applying the principles of accrual accounting (cash accounting will be acceptable for small trusts), providing a statement of accounting policies, and disclosing comparable figures for the previous income year.

From the 2021-22 tax year trustees of domestic trusts will also be required to make disclosures in their annual returns about information on settlements and distributions as well as appointer details. The purpose is to test compliance and the effective operation of the 39 per cent tax rate and to further understand what trustees do with trust assets and income.

Trustees will be required to provide:

 	The nature and amount of any settlement made on the trust during the year
 	The details of anyone who is a settlor of the trust
 	The amount of any distributions made during the year, and the details of the beneficiary who received the distribution
 	Details of any person who has powers to appoint or remove trustees and beneficiaries or amend the trust deed.

When will this take effect?
Trustees will need to provide financial statements and additional information for the 2021–22 and later income years. However, the proposed minimum requirements for the financial statements is currently out for public consultation. Inland Revenue is seeking feedback on the minimum standards for financial reporting by trustees (including whether small trusts should be partially exempt from these requirements). Submissions close on 15 November 2021. Inland Revenue is also seeking feedback on the draft operational statement which sets out the approach to applying the trust information gathering powers. Deadline for submissions is 30 November 2021. Further information on the consultation process and how to provide feedback can be found here [1].
Our thoughts
The new disclosure requirements significantly increase compliance for trusts. This is because the information to be disclosed may not always be readily available. It’s likely the first year (i.e., the 2021–22 income year) will be particularly challenging, therefore trustees should start thinking about how to collect this information.

It is recommended trustees consider the reporting required for the 2021–22 year as early as possible. This includes the information that needs to be collected and how it will be perceived by Inland Revenue when they review this information. For trustees with financial records that have not been adequately maintained, it is advisable that you get them up to date as soon as possible.

Our William Buck advisors [2] can also provide additional support if you have any questions or need advice – we’re here to help.

[1] https://www.ird.govt.nz/updates/news-folder/new-reporting-requirements-for-most-domestic-trusts
[2] https://williambuck.com/nz/our-people/]]></content:encoded>
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						                        <title>Is your strategic management report set up for effective decision making?</title>
						                        <link>
						                        https://williambuck.com/nz/is-your-strategic-management-report-set-up-for-effective-decision-making						                        </link>
						                        <pubDate>Mon, 25 Oct 2021 03:13:39 +0000</pubDate>
						                        <dc:creator>William Buck</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=21849						                        </guid>
						                        <description><![CDATA[Management reports aim to allow users to assess the company’s strategy, identify its strengths and concerns and empower management to make decisions. Management reports are not just about profit and loss. They provide details about the company’s operational information, keeping management, the CEO and the Board are kept informed of outcomes. Key focuses of the [&#8230;]]]></description>
						                        <content:encoded><![CDATA[Management reports aim to allow users to assess the company’s strategy, identify its strengths and concerns and empower management to make decisions. Management reports are not just about profit and loss. They provide details about the company’s operational information, keeping management, the CEO and the Board are kept informed of outcomes.
Key focuses of the strategic management report
The management report should focus on five key areas:

 	Strategy: This is arguably the most important area, highlighting the company’s underlying goals and fundamental drivers to be presented to the management team. The strategy should drive all decision making in the business. The report needs to have updates and outcomes of any strategic projects that the business is undertaking.
 	Financial: The financials demonstrate the results for the reporting period, including, comparison against budget, how much cash is in the bank, debtors, creditors and profitability.
 	Employees: This should provide management with a sense of the pulse of the business. Generally, if employees are happy, the business is in a good position. The report needs to provide employee related data on attendance, resignations, accidents and utilisation of staff.
 	Client/customer perspectives: This part of the report should focus on how the business is progressing with clients, as well as public perceptions of the business. Are existing customers satisfied? Is the company’s marketing department delivering results?
 	Governance: This focuses on compliance and internal controls of the business and the directors’ obligations. It should include tax, superannuation, insurances and any specific regulations that the business needs to follow.

Key drivers 
Each business has key drivers that should be reported on in the management reports. There are lead indicators (staff utilisation and productivity, website views and customer inquiries, pipeline volume indicating sales leads and target goals, machine downtime and training sessions attended) and lag indicators (annual sales, gross margin, sales revenue, machine output and number of accidents, to name a few).

Lead indicators might predict future success. It is important to note however that these are just predictive and do not guarantee success. The lag indicators on the other hand are a measure of past performance. They are an after-the-event measurement.
How is technology changing management reports?
Traditionally, the role of the finance team was to enter and verify data. Technology has changed this. Automation, AI and integration of systems through application programming interface (API’s) has changed the focus of the finance team from entry and verification of data to analysing data.

Technology is allowing critical information on lead indicators to be provided to management in real time through the use of dashboards. This is important because it gives management access to data prior to receiving month-end reports. The finance team can use software such as Power Bi and Tableau to pull information from multiple data points (i.e. the accounting ledger, point of sale (POS) system, manufacturing software).

Dashboards are a high-level reporting mechanism that display key performance indicators (KPIs) on a single page. They provide fast ‘big picture’ answers in real time to critical business questions. They assist decision-making by communicating how a business is performing according to defined targets and improve management’s informational awareness by organising operational data into a well-managed format. The dashboard is an effective way to demonstrate complex relationships in an easy-to-understand manner and in real time.

The dashboard makes management reporting a continuous task and is changing month-end reporting into a sense check of results using lag indicators
Common financial due diligence issues with management reports 
As part of financial due diligence, management reports are reviewed and common issues are regularly found. Management reports are most effectively reviewed on a monthly basis and are analysed in order to:

 	Gain an understanding of how the management accounts are prepared
 	Review how accounting policies and procedures are being applied, and
 	Determine the level of the quality of the information.

By analysing the management reports on a monthly basis, users can identify seasonality in the business, review the consistency or changes in margins and determine the working capital the business requires.

Some of the common issues identified in management reports include:

 	Lack of consolidated reporting – By preparing management reports on a consolidated basis it is easier to gain an understanding of the business as a group. There can often be a mismatch between where the business thinks it stands and where the business actually stands once the consolidation is prepared.
 	Inconsistent or inaccurate recognition of direct costs or operating expenses – Accurate reporting of direct costs or operating expenses makes it easier for the users of management reports to understand the gross profit margin and create comparable reports for benchmarking purposes.
 	Month-end accruals – Month-end accruals is the most problematic issue with management reports which can lead to a misalignment in the profit and loss (i.e. the revenue shown is not related to the expenditure incurred and vice versa) as well as inaccurate fluctuations in margins.

What are the benefits of addressing these key issues for CFOs when reporting? 
A disciplined approach to management reporting will benefit the business if and when shareholders prepare for an exit or are seeking to raise capital. As a CFO, accurate management reports will assist you with:

Understanding of cash flows, financing and bank reporting – Regular and accurate management reports prepared at month end allow businesses to understand their cash flow position with clarity. They also allow businesses to more effectively source debt funding and manage ongoing bank covenants, creating a better relationship with their banks and lenders.

Assists with budgeting and forecasts – Accurate management reports allow users to leverage historical information to assemble an accurate budget, which considers seasonality and margins throughout the course of the year. This assists businesses to better plan and execute their strategic plan. Management reports should also include a budget versus actual result, which provides businesses the ability to be ahead of any issues and understand if their plan or strategy is being executed correctly.

Understanding changes in margins and seasonality of the business – Accurate management reports allow the users to gain a true view of the cost of doing business and to quickly notice falling margins, a decline in sales or an increase in operating expenses. All of which could be symptomatic of seasonality or be an indicator of a larger structural issue.

Segmented business reporting - Segmented business reporting adds clarity to the management report and is essential if the business is operating in segments with different margins and costs. Segmented business reporting allows management to understand which area of the business is underperforming or growing, providing the information to direct investment or manage costs.
The importance of strategic management reporting 
Strategic management reports provide a complete picture of a company’s strategy, its strengths, and major issues and can assist at critical times in a business’ lifecycle including an exit or capital raise. Strategic management reports should be about the entire business. The reports should incorporate lead indicators and provide the critical real time information with dashboard reports. Expenses should be recognised. There should be no surprises for management, which could occur should they rely on just an end-of-year report. It is important to keep adjustments up to date instead of simply relying on year-end figures which can have unexpected results. Without a monthly strategic report, there is a risk of leaving management with false insights into how the business is performing. Moreover, monthly reports enable business owners and CFOs to remain ahead of trends.

For more information on strategic management reports or assistance establishing your own business reporting, please contact your local William Buck adviser. [1]

[1] https://williambuck.com/our-people/]]></content:encoded>
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            		                   <item>
						                        <title>New taxation Bill responds to changing business practices and technology</title>
						                        <link>
						                        https://williambuck.com/nz/new-taxation-bill-responds-to-changing-business-practices-and-technology						                        </link>
						                        <pubDate>Thu, 14 Oct 2021 02:14:29 +0000</pubDate>
						                        <dc:creator>William Buck</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=21751						                        </guid>
						                        <description><![CDATA[]]></description>
						                        <content:encoded><![CDATA[[vc_row][vc_column][vc_column_text]The new Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Bill includes a range of proposed improvements and remedial measures to ensure the tax system functions smoothly. The Bill has been through its first reading and public submissions close on 9 November 2021. It is expected to be passed by the end of March 2022.

The draft tax legislation is required to confirm the income tax rates for the 2021–22 tax year. The basic income tax rates stay the same, with the inclusion of a top personal income tax rate of 39%.

The rest of the Bill covers a long list of GST and income tax policy and remedial amendments. In this summary we focus on some of the main changes that may soon become part of our tax system.[/vc_column_text][vc_empty_space height="20px"][vc_empty_space height="20px"][/vc_column][/vc_row][vc_row][vc_column][vc_separator][vc_empty_space height="20px"][vc_column_text]Excluding cryptoassets from GST and financial arrangement rules

Under the proposed amendments, and based on an amended tax definition, cryptoassets (also known as cryptocurrencies) would be excluded from GST. However, GST will continue to apply to supplies of goods and services that are bought using cryptoassets (the same as if those goods or services had been purchased using money). This would apply from 1 January 2009, the date the first cryptoasset (bitcoin) was launched.

Non-fungible tokens (NFTs) which represents ownership of items like video clips, photos and music that can be owned or traded using a blockchain, have been excluded from the proposed definition of cryptoassets and will remain subject to GST.[/vc_column_text][vc_empty_space height="10px"][vc_toggle title="Read more &#62;" style="text_only" custom_font_container="tag:div&#124;font_size:14&#124;text_align:left&#124;color:%2379bde8" custom_use_theme_fonts="yes" use_custom_heading="true"]GST-registered businesses that raise funds through issuing cryptoassets with features similar to debt or equity securities would be allowed to claim input tax credits on their capital-raising costs.

Cryptoassets would also be excluded from the financial arrangements rules by amending the Income Tax Act to include cryptoassets as an excepted financial arrangement. But the amounts you receive from selling, trading or exchanging cryptoassets can be taxable. You may have to pay tax if you are acquiring cryptoassets for the purposes of disposal (for example to sell or exchange), trading in cryptoassets, or using cryptoassets for a profit-making scheme.[/vc_toggle][vc_empty_space height="10px"][vc_separator][vc_empty_space height="20px"][vc_column_text]Modernising GST invoicing and information requirements

Since GST was introduced in 1986, there have been very few changes for the requirements for tax invoices, however, much has changed in the business practices relating to transactional information and the use of technology.

The Bill proposes amendments that modernise the GST invoicing rules. This is by replacing the requirements for the issue of documents with requirements for the provision of information, with no prescribed formats. The proposed information requirements will replace the formal requirements that registered persons must create and retain tax invoices for taxable supplies including credit notes and debit notes for adjustments to taxable supplies. The processes for calculating GST payable for each taxable period remain unchanged.[/vc_column_text][vc_empty_space height="20px"][vc_empty_space height="10px"][vc_separator][vc_empty_space height="20px"][vc_column_text]Removing the threshold for apportionment

Under current law, only GST registered persons that expect to supply goods and services with a value of more than $24 million in a 12-month period can agree to an apportionment method with the Commissioner for determining the taxable and non-taxable use of goods and services. GST registered persons below this threshold are currently unable to negotiate a specific apportionment method with the Commissioner and must apply rules that can be seen as complex.

Under the proposed amendment, this threshold would be removed allowing all GST registered persons to apply for an apportionment method.[/vc_column_text][vc_empty_space height="10px"][vc_empty_space height="10px"][vc_separator][vc_empty_space height="20px"][vc_column_text]Removing cap on input tax deduction for disposal of assets

When a GST registered person disposes of an asset which they have partly used to make taxable supplies and also partly used for a non-taxable use (such as a private or exempt use), they are allowed to claim an additional input tax deduction to reflect the non-taxable use of the asset. This deduction is currently capped at the GST fraction of the purchase price when the asset was acquired. Under the proposed amendments the cap on input tax deductions would be removed to ensure that disposals of appreciating assets, such as land, are not overtaxed.[/vc_column_text][vc_empty_space height="10px"][vc_toggle title="Read more &#62;" style="text_only" custom_font_container="tag:div&#124;font_size:14&#124;text_align:left&#124;color:%2379bde8" custom_use_theme_fonts="yes" use_custom_heading="true"]




Example
&#160;

Sally purchases a home in Whangamatā for $690,000. The holiday home is used to supply short-term commercial accommodation and because the expected revenues from this activity will exceed $60,000 per annum, Sally registers for, and charges GST on the short-term accommodation.

&#160;

As Sally has also stayed in the holiday home for long periods over the winter months, her private (non-taxable) use of the house has been 20%. Because the taxable use of the holiday home is 80%, Sally has already claimed an input tax deduction of $72,000 during her period of ownership ($72,000 is 80% of the tax fraction (3/23rds) of the $690,000 purchase price of the house).

&#160;

After many years she sells the holiday home for $1,150,000 (including GST). As Sally is GST registered and disposing of an asset which was used in the course and furtherance of her taxable activity of supplying short-term commercial accommodation, she is required to return $150,000 of GST output tax.

&#160;

Sally does not have a taxable activity of selling land. This means that in the absence of the supplies of short-term commercial accommodation Sally made from the holiday home, the sale of the holiday home would not be considered as being made in the course or furtherance of a taxable activity. Under the proposed change in the Bill the cap on adjustments in section 21F would therefore not apply to the disposal of the holiday home so Sally can claim an input tax deduction of $30,000.

&#160;

Applying the formula in proposed section 21F(4) to Sally’s holiday home:

&#160;

Tax fraction × consideration × (1 − previous use)
= 3/23          × $1,150,000    × (1 – 0.8)
= $30,000

&#160;

Sally returns $150,000 of GST output tax and claims an input tax deduction of $30,000 in her next GST return. The $120,000 of net GST she returns reflects 80% of the output tax charged on the sale of the holiday home which is consistent with the fact that 80% of the holiday home was used to make taxable supplies.

&#160;

IRD example



It is also proposed the existing cap remain in place for land disposed of by a property developer, as an increase in the value of the land is directly connected to their taxable activity.[/vc_toggle][vc_empty_space height="10px"][vc_separator][vc_empty_space height="20px"][vc_column_text]Zero-rating GST for transporting exported goods domestically


Services provided to transport goods to and from New Zealand are zero rated under the Goods and Services Act. This is because exported goods are zero-rated, and the value of transport services for imported goods are already included in the cost of imported goods (and are subject to GST). Under the current law, the transport of goods within New Zealand, as part of the international transport of goods, may be zero-rated but only when these services are supplied by the same supplier as the international transport.

The proposed amendment would expand zero-rating to accommodate sub-contracting arrangements. This would enable domestic transport suppliers (for example, a courier company) providing services to non-resident/international transporters to subject their domestic transport services (where they relate to the international transport of goods) to 0% GST.[/vc_column_text][vc_empty_space height="10px"][vc_empty_space height="10px"][vc_separator][vc_empty_space height="20px"][vc_column_text]Using tax pooling to satisfy a backdated tax liability

Currently tax pooling cannot be used where there is no existing assessment or quantified obligation. Under the proposed amendment, a taxpayer would be able to use tax pooling, and thereby reduce their exposure to UOMI, for voluntary declarations related to tax types other than RWT and income tax.[/vc_column_text][vc_empty_space height="10px"][vc_empty_space height="10px"][vc_separator][vc_empty_space height="20px"][vc_column_text]Allowing input tax credit for second-hand goods from an associated person

The current rule prevents a registered person from having an input tax credit for second-hand goods acquired from an associated person who had not previously acquired those goods as a taxable supply. The proposed amendment would allow for this tax credit.[/vc_column_text][vc_empty_space height="10px"][vc_toggle title="Read more &#62;" style="text_only" custom_font_container="tag:div&#124;font_size:14&#124;text_align:left&#124;color:%2379bde8" custom_use_theme_fonts="yes" use_custom_heading="true"]




Example
&#160;

John buys a property for $1,150,000 from a non-GST registered person. He lives in the property for five years and then sells it to his non-registered family trust for $1,200,000. As this sale is not subject to GST, there is no GST included in the sale price. Five years later the trust sells it to an associated GST registered development company for $1,500,000.

&#160;

Under the current law, the company is unable to claim a second-hand goods input tax credit as it purchased the property from an associated trust which paid no GST when it acquired it.

&#160;

Under the proposed amendment, the company will be able to claim an input tax credit of $150,000, being 3/23rds of the price paid by John when he acquired the property. As the trust acquired the property from an associated person, the chain of transactions is looked through to determine the first purchase from a non-associated person (in this case, John).



[/vc_toggle][vc_empty_space height="10px"][vc_separator][vc_empty_space height="20px"][vc_empty_space height="20px"][vc_column_text]Changes to fringe benefit tax and loss continuity

In late September 2021, the Government released draft legislation proposals under Supplementary Order Paper 64 (SOP) containing further measures to be added to the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Bill. The proposed changes include limiting the deductibility of interest incurred for residential property investments and introducing a five-year bright-line period for owners of new build properties (our earlier article on the interest deductibility rules [1] provides more information on these proposals). Also included in the SOP is a new option for calculating fringe benefit tax and a proposal to clarify the application of the business continuity test for carrying forward losses.[/vc_column_text][vc_empty_space height="10px"][vc_empty_space height="10px"][vc_column_text]Fringe benefit tax (FBT)[/vc_column_text][vc_empty_space height="10px"][vc_toggle title="Read more &#62;" style="text_only" custom_font_container="tag:div&#124;font_size:14&#124;text_align:left&#124;color:%2379bde8" custom_use_theme_fonts="yes" use_custom_heading="true"]The calculation of the employer’s FBT liability can be a complicated exercise with different options to choose from. They may choose to pay FBT at the current flat maximum rate of 63.6% (49.25% prior to 1 April 2021) or a rate based on the employee’s personal tax rate. Using a flat rate may result in a higher FBT liability for employees earning under $180,000, while a more accurate alternative requires complex calculations to be carried out for each employee.

To improve the compliance burden, particularly for SMEs, the draft legislation proposes a new option for calculating FBT on fringe benefits. Under the proposed option, employers would pay FBT at the rate of 49.25% for all employees with all-inclusive pay under $129,681. FBT would be payable at the rate of 63.93% for employees with all-inclusive pay on or over $129,681 (generally for those employees earning over $180,000 in (pre-tax) salary or wages).

This new option would apply for the 2021–22 tax year and future years.[/vc_toggle][vc_empty_space height="10px"][vc_column_text]Loss continuity[/vc_column_text][vc_empty_space height="10px"][vc_toggle title="Read more &#62;" style="text_only" custom_font_container="tag:div&#124;font_size:14&#124;text_align:left&#124;color:%2379bde8" custom_use_theme_fonts="yes" use_custom_heading="true"]The business continuity test (BCT) allows a company to carry forward tax losses to future years if they have a change in ownership if there is no major change in the nature of the company’s business activities. The intention was for tax losses incurred in an income year in which a breach of ownership continuity occurs could be carried-forward (to the extent to which they are incurred post-ownership continuity breach). However, for companies that have a breach of business continuity, the legislation does not currently allow tax losses incurred in earlier years to be offset against a profit for the pre-breach part-year.

The proposed legislation amendments would allow losses incurred in years prior to a breach of business continuity to be offset in the same way when ownership continuity is breached. The proposed amendment would apply from the 2020–21 income year.[/vc_toggle][vc_empty_space height="20px"][vc_separator][vc_empty_space height="20px"][vc_column_text]The Finance and Expenditure Committee is seeking public submissions on the Taxation (Annual Rates for 2021-22, GST, and Remedial Matters) Bill and Supplementary Order Paper 64. To make a submission to the Committee, click here [2]. The proposals will be considered by Parliament and may change. Further information on the Bill can be found here [3].[/vc_column_text][vc_empty_space height="20px"][vc_column_text]Our William Buck advisors [4] are also able to provide additional support if you have any questions or need advice – we’re here to help.[/vc_column_text][vc_empty_space height="20px"][/vc_column][/vc_row]

[1] https://williambuck.com/nz/news/business/property-construction/interest-deductibility-rules-on-residential-investment-property-and-proposed-exemptions/
[2] https://www.parliament.nz/en/pb/sc/how-to-make-a-submission/
[3] https://taxpolicy.ird.govt.nz/news/2021/2021-09-08-tax-bill-introduced
[4] https://williambuck.com/nz/our-people/]]></content:encoded>
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            		                   <item>
						                        <title>Interest deductibility rules on residential investment property and proposed exemptions</title>
						                        <link>
						                        https://williambuck.com/nz/interest-deductibility-rules-on-residential-investment-property-and-proposed-exemptions						                        </link>
						                        <pubDate>Thu, 30 Sep 2021 23:05:38 +0000</pubDate>
						                        <dc:creator>William Buck</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=21631						                        </guid>
						                        <description><![CDATA[The interest deductibility proposals announced in March aimed to dampen investor demand for existing residential properties and to help level the playing field for first home buyers. Following public consultation, the Government has this week released draft legislation outlining the details of the interest limitation policy, with exclusions for several types of residential property and [&#8230;]]]></description>
						                        <content:encoded><![CDATA[The interest deductibility proposals announced in March aimed to dampen investor demand for existing residential properties and to help level the playing field for first home buyers. Following public consultation, the Government has this week released draft legislation outlining the details of the interest limitation policy, with exclusions for several types of residential property and exemptions for new builds and for property development.

Residential investment properties capable of being used for long term accommodation (this excludes the main family home) would be subject to the proposed rules. This means, from 1 October 2021 investors will no longer be able to write off interest on their mortgages for residential investment property acquired on or after 27 March 2021. For properties acquired before 27 March 2021, the ability to deduct interest will be phased out between 1 October 2021 and 31 March 2025.

However, provided you meet the other requirements for claiming deductions, you will still be able to deduct interest against income from the following properties:

 	A portion of the main home if it is used to earn income (for example, from flatmates or boarders).
 	Properties used as business premises (except for an accommodation business), such as offices and shops. This includes residential properties to the extent they are used as business premises (for example, a house converted into a doctor’s surgery).
 	Houses on farmland.
 	Bed and breakfasts where the owner lives on the property.
 	Employee and student accommodation.

If you own a section which has both a residential property and excluded property on the same legal title, such as a two-storey building with a shop on the ground floor and a flat on the top floor, you will still be able to deduct interest for the portion of the property which is excluded. You’ll need to use a reasonable method to apportion the interest between the two.
Exemptions for property development and new builds
Exemptions for new builds and for property development have been announced to ensure the proposed interest limitation rules do not reduce the ongoing supply of new housing.
Land business exemption
For land held by a business involved in developing, subdividing or land-dealing, or a business of erecting buildings on land, the land business exemption will apply for interest relating to land. Interest relating to remediation work and other expenses from ownership and development of the land will also qualify if this exemption applies.
Development exemption
For other property development, the development exemption will apply for interest relating to land that you develop, subdivide, or build on to create a new build. You can only deduct interest if existing tax rules allow you to, even if you qualify for the exemption. The exemption will apply from the time you start developing the land and will end when you sell the land or receive a Code Compliance Certificate (CCC). Once your new build receives its CCC, the new build exemption will apply instead.
New build exemption
The new build exemption will expire 20 years after a new build receives its CCC or when the new build ceases to be on the land (for example, it is demolished or removed), whichever is earlier.

The Government has defined a new build as a self-contained residence that receives a CCC confirming the residence was added to the land on or after 27 March 2020. It will also include a self-contained residence acquired off the plans that will receive its CCC on or after 27 March 2020 confirming it has been added to the land. This includes modular and relocated homes.

If a new build is acquired off the plans, the 20-year fixed period will still run from the date of the CCC. The exemption applies to anyone (i.e. initial purchaser and subsequent buyers) who owns the new build within the 20-year period.

The new build exemption also applies to the emerging area of purpose-built rentals, which are generally large residential developments designed for ongoing rental, rather than sale. If you convert an existing dwelling into multiple new dwellings, this can qualify as a new build. This also applies when converting a commercial building into residential dwellings. The Government is seeking further advice on purpose-built rentals in coming weeks and will report back to Cabinet on whether there should be an extension beyond the 20-year period for some or all of this sector.
Changes to the bright-line property rule
Earlier this year the Government extended the bright-line test from five years to 10 years for residential property. This means if you sell a residential property you have owned for less than the specified years, you will be required to pay income tax on any gains made from an increase in property value. This does not apply to a sale of property that has been your main home.

The Government has proposed that if you acquire a new build on or after 27 March 2021, then a new five-year bright-line property rule will apply (instead of the 10-year bright-line property rule). However, you must have acquired the new build no later than 12 months after it receives its CCC and the new build must have its CCC by the time you sell it.

The main home exclusion currently ensures the bright-line property rule does not apply to residential land if you use more than half the land for a main home. However, if you use most of the land for a residential rental property and only have a small main home portion, when you sell your land during the bright-line period any gain on sale will be taxed. This happens even though you have a main home on the land. The Government proposes to change this when the main home portion is smaller than the rental property.

Under the bright-line property rule, for property acquired on or after 27 March 2021, the gain on the property used as a main home will not be taxed. The portion of the gain that relates to the rental property would be taxed.
Where to from here?
Aside from the fact the draft legislation has been released so close to the 1 October application date, Parliament's Finance and Expenditure Select Committee will consider the proposals and is expected to call for public submissions. To make a submission to the Committee, click here [1]. The proposals will be considered by Parliament and may change.
Need more information?
IRD has prepared a set of information sheets [2] providing general information about how the proposed rules are intended to work.

Our William Buck advisors [3] are also able to provide additional support if you have any questions or need advice – we’re here to help.

[1] https://www.parliament.nz/en/pb/sc/how-to-make-a-submission/
[2] https://taxpolicy.ird.govt.nz/-/media/project/ir/tp/publications/2021/2021-other-interest-limitation/2021-other-interest-limitation.pdf?modified=20210928014550&#38;modified=20210928014550
[3] https://williambuck.com/nz/our-people/]]></content:encoded>
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            		                   <item>
						                        <title>Financial forecasting 101</title>
						                        <link>
						                        https://williambuck.com/nz/financial-forecasting-101						                        </link>
						                        <pubDate>Mon, 27 Sep 2021 03:59:49 +0000</pubDate>
						                        <dc:creator>Shane Taylor</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=21598						                        </guid>
						                        <description><![CDATA[What is financial forecasting? Financial forecasting is the process of estimating the future financial performance of a business, with an emphasis on cash flow position. A forecast is a powerful tool that allows meaningful decisions to be made in real-time, creating a competitive advantage. Why is financial forecasting important? Forecasting will help you think critically [&#8230;]]]></description>
						                        <content:encoded><![CDATA[What is financial forecasting?
Financial forecasting is the process of estimating the future financial performance of a business, with an emphasis on cash flow position. A forecast is a powerful tool that allows meaningful decisions to be made in real-time, creating a competitive advantage.
Why is financial forecasting important?
Forecasting will help you think critically about the drivers of your business and major cost control areas and it tells your stakeholders, including your lenders, where you are now and where you want to take the business.

The impacts of COVID-19 have demonstrated the critical nature of cash flow. Businesses that were able to quickly estimate their future cash position could pivot effectively, turning a difficult time into an opportunity.

In the current banking climate, lenders are now asking for a three-way forecast as part of the standard finance application process. Lenders are also more likely to extend credit to businesses with a robust cash flow forecast, as it gives them confidence that the business has a plan and will be able to deal with deviations from that plan.
Questions your forecast will answer
Useful questions that can be answered with a robust forecast and have assisted our clients to maintain cashflow and in some cases even thrive throughout the pandemic include:

 	Do you have adequate funds to cover the future?
 	What does the future cash position look like if:

 	revenue drops by x%?
 	revenue increases by y%?
 	costs such as stock purchases increase by z%?


 	Will additional debt funding be required, and if so, what repayment terms will you be able to meet?
 	Are staffing levels appropriate or do they need to increase or decrease?

What does a forecast look like?
A forecast should be “three-way” and include a forecast Profit and Loss Statement, Balance Sheet and Cash Flow Statement. It should show the timing of:

 	income
 	expenses
 	capital expenditure
 	debt repayments
 	tax liabilities, and
 	drawings/dividends.

Demonstrating the assumptions that support the estimates is key. The time period of a forecast depends on the business, however for most businesses monthly is appropriate, with a 12 to 24-month timeframe. This timeframe allows the forecast to be used to stress-test the business and identify for example what the future cash position will look like if revenue increases or decreases within three, six, or twelve months.
Be realistic and adaptable
Many SME business owners hope their business will achieve consistent double-digit or triple-digit growth, but these growth ambitions need to be realistic and achievable in relation to the forecast. Forecasting will enable business owners to grasp the reality of achieving their goals and reconsider short to medium to long term goals depending on current and historical data.

Your forecast probably won’t be perfect (and doesn’t need to be) but it will provide you with an indication of what the future is going to look like at any given time, so that actions can be taken to help your business reach its goals. Once it is setup with assumptions, you simply replace the previous month forecast figures with actual figures, tweak assumptions, and review the updated forecast.
How to begin?
Developing the forecast doesn’t need to be a difficult or onerous process and it can be improved upon over time. There are a range of tools available to help you build your forecast, at varying prices and levels of complexity.

