You spend a lot of time making sure your business runs like clockwork. But is your business delivering for you personally, as the owner and/or founder?

In this series, we’ll look at the core ways your business can be structured to deliver on your own personal, family, philanthropic and leisure goals.

A business that supports your personal vision and life goals.

When you started your business, you’ll have had a clear idea of how this new venture would provide for you and your family. But, over time, your attention can become focused on the day-to-day operations, with less awareness of how the company is delivering on your own personal and entrepreneurial goals.

In this series, we want to reverse that flow. We want you to think clearly about what you want from life, your business and your wider position as an entrepreneur.

We’ll look at:

Maintaining a healthy work/life balance

Think about how you structure your business to allow for flexibility and time for your own personal pursuits. This could involve working remotely to spend more time with your family, flexible working hours or having the right team to delegate work to.

Securing your lifestyle

Make sure your business generates enough income to support the lifestyle you’re aiming for. This may mean reviewing your budget and expected income, setting financial goals and developing a business model that delivers the revenue you need.

Making enough to retire

If the end game is to retire, you need a nest egg to do this. Funding a comfortable retirement might mean reinvesting dividend income into a pension, exploring tax-efficient strategies and developing a long-term financial plan.

Investing in your passions

What gives you joy outside work? You can use your business as a platform to pursue your passions, whether it’s supporting local charities, promoting sustainability or creating products that reflect your personal and ethical values.

Passing the business to the next generation

Before you retire, it’s important to plan for a smooth transition to the next generation, whether those successors are family members or other members of your existing team. This will mean putting serious thought into succession planning and training.

Helping you set and track your personal goals

Over the course of this series, we’ll explore each of these five goals in more detail. In the meantime, we’re here if you want to track how you’re performing against your personal goals.

Come and have a chat about what you want from your business.

6 Powerful Reasons To Watch Your Financial Reports. 

Making time to look over your financial reports each month is an important task for any business owner. If you are not taking time to do this, either because you’re too busy, or perhaps you don’t really understand what you’re looking at and it doesn’t make sense to you, then here are 6 reasons we recommend you should start to.

But before we get our 6 reasons, let’s talk very quickly about which reports to look at. At a bare minimum, and depending on the complexity of your business, you should be looking at the following:

• The Statement of Financial Performance – also known as the Profit and Loss report (P&L) or the Income Statement – tells you, as the name suggests, how your business is performing over a period of time, such as a month or a financial year. In broad terms it shows the revenue that your business has generated, less the expenses for that same period. In other words, it shows how profitable your business is.

• The Statement of Financial Position – also known as the Balance Sheet shows the value of the business’s Assets, Liabilities and Equity.

Assets include things like money in bank accounts, Plant and Equipment, Accounts Receivable balances.

Liabilities include things like Bank loans and credit cards, Accounts Payable, and Hire Purchase balances.

Equity is the difference between your Assets and your Liabilities and includes Retained Earnings and Owner Funds Introduced.

• Accounts Receivable Ageing report (Aged Receivables) – this shows how much money is still owed to the business as at a certain date in time, and is usually segmented as to how overdue they are, or sometimes by how far past the invoice date they are. Generally, you will have Current, 30, 60 and 90 days columns.

• Accounts Payable Ageing Report (Aged Payables) – this report shows who the business owes money to as at a certain date in time and, like the Accounts Receivable Ageing report, is usually segmented by overdue period.

So why bother?

1. Understand your business better – by looking at your Profit and Loss report monthly you will get a good picture of how your business is performing month by month and it gives you a better understanding of what makes up your profit. It can be helpful to compare periods, or to look at a month by month P&L, so you can clearly see on one page the revenue and expenses month by month. This also helps identify trends in your data and many also help to highlight anomalies in coding/categorising or unusual expenses or earnings.

2. Accurate information for lending purposes – If you are applying for a loan or an overdraft, the bank or financial institution will look closely at both your Profit and Loss report and the Balance Sheet as a lot can be learned about a business by looking at these reports together. If you are unsure what some of your balances are in your accounts, get in touch and we can explain them further.

3. Get paid quicker and reduce bad debts – by looking at your Accounts Receivable Aged Summary each month you can follow up with overdue accounts promptly which often results in getting paid quicker. The longer an overdue amount is left unpaid the higher the risk of it not being paid at all, so it is important to keep on top of this.

4. Better relationships with your suppliers – Assuming you are entering your supplier bills into your accounting software (recommended for most businesses to get an accurate profitability figure) your Aged Payables report will alert you to any unpaid or overdue amounts. Supplier relationships are an important aspect of your business and paying on time is crucial to maintaining those relationships.

5. Better cashflow – having an accurate understanding of how much money the business is owed, and how much money the business owes, can help with cashflow planning to ensure that there is enough money when needed. Additionally, understanding the trends of your business, its profitability drivers, its expenses, etc., can help to plan sales and marketing campaigns so that the revenue keeps coming in.

6. Better business decision making – Your financial reports tell the story of your business and it’s important that you understand the story that they are telling you. The better you understand what’s going on in your business the stronger position you will be in to make better business decisions that affect the profitability of your business and its financial viability.

If you would like to know which reports are relevant to your business, and you want to better understand what’s going on in your business, then get in touch so we can make a time to go through them with you.

Your business success is important to us and we are here to help you.

Why Productivity Matters and What You Can Do About It. 

Understanding Business Productivity in Simple Terms.

Productivity is about how well businesses use resources to create products or services. High productivity means businesses are efficient, leading to fewer failures, more jobs, and better incomes.

Current Situation: According to Xero’s report, productivity in New Zealand’s small businesses dropped by 6.1% in 2023. Many businesses struggle to reach peak productivity due to daily pressures.