Spreadsheets, for example Microsoft Excel, are an inexpensive option which are easy to share with management or business partners and allow for easy collaboration.

Simple forecasting programs such as Futrli, or Power BI, are a more advanced option but have the added benefit of connecting with most accounting software including MYOB, Xero and QBO. Like spreadsheets, these programs are inexpensive and relatively easy to use. And, data can be presented in a more engaging way for stakeholders.

More complex forecasting programs are also available, however these programs are generally more expensive than the options above and require a more advanced level of computing. For this reason, we tend to recommend them for larger businesses with more suppliers, possibly more lenders, and a wider set of financials to track.

In our experience, most small to medium sized businesses start their forecasting using a simple spreadsheet model before moving to a dedicated forecasting software as and when required. At William Buck, we can assist by designing your forecasting template for use on a spreadsheet or to be hosted on a program.

For more information on forecasting or assistance with your business strategy, please contact your local William Buck Business Advisor. [1]

[1] https://williambuck.com/our-people/]]></content:encoded>
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						                        <title>Second round of COVID-19 Wage Subsidy opens to businesses needing financial support</title>
						                        <link>
						                        https://williambuck.com/nz/second-round-of-covid-19-wage-subsidy-opens-to-businesses-needing-financial-support						                        </link>
						                        <pubDate>Fri, 03 Sep 2021 05:30:14 +0000</pubDate>
						                        <dc:creator>William Buck</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=21335						                        </guid>
						                        <description><![CDATA[]]></description>
						                        <content:encoded><![CDATA[[vc_row][vc_column][vc_column_text]Latest Update

The COVID-19 Wage Subsidy August 2021 is being paid in two-week periods. Since the alert level change on 17 August 2021, several rounds of the scheme have been announced.

Each round is a new application, and businesses must make sure they meet all the eligibility criteria for each application. You can apply for more than one round of the wage subsidies, two weeks after your previous application, if you meet eligibility criteria.

Applications for the Wage Subsidy August 2021 #2 open Friday 3 September 2021.

With the initial two-week COVID-19 wage subsidy closing on 2 September 2021, the Government has approved a second round of subsidy payments to help support employers and self-employed people throughout New Zealand affected by the level 3 and 4 lockdowns.

Unlike the scheme that operated in March 2020, the Wage Subsidy August 2021 scheme requires businesses to reapply for each fortnightly payment.

Businesses can apply for support if they experience or expect to have at least a 40% decline in their revenue between 31 August and 13 September, when compared to a typical 14-day consecutive period of revenue in the six weeks immediately prior to the move to alert level 4 on 17 August 2021.

The wage subsidy will cover a two-week period at the rate of $600 a week for each full-time employee retained and $359 a week for each part-time employee retained.

Businesses that applied for the initial two-week wage subsidy payment can apply for the second two-week payment two weeks after the previous application date. For example, if you applied on 23 August 2021, you could apply for a second subsidy payment on 6 September.

Work and Income won’t be accepting early applications as each payment is for two weeks.

Eligible businesses that didn't apply for the initial wage subsidy can apply for the second round from 3 September.

As well as the wage subsidy, you may be able to get the Resurgence Support Payment (RSP) to help with fixed costs like rent. Applications for the RSP for businesses affected by the 17 August alert level change are currently open and will remain open for one month after a nationwide return to alert level 1. Our recent article [1] on what COVID financial support is available for businesses affected by the latest lockdown provides more information on the current support measures for businesses and workers.

The wage subsidy and tax 

For most businesses, the Wage Subsidy is classified as "excluded income" for income tax purposes, therefore you don’t pay income tax on the payment. You also don't get an income tax deduction for the wages you pay using the subsidy. You will still need to make the usual PAYE deductions when you pass it onto your employee.

Self-employed people will need to pay income tax on the wage subsidy received, as the payment replaces a loss of earnings.

Employees will need to pay tax on their wage subsidy payment as it’s paid to them as part of their normal wages.

We’re here for you

We continue to support our clients through this challenging period with key business and tax advice to answer your business-related questions and guide you through the COVID-19 financial support measures. For the latest COVID-19 updates, visit our Resource Page. [2]

Should you need any additional support, please contact your local William Buck advisor – we’re here to help.[/vc_column_text][/vc_column][/vc_row]

[1] https://williambuck.com/nz/news/business/general/covid-19-financial-support-for-nz-businesses-affected-by-latest-lockdown/
[2] https://williambuck.com/nz/covid-19-and-your-business-new-zealand/]]></content:encoded>
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						                        <title>COVID-19 financial support for NZ businesses affected by latest lockdown</title>
						                        <link>
						                        https://williambuck.com/nz/covid-19-financial-support-for-nz-businesses-affected-by-latest-lockdown						                        </link>
						                        <pubDate>Thu, 19 Aug 2021 04:15:18 +0000</pubDate>
						                        <dc:creator></dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=21144						                        </guid>
						                        <description><![CDATA[]]></description>
						                        <content:encoded><![CDATA[[vc_row][vc_column][vc_column_text]With the move to Alert Level 4 on 17 August 2021, the Government has reactivated the Wage Subsidy Scheme and Resurgence Support Payment support measures for businesses and workers. Eligible businesses will be able to claim both the wage subsidy and the resurgence support payment.

The COVID-19 Leave Support Scheme and the Short-Term Absence Payment are available to employers and the self-employed for workers unable to work from home while they wait for a COVID-19 test result or self-isolate.

You cannot claim a Wage Subsidy for an employee for the period they're covered by the Leave Support Scheme or Short-Term Absence Payment
Wage Subsidy Scheme
The Wage Subsidy Scheme (WSS) will be available for eligible businesses and self-employed people across New Zealand impacted by the increase in alert levels.

Businesses can apply for support if they experience or expect to have a loss of 40 per cent of revenue between 17 August 2021 and 30 August 2021, compared to a typical 14-day consecutive period of revenue in the six weeks immediately before the move to Alert Level 4.

The Wage Subsidy rates have been increased to $600 per week for a full-time employee and $359 per week for a part-time employee. This reflects the increase in wage costs since the scheme was first introduced in March 2020.

Applications for the WSS will be open from Friday 20 August 2021 for two weeks and will be paid as a two-week lump sum.
Resurgence Support Payment
The Resurgence Support Payment (RSP) is again available to businesses and organisations that experience a 30 per cent decline in revenue over a 7-day period as a result of the latest alert level increase. This decline in revenue is compared with a typical 7-day revenue period in the 6 weeks prior to the increase from alert level 1.

The payment provides businesses and organisations with cashflow support to cover fixed costs.

Eligible businesses can apply to receive a one-off payment of $1,500 plus $400 per full-time equivalent employee (up to a maximum of 50 full-time employees).

Applications for the RSP will open on 24 August and will remain open for one month after a nationwide return to alert level 1.
Leave Support Scheme
The Leave Support Scheme remains available for employers, including self-employed people, to help pay their employees who must self-isolate and cannot work from home. It is a two-week lump sum payment of either $585.50 per week for full-time workers or $350 per week for part-time workers. From 24 August 2021, the payment will increase to $600 per week for full-time workers and $359 per week for part-time workers.
Short-term Absence Payment
The Short-Term Absence Payment provides a one-off payment of $350 for workers (including self-employed workers) who are waiting for a COVID-19 test result and cannot work from home. From 24 August 2021, this payment is increasing to $359 for each eligible worker. Employers or the self-employed can apply for any worker once in any 30-day period.

You cannot claim the Leave Support Scheme and the Short-term Absence Payment for the same employee at the same time.

We’re here for you

We continue to support our clients through this challenging period with key business and tax advice to answer your business-related questions and guide you through the COVID-19 financial support measures. For the latest COVID-19 updates, visit our Resource Page. [1]

Should you need any additional support, please contact your local William Buck advisor – we’re here to help.[/vc_column_text][/vc_column][/vc_row]

[1] https://williambuck.com/nz/covid-19-and-your-business-new-zealand/]]></content:encoded>
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						                        <title>What is a Virtual CFO and how could one help your business?</title>
						                        <link>
						                        https://williambuck.com/nz/what-is-a-virtual-cfo-and-how-could-one-help-your-business						                        </link>
						                        <pubDate>Fri, 23 Jul 2021 06:03:12 +0000</pubDate>
						                        <dc:creator>Nick Kenny</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=20934						                        </guid>
						                        <description><![CDATA[With the transition to real time accounting using cloud-based software, an increase in flexible working arrangements and the need for businesses to continue operating throughout the pandemic, there’s been a strong emergence of the Virtual CFO role. But what exactly is a VCFO and how could the service drive growth within your business? What or [&#8230;]]]></description>
						                        <content:encoded><![CDATA[With the transition to real time accounting using cloud-based software, an increase in flexible working arrangements and the need for businesses to continue operating throughout the pandemic, there’s been a strong emergence of the Virtual CFO role. But what exactly is a VCFO and how could the service drive growth within your business?
What or whom is a VCFO?
A VCFO is a person or an accounting firm engaged to provide CFO services to one or more businesses on an ad-hoc (as required) or part-time basis. It’s often small to medium-sized businesses that require the service, due to not having enough duties for a full time, in-house CFO to fulfil in order to justify the expense. Your VCFO could work on a weekly, monthly, quarterly or project basis and fulfil tasks including budgeting, forecasting, cashflow, reporting, financial modelling, strategic planning or specific project work such as preparing for a capital raise, technology implementation and training, loan applications or Advisory Board work.

A VCFO engagement is different to engaging an accountant to prepare your business’s annual financial statements and income tax returns. Rather than being a compliance driven engagement, your business engages with a VCFO for a specific objective that is designed to improve the performance of the business. A VCFO can also provide a tailored service, that evolves over time as your business grows and matures.
Why would you hire a VCFO?

 	The VCFO option provides businesses with the opportunity to get access to a professional with both business and financial expertise at a fraction of the price of hiring a full time CFO.
 	A VCFO might have access to expertise not readily available in the business
 	They will hold you accountable to your business’s financial and strategic goals
 	Access to wider industry knowledge, and
 	A VCFO will be impartial to your business and able to recommend strategies without bias.

When would you hire a VCFO?

 	When you’re not receiving timely or meaningful reporting on the performance of your business
 	When a business is experiencing significant growth in revenue
 	When there are plans to sell the business in next three to five– years, and/or
 	When decision makers are in need of strategic guidance
 	When your CFO is on extended leave such as long service or parental leave, and/or
 	When you need to fill the CFO role temporarily while you hire a permanent CFO.

Skills required of a VCFO
Aside from well-honed accounting skills, a VCFO should be adaptable and able to meet the changing needs of a business. A VCFO should have demonstrated experience working in a commercial business environment and a strong business acumen.

It’s important that a VCFO is technologically savvy with advanced understanding of cloud-based accounting software and the ability to easily switch between different systems. There is now a range different accounting and business software in the market, each with their own benefits. What best suits one company will be different for another, so it’s imperative that a VCFO is across the different options and can help you to evaluate the systems available, finding the right fit for your business.

Also high on the list of required skills are communication skills. To reach the best outcomes, a VCFO needs to ask questions of management and staff and will need to work reasonably closely with key decision makers.

And just as you’d hire people with industry experience for other roles in the business, it’s beneficial that your VCFO has experience in the sector your business operates in.

These aren’t an exhaustive list of skills, nor have I provided a complete list of reasons for when and why you’d hire a VCFO, but rather, the most common reasons cited in my experience.

If you’d like more information on William Buck’s Virtual CFO service and how it could drive growth for your business, please contact your local William Buck advisor. [1]

You can read the other articles in our Virtual CFO series via the links below:

Technology and the future Virtual CFO  [2]

Skills of a Virtual CFO: Accounting and Financial Reporting [3]

Valuable skills of a Virtual CFO: stakeholder engagement [4]

[1] https://williambuck.com/our-people/
[2] https://williambuck.com/nz/news/gr/general/technology-and-the-future-virtual-cfo/
[3] https://williambuck.com/nz/news/gr/general/skills-of-vcfos-accounting-and-financial-reporting/
[4] https://williambuck.com/nz/news/gr/general/valuable-skills-of-a-virtual-cfo-stakeholder-engagement/]]></content:encoded>
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						                        <title>William Buck welcomes new Chair</title>
						                        <link>
						                        https://williambuck.com/nz/william-buck-welcomes-new-chair						                        </link>
						                        <pubDate>Mon, 28 Jun 2021 07:46:18 +0000</pubDate>
						                        <dc:creator>William Buck</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=19784						                        </guid>
						                        <description><![CDATA[William Buck is pleased to announce the appointment of Jamie McKeough, Managing Director of William Buck Adelaide, to Chair of William Buck Australia and New Zealand. Jamie has been with William Buck for 33 years and Deputy Chair of the Board for 11 years. His long tenure is testament to his dedication to the firm [&#8230;]]]></description>
						                        <content:encoded><![CDATA[William Buck is pleased to announce the appointment of Jamie McKeough, Managing Director of William Buck Adelaide, to Chair of William Buck Australia and New Zealand.

Jamie has been with William Buck for 33 years and Deputy Chair of the Board for 11 years. His long tenure is testament to his dedication to the firm and passion for the a­­ccounting profession.

Outgoing Chair of 13 years, Nick Hatzistergos said William Buck is in very good hands with Jamie assuming the role of fourth Chair of the group.

“Jamie has proven himself to be an outstanding leader with strong lateral thinking,” said Nick.

“Jamie has driven the growth and development of the Adelaide office, has played an enormous role in building the William Buck brand and has led the Business Advisory team from a small team in its infancy to one that today makes up the largest part of our practice across Australia and New Zealand,” said Nick.

“I have no doubt that Jamie is the right person to lead the next stage of growth at William Buck.”

Jamie said he’s extremely honoured to take on the role of Chair. He has thanked the Board for the opportunity and Nick for his significant contribution to the Group over the last 13 years.

“When Nick took over in 2008, the Group was experiencing challenges. He stood up when strong leadership and vision was needed,” remarked Jamie.

During Nick’s time as Chair, the William Buck Group has seen remarkable growth. From a firm of 30 directors and $25m turnover in 2008, William Buck’s footprint has grown to nine offices across Australia and New Zealand, with over 100 directors and $130m turnover.

William Buck forged several strategic equity partnerships during this time and joined Praxity Global Alliance, the world’s 6th largest accounting group, giving us access to an extensive pool of global resources that we use to reach the best outcomes for our clients.

While Nick has stepped down as Chair of the Group, he will continue on the William Buck Board and as Managing Director of William Buck NSW where he will focus on growing and nurturing the ‘immense talent’ across the Sydney offices, and will remain a member of the Praxity Global Management Board.

Jamie said he looks forward to working with the Board and the entire William Buck group to promote the next level of growth and pursue the firms’ vision to be the leading advisory firm to middle market clients.

“We will continue to co-invest and look for opportunities to grow both organically and through strategic mergers and acquisitions which enable us to deliver innovative solutions and increased value and choice to our clients.

“We will do this alongside of our pursuit to create positive change in the lives of our people and clients. This reflects our “Changing Lives” philosophy and is embedded in the key pillars of our five-year strategic plan which is centred on people, clients and collaboration.”

“We will deliver on these pillars by developing our people, continuing to establish new services, embedding innovation into our decision-making and facilitating and embracing digital transformation.”
About William Buck
Established in 1895, William Buck is celebrating 125 years of changing the lives of our people and clients and making contributions back to our communities.

With nine offices across Australia and New Zealand, we’ve grown to 100 directors and over 700 professional staff and are wholly owned and operated in Australia and New Zealand.

Throughout our history, we have assisted individuals, progressive businesses and community organisations with a focus on the middle market. Remaining true to our core client base has enabled us to develop a depth of knowledge and expertise specific to our clients’ needs.

&#160;
Media Enquiries Danielle Shaw
PR and Communications Advisor – National

Ph: 0477 010 730 or 02 8263 4000

E: Danielle.shaw@williambuck.com [1]

[1] https://williambuck.commailto:Danielle.shaw@williambuck.com]]></content:encoded>
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						                        <title>William Buck announced as new Sponsor for the Bay of Plenty Rugby Union</title>
						                        <link>
						                        https://williambuck.com/nz/william-buck-announced-as-new-sponsor-for-the-bay-of-plenty-rugby-union						                        </link>
						                        <pubDate>Fri, 04 Jun 2021 00:52:09 +0000</pubDate>
						                        <dc:creator>William Buck</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=22085						                        </guid>
						                        <description><![CDATA[]]></description>
						                        <content:encoded><![CDATA[[vc_row][vc_column][vc_column_text]William Buck is delighted to be partnering with the Bay of Plenty Rugby Union as a back-of-jersey sponsor and as their official audit partner.

Richard Dey, who leads the Tauranga office, said that a partnership with the Union is an exciting new venture and believes that "shared values" is what made this partnership possible.

"From the discussions we've had with the Union, we are convinced that they share our values and play a vital role in our community which is extremely important to us."

Click here [1] to read the full article.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_empty_space][/vc_column][/vc_row]

[1] https://www.sporty.co.nz/boprugby/newsarticle/104317?newsfeedId=1219562]]></content:encoded>
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						                        <title>Property tax changes and what it means for property owners and investors</title>
						                        <link>
						                        https://williambuck.com/nz/property-tax-changes-and-what-it-means-for-property-owners-and-investors						                        </link>
						                        <pubDate>Wed, 21 Apr 2021 04:25:22 +0000</pubDate>
						                        <dc:creator></dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=19087						                        </guid>
						                        <description><![CDATA[Major changes were recently announced by the Government to try and cool the overheating New Zealand housing market. These focused on: Extending the bright-line test to 10 years Allowing newly built homes to use a five-year bright-line test Requiring tax to be paid on gains made when the property is not used as the owner’s [&#8230;]]]></description>
						                        <content:encoded><![CDATA[Major changes were recently announced by the Government to try and cool the overheating New Zealand housing market. These focused on:

 	Extending the bright-line test to 10 years
 	Allowing newly built homes to use a five-year bright-line test
 	Requiring tax to be paid on gains made when the property is not used as the owner’s main home
 	Not allowing property owners to claim interest on loans used for residential properties as an expense against their income from those properties.

This means that property owners 1) may need to pay income tax on any profit made through the property increasing value, and 2) are no longer be able to offset their interest expenses against rental income when calculating their tax.

We explain below how the changes might affect people when buying or selling investment property.
Extending the bright-line test 
The bright-line test means if you sell a residential property within a set period after acquiring it you will be required to pay income tax on any gains made from an increase in property value.

This has been extended from five years to 10 years for residential property acquired on or after 27 March 2021.

The following table shows which properties will be affected by the new rule.



Inherited properties
Exempt from bright-line test


Owner’s main home for the entire time they owned it
Exempt from bright-line test


Properties acquired before 29 March 2018
Exempt from bright-line test


Properties acquired on or after 29 March 2018 and before 27 March 2021
Remains at five-year bright-line test


New builds
Remains at five-year bright-line test


Properties acquired on or after 27 March 2021
10-year bright-line test



There will be consultation with the tax and property communities over the coming months to help determine the definition of a new build. The intention is to include properties that are acquired within a year of receiving its code compliance certificate.

The Government will introduce legislation defining new builds and exclude them from the 10-year test following consultation.

For residential properties acquired on or after 27 March 2021, the Government is introducing a ‘change-of-use’ rule. This rule also applies to new builds.

If a property switches to or from being the owner’s main home for more than 12 months at a time, the owner of the property will be subject to the change-of-use rule and will be required to pay income tax on a proportion of the profit made through the property increasing in value.

This will be calculated as follows:

 	Subtract the purchase price from the sale price
 	Subtract the cost of capital improvements
 	Subtract the costs to buy and sell the property, and
 	Multiply the result by the proportion of time the property was not used as the owner’s main home.

Properties acquired before 27 March 2021 are exempt from the change-of-use rule.

If you sell the property within 10 years (or five years for a new build) of acquiring it, and it was not your main home, you will have to pay tax under the bright-line test on any gain in property value.

Similarly, if the property was your main home, but was used for other purposes (such as rented out) for more than 12 months during the time you owned it, you will need to pay income tax on the profit from the gain in value.

Residential properties purchased and used for short-term accommodation (such as Airbnb), where the owner does not live in the property, will also be subject to the bright-line test and cannot be excluded as business premises.
Changes to interest deductions on residential property income
From 1 October 2021, interest deductions on residential investment property acquired on or after 27 March 2021 will no longer be allowed.

Interest on loans for properties acquired before 27 March 2021 can still be claimed as an expense. However, the amount you can claim will be reduced over the next four years until it is phased out completely.

From 2025-26, you will not be able to claim any interest expense as deductions against your income.



Income Year
2020/21
2021/22
2022/23
2023/24
2024/25
2025/26


Percent of interest you can claim
100%
100% (1 April 2021-30 Sept 2021)

75% (1 Oct-31 Mar 2022)
75%
50%
25%
0%



If money is borrowed on or after 27 March 2021 for maintenance or improvements to property acquired before 27 March 2021, it will be treated as a loan for the acquired property. This means you will not be able to claim interest as an expense from 1 October 2021.

Property developers will not be affected by this change as they pay tax on the sale of the property. They will still be able to claim interest as an expense.

The Government will consult on the detail of these proposals and legislation will be introduced shortly thereafter. Consultation will cover an exemption for new builds acquired as a residential investment property, and whether all people who are taxed on the sale of a property (for example under the bright-line test) should be able to deduct their interest expense at the time of the sale.

These new proposed rules will affect genuine landlords, i.e people who have purchased property for long-term purposes with the intention to derive rental income. This increases their tax and compliance costs and therefore they will be bound to pass on some of these costs to their tenants. This is likely to lead to an increase in the rents and/or possibly a decline in the properties being available for rental. We trust the Government will take this into consideration when introducing the Bill for these new proposed rules.

If you are a residential property investor you need to consider these new rules as you may end up paying tax on gains made when selling the property down the track or seeing less returns with a higher tax bill each year.

Need more information?

IRD has prepared two fact sheets [1] on the bright-line test and interest deductions on residential property income, with several examples to help clarify the proposed new rules.

Our William Buck advisors are also able to provide additional support if you have any questions or need advice – we’re here to help. [2]

[1] https://www.ird.govt.nz/updates/news-folder/changes-to-the-bright-line-property-rules
[2] https://williambuck.com/nz/our-people/]]></content:encoded>
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						                        <title>Karl Bennett joins William Buck New Zealand as Director, Corporate Advisory</title>
						                        <link>
						                        https://williambuck.com/nz/karl-bennett-joins-william-buck-new-zealand-as-director-corporate-advisory						                        </link>
						                        <pubDate>Tue, 16 Mar 2021 05:59:21 +0000</pubDate>
						                        <dc:creator></dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=18615						                        </guid>
						                        <description><![CDATA[Leading mid-tier accounting and advisory firm William Buck has strengthened its Corporate Advisory team with a new director appointment. Highly experienced Chartered Accountant (CA) Karl Bennett has joined William Buck’s Auckland office as a Director of Corporate Advisory. He brings considerable experience in assisting clients with a broad range of advisory work including mergers &#38; [&#8230;]]]></description>
						                        <content:encoded><![CDATA[Leading mid-tier accounting and advisory firm William Buck has strengthened its Corporate Advisory team with a new director appointment. 
Highly experienced Chartered Accountant (CA) Karl Bennett [1] has joined William Buck’s Auckland office as a Director of Corporate Advisory.

He brings considerable experience in assisting clients with a broad range of advisory work including mergers &#38; acquisitions, planning and executing debt &#38; capital raising (including Initial Public Offerings or IPOs), due diligence, financial modelling, valuations and reporting.

Karl has worked for Big Four firms KPMG and EY, and held senior roles in banking, retail and manufacturing businesses. He also retains several high-profile Board directorships.

Welcoming Karl to the role, Clyde Young, Managing Director of William Buck New Zealand, said “With 20 years global experience in private equity, capital markets, banking and professional services, Karl was the perfect choice to head our Corporate Advisory team in New Zealand and support our growth plans in the market.”

“His extensive commercial experience across a wide range of industries including agriculture, technology, retail and manufacturing, financial and insurance services, utilities, and property and construction, will make him a highly valuable addition to our Corporate Advisory team and will allow us to be even better placed to provide our clients with the support they need.”

Karl also has depth of experience in leading large, commercially sensitive projects involving financial, legal and operational matters for public and private businesses. He brings his positive attitude and outstanding experience to each client engagement.
About William Buck
William Buck recently celebrated its 125th anniversary year and continues a growth trajectory that has seen the firm double in size over five years, despite the impacts of COVID-19. With offices in Auckland, Tauranga and across Australia, the William Buck team includes over 100 directors and 600 professional staff.

As part of the Praxity Alliance, the world’s largest independent accounting and advisory alliance, William Buck advisors are supported by a global network of ‘on the ground’ professionals in 110 countries.

[1] https://williambuck.com/nz/people/karl-bennett/]]></content:encoded>
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						                        <title>Preparing for tax time: The do’s and don&#8217;ts that will maximise your tax position</title>
						                        <link>
						                        https://williambuck.com/nz/preparing-for-tax-time-the-dos-and-donts-that-will-maximise-your-tax-position						                        </link>
						                        <pubDate>Tue, 09 Mar 2021 23:49:28 +0000</pubDate>
						                        <dc:creator>Jayesh Kumar</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=18474						                        </guid>
						                        <description><![CDATA[Preparing for tax time can be daunting – especially as a small business owner when it adds to your already exhaustive To Do list. At William Buck, we’ve found that many small business owners can become so focused on day-to-day operations of running their business that they leave their End of Financial Year (EOFY) obligations [&#8230;]]]></description>
						                        <content:encoded><![CDATA[Preparing for tax time can be daunting – especially as a small business owner when it adds to your already exhaustive To Do list. At William Buck, we’ve found that many small business owners can become so focused on day-to-day operations of running their business that they leave their End of Financial Year (EOFY) obligations to the very last minute, creating even more stress! That’s why we’ve put together some do’s and don’ts when preparing for tax time.
Do’s
Ensure year-round record-keeping
Record-keeping is a year-round ‘do’ and can make all the difference come tax time. Submit each transaction into your accounting system and separate personal from business items. The more you keep on top of things throughout the year, the less you’ll need to prepare in the immediate leadup to EOFY. Similarly, if you’re practicing optimal record-keeping, you’ll find it becomes easier each year. This is due to familiarisation as well as tech improvements.

Sumire Tachibana, Manager, Business Advisory Services at William Buck said using intuitive accounting software like Xero, cloud folders like Google Drive and Dropbox, and tenancy management software will increase efficiencies and free up time for you to spend on improving your product or service, speaking with customers and strategising.

“These programs also enable document sharing with your accountants and other parties so that changes can be made in real time and document control is maintained,” said Sumire.

Which introduces our next tip…
Invest in software training
Due to time constraints, small business owners aren’t always across the full capacity of their accounting package. While the constant evolution of accounting software has simplified the bookkeeping task for small business owners, being unable to use the software and or take advantage of all its functions can create inefficiencies.

Set some time aside each year for training and assess whether your accounting package is the right one for you.
Keep abreast with legislative changes throughout the year 
Staying across changes to New Zealand’s tax laws means you’re much more likely to comply with all requirements at tax time and won’t be faced with any nasty penalties.

This is especially important in 2021 due to the many stimulus measures introduced last year to cushion New Zealanders from the impacts of COVID-19, and the impacts these might have to your documentation come tax time.

Other changes this year, which take effect on 1 April, include:

 	The introduction of a new 39% personal tax rate on income above $180,000
 	A new Fringe Benefits Tax rate of nearly 64% for all-inclusive pay above $129,681, and
 	An Employer Superannuation Contribution Tax (ESCT) rate of 39% on super contributions for employees whose ESCT rate threshold amount exceeds $216,000.

Remember that Income Tax has a broad tax avoidance disclosure provision. If you restructure your entities for the purpose of trying to save paying tax at the highest rate of 39%, that is very likely to fall under the definition of “tax avoidance”. Talk to William Buck or your chartered accountant for advice if you feel there is a need to restructure your business affairs.

The new Trust Act 2019 is now in force and additional disclosure requirements will apply from 1 April 2021. Therefore, it’s recommended you review your trust deed and reassess your purposes for having a trust with your accountant and lawyer.
Write off expenses to maximise tax deductions 
To reduce your tax liability and maximise deductions at tax time, it’s important to review your debtors, inventories and fixed assets, and accordingly write-off any:

 	Debts that are not recoverable
 	Stocks that have become obsolete
 	Assets no longer able to generate revenue.

Many expenses can be written off, as long as they have a legitimate purpose within the business. Commercial rent, equipment and business travel are all able to be written off.

It’s also important to note the changes to legislation governing write-offs. Due to the impacts of the pandemic, the Government last year announced the ability to take an immediate deduction for assets up to $5,000. However, this threshold will reduce to $1,000 on 17 March 2021. Prior to the pandemic, the threshold sat at $500.
Don’ts
Don’t overlook key tax due dates
Due to heavy workloads and competing priorities, small business owners sometimes fail to prioritise their tax obligations. However, it’s highly important to prioritise these obligations or you could be hit with Inland Revenue penalties and use of money interest. Non-compliance can also flag you with the IRD for audit or review.

Contact a William Buck advisor or your chartered accountant to understand your tax obligations and prioritise key due dates. Advisers should be able to assist with entering an instalment arrangement with the IRD (if required).
Don’t exercise inadequate maintenance of financial records
As already noted, it’s important to keep up with your record-keeping year-round. But it’s also important to do so correctly. Proper record-keeping provides an accurate and reliable financial position of a business, enabling the business owner to determine how it’s performing and identifying opportunities to improve. Jayesh Kumar, Director of Tax Services said the following should also be considered:

 	Lock all accounts relating to the financial year so that date remains accurate, ensuring easy transition into the new financial year, and
 	Create a separate copy of the accounts and back it up (print key reports like P&#38;L, Balance Sheet and general ledger listing for the financial year and store them securely).

Don’t Ignore the importance of investing in expert assistance 
We’re all looking at ways to minimise our expenses post pandemic but cutting costs on advisory services is highly inadvisable. Simply do not make an important business decision without consulting a professional. This could result in missed opportunities, non-compliance, a high tax bill or increased commercial risk.
Do not overdraw!
Finally, and this is a big one, if you have an ordinary company and you take money out of the business, make sure the net position of funds introduced less any funds you withdrew is not overdrawn.

You might be inclined to label the drawings as a “loan” and say that it’s not your money, however, unless you charge interest on the loan at IRD prescribed rates, it will deem to have been paid by you as “dividends”. A deemed dividend scenario has unfavourable tax consequences and charging interest can cause additional taxable income for the company. The best way to avoid this is to ensure the money you remove from the company is taxed as a PAYE salary or a shareholder salary that you declare at EOFY.

For more information on any of the above or assistance preparing your tax, contact your local William Buck advisor. 
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						                        <title>COVID-19 Wage Subsidy March 2021 is now available, and a second round of the Resurgence Support Payment has been announced</title>
						                        <link>
						                        https://williambuck.com/nz/covid-19-wage-subsidy-march-2021-is-now-available-and-a-second-round-of-the-resurgence-support-payment-has-been-announced						                        </link>
						                        <pubDate>Thu, 04 Mar 2021 03:30:19 +0000</pubDate>
						                        <dc:creator>William Buck</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=18389						                        </guid>
						                        <description><![CDATA[Applications for the Wage Subsidy open Thursday 4 March 2021, and payments start from Monday 8 March 2021. The COVID-19 Wage Subsidy Scheme will be available nationwide if any part of the country moves to Alert Level 3 or above for seven days or more. With Auckland moving to Alert Level 3 for seven days [&#8230;]]]></description>
						                        <content:encoded><![CDATA[Applications for the Wage Subsidy open Thursday 4 March 2021, and payments start from Monday 8 March 2021. 

The COVID-19 Wage Subsidy Scheme will be available nationwide if any part of the country moves to Alert Level 3 or above for seven days or more.

With Auckland moving to Alert Level 3 for seven days from 28 February 2021, businesses and self-employed people can apply for the Wage Subsidy so they can continue to pay employees and protect jobs.

To qualify for the Subsidy:

 	You must have experienced or expect a 40% drop in revenue over a consecutive 14-day period between 28 February 2021 and 21 March 2021, compared to a typical fortnightly revenue between 4 January 2021 and 14 February 2021 (six weeks before the rise in alert levels).
 	You will need to be able to show the revenue drop is due to the change in alert level, not just COVID-19 in general.

The Subsidy will be available to businesses throughout New Zealand.

The Wage Subsidy will be paid for two weeks at the rate of $585.80 a week for each full-time employee retained and $350 a week for each part-time employee retained.

If an employee is already receiving a payment under the Leave Support Scheme or Short-Term Absence Payment, you won’t be able to apply for the Wage Subsidy for that staff member for the period they are receiving other financial support.
COVID-19 Resurgence Support Payment (RSP) update
A new Resurgence Support Payment is available to businesses and organisations with reduced revenue due to the latest changes in COVID-19 Alert Levels. The Resurgence Support Payment is part of the Government’s COVID-19 support initiatives to help businesses cover expenses such as wages and fixed costs.

To qualify for the RSP:

 	You must have experienced a 30% drop in revenue over a seven-day period after the increased alert level. This drop is compared to a typical seven-day period in the six weeks before the increase in alert level.
 	You will also need to meet a range of other RSP eligibility criteria.

Applications for the RSP are currently open to businesses and organisations affected by the change in alert levels from 14 to 21 February 2021. Applicants must show the impact on their revenue is for this alert level period. Applications for the RSP close Monday 22 March 2021.

Eligible businesses and organisations can apply to receive the lesser of:

 	$1500 plus $400 per full time employee up to a maximum of 50 FTEs ($21,500), or
 	Four times the actual drop in revenue experienced by the applicant.

More information about the RSP can be found on our website here [1].

Second round of RSP will be available from 8 March

On 2 March, the Minister of Finance, Grant Robertson, announced the RSP will be available for businesses and organisations affected by the change in COVID alert levels that started on 28 February 2021. The payment must be used to cover business expenses such as wages and fixed costs.

Businesses will be able to apply for this payment on Inland Revenue's website from 8 March. Applications will remain open for one month after a nationwide return to alert level 1.

Businesses and organisations affected by both periods of raised alert levels can apply for each round of Resurgence Support Payments.
How we can help
We continue to support our clients through this challenging period with key business and tax advice to answer their business-related questions and guide them through the COVID-19 financial support measures. Updates on government assistance and how we can help your business respond can be found on our Resource Page [2].

Should you need any additional support, please contact your local William Buck advisor – we’re here to help.

[1] https://williambuck.com/nz/covid-19-and-your-business-new-zealand/
[2] https://linkprotect.cudasvc.com/url?a=http%3a%2f%2fmkto-sn050004.com%2fx0F0000y4Be0rHM0Q7136UF&#38;c=E,1,Trl1pMsefaLKr7LzFPKZWfjCc1W-iSZzTUi9e9kFNOR_nN1vNEDm4sjJP0cKOWOiKwqTogXITgUOjoSLu9FhTIqGaWy-GIErR6kcVj5X&#38;typo=1]]></content:encoded>
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						                        <title>COVID-19: Government support payments available for businesses and organisations</title>
						                        <link>
						                        https://williambuck.com/nz/covid-19-government-support-payments-available-for-businesses-and-organisations						                        </link>
						                        <pubDate>Tue, 23 Feb 2021 22:27:24 +0000</pubDate>
						                        <dc:creator></dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=18328						                        </guid>
						                        <description><![CDATA[Applications are now open for the Resurgence Support Payment. On 17 February, the Prime Minister announced the new Resurgence Support Payment would be made available to businesses and organisations with reduced revenue due to the latest changes in COVID-19 Alert Levels. The Resurgence Support Payment is part of the Government’s COVID-19 support initiatives to help [&#8230;]]]></description>
						                        <content:encoded><![CDATA[Applications are now open for the Resurgence Support Payment.

On 17 February, the Prime Minister announced the new Resurgence Support Payment would be made available to businesses and organisations with reduced revenue due to the latest changes in COVID-19 Alert Levels.

The Resurgence Support Payment is part of the Government’s COVID-19 support initiatives to help businesses cover expenses such as wages and fixed costs.
Resurgence Support Payment (RSP)
The new Resurgence Support Payment will be available to eligible businesses now that Auckland has been in Level 2 and above for seven days. This means businesses can access the RSP if they meet eligibility criteria.

To qualify for the payment businesses must show a 30 percent drop in revenue over a 7-day period compared with a typical revenue period in the 6 weeks prior to the Alert Level rise.

If it is a seasonal business applying, they must show a 30 percent revenue drop compared with a similar week the previous year.

Charities and not-for-profit organisations may be entitled to receive the RSP if they also meet other eligibility requirements, including being a viable, ongoing organisation.

The payment is available to businesses nationally if they meet the eligibility criteria. This recognises that businesses around the country may have their revenue affected by Auckland being at increased alert levels.

Eligible businesses and organisations can apply to receive the lesser of:

— $1500 plus $400 per full time employee up to a maximum of 50 FTEs ($21,500), or
— Four times the actual drop in revenue experienced by the applicant.

Businesses can apply for the RSP from Tuesday 23 February through myIR. Applications close 22 March 2021.

The Government will announce whether the RSP will be activated each time the alert level is increased from level 1. Businesses and organisations can apply for the payment each time it is activated if they meet the eligibility criteria.
RSP and Tax
Payments received under the RSP will not be subject to income tax, and expenditure funded by payments under the RSP is not deductible.

GST-registered businesses will be required to return GST on payments received under the RSP. These businesses can claim input tax deductions for expenditure funded by payments under the RSP.

Further information on the RSP is available on the Inland Revenue website here [1].
Other support payments
Additional Government COVID-19 financial support is also available to eligible businesses, employers and self-employed workers. These support payments are available through Work and Income [2].

The COVID-19 Short-Term Absence Payment is for businesses, including self-employed people, to help pay their workers who cannot work from home but need to stay home while they or their dependents wait for a COVID-19 test result.

The COVID-19 Leave Support Scheme is available to help businesses pay employees who have been told to self-isolate because of COVID-19, and cannot work from home. This includes parents and caregivers who need to miss work to support their dependents who have been told to self-isolate.
How we can help
We continue to support our clients through this challenging period with key business and tax advice to answer their business-related questions and guide them through the COVID-19 financial support measures. Updates on government assistance and how we can help your business respond can be found on our Resource Page [3].

Should you need any additional support, please contact your local William Buck advisor - we're here to help.

[1] https://linkprotect.cudasvc.com/url?a=http%3a%2f%2fmkto-sn050004.com%2fY071u0XH300F6004rMF0MUe&#38;c=E,1,T7QQF4r0DGjCimHHkaOQPdNIO2DsCtfOug0oijW0lZToicysjfy1g2L2AUbm5p7FvEXBPlAyXHRh4_z76K4T_R42Em9U4KrW35X6D33UOga8Gtaa&#38;typo=1
[2] https://linkprotect.cudasvc.com/url?a=http%3a%2f%2fmkto-sn050004.com%2fY071s04H300F6004rMF0VUe&#38;c=E,1,bk3zRHXjiwZubbfyF40FvSMaTdX9S7LPj1UXJs4S-tk50vnsSERhnfcgeR9fILRzwMdDld9kJqt-monI8fjzYCCDyfiI5WkIqZSqBHcfusjRT7b18Yp4iOS7uGX7&#38;typo=1
[3] https://linkprotect.cudasvc.com/url?a=http%3a%2f%2fmkto-sn050004.com%2fx0F0000y4Be0rHM0Q7136UF&#38;c=E,1,Trl1pMsefaLKr7LzFPKZWfjCc1W-iSZzTUi9e9kFNOR_nN1vNEDm4sjJP0cKOWOiKwqTogXITgUOjoSLu9FhTIqGaWy-GIErR6kcVj5X&#38;typo=1]]></content:encoded>
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						                        <title>William Buck supports local charities to help change lives</title>
						                        <link>
						                        https://williambuck.com/nz/william-buck-supports-local-charities-to-help-change-lives						                        </link>
						                        <pubDate>Fri, 05 Feb 2021 03:22:27 +0000</pubDate>
						                        <dc:creator>William Buck</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=18124						                        </guid>
						                        <description><![CDATA[]]></description>
						                        <content:encoded><![CDATA[[vc_row][vc_column][vc_row_inner][vc_column_inner][vc_column_text]At William Buck, we aspire to create positive change for our clients, our people, and the wider community. We use the phrase ‘Changing Lives’ which recognises that everything we do has the potential to make a change, be it big or small.

Each year William Buck New Zealand undertakes a Changing Lives Team Challenge. This challenge aims to create positive change for our employees by improving our health and wellbeing. Late in 2020, teams were challenged to walk 4 million steps with the goal to walk 3,000kms – that’s the equivalent of walking from Cape Reinga to Bluff. Some of us made it, many of us came close.

However, it was not just about changing lives for ourselves, it was also about changing lives for others. Making donations to community organisations who positively impact the lives of New Zealanders is always part of our annual challenge.

In 2020, our teams chose to make donations to several deserving New Zealand charities put forward by members of staff. Our Tauranga team was pleased to recently present donation cheques to three Bay of Plenty charities when they visited us at our new workspace at The Kollective.

The charities were:[/vc_column_text][vc_empty_space height="10px"][/vc_column_inner][/vc_row_inner][vc_row_inner][vc_column_inner width="1/2"][vc_single_image image="18125" img_size="medium"][vc_empty_space height="20px"][/vc_column_inner][vc_column_inner width="1/2"][vc_column_text]Brain Injured Children Trust [1] which empowers families/Whanau by providing life changing resources to enhance the quality of life for their brain injured children.[/vc_column_text][vc_empty_space height="10px"][/vc_column_inner][/vc_row_inner][vc_row_inner][vc_column_inner width="1/2"][vc_single_image image="18128" img_size="medium"][vc_empty_space height="20px"][/vc_column_inner][vc_column_inner width="1/2"][vc_column_text]Tauranga Living Without Violence [2] which supports the victims and perpetrators of family violence through specialist individual support and group programs.[/vc_column_text][vc_empty_space height="10px"][/vc_column_inner][/vc_row_inner][vc_row_inner][vc_column_inner width="1/2"][vc_single_image image="18126" img_size="medium"][vc_empty_space height="20px"][/vc_column_inner][vc_column_inner width="1/2"][vc_column_text]Envirohub Bay of Plenty [3] which is one of 17 Environment Centres around NZ aimed at helping local communities learn about and take action on environmental issues that support a sustainable future.[/vc_column_text][vc_empty_space height="10px"][/vc_column_inner][/vc_row_inner][vc_column_text]Richard Dey, who leads the Tauranga office, said “Our team really embraced the challenge this year and we were delighted to be able to make three donations to such worthy causes. It was wonderful to meet with representatives from each of the charities and to hear how our donation will make a difference to the work they are doing.”[/vc_column_text][vc_empty_space height="10px"][vc_row_inner][vc_column_inner width="1/2"][vc_empty_space height="10px"][vc_column_text]In Auckland, we were pleased to make a $4,000 donation to Kenzie’s Gift [4] who help young kiwis and their families affected by cancer, serious illness or loss. Staff also chose to make donations to a number of other local charities to support the great work they do in our community.[/vc_column_text][vc_empty_space height="10px"][/vc_column_inner][vc_column_inner width="1/2"][vc_single_image image="18127" img_size="medium"][vc_empty_space height="10px"][/vc_column_inner][/vc_row_inner][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]Changing Lives is present in everything we do at William Buck. It has allowed us to build a firm that’s been making a positive difference for 125 years in New Zealand and across Australia. We are proud to support our community and make a positive impact on people’s live.[/vc_column_text][/vc_column][/vc_row]

[1] https://www.braininjuredchildrentrust.co.nz/
[2] https://www.tlwv.org.nz/
[3] https://envirohub.org.nz/
[4] https://www.kenziesgift.com/]]></content:encoded>
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						                        <title>Global appointment reflects William Buck’s commitment to  Asia Pacific region</title>
						                        <link>
						                        https://williambuck.com/nz/global-appointment-reflects-william-bucks-commitment-to-asia-pacific-region						                        </link>
						                        <pubDate>Wed, 03 Feb 2021 03:09:38 +0000</pubDate>
						                        <dc:creator></dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=18099						                        </guid>
						                        <description><![CDATA[Ruby Cheung, Director at William Buck has been elected Chair of the Praxity Alliance’s Asia Pacific Region. Welcoming Ruby to the role, Graeme Gordon, Chief Executive of Praxity (the world’s sixth largest accounting alliance) said “Ruby’s distinguished 20-year career specialising in Asia Pacific business development, and international in-bound and outbound investment adds an increased level [&#8230;]]]></description>
						                        <content:encoded><![CDATA[Ruby Cheung, Director at William Buck has been elected Chair of the Praxity Alliance’s Asia Pacific Region.

Welcoming Ruby to the role, Graeme Gordon, Chief Executive of Praxity (the world’s sixth largest accounting alliance) said “Ruby’s distinguished 20-year career specialising in Asia Pacific business development, and international in-bound and outbound investment adds an increased level of depth and strength across a region that is pivotal to our success.”

Asia Pacific nations account for almost a third of global GDP and by 2030, the region is expected to overtake the GDP of the rest of the world combined, contributing to 60% of global growth.

In response, Praxity’s presence in the region has more than doubled over the last five years and now accounts for more than 14% of the alliance’s overall revenue.

Ruby’s appointment to Chair of the region represents Australia’s strategic importance on the world stage.
“Australia has strong trade ties with the rest of the world and their location has allowed them to become a major supplier to markets in Asia Pacific, ”Graeme said.
With less barriers to trade and fewer tariffs, there’s a lot of opportunity for Australian businesses across Asia. In taking up her position, Ruby said “The new provisions on intellectual property, telecommunications, financial services, e-commerce and professional services will provide additional benefits for economic and trade growth.

“Being part of the Praxity Alliance and now appointed as Chair of their Asia Pacific Region, increases our potential to help clients with cross-border transactions. We can continue to share valuable resources such as the Praxity M&#38;A Hub, a global list of buyers and sellers.”

Nick Hatzistergos, Chairman of William Buck said “Ruby has tremendous trade experience. Her understanding of the emerging markets and her strong relationships with our international peers, like Praxity, will bring more value and opportunities to our clients.”

“Asia Pacific is the epicentre for global market leaders - not only in the automotive and industrial sectors but also in areas such as technology and finance. With the region amongst the top destinations for venture capital, Ruby will help carve out strong, sustainable futures for businesses looking to operate internationally.”

Ruby’s appointment complement’s William Buck’s existing Asia Pacific service offering. Bringing together their capabilities, the team helps clients navigate the legal, trade and cultural nuances in a broad range of the region’s markets.

About Asia Pacific Region

As a hub of world trade, the region is an important market for international companies. Asia Pacific is home to some of the world’s largest companies and an engine room for innovative technology.

With a flourishing digital ecosystem and evolving free trade agreements, it makes up almost two thirds of our nation’s two-way trade.

Last year, Australia was amongst 15 countries to sign the largest free-trade agreement in the world, The Regional Comprehensive Economic Partnership (RCEP). This covers nearly a third of the global economy.

A key COVID-19 measure announced by the Australian Government was the $500 million in funding to help businesses expand operations overseas and re-establish markets.
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						                        <title>Celebrating our latest NZ staff promotions</title>
						                        <link>
						                        https://williambuck.com/nz/celebrating-our-latest-nz-staff-promotions						                        </link>
						                        <pubDate>Wed, 23 Dec 2020 00:32:41 +0000</pubDate>
						                        <dc:creator>William Buck</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=17746						                        </guid>
						                        <description><![CDATA[]]></description>
						                        <content:encoded><![CDATA[[vc_row][vc_column][vc_column_text]Congratulations to Joyce Pantino, Ryan Burgess, Cherie Zou, Dan Sanders, Jess Thorne and Ronel Naude on their recent promotions.

2020 has been a year of much disruption and change, so it’s great to be able to end the year celebrating the promotions of some well deserving team members.

Jess Thorne and Dan Sanders from our Business Advisory team have been promoted to Manager.

Over the course of the year, Dan took on additional team management responsibilities, all while studying full time.

Jess helped several clients who were going through difficult situations this year, providing a high level of competency through solid advice and guidance.

Promoted to Senior Auditors in our Auckland Audit team are Ryan Burgess, Cherie Zou and Joyce Pantino.

Ryan and Cherie joined us as graduates and hit the ground running. Ryan is set to commence a secondment in Melbourne next year to broaden his knowledge and experience across the group and within Audit.

Cherie successfully completed a secondment in Australia earlier this year (prior to lockdown restrictions).

Joyce began working with us part-time in January 2020 while studying. She quickly impressed us with her knowledge, work ethic and previous audit work experience. After taking up a permanent contract with us at the end of her studies, we are pleased to now promote her to a senior auditor role.

Ronel Naude moves into a new Technical Administration Team Leader role in our operations team. Since joining us in 2013, Ronel has continually increased the scope of her role and influence within the firm through her commitment and capability. She’s our go-to for important technical projects, as well as AML, Companies Office and Trust Services.

Well done to you all![/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_empty_space][vc_single_image image="17748" img_size="large"][/vc_column][/vc_row]
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						                        <title>NZ Government extends the small business cashflow (loan) scheme</title>
						                        <link>
						                        https://williambuck.com/nz/nz-government-extends-the-small-business-cashflow-loan-scheme						                        </link>
						                        <pubDate>Fri, 20 Nov 2020 02:28:46 +0000</pubDate>
						                        <dc:creator>William Buck</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=16931						                        </guid>
						                        <description><![CDATA[The cashflow loan scheme provides one-off loans to support the cash flow needs of small businesses impacted by COVID-19. With the wage subsidy packages no longer available, the Government has made changes to the loan scheme to support businesses over the longer term. The scheme, which was due to expire at the end of the [&#8230;]]]></description>
						                        <content:encoded><![CDATA[The cashflow loan scheme provides one-off loans to support the cash flow needs of small businesses impacted by COVID-19.

With the wage subsidy packages no longer available, the Government has made changes to the loan scheme to support businesses over the longer term.

The scheme, which was due to expire at the end of the year, has been extended to 31 December 2023. Businesses may need to access the scheme at different times, so the scheme will continue to provide cashflow support if times get hard.

Applications for the loan can now be made up to 31 December 2023, an extension of 3 years.

The interest free period has also been extended from one year to two years, with no interest to be charged if the loan is repaid within 2 years.

Restrictions on how the loan can be used have been eased. Businesses are now able to use the loan to invest in their business as well as covering core operating costs.

The cashflow loan scheme is for businesses with 50 or fewer full-time employees. They must have been in business on 1 April 2020 and have experienced a 30% decline in revenue as a result of COVID-19.

The maximum amount that can be borrowed is $10,000 plus $1,800 per full-time employee. According to Government figures, around 100,000 businesses have received the loan, with the average value of each loan around $17,000.

The Government has asked for advice on some of the existing aspects of the loan scheme, so further changes to the scheme may be announced at a later stage.
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						                        <title>Accessing regional business support funding for professional advice and training services</title>
						                        <link>
						                        https://williambuck.com/nz/accessing-regional-business-support-funding-for-professional-advice-and-training-services						                        </link>
						                        <pubDate>Wed, 14 Oct 2020 23:20:49 +0000</pubDate>
						                        <dc:creator>William Buck</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=16125						                        </guid>
						                        <description><![CDATA[]]></description>
						                        <content:encoded><![CDATA[[vc_row][vc_column][vc_column_text]Funding has been made available through the Regional Business Partner Network to help SMEs recover from the impacts of COVID-19.

SMEs may qualify for funding to help pay for expert advice and support services through the COVID-19 Business Advisory Fund or for business coaching and training services through the Management Capability Development Fund.[/vc_column_text][vc_empty_space][/vc_column][/vc_row][vc_row][vc_column width="1/4"][vc_single_image image="12200"][/vc_column][vc_column width="3/4"][vc_column_text]
Covid-19 Business Advisory Fund
[/vc_column_text][vc_empty_space height="10px"][vc_column_text]The Advisory Fund can provide support in areas such as HR, health and wellbeing, business continuity, cashflow and finance management, marketing and digital enablement strategy. Funding is only available through the Regional Business Partner Network Growth Advisors.

Once you register your business [1], a Regional Business Partner Network Growth Advisor will contact you to assess your needs through a discovery session. If approved, the advisor will provide a voucher to use with registered service providers.

The voucher will cover 100% of the advisory service cost.[/vc_column_text][vc_empty_space][/vc_column][/vc_row][vc_row][vc_column width="1/4"][vc_single_image image="12199"][/vc_column][vc_column width="3/4"][vc_column_text]
Management Capability Development Voucher Fund
[/vc_column_text][vc_empty_space height="10px"][vc_column_text]The Capability Development Voucher Fund offers eligible businesses up to 50% funding for business training and coaching services to build management capability within the business.

Small businesses may qualify for vouchers to help pay for services such as training workshops, courses and coaching that build the management capabilities of their owners and key managers.

To access this funding, you must first register your business [1] and then meet with a Regional Business Partner Network Growth Advisor to discuss your business. If a need for training is identified, a voucher may be issued to access management training services to help you to grow and innovate your business. The vouchers can only be used with registered service providers.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_empty_space][vc_column_text css=""]Find out more by visiting https://www.regionalbusinesspartners.co.nz/ [3]

William Buck is a registered service provider

William Buck offers a range of registered support services that you may be eligible to receive funding for:

 	Financial and cashflow management and business continuity planning services under the COVID-19 Business Advisory Fund.
 	Business planning services under the Management Capability Development Voucher Fund.

If you have questions or would like to find out how the Regional Business Partner Network Voucher Funds may be able to help your business to recover and grow, please contact:

Clyde Young &#124; Managing Director - Business Advisory

Martinus Naude [4] &#124; Director - Advisory Services.[/vc_column_text][/vc_column][/vc_row]

[1] https://www.regionalbusinesspartners.co.nz/
[2] https://www.regionalbusinesspartners.co.nz/
[3] https://www.regionalbusinesspartners.co.nz/
[4] https://williambuck.com/nz/our-people/]]></content:encoded>
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						                        <title>William Buck Tauranga moves to The Kollective</title>
						                        <link>
						                        https://williambuck.com/nz/william-buck-tauranga-moves-to-the-kollective						                        </link>
						                        <pubDate>Thu, 01 Oct 2020 23:36:02 +0000</pubDate>
						                        <dc:creator>William Buck</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=15668						                        </guid>
						                        <description><![CDATA[]]></description>
						                        <content:encoded><![CDATA[[vc_row][vc_column][vc_column_text]On Monday, our Tauranga team moved into their new workspace at The Kollective - TK. The Kollective is located at 145 Seventeenth Avenue, Tauranga, just off Cameron Road and close to Tauranga's CBD.

The Kollective is New Zealand's largest co-working space and is dedicated to the success of not-for-profit, social enterprise, charity and government organisations, as well as businesses like us who have a social responsibility ethos and a passion for our community.

Richard Dey [1], who leads our Tauranga team, says moving to this modern, flexible workspace provides our Tauranga-based specialist audit team with an opportunity to work more collaboratively, while maintaining our client and community focus.

“The new space gives us the opportunity to rethink the way we work and to continue delivering quality service to our clients. The Kollective is superbly set up to support our staff and our clients, with great facilities and a positive and welcoming environment,” said Richard.

TK’s facilities include meeting rooms, event spaces, and access to an electric car, e-scooters and e-bikes.

“As a member of The Kollective we are committed to playing an active part in the TK community, and to its values,” said Richard.

“We saw a close alignment with The Kollective’s community-based vision and William Buck’s Changing Lives philosophy. Changing Lives is present in everything we do, and we aspire to create a positive change in the lives of our clients, our people and our community.”

“We are excited to be joining The Kollective and to be working alongside like-minded people and other progressive organisations. It’s also great to see many of our clients are already part of the TK family.”

To find out more about The Kollective visit https://www.thekollective.org.nz/ [2][/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_empty_space][vc_single_image image="15669" img_size="large"][/vc_column][/vc_row]

[1] https://williambuck.com/nz/people/richard-dey/
[2] https://www.thekollective.org.nz/]]></content:encoded>
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						                        <title>The advantages of outsourcing parts of your business</title>
						                        <link>
						                        https://williambuck.com/nz/the-advantages-of-outsourcing-parts-of-your-business						                        </link>
						                        <pubDate>Thu, 24 Sep 2020 00:50:23 +0000</pubDate>
						                        <dc:creator>Scott Harrington</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=15377						                        </guid>
						                        <description><![CDATA[The global outsourcing industry has grown exponentially over the years but continues to have a variable reputation. In 2020, these concerns were heightened by COVID-19 with businesses shocked at how quickly their operations can be disrupted and vulnerable. Media coverage has typically spotlighted the negative impacts of outsourcing and focused on job losses to offshore [&#8230;]]]></description>
						                        <content:encoded><![CDATA[The global outsourcing industry has grown exponentially over the years but continues to have a variable reputation. In 2020, these concerns were heightened by COVID-19 with businesses shocked at how quickly their operations can be disrupted and vulnerable.

Media coverage has typically spotlighted the negative impacts of outsourcing and focused on job losses to offshore competitors and damage to the Australian economy. Now we’re seeing more businesses, even startups, taking advantage of outsourcing to qualified professionals and using it as a tool for growth and expansion.

What was once thought of as a simple way to access cheap overseas labour is now changing as more businesses look to outsource domestically – a practice known as ‘onshore outsourcing’.

While onshore outsourcing is nothing new, the variety of functions that are outsourced has grown in recent years. Information technology, public relations, human resources, virtual assistance, engineering, distribution and logistics, and finance and accounting are just a handful of the services on offer.
Onshore outsource vs offshore outsource
Australian companies who previously relied on offshore service providers to manage critical activities are having to review whether this still makes sense commercially and economically. COVID-19 lock downs and the closure of borders has forced many businesses to operate with limited offshore support, if any. The pandemic has shown how quickly the benefits of offshoring can fall away. With businesses facing greater pressure, many are reassessing their business continuity risks [1] and establishing onshore models that use local services.

For many business owners and management teams, onshore outsourcing provides assurance above offshore outsourcing:

 	There is no language barrier or time zone challenges
 	Local service providers understand the market, regulations and legislation
 	Customers feel more confident dealing with domestic service providers
 	More control and access to local talent pools, skills and expertise
 	Minimised risk and reputational exposure not relying on global providers and governments

Accessing world-class skills and expertise
An increasing number of businesses are approaching outsourcing as a way to access the expertise, skills and technology they lack in-house.

Outsourcing certain functions, such as marketing or accounting, gives a small-to-medium business access to a whole team of experts they could not employ on their own. The best service providers will invest in education, research and the latest technologies, and have experience working with other clients that have faced similar challenges.
Creating scalability and flexibility
Outsourcing non-core functions of the business can provide greater flexibility, particularly for businesses going through a difficult transitionary period.

For example, a business experiencing rapid growth is likely to require additional layers of management and new business processes but may not yet be profitable enough to establish these functions. Outsourcing can lower overheads until such a time when the business can appoint additional managers or establish new processes. This can be particularly beneficial for businesses uncertain about how long their growth will last.

Similarly, businesses that are sensitive to seasonal or economic changes may benefit from the additional control over the costs that outsourcing affords.
Saving time and money
For many small to medium businesses, the owners or management team must wear many hats. Juggling the accounts, supervising the latest direct mail campaign, handling customer queries and IT back-up can leave little time for ‘real work.’

Outsourcing can allow the business owner or management team time to focus more productively on the business’ core capabilities while having an external expert look after the operational functions. Similarly, by eliminating tasks and outsourcing them to experts, you can create more development opportunities and ‘high-skills’ jobs for your employees.
Tips for outsourcing
Whether outsourcing domestically or overseas, the following tips will help you to do so effectively.



[1] https://williambuck.com/how-a-disaster-recovery-plan-can-help-you-adapt-quicker/]]></content:encoded>
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						                        <title>How to navigate an IRD audit with the best possible outcome</title>
						                        <link>
						                        https://williambuck.com/nz/how-to-navigate-an-ird-audit-with-the-best-possible-outcome						                        </link>
						                        <pubDate>Thu, 24 Sep 2020 00:03:43 +0000</pubDate>
						                        <dc:creator>Jayesh Kumar</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=15373						                        </guid>
						                        <description><![CDATA[This article was first published in the CFO Series Magazine in September 2020 An IRD audit is an examination of your financial affairs by the Inland Revenue Department, to ensure you’ve paid the right amount of tax and you’re complying with tax laws. An audit can be anywhere from a simple check of your GST [&#8230;]]]></description>
						                        <content:encoded><![CDATA[This article was first published in the CFO Series Magazine in September 2020 [1]

An IRD audit is an examination of your financial affairs by the Inland Revenue Department, to ensure you’ve paid the right amount of tax and you’re complying with tax laws. An audit can be anywhere from a simple check of your GST registration to a comprehensive examination of business and personal records.

The Department could select you for an audit for a number of reasons. For example, the department’s analysts might have identified that information in your tax return is somewhat unusual or inconsistent with industry norms. The Department might have received a tip off that suggests your tax return is incorrect or could be investigating due to past compliance history. Or, it could simply be that the IRD is currently focused on your industry.

If you do find yourself in the unfortunate position of being selected for an audit, don’t worry, the worst consequence is probably the inconvenience. Below, we outline some tips on how to deal with the audit and IRD investigators throughout the process:

 	
A visit from the IRD


The IRD may decide to visit your business premises without notice. Always ask for identification and take the investigators’ business cards.

Don’t answer any questions from an IRD investigator without seeking advice from a professional tax advisor. Take the investigators’ contact details and arrange a time to meet with them and your tax advisor.

Don’t allow the investigators to take any original documentation. Insist they make copies if they require the information.

 	
Interviews with IRD investigators


It is strongly recommended that you do not attend interviews without a professional tax advisor. Being audited demands specialist expertise as it generally involves complex tax laws. For the best chances of successfully passing the audit, ensure representation from your tax advisor.

Ask the IRD in advance for a list of questions it wishes to raise. This provides opportunity for you to prepare the relevant information and seek professional advice.

 	
Providing information 


Provide information promptly to demonstrate to your IRD investigator/s that you take tax compliance seriously. If you require more time, let the investigator/s know and negotiate a revised timeframe to provide the requested information.

 	
Consider making a voluntary disclosure


If you become aware that you’ve filed an incorrect tax return, it’s best to front this early in the audit process. You can also make a voluntary disclosure ahead of a compliance review or audit. Ensure that you have complete information to make a disclosure and understand the likely costs associated with disclosure, such as interest, penalties and additional tax. One major advantage in making a voluntary disclosure is that any penalties will be reduced by 75% to 100% in some circumstances.

 	
Consider using tax pooling 


If you receive a notice of reassessment due to an IRD audit or voluntary disclosure, consider tax pooling to pay what you owe. The Department will apply surplus tax paid on the original due date against your tax liability when you pay via tax pooling. As such, this is treated as if you’d paid on time, eliminating any interest and late payment penalties.

An IRD approved provider can reduce the interest cost by up to 30% on any additional tax payable, resulting in considerable savings.

 	
Audit insurance 


An IRD audit can be very expensive, especially if it takes a significant length of time and you’re seeking assistance from your expert tax advisor. For this reason, you might consider taking out audit insurance from the beginning so that in the event of an audit, you won’t find yourself in trouble financially.

Regardless of why you might be chosen for an audit, it’s important to ensure your records are up to date, you aren’t providing any false or misleading information, and you maintain a positive compliance history. This way, you’re unlikely to owe any money after an audit and less likely to be selected.

Avoiding tax obligations is a serious offence that can result in severe penalties. Any additional tax obligations arising from an IRD audit is subject to use of money interest (UOMI) and shortfall penalties, which range from anywhere between 20% to 150% of the tax shortfall and are levied according to the seriousness of the offence. The IRD may, in extreme circumstances, consider a criminal prosecution.

By seeking advice from a William Buck tax specialist, you’re giving yourself the best chance at successfully passing the audit, or, where tax avoidance has occurred, receiving the best possible outcome. We will liaise directly with the IRD on your behalf, explaining to you along the way the matter being investigated, the relevant facts, outcomes and implications.

[1] https://www.paperturn-view.com/richard-cfoseries-com/wc-cfo-thestrategiccfo-44-online-nz-final?pid=MTE113313&#38;p=3]]></content:encoded>
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						                        <title>The importance of cash flow forecasting and ‘how to’ during COVID19 &#124; Part 2</title>
						                        <link>
						                        https://williambuck.com/nz/the-importance-of-cash-flow-forecasting-and-how-to-during-covid19-part-2-2						                        </link>
						                        <pubDate>Tue, 04 Aug 2020 01:00:13 +0000</pubDate>
						                        <dc:creator>Eric Flammang</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=14275						                        </guid>
						                        <description><![CDATA[In this two-part series, William Buck Manager Business Advisory, Eric Flammang provides his recommendations for monitoring and managing cash inflow and outflows effectively during COVID19, using a three-way forecast. Part Two: Three-way forecast models in practice When it comes to three-way financial modelling, small businesses can now receive packages which integrate with your cloud-based accounting [&#8230;]]]></description>
						                        <content:encoded><![CDATA[In this two-part series, William Buck Manager Business Advisory, Eric Flammang provides his recommendations for monitoring and managing cash inflow and outflows effectively during COVID19, using a three-way forecast.
Part Two: Three-way forecast models in practice
When it comes to three-way financial modelling, small businesses can now receive packages which integrate with your cloud-based accounting data file or ERP system and perform algorithmic forecasting for less than $1,000 a year. But in practice, Excel is still widely used and can sometimes be as powerful as any other software if used properly.

Listed below are the 10 commandments I believe businesses should follow when setting up their three-way cash flow forecasting models in excel:

 	Use colour coding to distinguish between inputs and formulas
 	Build a stand-alone 3 statement-model on one worksheet
 	Clearly separate the assumptions or drivers from the rest of the model
 	Use clear headers and subheads (with bold shading) to clearly distinguish sections
 	Use the cell comments function (shift + F2) to describe calculations or assumptions that need explaining
 	Build in error checks such as ensuring the balance sheet balances (without a plug)
 	Pull forward (or repeat) information where it helps users follow the logic of the model (i.e. pull forward EBITDA from the income statement to the cash flow valuation section)
 	Avoid linking to other Excel workbooks unless absolutely necessary (and if so, clearly indicate those links exist)
 	Avoid circular references unless necessary (and use iterative calculation to solve them); and
 	Use tables, charts and graphs to summarise key information.

And for Excel beginners, listed below are the most important Excel tips for financial modelling:

 	Use as many keyboard shortcuts as possible
 	Keep formulas and calculations simple – break them down into smaller steps
 	Use the grouping function to organise sections of the financial model
 	Use F5 (go to special [1]) to quickly locate all hardcoded numbers or formulas
 	Use “Trace Precedents” and “Trace Dependents” to audit the model
 	Use “XNPV” and “XIRR” to apply specific dates to cash flows in the context of return on investment calculations
 	Use “INDEX MATCH” over “VLOOKUP” for looking up information
 	Use a combination of date functions (e.g. “EOMONTH”) and IF statements to make dates dynamic
 	Remove gridlines when presenting or sharing the financial model; and
 	Memorise all the most important Excel formulas for financial modelling.

But more importantly, if unsure, speak to your accountant and business advisors. They are highly trained and experienced with forecast modelling. A model is only useful and relevant if robust-built – don’t hesitate to invest in this area and obtain the expert advice you require.
Conclusion
Even before the outbreak of COVID-19, we were living in a period of rapid change and great uncertainty due to economic cycles, constantly evolving legal frameworks, increasing competition, and disruptive technologies. Business leaders should identify lessons learned from this crisis, including the adoption of scenario planning as part of ongoing efforts in developing plans and projections to remain liquid and “agile”.

Three-way cash flow forecasts, scenario and sensitivity analyses and variance analyses are powerful tools available to businesses to help them regain control and quickly and regularly assess and adopt available strategies.

In this environment, businesses must take advantage of the various options available to them including the current government stimulus measures and re-negotiating their current finance and leasing / supply and employment arrangements.

You can read Part 1 &#124; The importance of cash flow forecasting and ‘how to’ during COVID19 here [2]

[1] https://corporatefinanceinstitute.com/go-to-special-excel
[2] https://williambuck.com/nz/the-importance-of-cash-flow-forecasting-and-how-to-during-covid19-part-1-2/]]></content:encoded>
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						                        <title>The importance of cash flow forecasting and ‘how to’ during COVID19 &#124; Part 1</title>
						                        <link>
						                        https://williambuck.com/nz/the-importance-of-cash-flow-forecasting-and-how-to-during-covid19-part-1-2						                        </link>
						                        <pubDate>Tue, 04 Aug 2020 00:56:09 +0000</pubDate>
						                        <dc:creator>Eric Flammang</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=14273						                        </guid>
						                        <description><![CDATA[In this two-part series, William Buck Manager Business Advisory, Eric Flammang provides his recommendations for monitoring and managing cash inflow and outflows effectively during COVID19, using a three-way forecast. Part One: Assessing your options and scenario testing Cash flow is the lifeblood of any business and it is even more critical in times of uncertainty [&#8230;]]]></description>
						                        <content:encoded><![CDATA[In this two-part series, William Buck Manager Business Advisory, Eric Flammang provides his recommendations for monitoring and managing cash inflow and outflows effectively during COVID19, using a three-way forecast.
Part One: Assessing your options and scenario testing
Cash flow is the lifeblood of any business and it is even more critical in times of uncertainty for ALL businesses.

Gaining visibility and control over cash flows and working capital is the most fundamental activity businesses should undertake during a time of crisis. Your business should prepare and regularly update a 13-week rolling cash flow forecast to realistically assess its current situation and take corrective actions as and when required. The question is how?

Well, the best forecasting format is what we call in the industry a “Three-way forecast” as it combines three key financial reports into one neat summarised package. It links your Profit and Loss (P&#38;L), Balance Sheet and Cashflow reports together giving these reports greater credibility and allowing you to predict your future cash position and the “financial health” of your business.

Forecasting will assist your business to stay “agile” in this rapidly changing environment in the following two major ways:

 	It will provide you with a framework to assess and re-assess your business’s current position and available options; and
 	It will provide you with a powerful tool to assess your options and compare alternative course of actions your business could take to come out of this difficult time as strong and financially stable as possible.

Assess your position

 	Understand your cash flow and working capital requirements: Consider the three working capital elements – receivables, payables and inventory. You will need to work out a balance between these three areas so that there is sufficient use of cash to keep your business running.
 	Manage your Receivables:It is critical to ensure your collection process is working efficiently by considering the money owed by your customers, the recoverability of these and the ultimate impact on your cash flow. It is also crucial for your business to regularly review its turnover projections, based on new business trends resulting from COVID-19.
 	Manage your Payables:Review the amounts owed to your suppliers and forecast when these payments are due. Review all other non-trading contracts/commitments that have a cash requirement over the months ahead and reconsider their necessity. For the remaining commitments, your business should consider extending the time taken to pay its suppliers to preserve cash. However, bear in mind that delaying payments may damage the relationships with your suppliers, so it is important to negotiate with them to establish mutually beneficial agreements.
 	Manage your inventory: Look at your business’s supply chain and consider if there may be any disruptions such as ability to obtain materials and delivery. It is critical to balance the need for buffer stock and holding cash in excess inventory. It is important to do a calculation/forecast of stock requirement needs for the future by considering the lead time, the time it takes to order and provide the goods/services to customers.
 	Review your overhead structure:Make an accurate assessment of all expenses and outgoings needed to continue operating to sustain your revenue forecast. This may lead to pursuing alternative actions such as deferring large capital expenditure, reducing fixed costs, changing your staffing levels and switching to variables such as lease equipment instead of purchase. Like the above, it is important to note that this analysis should be done bearing in mind that these costs reduction(s) should not risk a decrease in your ability to generate revenue. Nor should they damage your business reputation. The long-term consequences would largely outweigh the short-term cashflow impacts.

Assess your options

Once your three-way forecasting model has been established, it is important to understand the options available to drive your business through the crisis and their impacts on your cash position and ability to remain solvable (also referred to as Scenario and Sensitivity analysis).

Scenario analysis utilises several tools and concepts that are relevant to COVID-19. These include identifying potential scenarios, critical assumptions, leading indicators, and potential mitigating actions.

The main available options during COVID-19 fall under the following three pillars:

 	Understand the government and IRD assistance packages that can assist with cash flow: The Government and IRD have announced various assistance measures such as the Wage Subsidy and Extension, tax loss carry-back scheme, Business Finance Guarantee Scheme, and Small Business Loans. It is important to understand and consider the different options available and forecast how the use of assistance will impact cash flow.
 	Negotiate lease arrangements: Contact your landlord and negotiate your rent terms including a reduction, variation to existing lease terms, or pause on rent for a short period of time. When doing so, you should outline the impact on your business including how rent relief will assist. Forecasting different scenarios will assist in demonstrating this to your landlord, which will assist in negotiating with your landlord in good faith.
 	Negotiate finance options: In this current environment, it is important to understand available financing options available if required. A reminder that previous options may not be available now so it is crucial to communicate regularly with your bank or finance provider. Some banks are offering deferral of loan repayments for a six-month period. This is also an opportunity to use forecasting scenarios to better understand how additional or new financing options available would be of use to your business.

Sensitivity and Scenario Analyses

The different scenarios should then be tested by ensuring you consider your variables and assumptions in the context of best and worst-case scenarios (e.g. what does it mean for my business cashflow if we only achieve X instead of Y?). This is called a “sensitivity analysis”

It is important not to confuse Sensitivity Analysis with Scenario Analysis. Although similar to some extent, the two have some key differences.

A Sensitivity Analysis is used to understand the effect of a set of independent variables on some dependent variables under certain specific conditions. For example, a financial analyst wants to find out the effect of a company’s net working capital on its profit margin. The analysis will involve all the variables that have an impact on the company’s profit margin such as the cost of goods sold, workers’ wages and managers’ wages, etc. The analysis will isolate each of these fixed and variable costs and record all possible outcomes.

A Scenario Analysis on the other hand, would require your business to describe a specific scenario in detail. Scenario Analysis is usually done to analyse situations involving major shocks such as a global market shift or a major change in the business’s operating environment (very relevant in the current economic context).

After specifying the details of the scenario, you’d then detail the variables so that they align with the scenario. The result is a very comprehensive picture of the future (a discrete scenario). The analyst would know the full range of outcomes, given all the extremes, and would understand what the outcomes would be.

Advantages of Sensitivity Analysis

There are many important reasons to perform a Sensitivity Analysis:

Sensitivity Analysis adds credibility to any type of financial model by testing the model across a wide set of possibilities.

 	Financial Sensitivity Analysis allows your business to be flexible with the boundaries within which to test the sensitivity of the dependent variables to the independent variables. For example, the model to study the effect of a 5% change in interest rates would be different from the financial model that would be used to study the effect of a 20% change in interest rates.
 	Sensitivity analysis helps one make informed choices. Decision-makers use the model to understand how responsive the output is to changes in certain variables. This relationship can help a business in deriving tangible conclusions and be instrumental in making optimal decisions.

You’ll then implement the best option and closely monitor the impact by regularly reviewing the results and comparing them to the forecasts made. You can then adjust plans as and when required (variance analysis of actual versus forecast cashflows should be carried out with variances robustly challenged).

Click here to read part two for Eric’s top 10 tips on setting up a three-way cash flow forecast model in Microsoft Excel. [1]

[1] https://williambuck.com/nz/the-importance-of-cash-flow-forecasting-and-how-to-during-covid19-part-2-2/]]></content:encoded>
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						                        <title>International tax in the time of COVID-19</title>
						                        <link>
						                        https://williambuck.com/nz/international-tax-in-the-time-of-covid-19-2						                        </link>
						                        <pubDate>Wed, 29 Jul 2020 04:18:01 +0000</pubDate>
						                        <dc:creator>Jayesh Kumar</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=14253						                        </guid>
						                        <description><![CDATA[William Buck Tax Director Jayesh Kumar and Accountant Harrison Stutt answer some common questions asked by their clients regarding international tax matters in the time of COVID-19. The director of a corporate taxpayer has been stranded in NZ during the COVID-19 pandemic. Does this mean the corporate taxpayer is now a NZ resident? No. The [&#8230;]]]></description>
						                        <content:encoded><![CDATA[William Buck Tax Director Jayesh Kumar and Accountant Harrison Stutt answer some common questions asked by their clients regarding international tax matters in the time of COVID-19.

The director of a corporate taxpayer has been stranded in NZ during the COVID-19 pandemic. Does this mean the corporate taxpayer is now a NZ resident?

No. The COVID-19 pandemic will not cause corporate taxpayers to become tax residents because the directors of the company are stranded in NZ. Just because the director is stranded here does not change where the real business of the company is carried on.

I own a foreign resident company. Due to COVID-19, some of my employees have an unplanned and lengthy presence in NZ. Does this create a Permanent Establishment (PE) in NZ (inbound employee)?

Normally, the presence of your foreign entity’s employees working in NZ may create a PE in NZ. However, the COVID-19 pandemic will not cause non-resident companies to have a PE in NZ because of a stranded employee(s). A non-resident company will not derive NZ income because of a PE after only a short period of time.

For a PE to be established, the business must be carried out on a regular basis and must be fully or partially undertaken from a permanent place. If the business did not have a PE established in NZ prior to COVID-19, then the presence of the employees in NZ would be considered short-term due to the travel restrictions.

As an individual, will I become a tax resident in NZ if I am personally present for more than 183 days in a 12-month period due to COVID-19?

The COVID-19 pandemic could cause individuals to have to stay in New Zealand longer than 183 days despite their plans to leave. An individual will not become a tax resident in New Zealand under the day-count test just because they are stranded in New Zealand. If you leave in a reasonable number of days after the travel restrictions are lifted, this will be sufficient. The day-count test is based on normal circumstances when people are free to move as they please.

I am a non-resident performing personal or professional services under the 92-day or less exemption. I am now stuck in NZ for longer than the 92-day exemption period. What happens now?

The 92-day test is an exemption for certain income derived by a non-resident for performing personal or professional services in NZ during a brief visit. Normally, this income would be exempt from NZ tax if the period is less than 92 days, but if the visit is longer than 92 days, all income derived since arrival is subject to NZ tax and PAYE must be withheld by the employer.

If the individual is stranded in NZ for more than 92 days due to COVID-19 despite plans to leave before the 92-day period, they will be exempt from paying NZ tax and PAYE. This holds true so long as they leave the country in a reasonable timeframe after the travel restrictions are lifted.

I was in the 48-month transitional resident phase but had planned to leave before the end of this period. Now that I am stranded here in NZ for longer than the 48 months, am I now subject to NZ tax on my worldwide income?

For transitional residents that planned to leave NZ before the 40-month window was up but are unable to do so because of travel restrictions, they are still regarded as transitional residents. As long as they leave NZ within a reasonable time after they are no longer restricted in travelling, the extra days spent in NZ will be disregarded.
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						                        <title>How a Disaster Recovery Plan can help you adapt quicker</title>
						                        <link>
						                        https://williambuck.com/nz/how-a-disaster-recovery-plan-can-help-you-adapt-quicker-2						                        </link>
						                        <pubDate>Tue, 28 Jul 2020 17:57:30 +0000</pubDate>
						                        <dc:creator>John Spender</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=14246						                        </guid>
						                        <description><![CDATA[]]></description>
						                        <content:encoded><![CDATA[[vc_row][vc_column][vc_column_text]The ability to return to ‘business as usual’ will be influenced by a number of factors including the effectiveness of your Disaster Recovery Plan (DRP). This is different from a Business Continuity Plan that focuses on keeping operations functional during the event and immediately after. Rather than simply mitigate the risks, a DRP also looks at how you plan to get your business back to normal or back to where it was before the event. Most companies already have some form of a plan in place, but they don’t fully address the unpredictable variables of dealing with a pandemic outbreak such as coronavirus.

How manufacturers emerge from the crisis will be closely tied to their action planning. You need the right framework to respond and manage risk going forward. It’s critical to look at scenario planning and incident management. What will be the cost implications (both customer driven and organisational) and what opportunities can you identify specific to your industry? You then need to consider a range of factors - do your workforce plans align to the evolving market? do you have alternative supply chains? And what are the financial and operational levers to help conserve and generate cash?

Looking forward, given how incredibly fluid the current situation is, it’s likely that we’ll see more demand-based supply chains and production lines. Data analytics will probably play a stronger role in helping control and reassess supply chains and uncover weak links. Companies will start to decouple their supply chains and invest in tools that make the process more transparent and predictable. This means manufacturers who have flexible supply chains can quickly shift production lines and will be able to reconfigure their operations every time it’s required

We’ve discovered that a lot of businesses are preparing their DRP ‘on the fly’. The shock and speed of the impact from COVID-19 has meant many organisations were unable to act as fast as they’d liked in hindsight. In this current situation, it is critical to plan ahead. While there may be scenarios you’re unable to anticipate, a crisis plan sets the framework for your operations to be resilient and minimise downtime.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_empty_space][vc_single_image image="13540" img_size="large"][vc_empty_space][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]
Collaboration is still key to responding to COVID-19
To survive a major disaster, businesses need to build resilience. It’s become increasingly clear that businesses and industries need to come together to fight against COVID-19. The long-term survival of manufacturing is still heavily dependent on collaboration. Being able to leverage the collective intelligence and expertise from government, research bodies and academia has always been critical in unlocking innovation. There are countless successful joint R&#38;D projects that have involved universities, industry partners and businesses.

The uncertainties around the length and further effects of the virus has businesses quickly looking at new ways working – in the short and long term. As the pandemic continues to unfold, organisations are considering how they spread risk, build new capabilities and proactively mitigate disruptions. This means thinking about the local vs global mix of their supply chains.

The opportunity now exists for manufacturers to work collaboratively with all partners in the entire supply chain and engage new industry groups. There are great examples of sectors such as freight consolidation aligning with competitors to share critical resources, both on import and export activities. These types of collaborations are driving significant efficiencies and revitalising the market.

The fundamentals of the supply chain process are changing. The focus to reduce complexity and uncertainty provides new opportunities to build industry-based solutions. In the current climate there’s potential for manufacturers to collaborate and consolidate with other companies that have similar products or customers or pivot into new markets.

There are a number of new technologies emerging that dramatically improve visibility across supply chain activities and will allow you to operate smarter and more effectively. Collaborative partnership can help to optimise your supply chain and deploy solutions such a digital supply network (DSN).

While it’s important to deal with the current issues, businesses should be asking “how can we collaborate with strategic industry players to strengthen our supply chains?”.[/vc_column_text][/vc_column][/vc_row]
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						                        <title>Why hiring a virtual CFO can be a game-changer</title>
						                        <link>
						                        https://williambuck.com/nz/why-hiring-a-virtual-cfo-can-be-a-game-changer						                        </link>
						                        <pubDate>Fri, 24 Jul 2020 01:31:45 +0000</pubDate>
						                        <dc:creator>Cameron Martin</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=14126						                        </guid>
						                        <description><![CDATA[]]></description>
						                        <content:encoded><![CDATA[[vc_row][vc_column][vc_column_text]Given the time pressures of running a business, many startups and even SME’s, can only devote a limited amount of time to manage the company’s finances. Adding to this pressure is the fact that most startups can’t afford to employ an in-house Chief Financial Officer. Whilst a bookkeeper or external accountant will prepare the accounts and lodge the annual tax return, they don’t provide the forward-looking, long-term strategic financial advice of a CFO. Enter the Virtual CFO, also known as a VCFO or outsourced CFO.

A VCFO helps bridge the gap of receiving strategic financial advice without having to bring on a full-time CFO. There’s no one size fits all approach when using a VCFO.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]A VCFO will tailor their services to suit the needs of your business. They are flexible and scale with you. No two VCFO engagements are the same, so you should be able to choose what services you need and adjust this over time as you grow.

A VCFO acts as an impartial partner. They will proactively recommend changes to the business from accounts payable processes to product pricing and customer profitability advice. They will make informed decisions based on the financial information on hand.

A VCFO will turn your finance function into a competitive advantage 

With rapid technology changes and demands to have up-to-date data in real time, more businesses are starting to lean towards hiring a VCFO. A VCFO is the fraction of the cost of a full-time employee and offers expertise beyond that of a bookkeeper. Companies going through major change, restructuring for growth or reshaping their strategy, can use a VCFO for specialised tasks, even for a temporary period.

If you’re a startup and have plans to grow, the expertise of a VCFO can guide you through the process of scaling your startup. For example, if you've never delivered regular reporting to investors, you’ll likely need assistance sending frequent financial updates. Communicating effectively with investors will give them confidence and reassurance that their investment was the right choice and will boost your chances of raising further capital.

The right VCFO should have experience with capital raising and eliminate the risk of producing inaccurate reports that can damage your startup’s reputation and valuation. A VCFO can come in and rebuild your reports, so you have the right ones to use on a regular basis – be it weekly, monthly, quarterly or annually.

Investors will want to see the due diligence behind your startup and this information needs to be easy-to-read, accurate and easily explainable. If an exit event arises, you'll need an advisor on your team that has the experience and proven processes to navigate these situations.

Being virtual means the VCFO can access your business’s information remotely, anytime, anywhere, and deliver immediate results around the clock – and only being paid for the hours worked or work delivered.

A VCFO gives you peace of mind

A VCFO will help you roll out your strategic plans and provide the financial forecasts and modelling to help your business grow. Using a VCFO doesn’t always have to be ‘virtual’, you can decide on the level of engagement and how you interact with them.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_empty_space height="20px"][vc_single_image image="16283" img_size="full"][vc_empty_space height="20px"][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]Other areas that a VCFO can help your business:

 	Provide recommendations on the best software to match your needs
 	Share insights on ways to reduce admin time and reduce overheads
 	Help deploy cash efficiently and identify growth opportunities
 	Minimise financial risks and roadblocks
 	Align budgets to the future direction and goals of the business
 	Find ways to acquire capital and equipment at the lowest possible cost
 	Act as an independent adviser and sounding board

What can you expect to pay for a VCFO?

You only pay for what you need which means it can be much cheaper than hiring a full-time CFO. Depending on the range of services provided and the size of the business, you can expect to pay between $2,000 to $10,000 a month.

The ideal VCFO for a startup is someone who has already worked with founders and startups before as they will be familiar with the tech sector and know what metrics matter at each stage of a startup’s life – whether that’s tracking cashflow, monitoring runway, calculating customer acquisition costs or identifying most profitable sources of revenue.

VCFO’s offer different expertise and skills. Depending on the services you need or the industry you’re in, a VCFO can help across a range of areas including advice on CRM / ERP systems or financial analysis on a potential merger and acquisition. Finding the perfect match depends on what qualities you’re looking for and if they’re the right fit for your business.

The best outcome for a VCFO is to be able to pass the baton onto a full-time, experienced and qualified CFO when the business has scaled successfully and now need a full-time, in-house CFO resource. When this happens, the business is well on its way to success.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_empty_space height="20px"][vc_message message_box_style="solid-icon" message_box_color="grey" icon_fontawesome="far fa-lightbulb"]
Insight:
Cameron Martin, Director of Business Adisvory [1]
A VCFO is there to help you maximise your shareholder value and support your growth plans. They will know the best metrics and levers that will get you to the next level and keep you from being blindsided by financial issues. Using a VCFO will help you get a handle on your finances and how you can spend your money more wisely.
[/vc_message][vc_empty_space height="15px"][vc_message message_box_style="solid-icon" message_box_color="grey" icon_fontawesome="far fa-lightbulb"]
Insight:
Jack Qi, Director of Tax Services [2]
Don’t wait until you hit a cash crisis to search for a VCFO. If you use a VCFO who is familiar with the highs and lows of startups, they have the experience to put cash management controls in place so that you’re well positioned to respond to any future issues. This can make the biggest difference to a startup’s survival.
[/vc_message][vc_empty_space height="15px"][vc_message message_box_style="solid-icon" message_box_color="grey" icon_fontawesome="far fa-lightbulb"]
Insight:
Mark Calvetti, Director of Corporate Advisory [3]
You need a VCFO who gets the startup world. When you work with someone experienced in this space, they can suggest the best ways to raise funds whether that’s through VC, grants or loans. A good VCFO will tailor their services to what stage you’re at  - capital raising, mergers, IPO or sale. Startups have accelerated growth periods and you need the right systems and reporting in place to successfully scale your business.
[/vc_message][/vc_column][/vc_row]

[1] https://williambuck.com/people/cameron-martin/
[2] https://williambuck.com/people/jack-qi/
[3] https://williambuck.com/people/mark-calvetti/]]></content:encoded>
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						                        <title>Law changes bring relief to directors and debt</title>
						                        <link>
						                        https://williambuck.com/nz/law-changes-bring-relief-to-directors-and-debt						                        </link>
						                        <pubDate>Thu, 16 Apr 2020 06:19:53 +0000</pubDate>
						                        <dc:creator>Aaron Trombetta</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=12267						                        </guid>
						                        <description><![CDATA[]]></description>
						                        <content:encoded><![CDATA[[vc_row][vc_column][vc_column_text css=""]As part of the Government’s response to COVID-19, temporary law changes to the New Zealand Companies Act will enable businesses affected by COVID-19 to place existing debts into hibernation for six months.

Directors of companies facing significant liquidity problems because of COVID-19 will also have a six-month relief from any personal liability for trading while insolvent. Under the temporary safe harbour changes, directors can continue to trade without the pressure to enter their organisation into administration if there’s a chance it might be insolvent.

The changes announced 3 April are designed to assist financially stressed businesses weather the storm with as little harm as possible to creditors’ interests and to keep workers in jobs.
Business debt hibernation – is this an option?
Businesses affected by COVID-19 will be able to put existing debts into hibernation for six months and keep trading.

Business debt hibernation will be available to all forms of entity with legal personality (not just companies) and entities that do not have legal personality (i.e. trusts and partnerships). It will not, however, extend to licensed insurers, registered banks and non-bank deposit takers, and sole traders. Sole traders who become insolvent are instead subject to the Insolvency Act 2006 (which covers personal insolvency).

Before a company can be placed in business debt hibernation:

 	A new threshold test (the details have yet to be announced) will need to be passed before directors can seek creditor approval to hibernate their debt
 	50% of creditors must agree to deferring debt repayment through a vote
 	Creditors will have a month to decide if they agree to put a business’ debt into hibernation. During this time, creditors will not be able to enforce debt repayment
 	If approved, a business’ debt repayments will be frozen for six months.

The month between notifying creditors of the intention to seek debt hibernation and the vote gives the business time to talk to its creditors about prioritising paying some debts and holding off paying others for six months.
Safe harbour for directors – it doesn’t mean a free pass
The temporary law change in relation to sections 135 (reckless trading) and 136 (trading while insolvent) of the Companies Act will mean directors’ decisions to keep on trading, as well as decisions to take on new obligations, over the next six months will not result in a breach of duties if:

 	In the good faith opinion of the directors, the company is facing or is likely to face significant liquidity problems in the next six months as a result of the impact of COVID-19 on them or their creditors
 	The company was able to pay its debts that were due on 31 December 2019, and
 	The directors consider in good faith that it is more likely than not the company will be able to pay its debts as they fall due within 18 months.

However, this does not mean that directors are free to disregard the consequences of their actions for the next six months. Other protections in the Companies Act, such as those addressing serious breaches of the duty to act in good faith and punishing those who dishonestly incur debts, will remain in place.
Other corporate governance changes
The Contract and Commercial Law Act will be amended to allow for electronic signatures on security agreements containing powers of attorney.

Registrars will have temporary exemption powers to extend statutory deadlines (e.g. for holding AGMs and filing annual returns) imposed on companies, limited partnerships, incorporated societies, charitable trusts and other entities under legislation.

Temporary relief will be given to entities (including incorporated societies, charitable trusts, unincorporated associations and other entities) that are unable to comply with obligations in their constitutions or rules because of COVID-19.
Staying the course
While debt hibernation may be a viable option for some, and a safe harbour will provide relief for directors facing difficult decisions in the coming months, it’s important that business leaders and directors continue to oversee the solvency of their organisation.

 	Have a plan in place to pay debts incurred and mitigate business risks to remain viable during and beyond the six months.
 	Conduct ongoing assessments on the impact of incurring further debts and liabilities.
 	Make decisions in the best interests of the business (including the interests of creditors when approaching insolvency).
 	Consider talking to your creditors and bank before heading down the hibernation path as getting your creditors to agree to a freeze on debt payments for six months may not be an easy task.
 	Getting good professional advice early in the process with assessing your financials, cashflow and debt situation can help in preparing viable business debt hibernation proposals and to show your creditors that you are committed to making this debt repayment arrangement work.

&#160;
We’re here for you
We continue to support our clients through this challenging period with key business and tax advice to answer your business-related questions and guide you through the COVID-19 financial support measures. For the latest COVID-19 updates, visit our Resource Page [1].

Should you need any additional support, please contact your local William Buck advisor - we're here to help.[/vc_column_text][/vc_column][/vc_row]

[1] https://williambuck.com/nz/covid-19-and-your-business-new-zealand/]]></content:encoded>
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						                        <title>Latest tax changes will help SMEs</title>
						                        <link>
						                        https://williambuck.com/nz/latest-tax-changes-will-help-smes						                        </link>
						                        <pubDate>Thu, 16 Apr 2020 03:43:58 +0000</pubDate>
						                        <dc:creator>William Buck</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=12245						                        </guid>
						                        <description><![CDATA[]]></description>
						                        <content:encoded><![CDATA[[vc_row][vc_column][vc_column_text css=""]The Government has announced further support measures aimed to help small and medium-sized enterprises (SMEs) manage the impacts of COVID-19. These include a tax loss carry-back scheme, changes to the tax loss continuity rules and allowing Inland Revenue to change due dates.

Legislation will be introduced on 27 April to enact these tax measures and will apply retrospectively once the bill is passed.

These measures should provide additional cashflow relief to those SMEs struggling to meet their non-wage fixed costs (such as rent, interest and insurance) and are unable to take on additional debt. This will prevent otherwise viable businesses having to close permanently.
Tax loss carry-back scheme
The $3.1 billion approved scheme will provide cash to businesses that are, or anticipate being, in loss. This means a projected loss in the current financial year can be offset against the tax paid on a profit from last year. A cash refund will be received for the tax paid in the previous profitable year.
Tax loss continuity rule changes
The Government has proposed loosening the tax loss continuity rules to make it easier for firms to raise new capital. Raising capital may result in a change to the existing shareholder structure. Currently, if a business has more than a 51% change in ownership it cannot keep its tax losses. Relaxing the rules will ensure businesses in this position could carry losses forward to offset income when they return to profit.

Details around this are still being finalised. The new rules would apply for the 2020-21 and later income years.
Flexibility for businesses to meet their tax obligations
Inland Revenue will be given temporary power to extend due dates, timeframes or modify procedural requirements for businesses and individuals who are impacted by COVID-19. This could include extending deadlines for filing tax returns and paying provisional and terminal tax.

SMEs make a significant contribution to the New Zealand economy and account for 97% of all New Zealand businesses. The latest announced tax changes, together with the current range of support measures such as the Wage Subsidy Scheme, the Business Finance Guarantee Scheme and business tax changes will help boost cashflow and keep businesses in the SME sector afloat.

Recent temporary changes to the Companies Act, which includes enabling businesses to place existing debts into hibernation for six months, will also help businesses facing insolvency to remain viable.

The Government has indicated work is underway on further support for businesses and households as the impacts of COVID 19 become clearer.

These new tax measures create opportunities for businesses to minimise their outgoings so they can efficiently utilise their cash reserves. With upcoming tax filing and payment obligations to be fulfilled such as payroll taxes, provisional taxes and GST, we recommend you seek professional advice to consider implementing the following options:

 	Liaising with Inland Revenue on delaying or deferring filing of the tax returns and/or tax payments.
 	Undertaking projections for the 2020/21 financial year to determine any anticipated tax losses that may be incurred, which may be used to offset against the taxable income for the 2019/20 financial year. This in turn will minimise your 2019/20 tax liability and may potentially result in a refund of any excess taxes paid.
 	Preparing the financial statements for the 2019/20 financial year to determine if any tax losses incurred can potentially be offset against the taxable profit for 2018/19 financial year, resulting in a refund of any excess tax paid.

&#160;
We’re here for you
We continue to support our clients through this challenging period with key business and tax advice to answer your business-related questions and guide you through the COVID-19 financial support measures. For the latest COVID-19 updates, visit our Resource Page [1].

Should you need any additional support, please contact your local William Buck advisor - we're here to help.[/vc_column_text][/vc_column][/vc_row]

[1] https://williambuck.com/nz/covid-19-and-your-business-new-zealand/]]></content:encoded>
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						                        <title>COVID-19 &#038; Life Insurance – can I claim?</title>
						                        <link>
						                        https://williambuck.com/nz/covid-19-life-insurance-can-i-claim						                        </link>
						                        <pubDate>Mon, 06 Apr 2020 05:01:21 +0000</pubDate>
						                        <dc:creator>Amy Gill</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=12022						                        </guid>
						                        <description><![CDATA[]]></description>
						                        <content:encoded><![CDATA[[vc_row][vc_column][vc_column_text]Here at William Buck, we’ve received a number of queries from clients asking whether their insurance policies will pay out amidst the COVID-19 pandemic. Below we have answered two of our most common queries:

Can I claim in the event I pass away or become temporarily or permanently disabled from COVID-19?

 	Most policies with retail providers will pay out in the event you pass away or become temporarily or totally permanently disabled (TPD) from complications of COVID-19.
 	However, there are a number of industry funds that do not cover pandemic illnesses. Be sure to check your relevant Product Disclosure Statement or contact your provider or adviser if you need assistance.
 	If you contract COVID-19 and are temporarily disabled (unable to work), dependent on your waiting period, you may be eligible to claim. Please check your policy details or contact your adviser if you need assistance.

Can I claim on income protection (IP) in the event I lose my job?

 	Generally speaking, in a normal Life Insurance contract (i.e. Life, TPD, Trauma or IP), you will not be eligible to receive a benefit if you are made redundant.
 	However, some retail insurance providers have an inbuilt benefit called “Involuntary Unemployment Benefit” or something similar. Depending on the provider, this benefit may allow you to have your premiums waived for a certain period (e.g. 3 – 6 months) while continuing to insure you for that period. Please note, if premium payments are not resumed after this period, your policy may lapse.

[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_empty_space height="20px"][vc_cta h2="" h4="If you have any concerns about your current policies, or additional questions"]Please contact your local financial adviser. [1][/vc_cta][vc_empty_space height="10px"][vc_btn title="&#60; COVID-19 &#124; Resource Centre home" color="sky" link="url:http%3A%2F%2Fwilliambuck.com%2Fcovid-19-and-your-business%2F&#124;&#124;&#124;"][/vc_column][/vc_row][vc_row][vc_column][/vc_column][/vc_row]

[1] https://williambuck.com/our-people/]]></content:encoded>
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						                        <title>COVID-19 &#124; Business hibernation strategies</title>
						                        <link>
						                        https://williambuck.com/nz/covid-19-business-hibernation-strategies						                        </link>
						                        <pubDate>Mon, 06 Apr 2020 02:55:13 +0000</pubDate>
						                        <dc:creator>Manda Trautwein</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=12009						                        </guid>
						                        <description><![CDATA[]]></description>
						                        <content:encoded><![CDATA[[vc_row][vc_column][vc_column_text]Businesses around the world are finding themselves in unchartered waters.

COVID-19 is having an unprecedented effect on business everywhere. For some businesses their supply chains have been impacted while for others, demand for their product or service has entirely dried up overnight.

In Australia and New Zealand, the Governments have imposed a range of restrictions including many social distancing measures to kerb the spread of the Coronavirus.  This has had the unfortunate effect of forcing a variety of businesses to shut down altogether and many others have had to implement large scale work-from-home measures.

In challenging times, we are often forced to look outside the square to problem solve.  This change in mindset, whilst driven out of necessity, may well result in COVID-19 paving the way for an unprecedented surge in innovation and digitalisation globally as we all work from home. Apparently, Isaac Newton formulated his theory of gravity when he was working from home due to the plague.  It was when he watched an apple fall from a tree in his garden that he had his light bulb moment (metaphorically of course as light bulbs had not yet been invented!).

We are already seeing some businesses taking active steps to pivot their business model to adapt to the rapidly changing landscape. For example, retailers who have shut their stores are now able to refocus their attention on driving online sales and improving their online offering. Gyms are moving to web-based exercise classes. Dyson, known for its vacuum cleaners and air purifiers, is re-deploying its resources to produce ventilators for UK hospitals.

Even at a more personal level, it is not uncommon to hear of individuals who have gone on, post-redundancy, to discover an entrepreneurial spirit they never knew existed, mostly because they had no choice. These “reluctant entrepreneurs” generally have significant managerial and operational experience which often leads to greater financial success.

Unfortunately, despite their best efforts, many Australian businesses that were entirely viable pre-Coronavirus, are still battling for survival whilst simultaneously trying to save as many jobs as possible. This has led to many businesses effectively placing themselves into hibernation mode; a plan to wait out the storm and give themselves the best possible chance of emerging on the other side, whenever that might be.

Our advice for businesses who are thinking of implementing a hibernation strategy is to focus your efforts on four key areas:

 	Your workforce
 	Your landlord(s) and/or other major suppliers
 	Your bank
 	The ATO &#38; State Revenue Offices

Your Workforce
For most companies, their workforce is their single biggest asset, yet it is also generally their single biggest cost.

Before layoffs, consider some less obvious options for reducing costs in this area.  For example, introducing a four-day work week which could reduce your staff costs by 20%.

Have an open dialogue with your employees. Some might agree to working half-time if they know that doing so will save jobs.

Others might have large accrued leave balances that could be taken. Whilst this strategy does not conserve cash in the short-term, it does at least reduce the business’ liabilities.

As a last resort, consider standing down staff or doing layoffs. Also consider whether you may still be able to access JobKeeper payments in Australia (discussed later) for affected employees or leave subsidies in New Zealand.
Your Landlord(s) / Other Major Suppliers
In terms of dealing with landlords and/or major suppliers, we suggest being on the front foot and opening a dialogue with them early on.

Many businesses have had great success in negotiating rent free periods, rent reductions or rent deferrals with their landlords. While some businesses in Australia have simply stopped paying their rent, taking advantage of the temporary moratorium on eviction for non-payment of rent announced by the Government.

Similarly, businesses should seek to understand what is happening in their supply chain. You may be able to negotiate with suppliers to obtain more generous payment terms, pricing and potentially renegotiate other contract terms.
Your Bank
For businesses affected by the Coronavirus, now is also a good time to engage with your bank.

All of the big four banks in Australia have openly stated that they will provide repayment holidays of both interest and principal on existing loans for between 3 and 6 months. Business owners should also consider whether this may be available for their personal, investment or home loans. In New Zealand, banks have agreed to give mortgage holders whose incomes have been affected a six-month payment holiday on the interest and principal of their mortgages. The New Zealand government is also underwriting 80% of individual bank loans to eligible SMEs with banks underwriting the remaining 20%.

In Australia, we have also recently seen the introduction of a $250,000 loan guarantee scheme where banks are offering unsecured loans of $250,000 to small and medium sized businesses with no repayments required for six months. These loans are 50% guaranteed by the Government and hence, we understand that banks are taking a “light touch” approach to credit assessment on these loans.

Our advice to business owners is to apply for these loans even if there is not an immediate need.  It is always better to apply for a loan when you don’t need it than when you do need it!
The ATO &#38; State Revenue Offices
Finally, businesses should consider the range of Federal and State Government response measures that may apply to them such as the PAYG withholding cashflow boosts, the JobKeeper Payment and state-based payroll tax reductions/deferrals.

Businesses can also look to vary their PAYG instalments down to take account of their drop in taxable earnings. Depending on your position, you may even be able to claim a credit for PAYG instalments already paid.

The ATO has also indicated that it will provide a range of payment deferrals and low interest payment arrangements in relation to outstanding tax liabilities. Similar measures have been introduced by the Inland Revenue Department in New Zealand.

Regardless of the strategies adopted to survive or even beat COVID-19, we recommend that businesses engage in frequent communication with key stakeholders – including staff, customers and suppliers – through clever and targeted messaging.

For more information on any of the topics above, please contact your local William Buck advisor. [1][/vc_column_text][vc_column_text] [/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_empty_space height="10px"][vc_btn title="&#60; COVID-19 &#124; Resource Centre home" color="sky" link="url:http%3A%2F%2Fwilliambuck.com%2Fcovid-19-and-your-business%2F&#124;&#124;target:%20_blank&#124;"][/vc_column][/vc_row][vc_row][vc_column][/vc_column][/vc_row]

[1] https://williambuck.com/our-people/]]></content:encoded>
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						                        <title>NZ Government makes changes to Wage Subsidy scheme to keep workers in jobs</title>
						                        <link>
						                        https://williambuck.com/nz/nz-government-makes-changes-to-wage-subsidy-scheme-to-keep-workers-in-jobs						                        </link>
						                        <pubDate>Tue, 31 Mar 2020 02:53:31 +0000</pubDate>
						                        <dc:creator>William Buck</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=11800						                        </guid>
						                        <description><![CDATA[]]></description>
						                        <content:encoded><![CDATA[[vc_row][vc_column][vc_column_text]Effective 27 March, modifications to the Wage Subsidy Scheme will apply to ensure people don’t lose their jobs during the national lockdown. The Wage Subsidy is a Government payment to help employers pay wages.

The changes focus on helping businesses who are not able to operate during the lockdown to keep their workers and position them to exit the lockdown and look to recovery.

The modifications include:

 	Employers accessing wage subsidies must make every effort to pay employees at least 80% of the income they received prior to their wage being affected by COVID-19, and if they cannot do this, they must pass on the full wage subsidy to employees.
 	Employers cannot terminate an employee while receiving the wage subsidy.
 	The COVID-19 Leave Payment Scheme will be disestablished and will become part of the Wage Subsidy Scheme. The original Leave Payment Scheme was set up when few people were in self-isolation. The Government is working on arrangements for those in essential work who require sick leave due to COVID-19.

Employees must be paid appropriately under their employment agreements for the hours they work during the lockdown. All employment legal obligations still apply, including paying staff for hours worked if over and above 80% of their wages/salary.

The names of businesses who have been paid the wage subsidy will be made public. Any employer who does not pass on the full Wage Subsidy to employees could soon face consequences.

The financial cost of the scheme has now been estimated to be around $8-12 billion.

The Government is preparing an appropriate audit process that will act as a backstop for this high-trust model.

Our article NZ announces further assistance with wage subsidies, mortgages and business finance [1] outlines other financial support measures announced last week to assist businesses and workers during this challenging period, including:

 	a six-month mortgage holiday scheme for mortgage holders and SME customers whose incomes have been affected by the COVID-19 pandemic.
 	the $6.25 billion Business Finance Guarantee to provide short-term credit for SME customers, and business tax measures to support cashflow and help businesses continue to operate.

Should you wish to discuss the above matters with one of our William Buck business or tax advisors, please get in touch with our Auckland team on 09 366 5000 or our Tauranga team on 07 927 1234.[/vc_column_text][/vc_column][/vc_row]

[1] https://williambuck.com/news/business/general/nz-announces-further-assistance-with-wage-subsidies-mortgages-and-business-finance/]]></content:encoded>
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						                        <title>NZ announces further assistance with wage subsidies, mortgages and business finance</title>
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						                        https://williambuck.com/nz/nz-announces-further-assistance-with-wage-subsidies-mortgages-and-business-finance						                        </link>
						                        <pubDate>Sun, 29 Mar 2020 22:53:22 +0000</pubDate>
						                        <dc:creator></dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=11748						                        </guid>
						                        <description><![CDATA[]]></description>
						                        <content:encoded><![CDATA[[vc_row][vc_column][vc_column_text]
Wage subsidies
Following this week’s Government announcement, wage subsidies will now be available for all employers that are significantly impacted by COVID-19.

This applies to all New Zealand employers, contractors, sole traders, self-employed people, registered charities and incorporated societies.

There is no maximum amount of assistance a business can now receive. The Government has removed the $150,000 per business cap on wage subsidies that can be paid to employers affected by COVID-19. However, the maximum that employers will receive per employee is $7,029.60 for a full-time employee and $4,200 for a part-time employee, covering the 12-week period.

New businesses (e.g. that are less than one year old) and high growth firms (e.g. firms that have had significant increases in revenue) will be eligible. They will need to demonstrate the revenue loss assessment against a similar period, for example comparing March 2020 to January 2020.

If you have already applied for and been granted the wage subsidy for your employees and the Ministry of Social Development has capped the amount paid, you don’t need to do anything because the Ministry will top up the difference.

If you have applied for the wage subsidy for your staff, and claimed only enough to meet the cap, once you have used this subsidy you can reapply.
Mortgage relief
Finance Minister Grant Robertson also announced an agreement between the Government, the Reserve Bank, and New Zealand's retail banks to put in place a mortgage holiday scheme that will be offered by retail banks.

Mortgage holders and small and medium enterprise customers whose incomes have been affected by the COVID-19 pandemic can apply for a six-month payment holiday on both the principal and interest of their mortgages.
Business Finance Guarantee Scheme
The Government and the banks will implement a $6.25 billion Business Finance Guarantee Scheme for small and medium enterprise customers, to protect jobs and support the economy through this challenging period.

The scheme will include a limit of $500,000 per loan and will apply to firms with a turnover of between $250,000 and $80 million per annum. The loans will be for a maximum of three years and expected to be provided by the banks at competitive, transparent rates.

The Government will carry 80% of the credit risk with the other 20% to be carried by the banks.

The Business Finance Guarantee Scheme will provide short-term credit to cushion the financial distress on solvent small and medium-sized firms affected by the COVID-19 crisis.

The Reserve Bank has agreed to help banks put this in place with appropriate capital rules. In addition, it has decided to reduce banks’ Core Funding Ratios from 75 percent to 50 percent, further helping banks to make credit available.

Should you wish to discuss the above matters, please contact one of our William Buck business Advisors which you can find on our website here [1].[/vc_column_text][/vc_column][/vc_row]

[1] https://williambuck.com/our-people/]]></content:encoded>
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						                        <title>How NZ’s COVID-19 stimulus can boost your cash flow and provide necessary relief</title>
						                        <link>
						                        https://williambuck.com/nz/how-nzs-covid-19-stimulus-can-boost-your-cash-flow-and-provide-necessary-relief						                        </link>
						                        <pubDate>Thu, 19 Mar 2020 04:16:05 +0000</pubDate>
						                        <dc:creator>William Buck</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=11482						                        </guid>
						                        <description><![CDATA[]]></description>
						                        <content:encoded><![CDATA[[vc_row][vc_column][vc_column_text]This information is current as of the publish date, however due to the evolving response to the crisis, please refer to the latest articles here.[/vc_column_text][vc_empty_space height="20px"][vc_column_text]Earlier this week the New Zealand Government announced it will spend $8.7 billion to reduce the blow for businesses as part of its $12.1 billion Coronavirus Economic Response Package. Here we take a look at some of the key measures and how we can help you receive assistance.
Wage subsidies
Wage subsidies account for the bulk of the business measures with the Government pledging $5.1bn to subsidise wages for 12 weeks.

To qualify, businesses will need to demonstrate a 30% drop in income in any month between January and June 2020 compared to the same month last year, and attribute this decline to COVID-19. In addition, employers will be required to sign a declaration stating that they have actively tried to mitigate the impact of COVID-19 on their business.

If a business is unable to show a drop in actual financial results, it will be able to use projected income based on cancellations for the remaining months of the financial year. Both existing and startup businesses are eligible for the assistance provided the business can provide evidence that it has sought advice from its bank or financial advisor. It must also continue to pay workers at least 80% of their regular income for the 12-week period.

Once qualified, employers will be paid $585.50 per week for full-time staff and $350 for part-time staff as a lump sum within five days. This is capped at $150,000.

How we can help

We recommend contacting us before signing the mandatory declaration to ensure you have the correct documentation and information in place.

We can assist in determining the impact on revenue and preparing the required documentation (such as cash flow projections) to support the wage subsidy application.
Leave payments
Only those employees who are in mandatory self-isolation or affected by COVID-19 and unable to work will be eligible for leave payments.

Employers will be required to apply for leave payments on behalf of the employee, and all payments received by the employer will need to be paid directly to the employee.

How we can help

We can assist businesses to apply for leave payments on behalf of their employees.
Tax breaks
A Bill is to be introduced to cover all announced tax measures. For more information on those measures, please see our first article in response to the stimulus: New Zealand pledges $8.7bn for business assistance [1]. The new tax rules will come into effect for the 2020/2021 tax year.

For businesses on a December balance date, these tax rules will already be effective and will immediately benefit from the tax relief measures.

For businesses on a 31 March balance date, the rules will be effective from 1 April 2020.
Asset depreciation
Effective from the 2020/2021 financial year, depreciation of commercial and industrial buildings will be reinstated and is not a temporary measure.

How we can help

Our specialist tax advisors can revise your 2020/2021 provisional tax obligations by incorporating the impact of the depreciation to be claimed on industrial and commercial buildings.
Instant asset write-off
The Government is increasing the threshold of write-offs for low-value assets from $500 in the current tax year to $5,000 for the 2020/2021 tax year. This will then be reduced permanently to $1,000 for the 2021/2022 tax year onwards.

For those with a standard balance date (ie 31 March), we recommend acquiring assets of up to $5,000 after 1 April 2020 (if possible).

How we can help

Our specialist tax advisors can assist by calculating your provisional tax obligations, factoring in any qualifying asset write-offs.
Provisional tax threshold
The provisional tax threshold for the 2020/2021 financial year will increase from $2,500 to $5,000. This will be a permanent increase.

If the residual tax liability is less than $5,000 for the 2020/2021 tax year onwards, then a business won’t need to pay any provisional tax for the following year. Payment of the 2020/2021 residual tax can be deferred until 7 February 2022 (or 7 April 2022 for clients on our tax agency list). This means essential costs can be prioritised over the provisional tax payments for the 2020/2021 financial

How we can help

We can assist you with your provisional tax planning to factor in these threshold increases.
Proposal to write-off use-of-money interest
Discretion will be given to Inland Revenue to waive the use-of-money interest on late payments of taxes that are due on or after 14 Feb 2020 (they will have this discretion for 2 years unless Inland Revenue decides to extend it beyond the 2 years).

How we can help

We can assist you with making the application to Inland Revenue to remit the use-of-money interest, including any late payment penalties that may be imposed.

We understand that the foreseeable future will prove difficult for many businesses to manage their financial affairs.

At William Buck, we can work with you to look at the options available for cutting non-essential costs and providing advice on budgeting and cash flow projections to help plan for financial impacts over the next 12 months.

Businesses may also experience impacts on their supply chains. We can assist in looking at options through our colleagues in the Praxity network to see how to get continuous supply from other jurisdictions.

Should you wish to discuss the above matters with one of our William Buck business or tax advisors, please get in touch with our Auckland office on 09 366 5000 or our Tauranga office on 07 927 1234.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_empty_space height="20px"][vc_btn title="&#60; Back to our COVID-19 Resource Centre" link="url:http%3A%2F%2Fwilliambuck.com%2Fnz%2Fcovid-19-and-your-business-new-zealand%2F&#124;&#124;&#124;"][/vc_column][/vc_row][vc_row][vc_column][/vc_column][/vc_row]

[1] https://williambuck.com/nz/new-zealand-pledges-8-7bn-for-business-assistance/]]></content:encoded>
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						                        <title>New Zealand pledges $8.7b for business assistance</title>
						                        <link>
						                        https://williambuck.com/nz/new-zealand-pledges-8-7bn-for-business-assistance						                        </link>
						                        <pubDate>Wed, 18 Mar 2020 03:31:55 +0000</pubDate>
						                        <dc:creator>William Buck</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=11465						                        </guid>
						                        <description><![CDATA[]]></description>
						                        <content:encoded><![CDATA[[vc_row][vc_column][vc_column_text css=""]This information is current as of the publish date, however due to the evolving response to the crisis, please refer to the latest articles.[/vc_column_text][vc_empty_space height="20px"][vc_column_text]New Zealand will spend $8.7 billion to reduce the blow for businesses as part of its $12.1 billion Coronavirus economics stimulus package. The majority will go towards funding tax breaks and wage subsidies.

The package, which is around 4% of New Zealand’s GDP, also includes $500 million for health resourcing.
Wage subsidies

 	For businesses experiencing more than a 30% decline in revenue year-on-year, the Government has pledged $5.1 billion to subsidise wages over the next 12 weeks, effective from 17 March 2020.
 	For eligible businesses, employers will be paid $585.50 per week for full-time staff and $350 for part-time staff.
 	The maximum each business can receive is capped at $150,000.
 	To receive the subsidies, employers will be required to sign a declaration stating that they have actively tried to mitigate the impact of COVID-19 on their business.

Tax breaks

 	Effective for the 2020/2021 tax year, the provisional tax threshold will increase from $2500 to $5000 to reduce cash flow pressure on small businesses. Those eligible will have until 7 February 2022 to pay their taxes rather than having to pay in instalments throughout the year. Around 95,000 businesses are expected to benefit by deferring their tax payments.


 	The Government will provide $2.1 billion to reinstate depreciation deductions for commercial and industrial buildings. The aim is to boost cashflow and encourage business investment.
 	Interest will be waived on some late tax payments, subject to eligibility.

Instant asset-write off

 	The Government will temporarily increase the low value asset write-off from $500 to $5000 for 12 months. After the initial 12 months it will be reduced to $1000. The Government expects the $667 million initiative to stimulate business purchases.

Redeployment package

 	The Government will allocate $100 million to support worker redeployment for those in the hardest hit regions, including the Tairāwhiti region which will be the first to receive assistance.

The Government said that officials are meeting with banks to discuss the potential for future working capital support, including in the form of loan guarantees for businesses that face temporary credit constraints. In addition, a range of measures to support the aviation sector are being considered. This will not include support for Air New Zealand which the Government is considering separately, as one of its largest shareholders.

To find out if you’re eligible for assistance as part of New Zealand’s fiscal stimulus package, please contact us [1] to talk with one of our William Buck business advisors.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_empty_space height="20px"][vc_btn title="&#60; Back to our COVID-19 Resource Centre" link="url:http%3A%2F%2Fwilliambuck.com%2Fnz%2Fcovid-19-and-your-business-new-zealand%2F&#124;&#124;&#124;"][/vc_column][/vc_row]

[1] https://williambuck.com/nz/contact/]]></content:encoded>
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						                        <title>NZ Wellbeing Budget Update 2019</title>
						                        <link>
						                        https://williambuck.com/nz/nz-wellbeing-budget-update-2019						                        </link>
						                        <pubDate>Thu, 30 May 2019 08:39:28 +0000</pubDate>
						                        <dc:creator>William Buck</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=9751						                        </guid>
						                        <description><![CDATA[]]></description>
						                        <content:encoded><![CDATA[[vc_row][vc_column][vc_column_text]
Introduction
Finance Minister Grant Robertson unveiled the Government's first Wellbeing Budget in Parliament today. Mental health and child poverty have taken the lion's share of funding in the Wellbeing Budget as predicted.

The Government has announced new operating spending of $3.8 billion and $10.4 billion in additional capital expenditure.

The indicators show New Zealand is in good financial shape. The economy is forecast to grow at an average 2.6% over the next five years, well ahead of forecasts for other countries. The Government is due to deliver a surplus of $3.5 billion in the current year, and it will meet its promise of keeping core Crown spending at under 30% of GDP. Government debt sits at around 20.1% of GDP.

The Wellbeing Budget focuses on the following five priority areas:

Taking Mental Health Seriously

 	Supporting mental wellbeing for all New Zealanders, with a special focus on under 24-year-olds.

Improving Child Wellbeing

 	Reducing child poverty and improving child wellbeing, including addressing family violence.

Supporting Māori and Pasifika Aspirations

 	Lifting Māori and Pacific incomes, skills and opportunities.

Building a Productive Nation

 	Supporting a thriving nation in the digital age through innovation, social and economic opportunities.

Transforming the Economy

 	Creating opportunities for productive businesses, regions, iwi and others to transition to a sustainable and low-emissions economy.

Two tax-related Budget announcements were made on 17 May. These were proposals to align the GST rules for telecommunications services with international guidelines and betting levy changes. No further tax-related announcements were made today.
Taking Mental Health Seriously
“Today, we take mental health seriously. Every New Zealander will get the help they need, when they need it.” said Prime Minister Jacinda Ardern.

Budget 2019 confirmed the $1.9 billion package to support mental wellbeing for all New Zealander, with a special focus on under 24-year-old over four years.

The key areas of spending are:

A new frontline service which will cost $455 million 

 	This new layer of services will be rolled out nationwide over five years. It will put trained mental health workers in doctors’ clinics, iwi health providers and other health services so that when people seek help it is immediately available.

Supporting young people’s mental wellbeing 

 	Budget 2019 extends the nurses in school programme to a further 5,600 students by commencing the roll-out to decile 5 secondary schools and enhancing exiting services in decile 1-4 school with an investment of $19.6 million over four years.

A solution to homelessness 

Budget 2019 is investing $197 million over four years into Housing First, which will fund 1,044 new places. The Wellbeing Budget will mean the internationally-acclaimed Housing First programme will be reaching 2,700 homeless people and help them into permanent homes.

A $213 million boost for ring-fenced mental health funding in DHBs.

A $200 million in capital investment in new mental health and addiction facilities.

Suicide prevention and response services get a $44 million boost over four years
Improved Child Wellbeing
For the first time, the Government has produced a child poverty report that was unveiled in its first ever Wellbeing budget. The Government has also passed legislation that holds future Governments responsible for decisions that impact children living in poverty.

Family and sexual violence

 	Specialist services as part of a $320 million package to address the family and sexual violence issues.

Children in state care

 	The budget of $1.1 billion will be spent to reduce the number of children in poverty from 180,000 to 41,000-66,000 on the before housing costs and 250,000 to 55,000-74,000 on the after housing cost measure.

Reducing financial pressure on parents 

 	Removal of $76.70 NCEA fee that families pay every year for around 168,000 secondary students.
Increasing funding to decile 1-7 state and state-integrated schools will be eligible to receive $150 per student per year if the school agrees to stop requesting donations from parents.

Indexing benefits

 	From 1 April 2020, main benefits will be indexed to average wage increases to ensure the incomes of people needing to access main benefits do not fall further behind.
 	The main benefit rates will progressively rise and are forecast to increase by $26-$46 per week by 1 April 2023 helping to reduce rates of poverty for those living on benefits.
 	The cost of the increase is forecast to be $320.2 million over four years.

Additional investments 

 	10 year school property programme: $1.2 billion investment in schools, starting with $286.8 million in 2019 for new schools and classrooms and more teachers.
 	$913.3 million to allow the Ministry of Education as well as schools and communities to better plan for growth over the next 10 years.
 	$47.6 million investment for an innovative joint initiative from the Ministry of Health, Ministry of Education and Sport New Zealand to promote healthy eating and physical activity for children.

Supporting Maori and Pasifika Aspirations
The Budget 2019 confirmed the allocation of $598 million to this initiative. The focus is on ways to give Māori and Pacific peoples more scope to lift their own wellbeing and the wellbeing of future generations.

 	$80 million will be spent over four years to expand the coverage and impact of Whānau Ora, including a focus on health and reducing re-offending.
 	The budget also aims at ensuring te reo Maori and Pacific languages survive and thrive by funding Te Taura Whiri, Pacific Language Unit, and supporting an increase in certification for te reo teachers.
 	Provide $14.5 million to the Ministry for Pacific Peoples to grow opportunities for young people that will support up to 2,220 Pacific young people who are on a benefit into employment, education or training.
 	Provide $27.4 million over four years to ensure Pacific students and their families have the skills, knowledge and equitable opportunities to pursue any education pathway.
 	Provide $40 million for Papakāinga Development and Rural Housing Repairs for Better Whānau Wellbeing.
 	Provide $56 million to Oranga Pāpori, Oranga Ōhanga mā te Whenua Māori Social and Economic Development Through Whenua Māori.

Building a Productive Nation
The Budget 2019 confirmed the allocation of $1.1 billion to this initiative as the Government wants New Zealanders to thrive in the digital age through innovation, social and economic opportunities.

 	A new $300 million fund will be established to help fill the ‘capital gap’ for New Zealand firms that expand beyond the early start-up phase that are $2 million - $15 million in size.
 	Another $106 million will be injected into innovation to help New Zealand transition to a low carbon future.
 	Nearly $200 million set aside for vocational education reforms to boost apprenticeships and trade training. This will include changes to institutional forms and systems to support the ongoing sustainability of a broad range of delivery across New Zealand.

Transforming the Economy
New Zealand government is committed to move New Zealand’s economy to a low-emissions one, as New Zealand’s natural resource is the foundation for the society’s long-term wellbeing. Budget 2019 takes an important step towards the transition and makes huge investments in rail, sustainable land and climate change.

Investing in rail ($2.1 billion)

 	$1 billion will be provided by Budget 2019 and the Provincial Growth Fund (PGF) to support the redevelopment of KiwiRail.
 	PGF is also being provided $300 million to improve reginal rails which will help unlock reginal economic growth.
 	To improve access to the city centre and reduce traffic congestion, $1.4 billion will be injected in the City Rail Link project.

Sustainable land use 

 	Budget 2019 will invest $229.2 million to support farmers and growers to use land better and clean up waterways.

Climate change ($95.2 million) 

 	Budget 2019 invests $8.5 million in 2019/20 in the Global Research Alliance on Agriculture Greenhouse Gases (GRA). This funding will used to support accelerated global agricultural emissions mitigation research and take actions to reduce agricultural emissions.
Aim to support a programme of work-class climate change research for agriculture, Budget 2019 will inject $3.2 million into Agricultural Climate Change Research Platform.
 	$83.5 million will be spent on other research programmes which also aim at transfer New Zealand to a low-emissions economies.

Conclusion
In this first Wellbeing Budget, the Government’s priorities are tackling long-term challenges facing New Zealand. They say they are taking mental health seriously, addressing child poverty and domestic violence, supporting Māori and Pasifika aspirations, transforming our economy and building our productivity. Alongside these priorities, the Government says it is balancing the need for fiscal sustainability for future generations and making long term infrastructure investments, such as in our schools, hospitals, and supporting the economy.

The Government has put a $1.9 billion mental health package at the centre of its first Wellbeing Budget, to include a new frontline service. The Wellbeing Budget reveals billions of dollars in funding for mental health, families, KiwiRail and infrastructure for schools and hospitals.

The question will be how the Government pays for it all, especially given its recent admissions that the economy is slowing. Like it or not, strong economic growth, incomes, wage rises and company profits fill the tax coffers.

The business sector gets little from the Wellbeing Budget but should benefit from work generated by the big spending on infrastructure and consumer spending from family support programmes. There will be $300 million spent to support the development of medium sized start-up companies wanting to develop and commercialise products and services.

The Government does not claim perfection in this first Wellbeing Budget, and they will not fix everything in one go. This is just the start of a longer term programme of change. The Coalition Government says it is committed to the wellbeing approach, now and in the future.

Please contact our office if you wish to discuss the 2019 Wellbeing Budget further.

Phone: +64 9 366 5000
Email: Team@Williambuck.co.nz [1][/vc_column_text][/vc_column][/vc_row]

[1] https://williambuck.commailto:Team@Williambuck.co.nz]]></content:encoded>
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						                        <title>Benchmarking your practice</title>
						                        <link>
						                        https://williambuck.com/nz/benchmarking-your-practice						                        </link>
						                        <pubDate>Wed, 15 May 2019 01:22:55 +0000</pubDate>
						                        <dc:creator>Belinda Hudson</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=9667						                        </guid>
						                        <description><![CDATA[]]></description>
						                        <content:encoded><![CDATA[[vc_row][vc_column][vc_column_text]‘Benchmarking’ is a term that has been around for many years in the business world, and it can go in and out of fashion just like your favourite pair of jeans.

So, in today’s healthcare industry, is benchmarking still relevant? How does it work and how do you interpret results?

Let’s examine these issues so you can determine whether benchmarking is a worthwhile exercise for your practice.
Benchmarking – what is it?
Benchmarking is a process where key items of your practice are compared against other similar practices.

First, the key to a successful benchmark is to ensure meaningful items are measured. What are the key things that worry you about your practice? Do you worry about your performance against your competitors? Are their areas you think could be improved upon? These are the items you should talk about with your advisors to ensure they are covered in the benchmark.

Second, a benchmark is only as good as the database used to make the comparison. In general, it is very difficult to accurately benchmark a specialist practice, as there is simply not enough similar data to compare against – the practices are quite variable. By comparison, benchmarking can be very useful for general practices and, in some cases, you can even benchmark by region to get a clearer picture of your practice’s performance.
Why is it useful?
Many people believe the primary role of benchmarking is to compare your practice against competitors. To do only this would miss the power of what benchmarking can actually do for your business.

The real power of benchmarking is that it enables you to identify any issues in your practice before they develop into big problems. Think of it as a flashlight you shine into the corners to find things that may be lurking unnoticed.

Benchmarking can assist you in the running of your practice in many ways including:

 	Identifying areas of success in your practice
 	Identifying areas which need improvement, before they become a problem
 	Comparing your practice against the competition and industry trends.

Here are some of the key issues that can be identified, in particular, for a general practice:

 	Are you generating as much revenue as you can? If not, why? Is it due to your pricing, your appointment mix, your policy on private billing, your use of item numbers, etc?
 	Are you paying doctors and staff within industry averages? Does this match with the perception in your practice?
 	Are there any expenses that are much higher than they should be?
 	What things are you doing better than your competitors?

What areas should be benchmarked?
There are two types of benchmarking to consider – clinical and financial. It’s important to gather both financial and qualitative information and compare these figures to industry trends.

From a financial perspective, the key areas to benchmark include:

- Number of available appointments
- Pricing schedules and opening hours
- Percentage of bulk versus private billing
- Patient fees generated versus patient fees capable of being generated
- Key expenditure such as medical supplies, wages and rent
- Doctor contract payments.

This will give you a broad range of results to help you review your practice.
How to use the results?
If the real power of benchmarking is the identification of issues, make sure you get advice on how to interpret the results. Ideally, it should lead to a discussion with your advisors on some key actions that you can then implement into your practice to either improve your results or address the issues that have come to light.

The power is in the action plan, not the numbers generated.

By way of example, I recently benchmarked a practice that had been underperforming for a few years and, despite everyone working harder, the results were not improving. They came to me tired and disillusioned.

We benchmarked the practice in order to identify where the key problems were, and the results showed they were not in expenses but in revenue. Their appointment rostering system did not utilise all of the available doctors and rooms. Accordingly, they were not maximising the number of patients that could be seen.

This information helped this underperforming practice to focus their energy in an area that would give them better results – work a little smarter, not harder.

Need help with benchmarking your practice? Speak to your local William Buck advisor.[/vc_column_text][/vc_column][/vc_row]
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						                        <title>Our Top 5 &#8216;must-do&#8217;s for Pre-IPO enterprises</title>
						                        <link>
						                        https://williambuck.com/nz/how-to-prepare-ipos						                        </link>
						                        <pubDate>Wed, 10 Apr 2019 01:37:08 +0000</pubDate>
						                        <dc:creator>Nicholas Benbow</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=9532						                        </guid>
						                        <description><![CDATA[]]></description>
						                        <content:encoded><![CDATA[[vc_row][vc_column][vc_column_text]Considering an IPO? We’re often approached for professional guidance from pre-IPO enterprises on their path to listing. Such a journey is exciting and, at times, nerve-wracking – the IPO process is very much an outside-the-box experience and a once in a lifetime event. At William Buck, we’ve seen our fair share of successes and failures. From our experience, we’ve boiled down the five most important matters for you to consider to be successful in your own IPO process.
Show genuine progress with growth
Growth is not just about revenues and customers. Many new ASX entrants are enterprises nowhere near gaining revenues. Consider a biotechnology company that is yet to transition to an advanced stage of clinical trials, or a junior explorer just embarking on a major drilling program. Even tech companies may only have small revenue levels as they initiate pilot projects with targeted customers. What investors are looking for in this context of growth may be non-financial in nature – but in achieving those non-financial growth goals, investors will be able to see a clear path gearing up for full commercialisation.
Be connected in through your professional advisors
Leverage from and trust your professional advisors. This isn’t confined only to their expertise in their given field - such as legal and accounting - but also, who they know and how their connections can help you. Some of the most successful IPO listings on the ASX use a corporate advisor to manage their capital raising and investor relations. Our thoughts on what makes a good corporate advisor include the following:

 	Their connectedness with key cornerstone and seed investors and venture funds, predicated primarily from a strong and successful track record from other similar transactions
 	Their savvy in taking your growth message to market
 	Being able to act as gatekeeper for managing professional advisors necessary to the IPO process (brokers, lawyers, accountants) – allowing you to concentrate on the number one matter of importance to you – your business

Above all, if the corporate advisor-entrepreneur partnership is to work there needs to be a fundamental chemistry of trust and respect from both sides so that both can concentrate on the areas that they need to so that the IPO process is a success.
Get the balance right with your capital structure
Capital structures of pre-IPO companies often develop deep complexities. These complexities arise from different sources, but all share one thing in common – the need for a pre-IPO enterprise to access and preserve cash. Some common examples we see include the following:

 	Venture capital or strategic investors may join in on a preferential basis (compared to ordinary shareholders) – these preferential shares may include repayment mechanisms or may protect their interest against dilution
 	There may be non-cash incentives to the Board and management in the form of performance rights or options
 	Sometimes capital raising is done through convertible notes instead of shares

All above examples are very reasonable and practicable to pre-IPO companies. We only advise pre-IPO enterprises to be cognisant of some of the potentially non-intended consequences of entering into these creative financing arrangements, including:

 	They present complex accounting challenges that may cloud your message - that is, the growth message you may want to convey in your financial statements;
 	They may be costly to exit – in-particular, preferential shares and convertible notes may end up being very costly to the enterprise and these instruments have the capability to hold ordinary shares and the enterprise hostage
 	The regulator is increasingly looking for clear and understandable capital structures upon IPO - these instruments have the potential to obfuscate what the fully diluted capital structure (and indeed its market capitalisation) is – remember that often the IPO is the first pitch of the enterprise to retail investors, as up to that point all previous dealings have been with wholesale seed investors

Maximise existing government-sponsored programs designed specifically for pre-IPO companies
You may remember that buzzword ‘innovation’, which Malcolm Turnbull introduced to Australia upon his ascension into Prime Ministership. Political fluff aside, Malcolm Turnbull did bring in some new initiatives to further enhance strong government-backed support for innovation and entrepreneurialism in Australia.

You’re most likely already familiar with the R&#38;D (research and development) Incentive and EMDG (export market development) grant. However, few in the pre-IPO space to date have taken full advantage of other potentially lucrative programs. This includes incentives for investors for early stage innovation companies (ESIC – which offers capital gains tax exemptions and a tax offset of 20% on capital invested) or specific incentives attached to particular industries – i.e. the Medical Research Commercialisation Fund.

Our advice to you: please don’t pass up these opportunities – particularly if (like the ESIC program) they apply only at the investor level. Your willingness to invest in the welfare of your investors through the ESIC program for instance, will speak volumes for how you intend to care for and reward your investors for their capital.
Gear up for corporate governance
You need to be aware that by following a successful issue or transfer of capital that the enterprise will no longer be yours, but that of your shareholders. This means something that often precipitates dread and fear in a founder - corporate governance. To assuage the pain of this, we advise you, the founder and entrepreneur, to adopt a pragmatic and utilitarian mindset – your Board will be there to help you and support you with skills, experience and networks different from your own. Boards will protect you and find ways to support growing and enhancing your business. Rather than finding and checking off a checklist of what should be in the corporate governance environment of an ASX-listed, build your own corporate governance from the ground up. Remember, checklists devised by the ASX are a one size fits all approach and are designed primarily in mind for ASX 200 companies that will have market capitalisations of at least $500m. Therefore, you will find that if you build corporate governance, from the ground up and bespoke to your needs, that it will be most-likely fit for purpose. It will also address all those checklists as a matter of course where there is divergence, an area for you to consider in the context of your enterprise and the risks it faces.
Conclusion
So, there you have it, William Buck’s five “must-do’s” to consider on your pre-IPO journey.

Of course, we’re available to discuss this in much more detail if you wish – just reach out! We always love to hear from entrepreneurs and their ideas for how they will change the world; if we can, we would love to help you get there.[/vc_column_text][/vc_column][/vc_row]
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						                        <title>Improving the heartbeat of your business</title>
						                        <link>
						                        https://williambuck.com/nz/improving-the-heartbeat-of-your-business						                        </link>
						                        <pubDate>Wed, 27 Feb 2019 03:27:58 +0000</pubDate>
						                        <dc:creator>Angela Jeffrey</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=9296						                        </guid>
						                        <description><![CDATA[]]></description>
						                        <content:encoded><![CDATA[[vc_row][vc_column][vc_column_text]How can you create a healthy heartbeat for the teams that operate in your practice?

The reality is that a healthy heartbeat is at the core of every strong team. As such, effective engagement, collaboration and teamwork will always be the key drivers for ensuring you keep the lifeblood of your business flowing and ultimately, set your practice up for future success.

It all starts with addressing each individual in your business. Make sure you provide them with a clear vision and understanding of their role within the overall team. It’s important they are aware of how their actions contribute to the operation of the practice, and how their motivation supports patients as well as each other.

Often, we focus too much attention on the individual performance and behaviour of employees, without understanding the negative impact a dysfunctional team can have on even the best-intentioned and motivated individual. Equally, a harmonious team can have a positive impact on those who are lacking engagement, experiencing difficult times at home or feel overwhelmed with their workload.

Consequently, creating a team with a common goal and a healthy heartbeat can underpin the ongoing performance and retention of employees in your practice.

Regular team meetings and communication will be the key components for helping you get the best out of your teams. While this may sound simple, taking the time to understand what motivates them, how they best think and learn, and importantly accounting for their personal circumstances, will go a very long way in influencing how they ‘connect’ to your workplace.

Many team leaders will see most of their time consumed with the day-to-day operation of the practice and, often, will have little time to spend on engagement and encouragement at the individual level. However, this can be overcome by making sure that regular communication with everyone remains a key driver in developing and maintaining a cohesive environment.

Keep employees regularly updated on business activities, such as key decisions being made, and the overall vision of the business. Ensure you always encourage two-way dialogue and opportunities to provide feedback, and that you then action their feedback where appropriate. This will help in making employees feel they are being incorporated into the journey of the practice, that their input is meaningful and their voice is being clearly heard.

Team meetings should also include a ‘check in’ opportunity to encourage employees to connect with each other on a personal level. Combine all of this with meaningful and regular performance reviews and feedback, and you’re sure to have yourself a healthy, happy and engaged team.

Want to know more about setting up your practice? Don’t hesitate to speak with a William Buck advisor.[/vc_column_text][/vc_column][/vc_row]
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						                        <title>Outsourcing as opportunity</title>
						                        <link>
						                        https://williambuck.com/nz/outsourcing-as-opportunity						                        </link>
						                        <pubDate>Wed, 27 Feb 2019 03:19:54 +0000</pubDate>
						                        <dc:creator>Scott Harrington</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=1219						                        </guid>
						                        <description><![CDATA[]]></description>
						                        <content:encoded><![CDATA[[vc_row][vc_column][vc_column_text]Outsourcing has developed a bad reputation over the years. Media coverage of outsourcing practices by high profile Australian brands – such as Bonds and The Iconic – focuses heavily on jobs lost to offshore competitors and the resultant damage to the Australian economy.

However, outsourcing is a rising trend. Research into outsourcing shows that 80 percent of Australian businesses outsource and mostly use offshore resources. This is a dramatic increase since 2012, when a survey conducted by the Australian Business Process Outsourcing Association, together with IBM and Fuji Xerox, found that 45 to 65 percent of Australian organisations outsource some of their business processes. Despite this statistic, 83 percent of respondents would prefer not to send work offshore.

The stereotype of outsourcing as a means to access cheap overseas labour is changing as more and more businesses look to outsource domestically – a practice known as ‘onshore outsourcing’. While onshore outsourcing is nothing new, the variety of functions that are outsourced has peaked in recent years. Information technology, public relations, human resources, virtual assistance, engineering, distribution and logistics, and finance and accounting are just a handful of the services on offer.

For many business owners and management teams, onshore outsourcing provides assurance above offshore outsourcing. There is no language barrier or time zone challenges, and the service providers understand the local market, regulations and legislation. Additionally, reputational and security risks are minimised as customers take comfort in knowing their work is taken care of domestically.
Accessing world-class skills and expertise
An increasing number of businesses are approaching outsourcing as a way to access the expertise, skills and technology they lack in-house.

Outsourcing certain functions, such as marketing or accounting, gives a small-to-medium business access to a whole team of experts they could not employ on their own. The best service providers will invest in education, research and the latest technologies, and have experience working with other clients that have faced similar challenges.
Creating scalability and flexibility
Outsourcing non-core functions of the business can provide greater flexibility, particularly for businesses going through a difficult transitionary period.

For example, a business experiencing rapid growth is likely to require additional layers of management and new business processes but may not yet be profitable enough to establish these functions. Outsourcing can lower overheads until such a time when the business can appoint additional managers or establish new processes. This can be particularly beneficial for businesses uncertain about how long their growth will last.

Similarly, businesses that are sensitive to seasonal or economic changes may benefit from the additional control over the costs that outsourcing affords.
Saving time and money
For many small to medium businesses, the owners or management team must wear many hats.   Juggling the accounts, supervising the latest direct mail campaign, handling customer queries and IT back-up can leave little time for ‘real work.’

Outsourcing can allow the business owner or management team time to focus more productively on the business’ core capabilities while having an external expert look after the operational functions.
Tips for outsourcing
Whether outsourcing domestically or overseas, the following tips will help you to do so effectively:

1. Analyse your own business first – Look carefully at your core capabilities.  Businesses should be careful to only outsource those functions that are not core to the business. For example, if your business is famous for its personalised customer service, outsourcing to a call centre may be detrimental to the business.

2. Ask the right questions – Don’t be afraid to put your service providers to the test. Ask for evidence of past experience, testimonials or a portfolio and make sure that the quality of their work matches your expectations.

3. Set clear objectives and deadlines – Be specific about the deliverables you expect and be realistic about schedules.

4. Read the small print – Ensure the scope of the project  is laid out in a contract and agreed to in writing. Where a specific piece of work is involved, it’s important to be aware of who will own the intellectual property at the end of the relationship.

5. Monitor performance - Set milestones or checkpoints from the outset and stick to them. Ensure that the service provider is aware of the criteria by which they will be evaluated.

6. Manage the relationship – An outsourcing relationship works best when the business and provider work together collaboratively and in partnership.

&#160;

William Buck provides outsourced accounting services to businesses across a range of services. Ask us for more details.[/vc_column_text][/vc_column][/vc_row]
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						                        <title>2019 Venture Capital Report</title>
						                        <link>
						                        https://williambuck.com/nz/2019-venture-capital-report						                        </link>
						                        <pubDate>Fri, 08 Feb 2019 05:20:32 +0000</pubDate>
						                        <dc:creator>William Buck</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=9110						                        </guid>
						                        <description><![CDATA[]]></description>
						                        <content:encoded><![CDATA[[vc_row][vc_column][vc_column_text]
Venture Capital investment in Australia reaches A$3 billion in 2018: William Buck 2019 Venture Capital Funding Report
Key points in this release

 	In the year ended 31 December 2018, the value which the Venture Capital (“VC”) groups invested in Australian deals grew by 122% to A$3 billion, compared to A$1.4 billion invested in 2017;
 	2018 has seen VCs invest in fewer deals but larger deal sizes. Although the number of deals fell from 183 in 2017 to 161 in 2018 (compared to the average number of deals in 2015/ 2016 of 146), the average deal size has grown substantially in 2018 to A$20 million from A$8 million in 2017;
 	Technology and Healthcare, particularly Software and Biotechnology were the top industries where VCs invested in Australia and Globally;
 	VC deals has been increasing in recent years growing from approximately A$230m in 2013, more than doubling in value to A$695 million in 2016 and again doubling in value in each of the 2017 and 2018 years;
 	VC appetite is changing locally as well as across the globe – with late-stage rounds continuing to grow as a percentage of VC investments;
 	VC investors preferred exit strategy is selling to a public company.

A report by William Buck Chartered Accountants and Advisors shows expected returns from capital funding investments is increasing, particularly for Venture Capital (VC) and Angel Investor groups.

Mark Calvetti, Director of Corporate Advisory, says this is based on William Buck’s experience with a number of transactions in the Australian market, corroborated with further research.

“Our experience shows that the expected rate of return from capital funding investments by Venture Capital groups in 2018 were between 30% to 50%. Whilst the expected rate of return by angel investors was even higher at 35-65%, says Mark Calvetti.

These returns are in line with the returns by these groups based on a survey carried out by Pepperdine Capital Markets in the US, which highlighted that the target rates of return by VC investors ranged between 25%-45%, with considerably higher expected rates for seed to early stage investments (30% to 45%); reaching as high as 38% to 60%. Bank loans had the lowest average rates of return (3-6%).

Refer the chart below for expected rate of return as per the Pepperdine Capital Markets report 2018:

Figure 1 – Private Capital Markets Expected Rate of Return



Source: Pepperdine Private Capital Markets Report 2018

The above chart shows a clear correlation between the size of loan or capital and the cost of borrowing - as the size of loan or capital increases, the cost of borrowing decreases.

Mark Calvetti, Director of Corporate Advisory says expectations depend on funding type - with earlier stage investments having a higher expected rate of return.

“What the evidence showed us is that there’s a wide range of investment returns depending on the type of Investor and stage of investee business. Angel investors – seen at the earliest investment stage - are receiving the greatest returns, generally due to the greater perceived risk,” says Mark.

In 2018, the top Australian deals were dominated by software and biotechnology, coinciding with global trends, which were led by healthcare &#38; biotechnology businesses (39% of target investments), followed by information technology (32%).

“Most VC investments are seen in the seed, start-up or early stage businesses, with each VC investors making an average of 2-5 investments in a year and, typically in the range of $1-$4 million - depending on the stage of the business being invested in.”

William Buck’s report also highlighted that the Capital Investment appetite is changing, both in Australia and across the globe; with a growing trend for mega-funds investing in late stage companies.

 “There is a huge amount of VC activity across the globe. VC backed companies globally are projected to have raised approximately US$330 billion during the calendar year 2018. In comparison, that’s around 55.7% over the US$212 billion capital raised in 2017,” says Mark Calvetti.

“There’s also a growing trend for mega-funds investing in late-stage companies, with late-stage rounds continuing to grow as a percentage of VC investments,” says Mark.

“Globally, the late stage rounds contributed 58% of the dollar value in 2018 compared to 49% in 2017. Interestingly, however, late stage rounds represented only seven percent of the total VC deals in 2018.”

In recent years, Australian private businesses are accessing more funding through Venture Capital.

“Historical data shows there’s a continued trend in Australia and globally of a declining number of deals, but an increase in average deal sizes, with globally the median deal size reaching US$40M.

“Contrary to the small investment size appetite of a VC investor, Australia’s recent investments have been dominated by few large size VC investments in software and bio-tech.”

The VC investments in Australia reached A$3.1bn across 161 deals over the 2018 calendar year, with an average deal size of A$20m. This is more than double the value of VC investment in 2017 of A$1.4bn across 183 deals, with an average deals size of A$7.5m.

Figure 2 - Trends in VC deals in Australia over the period 2008 – 2018



Source: Preqin data on Venture Capital Activity in Australia 2018 and WB Analysis

Note:

 	Preqin defines Venture Capital deals in Australia to include all investments in Australia-based portfolio companies from both local and overseas investors. These investors can be GPs and LPs, sometimes unspecified investors as well.
 	The dollar values in above chart has been calculated based on conversion of US dollar value to Australian dollar based on the average annual exchange rate for each calendar year, as sourced from Reserve Bank of Australia.

Mark Calvetti says for software and biotech entities, VC has been a great way for private business to take the next step.

“There’s a real interest in tech driving VC demand. Software and biotech remain the key players for Venture Capital investments,” Mark Calvetti says.

Some of the top Australian transactions in 2018 included: Deputy – A Sydney based workforce management software company which recently raised US$81 million (A$111 million) in one of Australia’s largest Series B round; Clinical Genomics – A US based bio-technology company specialising in colorectal cancer (CRC) diagnosis raised A$33 million in series B round - essentially in convertible notes.

“Australia’s climate remains strong for biotech, with favourable R&#38;D incentives. Also aiding Australia is their proximity to China, with Chinese companies representing eight of the top 10 deals globally, especially during the first half of calendar year 2018.”

Mark Calvetti says for private business seeking funding, these findings are critical.

“When it comes to accessing funding, the type and source of capital depends upon various factors relevant to the individual requirements of each lender type - including stage of business, amount of funding required, expected rate of return, outlook of the business and other things such as the value-add of lender experience.” Mark says.

Mark says the aim of William Buck’s report was to fill the gap for their clients who, when seeking funding didn’t know what rates of return an investor wanted.

“These findings give private business a guide to managing expectations and analysing various funding options when raising private capital funding,” Says Mark Calvetti.

The report also discussed the preferred exit strategies for VC investors. Selling out the investment to another public company was at the top of the list, followed by selling to a private company and IPO’s.

“Experience shows us that investors want a clear exit plan. Private business owners need to ensure succession planning is worked out at the beginning of their contract.”

ENDS

Keep up-to-date with our latest press releases [1][/vc_column_text][/vc_column][/vc_row]

[1] https://williambuck.com/william-buck-media-centre/]]></content:encoded>
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						                        <title>Sell your property now, or risk a big tax bill</title>
						                        <link>
						                        https://williambuck.com/nz/sell-your-property-now-or-risk-a-big-tax-bill						                        </link>
						                        <pubDate>Tue, 05 Feb 2019 22:25:14 +0000</pubDate>
						                        <dc:creator>William Buck</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=9047						                        </guid>
						                        <description><![CDATA[Do you live overseas and own a house in Australia? If so, you may have less than five months to act before you’re stuck with a large tax bill on the sale of that property. Proposed tax changes In May 2017, the Australian Government proposed changes to the existing capital gains tax (‘CGT’) laws. These [&#8230;]]]></description>
						                        <content:encoded><![CDATA[Do you live overseas and own a house in Australia? If so, you may have less than five months to act before you’re stuck with a large tax bill on the sale of that property.
Proposed tax changes
In May 2017, the Australian Government proposed changes to the existing capital gains tax (‘CGT’) laws. These changes will affect tax non-residents who hold property in Australia that have previously lived in as their main residence.

Under the current laws, an Australian property that is your main residence can be sold with potentially no Australian tax to pay (or at least a significantly reduced amount of tax to pay to reflect the ‘main residence’ period you lived there). However, under the proposed changes, if you are a non-resident (for Australian tax purposes) at the date of sale, you will no longer be able to claim the ‘main residence exemption’. This means that the entire gain you make on selling the property could be subject to tax, with no reduction for the period you actually lived in the property.

Although these proposed changes were announced nearly two years ago, they are still not law. It appears that one of the reasons for this is because the changes are quite draconian given non-residents could be taxed on the entire gain made on the property sale (irrespective of whether the property was their main residence for a significant period of time).

Further, if legislated, the changes are proposed to apply retrospectively from 9 May 2017. Despite this, there is a proposed transitional period for properties purchased before 9 May 2017 and sold by 30 June 2019 (whereby the current rules will still apply, meaning they could potentially still obtain the ‘main residence exemption’).

For many people, this means they may have less than five months to decide whether to sell their property or be faced with a large tax bill.
What should you do between now and 30 June 2019?
The uncertainty surrounding whether these changes will become law can make accurate decision making very difficult.

Should you sell your property now? Is it the right time to sell? What happens if the changes don’t become law?

Whilst the answers to many of the questions is outside your control, if you answer these four questions below, the decision-making process should become a lot clearer.

1) Will I actually be affected?

Ask yourself “will these changes even affect me?”

These changes will only apply where you are a tax non-resident at the date of sale. If you intend to re-establish your tax residency in Australia, the changes may not apply to you.

For example, you may currently be overseas on secondment and intend to return to Australia in the future. If you don’t plan on selling your property before returning to Australia, then you should not be affected by the changes.

Alternatively, if you plan to move overseas permanently and sell your property whilst you are a tax non-resident, then you would be affected and may need to act fast.

2) Will I have a large tax bill?

Even if you are affected by the proposed changes, you may not have a large tax bill on your hands.

To determine this, calculate what your tax liability would be (if any) under the current law and then again applying the proposed changes. If these calculations do not give rise to a material tax difference, you mightn’t have anything to worry about with the proposed changes.

For example, if you bought your house two years ago there may’ve been little growth in the value of the property since that time, meaning there may be little tax to pay on sale.

Alternatively, if you bought your house 30 years ago and lived there for 25 years prior to moving overseas, you could be up for a large tax bill on the difference in the property’s value between when you acquired it and when you sold it. In these circumstances, the decision to sell your property before 30 June 2019 becomes more relevant.

3) Should I sell before 30 June?

As an investor, you should assess whether it is appropriate for you to sell your property before 30 June 2019. This decision should not be made hastily (especially in light of Australia’s current property market).

According to CoreLogic, Australia is currently facing its weakest property market since 2008. As a result, if you were to sell your property during the coming months, you may not achieve the sale price you’re after. Are you better off holding the property long term and selling it when the market recovers? In some instances, a lower sale price may even outweigh any tax saving you would make by selling before 30 June 2019.

However, if you don’t sell your property, consider any potential holding costs. These could include land tax and an annual vacancy fee if your property is not residentially occupied or rented out for more than 183 days in a year.

Also ask yourself “how does my property fit within my investment portfolio?”. If your property has a strong rental yield you mightn’t be in a rush to sell. On the flip side, would the sale of your property enable you to invest in other assets with a higher return?

4) Will I be able to sell before 30 June?

Even if you decide to sell before 30 June, is it possible?

The Australian property market has experienced a recent decrease in auction clearance rates to 43.6% in the last quarter of 20181. These market conditions could cause delays in the sale of your property and mean you can’t actually sell before 30 June 2019.

If you need to undertake renovations to spruce your property up before selling, this could contribute to additional delays. This means you may need to move fast if you want to sell before 30 June.
Concluding comments
Although the potential changes may seem daunting, if you work through the 4 steps above, you may find out you’ve got nothing to worry about. Alternatively, if you do have a potentially large tax problem, by acting fast and tailoring a solution to your personal circumstances, you may be able to manage (or eliminate) the problem.

Should you require any assistance with working out how these tax measures might impact you or to tailor solutions to minimise any tax impacts, please contact your local William Buck advisor.

&#160;



[1] As included in the CoreLogic Quarterly auction report to 31 December 2018
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						                        <title>Seriously, he is a Jolly Good Fellow!</title>
						                        <link>
						                        https://williambuck.com/nz/seriously-he-is-a-jolly-good-fellow						                        </link>
						                        <pubDate>Mon, 17 Dec 2018 22:32:30 +0000</pubDate>
						                        <dc:creator></dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=8889						                        </guid>
						                        <description><![CDATA[We are more than pleased to announce that our Managing Director, Clyde Young, has just been made a Fellow of Chartered Accountants Australia and New Zealand. This Fellowship was awarded to Clyde for his service to the profession, the Pacific community, the not-for-profit sector and to education. Clyde’s recognition is well deserved as he is currently [&#8230;]]]></description>
						                        <content:encoded><![CDATA[We are more than pleased to announce that our Managing Director, Clyde Young, has just been made a Fellow of Chartered Accountants Australia and New Zealand [1]. This Fellowship was awarded to Clyde for his service to the profession, the Pacific community, the not-for-profit sector and to education. Clyde’s recognition is well deserved as he is currently on the board for John Walker Find Your Field of Dreams Foundation, the Auckland Drug Information Outreach and involved with the NZ Pacific Business Council. Clyde truly lives our motto of “Changing Lives”.

[1] https://www.charteredaccountantsanz.com/]]></content:encoded>
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						                        <title>Festive fraudsters risk to businesses</title>
						                        <link>
						                        https://williambuck.com/nz/festive-fraudsters-risk-to-businesses						                        </link>
						                        <pubDate>Mon, 03 Dec 2018 03:05:19 +0000</pubDate>
						                        <dc:creator>Grant Martinella</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=8964						                        </guid>
						                        <description><![CDATA[While the Christmas holiday break is traditionally considered a time to unwind and reflect on the past year, it can also be one of the highest risk periods for business fraud. It is often when key senior management or CEOs take holidays leaving their businesses exposed to risk and opening the door for opportunistic fraud. [&#8230;]]]></description>
						                        <content:encoded><![CDATA[While the Christmas holiday break is traditionally considered a time to unwind and reflect on the past year, it can also be one of the highest risk periods for business fraud.

It is often when key senior management or CEOs take holidays leaving their businesses exposed to risk and opening the door for opportunistic fraud.

Fraud in the workplace can happen at any time but the risk is heightened during the Christmas holiday break, when firms can overlook basic control procedures as the people usually authorising payments are away.
Our experience in forensic accounting and audit shows people who commit fraud are generally under financial pressure, especially at this time of year when they face additional costs such as gift giving and Christmas celebrations.

Fraudsters are generally long-time trusted employees - they earn a good salary but have the ability and opportunity to override internal processes, such as payroll and accounts payable.

For instance, an employee may steal cash, expensive inventory items or valuable assets from the workplace or they may have a more sophisticated method of accessing funds by utilising false invoicing, creating ghost employees or temporarily changing source payment data.

Warning signs

A fraudster may appear to have obvious changes in their lifestyle or their demeanour may change if they are under financial pressure.  They may appear guarded or are reluctant to delegate tasks, particularly when it comes to book keeping and processing payments.

They may often work out of hours or on weekends so they can process transactions when no one is around.

Some of the red flags to look out for include:

 	Inconsistent financial results with expectations or trends
 	Key people never taking leave
 	A lack of documentation for transactions
 	A failure to complete timely reconciliations.

Generally, there is some sort of control flaw or failing that enables fraud to take place.

Protecting against fraudsters

There is a number of risk mitigation measures businesses should have in place.

Consider developing and implementing a fraud policy which covers when, how and who to report fraud.

Training in fraud awareness, enforcing compulsory annual leave and conducting pre-employment and employee screening are all ways of proactively managing the issue.

Having internal controls in place, as well as implementing third-party checks and audits are all important in helping business owners manage employee fraud.

External audits provide an independent assessment and comparison to best practice.

They will be able to pick up any variances in management accounts with audited accounts and can act as a deterrent to any potential fraudsters by highlighting the risk of getting caught.

Fraud may not be uncovered until well in the New Year when key staff return from leave.  It is therefore important to have the correct control procedures in place now to help prevent unwrapping a financial time bomb in 2019.
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						                        <title>Maximising the sale value of your business</title>
						                        <link>
						                        https://williambuck.com/nz/maximising-the-sale-value-of-your-business						                        </link>
						                        <pubDate>Tue, 07 Aug 2018 06:52:26 +0000</pubDate>
						                        <dc:creator>Adrian Chugg</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=3522						                        </guid>
						                        <description><![CDATA[]]></description>
						                        <content:encoded><![CDATA[[vc_row][vc_column][vc_column_text]Everyone wants top dollar when it comes to selling their business.

This is understandable considering the business owner has often made a significant investment to achieve growth and success in their enterprise over many years.

But the value a potential buyer places on a business can vary quite significantly from the vendor’s expectations.

In the current environment, buyers are more risk averse than ever before and this is being reflected in increasingly rigorous due diligence.

How, therefore, as a vendor, can you ensure you’re maximising the potential value of your business, particularly in this buyer’s market?

There are several key areas during the sale process where, depending on how it’s handled, the value of the asset can be significantly eroded or maximised. They are:
Sale preparation
Corporate and tax structures, governance, systems, (staff, customer and supplier) agreements and IP protection are all areas that require considerable attention well in advance of placing the business up for sale. A lack of clarity or security is a red flag to future problems or growth constraints which can scare off potential buyers or, at the very least, cause them to lower their offer price.
Information flow
Poor quality of information will also affect a buyer’s perceived value of the business. Incomplete, inconsistent, unreliable, unexplained and unsubstantiated records are a sure way to a lower offer price.
Management focus
A loss of focus by management in the running of the business, either in the lead up to a possible sale or during the process, can equate to a decline in the performance of the asset and its ultimate value. This is why it’s so vital to have the assistance of professional advisers from the early planning stages of the sale process so management can continue to focus on what they do best.
External parties
The actions of customers, suppliers and employees may also have a negative impact on value. Consistent and regular communications with these key stakeholders about the future of the business is important in explaining the process and avoiding price sensitive misinformation from circulating.
Buyer due diligence
The due diligence phase can be a time of potential price adjustments from inquiring parties. Vendors who are not prepared for the likely buyer queries that arise at this stage are doing themselves a major disservice. For example, an over-reliance on the current owner or a small number of key customers will raise serious questions about the sustainability of the business.
Final negotiations
Values can fall at the final hurdle so having an experienced advisor in your corner to close the deal is vital. Procedures and mechanisms relating to purchase price adjustments may reduce realised value. This is also the time where resolution of outstanding legal or business issues and disputed points is required, so your corporate, tax and legal advisers all have a major role to play.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_empty_space height="50px"][vc_column_text]
WANT TO FIND OUT MORE?
[/vc_column_text][vc_empty_space height="10px"][vc_cta h2="" h4="To find out the types of exit strategies business owners are considering as they prepare to exit their business;" style="3d"]Download the latest William Buck Exit Smart Report [1][/vc_cta][/vc_column][/vc_row]

[1] https://williambuck.com/lp/exit-smart-survey-report/]]></content:encoded>
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						                        <title>Learning and development drives organic growth at William Buck</title>
						                        <link>
						                        https://williambuck.com/nz/learning-and-development-drives-organic-growth-at-william-buck						                        </link>
						                        <pubDate>Thu, 12 Jul 2018 11:59:21 +0000</pubDate>
						                        <dc:creator>William Buck</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=237						                        </guid>
						                        <description><![CDATA[]]></description>
						                        <content:encoded><![CDATA[[vc_row][vc_column][vc_column_text]


Commentary from Nick Hatzistergos, Chairman at William Buck Chartered Accountants and Advisors.

William Buck is on track to meet its 2018 growth strategy of ten percent, announcing eighteen executive promotions in the last six months.

Nick Hatzistergos Chairman of William Buck, says the announcement demonstrates organic growth with purpose, crediting their firm-wide commitment to learning and development.

“I am delighted that twelve directors and six principals are being promoted internally across Australia and New Zealand through various service lines,” Nick says.
All executive appointments are as follows:
Audit and Assurance:

 	Corrine Siddles, Director (VIC)
 	Domenic Molluso, Director (NSW)
 	Rainer Ahrens, Director (NSW)
 	Matthew Monaghan, Director (QLD)

Business Advisory:

 	Paula Liddle, Director (SA)
 	Dan Mills, Director (NSW)
 	Brett Kean, Director (QLD)
 	Sinclair Guo, Director (NZ)
 	Lee Fuller, Director (SA)
 	James Northcote, Principal (SA)
 	Shane Taylor Principal (SA)
 	Nick Kenny, Principal (NSW)

Corporate Advisory:

 	Samantha Nicholls, Principal (SA)

Tax:

 	Jayesh Kumar, Director (NZ)
 	Praveen Mistry, Director (NZ)
 	Andrew Nicola, Director (SA)

Superannuation:

 	Tricia Kleinig, Principal (SA)

Wealth Advisory:

 	Marc Siciliano, Principal (VIC)

Nick says these executive promotions bring William Buck’s reach to over 90 Directors and over 600 staff across the group.

“The growth of our firm rests on a blend of organic growth with learning, coupled with mergers and acquisitions to ensure we have the best people wo can add depth to our service capability,” Nick says.

“Developing our people by creating a learning and supportive environment has been a priority across the entire William Buck group. The sheer number of internal executive promotions is testament to this approach. We’re delighted that many of our senior appointments began their professional life at William Buck as graduates,” he says.

“There is nothing more important than harnessing our homegrown talent and I want to thank the significant contribution our newly appointed leaders have had in growing our firm, as well as its open, flexible culture.”

ENDS

Keep up-to-date with our latest press releases [1]


[/vc_column_text][/vc_column][/vc_row]

[1] https://williambuck.com/william-buck-media-centre/]]></content:encoded>
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						                        <title>How Praxity firms are helping NFPs</title>
						                        <link>
						                        https://williambuck.com/nz/how-praxity-firms-are-helping-nfps						                        </link>
						                        <pubDate>Fri, 22 Jun 2018 06:44:40 +0000</pubDate>
						                        <dc:creator>Ian Lavis on behalf of Praxity</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=3509						                        </guid>
						                        <description><![CDATA[]]></description>
						                        <content:encoded><![CDATA[[vc_row][vc_column][vc_column_text]This article first appeared in the Praxity Newsletter LOOP [1]

The not-for-profit (NFP) sector faces an increasingly complex set of accounting challenges that escalate considerably in the international arena.

Charities, religious institutions and other not-for-profits need to address funding issues alongside complicated areas of financial compliance, risk management, tax relief and governance. These issues are exacerbated by what appears to be constant changes to legislation at local and international level.

Add new technology challenges such as cryptocurrency and blockchain to the mix and today’s NFPs need expertise in a wide range of accounting and finance processes, systems and developments. These require careful management to minimise costs, manage risk and achieve compliance.

Navigating NFP accounting challenges is a tall order for any non-profit organisation or even accounting firm. This has led to the growth of partnerships between accounting firms worldwide to share knowledge and expertise with NFPs that have operations or investments in different countries. These collaborations provide much needed guidance and support on the most important accounting issues so that charities, churches and other NFPs can focus on their core fundraising activities.

Sharing expertise worldwide

Liz Dollar, Partner, National NFP and Foundation Leader, at US accounting firm Moss Adams, says: “It’s critical to have these partnerships because so many NFPs are trying to overcome worldwide crisis like poverty and hunger, and while the funding may come from the country the charity is based in, the real work is being done internationally”.

Commenting on the complexities of international accounting, she adds: “It’s definitely one of the biggest challenges for NFPs. Every country has so many different regulations. Cross-border accounting requires a deep expertise on issues such as taxes and audit requirements, for example. Having somebody who understands that is crucial.”

How it works

Moss Adams serves larger NFPs like charities, social service organisations and foundations, some of which have employees or sister charities in other countries. The firm provides international expertise to these clients by partnering other accounting firms through Praxity, the world’s largest alliance of independent accounting firms, which also happens to be a not-for-profit organisation. This enables Moss Adams to provide high level assistance to US-based NFPs with interests outside the States as well as local support on operations and investments for NFPs based outside the US.

“We are always being asked, ‘Do you have an accountant in the UK, in Africa or in India?’”, Liz Dollar explains. “The partnerships we have with firms within Praxity Global Alliance have been very helpful when serving these clients. We have one NFP, for example, for whom we work with Praxity participant firms in Vietnam, Kenya, Uganda and India. The Praxity firms have been a great help in terms of supplementing our work through additional procedures at the local level; or actually being a partner so that we perform services as a team for the entire organisation, with additional audit and tax work at local level.”

Country-specific challenges

Depending on their location, NFPs also face tricky domestic accounting and finance challenges, including preparing and updating a governing document, understanding if tax exemptions apply, preparing a risk management statement, and dealing with annual returns, internal controls, the tax implications of fundraising, and issues concerning mergers and acquisitions.

Despite adhering to an accounting structure unlike that of enterprises, NFPs may still be subject to audits. Accounting processes should be reviewed regularly and detailed records kept of financial statements and reports to provide peace of mind for stakeholders.

New reporting standard in the US

In the US, for example, NFPs have been hit with seemingly endless accounting updates over the last few years and now need to get to grips with the NFP Financial Reporting standard – the biggest reporting update in for more than two decades.

The new reporting standard, from the Financial Accounting Standards Board (FASB), carries a series of implementation deadlines in 2018 and 2019. The most far-reaching changes relate to how NFPs present their financials.

A new Accounting Standards Update (ASU) aims to simplify and provide more clarity on NFPs’ performance for donors, creditors and other stakeholders. There are currently three classes of funds. Under the change, there will be two classes, with and without donor restrictions.

The new ASU changes the classification of net assets and information presented in the financial statements and footnotes about an organisation’s liquidity, financial performance and cash flows. NFPs will need to have a classified balance sheet and to detail their financial assets and the restrictions against them. The update is intended to make it easier for stakeholders to understand how NFPs manage their funds.

Specifically, NFPs based in the US must provide information on:

 	liquidity and availability of resources
 	expenses by function and nature
 	investment returns.

In a recent report in Reuters, Rick Cole, FASB supervising project manager, explains: “What it’s really saying is, ‘What do I need to do to make sure I have money to pay the bills? What are my policies? Do I have cash reserve balances? Do I have lines of credit?’.”

Commenting on the changes, Liz Dollar, says: “I think they will definitely help users understand what the organisation is trying to do. Always with any change, the first year is the most difficult.”

She adds: “It’s a case of financial reporting versus actual accountancy change. The US has been trying to implement things like lease standards and revenue recognition standards to bring them more in line with the International Reporting Standards. I think the overall goal is to get alignment.”

It is likely other countries will follow suit if they haven’t done already. However, there is no doubt accounting for NFPs will remain a highly complex field and it is more important than ever for charities, churches, foundations and other not-for-profits to keep track of regulatory changes both domestically and internationally, to avoid being caught out.[/vc_column_text][/vc_column][/vc_row]

[1] https://www.praxity.com/]]></content:encoded>
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						                        <title>Is your accounting system holding you back?</title>
						                        <link>
						                        https://williambuck.com/nz/is-your-accounting-system-holding-you-back						                        </link>
						                        <pubDate>Fri, 22 Jun 2018 06:25:44 +0000</pubDate>
						                        <dc:creator>Nick Kenny</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=3483						                        </guid>
						                        <description><![CDATA[]]></description>
						                        <content:encoded><![CDATA[[vc_row][vc_column][vc_column_text css=""]The Australian accounting software market is estimated to be worth over $500 million a year, so it’s little wonder that the country’s top software providers are jostling for share of market and share of voice.
With the major players such as Xero, MYOB, Intuit and Sage competing for your business’s dollars, how can you separate the benefits for your business from the marketing hype?  Is it worth upgrading your accounting software? Or are these well-advertised new packages just the same products with unnecessary bells and whistles?
The emergences of cloud accounting systems over the past decade has given both business owners and advisors greater access to data, through connectivity, real-time reporting and specialist reporting software. When set up correctly, accounting and business management systems will support business growth and strategic decisions – In fact, they have a large part in business transformation and can make your business more agile.
However, based on our experience, accounting systems are often overlooked and underinvested as businesses owners consider these as non-productive costs that won’t drive profit. Many of the SME businesses that we have interviewed as part of the William Buck Hour [1] use ‘rule of thumb’ indicators to tell if the business is doing well and often only the business owner has the ability to manage the business this way.
Furthermore, many accounting systems are providing limited information to support the decision makers, as it is not the right system for the business or industry – that is, too big or too small, an old version that has been superseded or your business processes have not been adapted to get the most out of your system.
Here’s five signs that your accounting system may be holding you back
1.    Financial Accounts taking too long to finalise
Is your finance team or bookkeeper finalising month end reports more than a week after month end? Are copies of your desktop accounting software being sent to your accountant?
The right accounting system should streamline the reconciliation and month end process so that it is finalised as efficiently as possible. Furthermore, multiple users should be able to use the system at the same time, including your advisor. By having reports finalised in a timely manner, business owners will have the tools to make timely business decisions.
Did you know that Cloud accounting systems are enabling business owners and management to manage cashflow due to real-time reporting?
At anytime and anywhere in the world (internet connection is required), management can now see the company’s bank balance and any outstanding debtors or creditors giving them a real-time overview of the financial health of the business. Given that SMEs with 20 or more people must already be on Single Touch Payroll, [2] smaller businesses can get a competitive edge by implementing this type of technology.
2.    Lost Data 
Is your accounts team or bookkeeper spending more time dealing with lost data than on analysis and business improvement projects?
Accounting systems in the cloud all include some level of automated off-site data back-ups, either directly in the software or via third-party service providers. Knowing that your inventory records, financial reporting and payroll data is proactively managed and protected from security risks can provide invaluable peace of mind.
3.    Increase in Finance team wages
Is your wage budget for admin support, debtor’s clerks and accounting staff growing faster than sales? The development in cloud accounting technology has seen an increase in automation (i.e. bank feeds, dual reconciliations) and artificial intelligence. With the right accounting system, your administration team should be working more efficiently and allowing the business to focus on revenue producing expenditure?
4.    Limited Reporting Capabilities
Is Owner and Senior management time being spent producing and editing basic business reports like debtors, sales and inventory?
If you are still relying on editing information in excel to produce meaningful reports, you are wasting time that could be better spent driving profitability of the business. Both accounting and specialist software (i.e. inventory system or practice management systems) provide detailed reporting that can be customised without needing to export data to excel.
The days of downloading data to excel to manipulate into meaningful management reports are over. Cloud accounting systems can be integrated with speciality reporting software that provide business owners and management with financial and non-financial data, as well as a rolling cash flow forecast at the click of a button. The management reports combined with interpretation and guidance from your advisor will assist business owners drive profitability.
5.    No Customer Information
Are your sales staff manually cross referencing your customer details with the information on how much they bought from you and when they paid?
Cloud based inventory and point of sales systems allow sales staff to access customer information while on the road, instore or at head office. This provides your sales team with valuable information to ensure your customers preferences and needs are met. The systems will also allow staff to search and locate stock items so they can drive sales at all times.
A key feature of recent developments in accounting software has been the increasing connectivity of business software. For businesses that embrace this trend, increased communication between these systems allows the business managers to capture and report on the financial and non-financial drivers of the business. Prior to implementing a new system, thorough thought needs to be given to the design of the systems to ensure data is both generated and captured for later use.
Like it or not, the world is becoming more and more about data. A standard P&#38;L, Balance Sheet and cashbook just don’t do enough to capture the information needed to monitor and improve the modern SME business.
If you are considering upgrading your accounting software, it’s important to get the right advice. William Buck has experts in each of Australia and New Zealand’s top cloud accounting providers and can help you to evaluate the systems available.
[/vc_column_text][/vc_column][/vc_row]


[1] https://williambuck.com/tools/william-buck-hour/
[2] https://williambuck.com/insights/]]></content:encoded>
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						                        <title>Future proofing your business cyber safety</title>
						                        <link>
						                        https://williambuck.com/nz/future-proofing-your-business-cyber-safety						                        </link>
						                        <pubDate>Fri, 22 Jun 2018 06:15:08 +0000</pubDate>
						                        <dc:creator>Fi Slaven</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=3470						                        </guid>
						                        <description><![CDATA[]]></description>
						                        <content:encoded><![CDATA[[vc_row][vc_column][vc_column_text]Digital transformation within your business, presents opportunities to streamline activities and create efficiency. However, understanding threats and managing risks are particularly important for small to medium sized businesses who may lack the resources or expertise to effectively implement internet security; yet are more likely to be potential targets for security threats.

The Australian Government believes the risk to the Australian economy from computer intrusion and the spread of malicious code to be high, predominantly because of the increase in size, sophistication and types of attacks. In particular, concerns have been raised about the impact on small businesses due to a lack of awareness and operational procedures in place. A recent report looking into small to medium-sized business and the emergence of cybercrime in Australia found that owners do not consider cyber-crime to be their top priority, yet more than half of security events target small to medium sized businesses and cyber-crime is costing Australian businesses $1billion each year.

Exposure to these risks have real implications for business owners; cost to business include both financial loss due to scams, and also reputational damage due to privacy breaches; creating overall profit loss. Therefore, the main considerations for businesses in their efforts to protect their business, should be strategies to guard their cash flow and their data.

Having steps in place to protect your business will ensure that the extent to which your business is affected, as well as the costs incurred will be dramatically decreased. Here we take you through a simple, yet practical guide to begin future-proofing your business, so your business can reap the benefits of the booming digital economy.

Conduct a risk audit
The ASX100 Cyber Health Check Report 2017, found that companies who analyse risk better manage cyber threats. Smaller businesses can undertake similar audits to help define the areas they may be at most risk. You may be surprised at the amount of data that needs protecting and the number of vulnerabilities your business has; because whether you realise it, or not, all of your data is valuable.

Your business may unknowingly be exposing itself to cyber-security risks. Many small businesses cite their lack of presence online means they are protected from cyber-attacks. Yet, emails are a predominate source of phishing and malware and are used as a predominate form of communication for business owners. Furthermore, social media presence can be a contributing factor to security breaches. Investing in IT audits may be a cost that could make all the difference.

Analysing your presence will give you more visibility and understanding of risk; more understanding of your information and assets data and will result in more education throughout the organisation on cyber security as well as greater confidence in your controls.

Create a cyber ‘aware’ culture
Managers need to be able to observe, respond and manage all cyber threats and be aware of latest scams. This means, anticipating attacks and putting plans in place. Introducing protocols on Internet use, including social media use are becoming the norm for businesses and should extend to all areas of your business.

By going further and adding steps into the training process, you will prevent mistakes along the service line and make staff more cyber aware. For example, simple procedures such as verifying email addresses to authenticate invoices before conducting transactions will avoid payment to fraudulent people.

By showing strong leadership, managers can create a culture where IT control is normalised. Strong leadership avoids complacency of internet controls, including sharing of passwords and sensitive information and using weak passwords.

Update your systems regularly
Updates ensure that you are continually protected, because providers ‘patch’ vulnerabilities in your system. This means that by updating your software as soon as updates become available, you are less likely to be targeted by attackers. If there is an option to automatically update, utilise this function.

Don’t forget to back-up
Maintaining fire walls is not as daunting as it sounds. So, what does it mean?

Just like there are general duties you need to perform to keep your business running, you should also consider IT ‘housekeeping’ as an essential part of your schedule. This gives you the ability to monitor threats more easily. By adding a recurrent note in your diary to focus some time on IT housekeeping, will ensure you maintain good controls.

Housekeeping involves:

 	Backing up your system (and in more than one place) to prevent loss of data and the ability to recover data which is lost. This limits the ramifications your business will face if they are exposed to ransomware. Ransomware is the newest cyber threat which allows the offender to steal your data and literally hold you to ransom. If you do not pay, your files will be deleted.
 	Managing your accounts by changing passwords, removing old accounts and adding new ones.
 	Managing what you store on your computer is important and is another overlooked part of housekeeping. Having loads of unwanted data on your computer means that it not as easy to keep track of reputable sources of data, meaning an old file you use to have in your system, is actually a file from an intruder.

Monitor your online presence
With social media becoming a useful tool for businesses to promote their goods and services, it can also expose them to unwanted hackers. Social media sites offer hackers a wealth of information through the interactions people have with your business. Hackers can use data mining programs to find common threads and use these to try to crack passwords to personal accounts. A great way to avoid this happening to you, is to create a password that uses uppercase letters, lowercase letters and numbers. Also, lock down the security of your social sites and limit the number of people who have access to your business accounts.

Be Mandatory Data Breach Ready
The fact is, it is not 'if' you business will have a breach, but 'when'. With Mandatory Data Breach legislation in place and with increased global complexity, it is important to be aware of legislation regarding data.  It’s time to be prepared.

Know your global obligations: GDPR (XYZ?)
Lastly, with increased global complexity, it’s important you are aware of GDPR.

What is GDPR? – it’s the new General Data Protection Regulations that have come out of the European Union (EU)…  You may be thinking, but we’re Aussies and Kiwis, what does it have to do with us?  The GDPR applies to all organisations that hold and process data belonging to an EU citizen (even if that citizen no longer lives in the EU) – that’s a broad scope! In next month’s edition, I will explain this concept further.

Technology is certainly changing the way we do business. As laws try and keep up and as we navigate this new frontier, it’s important to remember mistakes will be made, yet it is the actions you take to future-proof and comply that will determine how your business and digital assets recover.[/vc_column_text][/vc_column][/vc_row]
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						                        <title>NZ National Budget Update 2018</title>
						                        <link>
						                        https://williambuck.com/nz/nz-national-budget-update-2018						                        </link>
						                        <pubDate>Fri, 18 May 2018 22:35:39 +0000</pubDate>
						                        <dc:creator>William Buck</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=8890						                        </guid>
						                        <description><![CDATA[Introduction Budget 2018 build&#8217;s on their initial “100-Day” Plan and prioritise 5 key areas: Rebuilding critical public services; Promoting economic development and supporting the regions; Action on child poverty, housing and homelessness; Enhancing and protecting New Zealand’s natural resources; and Enriching New Zealand’s cultural identity. December’s “Mini Budget” In December, the Government delivered what was [&#8230;]]]></description>
						                        <content:encoded><![CDATA[Introduction
Budget 2018 build's on their initial “100-Day” Plan and prioritise 5 key areas:

 	Rebuilding critical public services;
 	Promoting economic development and supporting the regions;
 	Action on child poverty, housing and homelessness;
 	Enhancing and protecting New Zealand’s natural resources; and
 	Enriching New Zealand’s cultural identity.

December’s “Mini Budget”

In December, the Government delivered what was termed their “Mini Budget”. Here they announced some of their flagship reforms, namely:

 	Delivery of a new families package;
 	Progressive minimum wage increases to $20 per hour by 2021;
 	Paid parental leave extension from 18 to 22 weeks, then to 26 weeks by 2020;
 	Implementation of the “KiwiBuild” programme;
 	Restarting payments into the NZ Superannuation Fund;
 	Introduction of the Child Poverty Reduction Bill.

Restoring Tax Fairness

Tax was not a major part of Budget 2018. However, the Minister of Finance made mention that Budget 2018 begins to restore tax fairness. Particular mention was made of:

 	The Tax Working Group working to create a fairer tax system;
 	Ring-fencing of rental losses;
 	Extending the existing “Bright-Line” Test for residential property investment to 5 years; and
 	“Amazon” Tax.

Tax

There was little in the way of tax announcements in Budget 2018. The biggest tax announcement was in relation to a new research and development tax credit regime (effective from 1 April 2019). This is covered in more detail below.

The other major tax announcements in Budget 2018 were:

 	$31.4 million of extra funding to the IRD (over the next 4 years) to enforce the filing of outstanding company tax returns (this is estimated to derive an additional $183 million of tax revenue over this period); and
 	Changes to the bloodstock tax rules for the New Zealand racing industry.

It is anticipated that no major tax changes would be proposed until the Tax Working Group have finished their work. The Tax Working Group are due to release their interim report in September 2018.
Rebuilding Public Services
Health
Budget 2018 introduced the largest injection into the health sector in ten years. The key initiatives that this funding is allocated to are as follows:

 	District Health Boards (DHBs) receive $13.2 million in funding to boost core services, extending free GP visits to children 14-years and under, and lowering cost of primary care for the elderly
 	$68 million allocated for National Mental Health Services
 	$783 million for governance and oversight, including supporting equitable pay and workforce training
 	$1.2 million has been allocated to capital investment, including maintenance of current services

Families Package
Replacement of Working for Families (“WFF”) tax credits with the intention to increase the number of eligible families. The investment into the Families Package confirms commitment to key initiatives, including those like increasing the minimum wage, which have already come into effect.

Reinstatement of Independent Earner Tax Credit (“IETC”): Budget 2017 saw the repeal of the IETC, which is being brought back in with Budget 2018 in its current form.

Best Start and extended paid parental leave: from 1 July 2018, $3,120 per year for all families in the first year of a child’s life.

$443 million has been allocated for Winter Energy Payments (“WEP”). A payment of $450 per year for single people or $700 per year for a couple and those with dependent children.

Justice &#38; At-Risk Families
Budget 2018 reflects a change of focus to prevention rather than punishment with allocations to prevention and resolution services and community service organisations.

Education
Budget 2018 confirmed the $355 million allocated to this initiative alongside a further $601 million allocated for student allowances. Funding for primary and secondary school education has a particular focus on supporting teachers, youth mental health initiatives as well as initiatives to support English as a Second Language speakers. Funds have also been allocated to tertiary institutes in Christchurch as part of the post-earthquake rebuild. A further $538 million was allocated to education services, particularly professional development in the school and early childhood education (ECE) sectors.
Economic Development
Economic Development
Public transport, employment and immigration were prominent topics in the months following last year’s election. Budget 2018 seeks to further enhance the Auckland City Rail Link and places a huge investment in KiwiRail. The following show key injections to economic development.

Infrastructure
The Provincial Growth Fund sets out to provide employability, growth and community interaction by allocating $1 billion to it.

Research &#38; Development
Aims to encourage businesses to invest in growing the New Zealand economy through new innovations. The R&#38;D tax incentive is a 12.5% non-refundable tax credit. It applies to businesses with eligible R&#38;D spend over $160,000 and up to $120 million.

International Presence
With New Zealand’s increased international trade comes a $1 billion boost to continue to grow our connections around the globe. Enacting a new embassy in Stockholm as well as providing a significant boost to our response to climate change, particularly in the Pacific.

Restarting Superfund Payments
Budget 2018 confirmed restarting of government payments into New Zealand Super with $14.5 million allocated.
Child Poverty &#38; Housing
Child poverty and housing are at the heart of the government’s priorities. Budget 2018 builds on the $5.5 billion investment made through the Families Package as part of the 100-Day Plan.

 	Newly renamed Oranga Tamariki (Ministry for Children) receives $7.422 million
 	Over $418 million is allocated as financial assistance for childcare, care of unsupported children and extraordinary care
 	$58 million to support youth who are unable to live at home and young parents

The heavy investment in housing comes as no surprise in Budget 2018, which confirmed the following key initiatives:

 	$493 million allocated for the KiwiBuild programme, with the aim of delivering new homes for first home buyers
 	$103 million in HomeStart grants
 	A further $39 million is allocated for regulation of health and safety in residential homes

Enhancing Natural Resources
Budget 2018 supports investment to improve the way our natural resources are managed. The aim is to enhance sustainability. Budget 2018 also reflects recent coalition initiatives on climate change with $619 million allocated to New Zealand emission units to the economy. There is also a $9.3 million increase funding for Ministry of Primary Industries (acknowledgement of recent biosecurity issues such as that with Mycoplasma bovis affecting the dairy industry).

Maori development, culture and civil defence have been included in the top priorities for this year’s budget with Labour hoping to enhance pride in New Zealand and offer further international presence through the arts.
Enriching Culture
Maori development, culture and civil defence have been included in the top priorities for this year’s budget with Labour hoping to enhance pride in New Zealand and offer further international presence through the arts.
Conclusion
There were very few surprises in Budget 2018. The Government's key priorities centered around health, education, regional development and poverty reduction. Budget 2018 largely delivered on what was anticipated.

In terms of tax there were no major announcements. As noted the Tax Working Group are delivering their interim report in September this and we are keenly awaiting their conclusions on delivering a fairer tax system.

Please contact our office if you wish to discuss the Budget 2018 further.

Phone: 09 366 5000
Email: info@williambuck.co.nz
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						                        <title>How do you implement business strategy?</title>
						                        <link>
						                        https://williambuck.com/nz/how-do-you-implement-business-strategy						                        </link>
						                        <pubDate>Wed, 18 Apr 2018 12:51:48 +0000</pubDate>
						                        <dc:creator>Babis Mavrakis</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=266						                        </guid>
						                        <description><![CDATA[Quick Tip #3 Plan a strategy with a clear set of directions Most business have a strategy in place whether it’s a detailed 100-page report or in the minds of the stakeholders.  However, many of them fail because they are not worth executing. The problem is, that objectives may be clear, yet the actions are [&#8230;]]]></description>
						                        <content:encoded><![CDATA[Quick Tip #3 Plan a strategy with a clear set of directions
Most business have a strategy in place whether it’s a detailed 100-page report or in the minds of the stakeholders.  However, many of them fail because they are not worth executing. The problem is, that objectives may be clear, yet the actions are not set.



A strategy according to the London Business School involves having a clear set of choices of what you are going to do and what you are not going to do. The reason is that in a world where resources are limited, a business cannot execute all plans and ideas at the same time, therefore a choice needs to be made.

Think of strategy as a road map for a new trip. Which roads will get you there quicker? Have less road works? The least tolls?  You set your trip on the parameters you define; shaping where you are going, how you are going to get there and where you don’t want to be.
A business strategy is also a medium to long term process often championed by the business owners so, it often gets put away and rarely reviewed or communicated.  It’s important that the goals and vision is known from top to bottom, so an organisation can rally round and achieve together. This involves setting up communication channels where every person fills part of the process. At the end of the day, your business stakeholders must be ready to change and support a change culture.

Overall, my top tips to effectively implement strategy involve:

 	Clearly list strategic steps that the business will take in the future.
 	Don’t describe the outcome of the strategy (I want to be the biggest in my market), describe what you will do to achieve your goal
 	A strategic plan is not a contract, it’s is plan. Therefore, regular review and adjustment where necessary is the only way to keep on track
 	Where possible cost your strategic actions, and provide the business case (cost vs benefit)
 	Communicate the logic behind the strategic plan to the whole business.
 	Engage as many people as possible to the strategic process.  After all, the owners of the business may not be the best people to implement and problem solve the actions
 	Let people select themselves for the roles, we all like working with some people better than others.


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						                        <title>Building brand equity at board level</title>
						                        <link>
						                        https://williambuck.com/nz/building-brand-equity-at-board-level						                        </link>
						                        <pubDate>Mon, 16 Apr 2018 09:48:28 +0000</pubDate>
						                        <dc:creator>William Buck</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=4606						                        </guid>
						                        <description><![CDATA[Driving brand value within an organisation should not be the sole responsibility of the marketing department, a gathering of leading finance industry professionals was told in Adelaide. According to brand and marketing expert Marc Makrid, marketing and finance executives need to work more collaboratively to maximise brand equity and with it improve sales and overall [&#8230;]]]></description>
						                        <content:encoded><![CDATA[

Driving brand value within an organisation should not be the sole responsibility of the marketing department, a gathering of leading finance industry professionals was told in Adelaide.

According to brand and marketing expert Marc Makrid, marketing and finance executives need to work more collaboratively to maximise brand equity and with it improve sales and overall business performance.

Mr Makrid was speaking to an audience of 250 Chief Financial Officers and finance professionals at the William Buck CFO Symposium held in the William Magarey Ballroom at the Adelaide Oval on 11 April 2018.

“CFOs and CMOs share the same agenda,” Mr Makrid said.

“Both want more customers to buy more products, more often. Making it happen requires serving customer needs profitably and better than your competitors do.

“Unfortunately businesses to a large extent have convinced themselves how intangible marketing is. That firmly illustrates a pressing need for better clarity and tangibility when it comes to brand investment.”

Mr Makrid explained that a study by Mercer Management found that the key drivers to shareholder loss were overwhelmingly due to strategic brand-related causes.

“These can include questionable strategies such as discount pricing in tough times when it’s hard to retract original value down the track, poor channelling decisions such as chasing short-term revenue streams to the brand’s long-term detriment or cutting investment in marketing in tough times,” he said.

Marc identified a range of internal and external factors that drive brand equity. He noted that these drivers create a pragmatic framework to drive brand decisions in a manner that creates visibility and measurability.

Marc strongly emphasised and demonstrated how everything a company does impacts brand.

“There is a strong business case to expand the responsibilities for brand beyond the marketing department,” Mr Makrid said.

“It’s important to ensure that everyone in the business can see what value they can add to the brand. While there will always be a subjective aspect to brand performance, it’s more measurable than most organisations realise.

“While the financial valuation methodologies for brand can vary widely, the ultimate measure of a powerful brand is what the market will pay for it.”

Marc Makrid is the CEO of Marc Makrid &#38; Associates. Marc has extensive experience in advising on brand strategy at the board level to a national-based and diverse client base. His roles include Chairman of Campion Education, FP Agriculture &#38; Angelakis Seafood as well as a Board Director of Seeley International and ECH.

Marc can be contacted at marc@makrid.com.au [1]



[1] https://williambuck.commailto:marc@makrid.com.au]]></content:encoded>
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						                        <title>Creating and maintaining a Board for the times</title>
						                        <link>
						                        https://williambuck.com/nz/creating-and-maintaining-a-board-for-the-times						                        </link>
						                        <pubDate>Thu, 12 Apr 2018 09:46:10 +0000</pubDate>
						                        <dc:creator>William Buck</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=4604						                        </guid>
						                        <description><![CDATA[A board not in step with its organisation’s lifecycle can become a major impediment to business growth, a leading finance industry forum in Adelaide was told. William Buck Managing Director Jamie McKeough said all Boards must adapt and evolve throughout their own lifecycle to remain ahead of the game otherwise they will rapidly become redundant [&#8230;]]]></description>
						                        <content:encoded><![CDATA[

A board not in step with its organisation’s lifecycle can become a major impediment to business growth, a leading finance industry forum in Adelaide was told.

William Buck Managing Director Jamie McKeough said all Boards must adapt and evolve throughout their own lifecycle to remain ahead of the game otherwise they will rapidly become redundant to the business and shareholders they serve.

Mr McKeough was speaking at the William Buck CFO Symposium held in the William Magarey Ballroom at the Adelaide Oval on April 11.

The gathering of 250 Chief Financial Officers and finance professionals heard how the composition, skillset and strategic direction of a Board can drastically impact its performance.

The right fit for the times

“Boards are vitally important to organisations of varying size,” Mr McKeough said.

“In an ever changing environment a Board can help management both operationally and strategically by creating and overseeing corporate governance and providing independence, direction, accountability and credibility.”

All businesses have a lifecycle typically incorporating start-up, growth, maturity, possible stagnation or decline but preferably a resurgence. Just as all businesses have a lifecycle, so do Boards.

The common Board evolution consists of the following stages:

 	Entrepreneur and business owner
 	Advisory Board (flexible group of advisors)
 	Formal Board (including owners)
 	Fully mandated Formal Board (Chairman, Executive Directors, Non-Executive Directors and Shareholder Representatives)

“For example an Advisory Board may be more appropriate during the early growth stage of a business while a Formal or Traditional Board may become relevant during sustained growth and the mature stage,” Mr McKeough said

“A Board, like a business can also stagnate or go into decline without appropriate safeguards in place. These safeguards include performance reviews, periodic evaluation and succession plans.

“Whatever the type, style and size of a Board, it must stay ahead of where the business is currently operating and be constantly thinking about what is needed a couple of years in advance.

“If it lags behind, it’s the wrong Board for that organisation.”

Mr McKeough said this evolution was not necessarily about simply bringing in different people to the Board over time but instead having directors who can grow and develop ahead of the business.

“Boards are also not mutually exclusive. For example in the case of a private business a Formal Board can be effectively complemented by a separate Advisory or Family Board at a shareholder level,” he said.

What makes for an effective Board?

Mr McKeough said there are common traits found among the most successful Boards including:

 	A good chairperson
 	Strong understanding of the business model
 	Clear KPIs and quality reporting
 	Excellent policies
 	Management present periodically
 	Strategic involvement
 	Appropriate meeting duration

“Getting the Board composition right is critical,” he said.

“Complementary stills are important and it’s wise to have at least one Board member with relevant industry expertise – a ‘been there, done that’ person.

“A suitable mix of retired and active business people is preferable as well as a composition that embraces strength of character, diversity and independence.”

As well as leading the 160-strong South Australian office of accounting and advisory firm William Buck for 12 years, Jamie McKeough has served on numerous Boards and Advisory Boards for organisations including William Buck International, Osmoflo, Redarc Electronics, large family groups, emerging businesses and not-for-profits.

Jamie can be contacted on jamie.mckeough@williambuck.com [1]



[1] https://williambuck.commailto:jamie.mckeough@williambuck.com]]></content:encoded>
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						                        <title>How can you improve customer experience?</title>
						                        <link>
						                        https://williambuck.com/nz/how-can-you-improve-customer-experience						                        </link>
						                        <pubDate>Tue, 10 Apr 2018 12:52:29 +0000</pubDate>
						                        <dc:creator>Babis Mavrakis</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=268						                        </guid>
						                        <description><![CDATA[Quick Tip #2: Create zero-friction by redesigning processes Without customers, a business would cease to exist.  Therefore, when I ask my clients what makes their business so successful, I am not surprised when the majority tell me it’s because of their exceptional customer service. In an increasingly complex world afforded by technology, the concept of [&#8230;]]]></description>
						                        <content:encoded><![CDATA[Quick Tip #2: Create zero-friction by redesigning processes
Without customers, a business would cease to exist.  Therefore, when I ask my clients what makes their business so successful, I am not surprised when the majority tell me it’s because of their exceptional customer service.



In an increasingly complex world afforded by technology, the concept of traditional customer service has changed. As a result, in a lot of cases customer service has deteriorated. However, the fact is, technology presents opportunity to revitalise the way you interact with customers.

Today, it is no longer about the end-result but also about the experience the customer gets along the way. Adapting customer-service in the modern-age means employing simple technological processes to track customer satisfaction end-to-end.

One way to improve the customer experience is through ‘zero friction,’ which basically removes as many obstacles from the interaction between the customer and the provider.

Many industries are currently experiencing this issue and disrupters who come in the market and provide ‘zero friction’ take over. Things that promote zero friction redesign business processes down to moments not hours.

For Nike, it means automating customer support. Since Nike introduced an @NikeSupport Twitter handle that’s solely for responding to customers that need help, their average response time is now half of the industry average. This forum not only allows for customer problems to be addressed quickly, but also allows Nike to learn about problems. Instead of writing a letter, going to a shop or making a call, customers can tweet to @NikeSupport instead.

Other examples include easy payment systems, such as tap and pay; Smart Phone interfaces such as Uber eats and ITunes and cleverly using technology such as Smart links on ads or YouTube videos.

No matter what your business, everyone needs to reengineer themselves to deal with friction along their customer experience. The Bottom-line is, if you remove friction your customers will always choose customer-experience over price.


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						                        <title>William Buck Auckland responds to growth in the Golden Triangle</title>
						                        <link>
						                        https://williambuck.com/nz/william-buck-auckland-responds-to-growth-in-the-golden-triangle						                        </link>
						                        <pubDate>Mon, 09 Apr 2018 22:37:18 +0000</pubDate>
						                        <dc:creator>William Buck</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=8892						                        </guid>
						                        <description><![CDATA[Market growth across the Golden Triangle has seen Chartered Accountant and advisory firm William Buck Auckland respond to demand, announcing a merger with Ingham Mora Audit Services in Tauranga. The merger will give clients access to an epicentre of audit services while enhancing industries’ ability to conduct business in multiple locations. William Buck Managing Director [&#8230;]]]></description>
						                        <content:encoded><![CDATA[Market growth across the Golden Triangle has seen Chartered Accountant and advisory firm William Buck Auckland respond to demand, announcing a merger with Ingham Mora Audit Services in Tauranga.

The merger will give clients access to an epicentre of audit services while enhancing industries’ ability to conduct business in multiple locations.

William Buck Managing Director Clyde Young, says the merger is significant for the business community in the growth triangle of Auckland and the Bay of Plenty.

“With a solid global economic outlook expected in New Zealand, this merger supports the Government’s plans to drive growth in the area, particularly in the export market,” Young says.

“It will strengthen market needs for high quality financial services, especially for agricultural and manufacturing operations in the region,” he says.

Licensed auditor and CAANZ Councillor, Director Richard Dey who is joining William Buck, says his clients will benefit from the scale and scope of the merge.

“With four licensed auditors and 21 audit staff, we will be a viable FMA reporting epicentre, while promoting audit quality through our combined specialist expertise,” Dey says.

“The merger will allow smooth transition of job rotations and ensure our compliance and reporting requirements are met, so we can be truly independent and transparent auditors,” Dey says.

Dey says, aligning cultures was a major factor in joining William Buck, whose experience in the middle market for over 120 years and ‘Changing Lives’ philosophy is present in everything they do.

“William Buck have demonstrated their commitment to quality and transparency, not just in audit, but in the positive difference they have in the community,” he says.

“Culture is significant to the public interest role of auditors, who play a vital part in upholding society’s financial integrity and is also part of our people-focused and collegiate approach to business,” he says.

“Our continued and significant presence in the charity and Not-For-Profit sector will also be supported by William Buck,” he says.

Clyde Young welcomes Richard and his team, saying William Buck will benefit from Richard’s local market knowledge, specialised expertise and personalised service.

“Richard will add value to our firm by enhancing our audit offering both as a registered auditor and as an active participant in the agricultural sector.”

Dey and his eight staff will continue to provide personalised and high quality audit services to existing clients under the William Buck brand while boosting their audit depth.

“Joining William Buck will give my team access to a network of specialist knowledge, technical resources and training and high quality recruitment, by being part of one New Zealand’s most respected accounting and business advisory firms,” Dey says.

 Ends
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						                        <title>How can you make better business decisions?</title>
						                        <link>
						                        https://williambuck.com/nz/how-can-you-make-better-business-decisions-quick-tip-1-focus-on-the-measures-that-matter						                        </link>
						                        <pubDate>Tue, 03 Apr 2018 12:56:03 +0000</pubDate>
						                        <dc:creator>Babis Mavrakis</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=272						                        </guid>
						                        <description><![CDATA[It is hard to imagine a more stressful and complicated environment than a fighter jet.  Along with flying the plane, the pilots need to navigate and deploy several systems, very often under highly physical and dangerous conditions. Just like fighter pilots, business owners are constantly multitasking, stressed and in danger of being overwhelmed. As decision-makers, [&#8230;]]]></description>
						                        <content:encoded><![CDATA[It is hard to imagine a more stressful and complicated environment than a fighter jet.  Along with flying the plane, the pilots need to navigate and deploy several systems, very often under highly physical and dangerous conditions. Just like fighter pilots, business owners are constantly multitasking, stressed and in danger of being overwhelmed.

As decision-makers, business owners are often overcome by the different information at their disposal, particularly in today’s data-driven world. On top of this, many times, they are pressed into making decisions quickly.
For a fighter pilot, the solution to this situation is dealing with the information that matters most (keeping the plane in the air).

Out of the hundreds of switches and dials in the cockpit the biggest and most centrally located instruments are altitude, speed, horizon and compass – these are the measures that matter.

In business, the same principle applies.  Out of hundreds of pieces of information coming out of business systems, owners should quickly and accurately be able to find measures that matter – things that keep businesses going, in all aspects of the business and make these the most prominent. These can be turnover, gross profit, cashflow, inventory, customer satisfaction, anything that really is crucial to your business should be easily measured and reported.

Like fighter pilots, keep the measures that matter to a small number, ideally three to five, and design your business systems to have them readily available.  This will allow you to make instant assessments of the business performance and react in a timely fashion.
Leave the more detailed analysis and reporting for times that are more quiet.

In today’s unforgiving business world decisions need to be based on accurate &#38; timely facts not emotion. Sometimes disaster is one wrong decision away.
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						                        <title>Valuing your practice</title>
						                        <link>
						                        https://williambuck.com/nz/valuing-your-practice						                        </link>
						                        <pubDate>Thu, 01 Mar 2018 05:16:24 +0000</pubDate>
						                        <dc:creator>William Buck</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=10377						                        </guid>
						                        <description><![CDATA[]]></description>
						                        <content:encoded><![CDATA[[vc_row][vc_column][vc_column_text]If the thought of retirement is sitting at the back of your mind, you are not alone. With the ageing of Baby Boomers, the percentage of Australians set to retire in the next three years is on a dramatic increase and this will continue until approximately 2034. We can assume then that there will be an increasing number of medical and dental practices being offered for sale.

To ensure your practice is attractive to buyers and you maximise your financial returns from this opportunity you need to ensure that the business side of your medical or dental practice is cared for and professionally managed.
Managing the sale process is vital to extracting value from the business.
Planning
The ideal time to start planning your exit strategy is approximately four to five years before you want to retire. This is based on the following:

 	Having at least two years (ideally three) of financial results showing strong trading;
 	Allowing one year to market the practice and find an appropriate buyer; and
 	Allowing one year working in the practice after the sale to transition patients.

While the time frames on the above three factors may vary slightly, one constant factor for all sales is that the potential purchaser will be considering their return on investment against the risks of ownership.
How to get started
Commencing the process of preparing your practice for sale should be undertaken in a systematic way. Some ideas for getting started include:

 	Review the current trading results of your business by benchmarking the financial performance of your practice against other medical or dental centres. This process can help to identify areas of weaker financial performance and changes may be undertaken to address these issues;
 	Developing a budget for the business over the next financial year with the intention of renewing this for the second year;
 	Have quarterly reviews of the financial performance of the business;
 	Implement a marketing plan for the business;
 	Review existing agreements with dentists and formalising these agreements.

The William Buck Succession and Transition Program
The William Buck Succession and Transition Program, provides business owners, current and future, an effective method of transitioning business ownership.

The Program focuses on achieving three key outcomes:

 	To provide the exiting owners an effective sell down of equity taking into account timing, price and lifestyle considerations;
 	To provide new owners the opportunity to buy in to the business on a structured basis that minimises their risks and maximises their opportunities; and
 	Ensuring that the business transitions to its next phase in a seamless fashion.

Whatever your goals, if you are yet to run your practice through a benchmarking and valuation exercise, you are missing a vital opportunity to increase its value.[/vc_column_text][/vc_column][/vc_row]
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						                        <title>Praxity again confirmed as the largest accounting alliance</title>
						                        <link>
						                        https://williambuck.com/nz/praxity-again-confirmed-as-the-largest-accounting-alliance						                        </link>
						                        <pubDate>Fri, 23 Feb 2018 12:57:28 +0000</pubDate>
						                        <dc:creator>William Buck</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=274						                        </guid>
						                        <description><![CDATA[Praxity’s combined revenues of participant firms reaching US$5.20 billion for the year ended 31 December 2017, confirming its position as the largest alliance of independent accounting and consulting firms. Praxity’s Chairman, Hilton Saven said participant firms had continued to elevate its global offering over the past decade, with a record-breaking performance and continued growth with of over [&#8230;]]]></description>
						                        <content:encoded><![CDATA[Praxity’s combined revenues of participant firms reaching US$5.20 billion for the year ended 31 December 2017, confirming its position as the largest alliance of independent accounting and consulting firms.

Praxity’s Chairman, Hilton Saven said participant firms had continued to elevate its global offering over the past decade, with a record-breaking performance and continued growth with of over 65 firms, 47,000 worldwide experts, in 103 countries.

“This is a great way to kick off our second decade, reflecting on what’s been accomplished and how the strength of the Alliance elevates its global offering,” Hilton Saven said.

“The continued success of the Alliance demonstrates their commitment to sharing expertise across international borders and delivering world class service at a local level,” he said.

William Buck, is celebrating their tenth year as a member firm, with Chairman, Nick Hatzistergos, sitting on Praxity’s Management Board.

Hatzistergos said the announcement is testimony to the value that Praxity brings to their clients in Australia and New Zealand.

“Moving up the rankings into sixth position is a significant achievement. It’s a great reflection of our shared commitment to transform the client experience and deliver more value to our members," he said.

"We’ve hit record performance and our continued growth over the past 11 years reaffirms that we’re on the right track and that our ability to collaborate across the globe is having a positive impact.”

Since becoming a member in 2008, William Buck has partnered with many Praxity firms across the globe to assist and support our clients with specialists on the ground who understand the local nuances, and legislative and reporting requirements.


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						                        <title>What tax exemptions apply to transitional residents?</title>
						                        <link>
						                        https://williambuck.com/nz/transitional-residents						                        </link>
						                        <pubDate>Sun, 01 Jan 2012 08:21:33 +0000</pubDate>
						                        <dc:creator>William Buck</dc:creator>
						                        <guid isPermaLink="false">https://williambuck.com/nz/?p=3222						                        </guid>
						                        <description><![CDATA[]]></description>
						                        <content:encoded><![CDATA[[vc_row][vc_column][vc_column_text css=""]An individual who is a transitional resident qualifies for a four-year income tax exemption on certain foreign-sourced income.

The exemption applies to an individual who becomes a transitional resident on or after 1 April 2006, the effect of which is to treat the income of a transitional resident (other than income derived from employment and from a supply of services) in the capacity of a non-resident.

The transitional resident rules allow tax exemptions to new migrants and certain New Zealanders returning to the country. The main impetus for change was brought about by a desire to attract skilled individuals to migrate (or in the case of returning New Zealanders, to return) to live and work in New Zealand. Also, a similar exemption was introduced in Australia in 2006, and the new rules were intended to reflect that change.

The exemptions apply to a taxpayer who is a natural person resident for tax purposes in New Zealand and who has been non-resident for a continuous period of at least 10 years immediately before becoming resident.

The exemption provides that transitional residents are not subject to New Zealand tax on their foreign-sourced income (subject to certain exceptions) for a period of 48 months from the date the taxpayer acquires tax residence in New Zealand.

The definition of foreign-sourced amount for these purposes means an amount that is not treated as having a New Zealand source. The exemption is therefore very wide and covers foreign business income, foreign interest and dividend income, rental and pension income derived from overseas, income from foreign-sourced royalties, as well as income attributed under the CFC and FIF rules.

A person’s tax residence is determined by reference to either the permanent place of abode test or the 183-day personal presence test, and the effect of the backdating provisions (i.e. person is treated as resident from the time that they first arrive) means that the duration of the exemption may be longer than 48 months.

The exemption is only available to a taxpayer once in a lifetime, and it applies automatically to new residents without formal application. A taxpayer may however elect out of the provisions.
Ceasing to be a Transitional Resident
Once a person ceases to be a transitional resident, they will be taxed as an ordinary New Zealand resident on their worldwide income. This means that they will then become liable to tax on any foreign sourced income that they derive.

When a person ceases to be a transitional resident, there will be other issues that need to be considered. These should be visited before the period of transitional residency ends.

The information above does not constitute tax advice and is only an introduction to the issues facing persons moving here from other countries.  If you are moving to New Zealand or know someone moving to New Zealand, please feel free to contact your William Buck advisor.[/vc_column_text][/vc_column][/vc_row]
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