What is Productivity?

Productivity measures how efficiently a business converts inputs (like labor, money, and materials) into outputs (products or services).

Types of Productivity

1. People Productivity: How many hours are worked for each dollar earned.
2. Financial Productivity: The return on investments in assets like machinery.
3. Materials Productivity: How much is spent on materials to generate sales.

Why It Matters

Higher productivity means businesses can do more with less, leading to higher profits and better resilience against economic challenges. Small businesses can improve productivity with digital tools now widely available.

Ways to Boost Productivity

1. Better Tools: Invest in tools that simplify work. This might be software that reduces repetitive tasks or integrates systems.
2. Smarter Methods: Regularly review and improve how work is done. This includes focusing on what customers value, documenting processes, identifying bottlenecks, and adopting helpful software.
3. Skilled Workers: Properly train employees and provide clear job descriptions. Ensure they understand and can use the necessary tools.
4. Entrepreneurial Mindset: Continuously optimise your business. This can mean scaling up, acquiring other businesses, specialising in a niche, or improving supply chains.

Steps to Increase Productivity

1. Invest in Better Tools: List potential investments, price them, and choose the most cost-effective.
2. Improve Methods: Document and map work processes, identify issues, and implement solutions.
3. Train Workers: Ensure job descriptions are clear, provide comprehensive training, and share the business vision.
4. Adopt an Entrepreneurial Mindset: Look for growth opportunities, consider acquisitions, and focus on efficient supply chains.

Summary

Boosting productivity requires an ongoing effort to refine processes, invest in tools and training, and maintain an entrepreneurial attitude. Efficient businesses are often more successful and profitable.

DIY accounting vs hiring an accountant: make the right choice for your business. 

When you’re starting out as a small business owner, the temptation is to go DIY with your accounting. Hiring a professional accountant or tax adviser costs money and that’s an overhead that you can remove by doing all the financial management yourself, right?

But is DIY accounting the most sensible option for your business? And why might partnering with an experienced accountant be a valuable investment in your future?

The 5 big challenges of managing your own accounts

At the initial stages of founding your business, you might think that raising a few invoices, paying a few supplier bills and making sure there’s cash in the bank is well within your abilities.

However, as the business grows, and you take on more customers and employees, your finances are likely to get far more complicated – not to mention far more time-consuming. So, should you still be managing your accounts solo at this important stage of your growth?

Here are five of the common challenges of going down the DIY accounting route:

• The knowledge gap – grasping the finer points of accounting principles and tax regulations is complex. If you try to navigate these financial complexities without the right knowledge and experience, you greatly increase the risk of errors, missed deductions, poor record-keeping and non-compliance with company tax law for your territory.

• The drain on your time – Managing bookkeeping, payroll, day-to-day accounting and tax filings takes a lot of time out of your week. For example, recent stats show that Aussie business owners spend an average of 6 hours and 19 minutes per week on financial administration. If you’re spending a large chunk of your week working on finance admin, that’s time you’re NOT spending on growing the business. As an ambitious owner, you should be concentrating on business development and the other strategic tasks that will push your growth – not doing the books!

• Staying up to date with the regulations – Company tax laws and accounting regulations change frequently. If you’re not on the ball with the latest regulatory changes, there’s every chance that you’ll fail to meet your compliance duties. And, you may also miss out on the latest government incentives and tax reliefs too – financial perks that could well be the key to funding the next stage in your business expansion plans.

• Anxiety about a company audit – going through a company audit from an external auditor can be stressful. Depending on the status of your business, you may well have to comply with the rules for regular auditing. But with no accountant, your record-keeping may be haphazard, making the job more difficult, time-consuming and disruptive.

• A lack of strategic insight – If you’ve never run a business before, it’s likely you’ll lack the awareness of how good financial management drives your strategic insight. The better your accounts, the higher the quality of your finance data, reporting and management information. And this data and reporting can be a goldmine of information when making big strategic decisions, setting budgets and forecasting cashflow etc.

How working with an accountant turns these challenges into business benefits

Having full responsibility for your own business finances is a major drain on your time as an owner and business leader. But the good news is that partnering with an accountant can very quickly lighten this load and get you back to focusing on your business.

By engaging an accountant to take on your financial management, you get:

• The knowledge of an experienced finance professional – when you hire an accountant, you add a financial expert to your team. They’ll help you navigate the complexity of accounting, will keep your records accurate and will make sure you comply with all relevant tax regulations. This minimises errors and maximises your deductions.

• More time to focus on the business – by delegating your bookkeeping, payroll, accounting and tax filings to an accountant, you free up valuable time. This gives you more time in the day to talk to customers, develop growth strategies and build relationships with clients, partners, lenders and investors.

• Stay ahead of the regulatory curve – a professional accountant knows exactly which legislative and regulatory changes are planned and will make sure you’re always ticking the right compliance boxes. They’ll also be aware of any new government tax deductions or funding incentives that may open up extra cash for your business plans.

• Peace of mind when it comes to an audit – with an accountant managing your accounts, you can rest assured that you have the best possible record-keeping, reporting and financial compliance. This is a major bonus when you face an external audit process. Your accountant can even represent you during the audit process, cutting down the potential stress and keeping you focused on running the business.

• Expert strategic guidance – accountants do way more than just crunching numbers. Your accountant will work with you to analyse your financial data, manage your cashflow, identify patterns and trends and provide the valuable insights you need to inform your decision-making. An accountant is a key part of your management and strategic team, helping you drive the success, efficiency and profitability of your business.

Talk to us about outsourcing your financial management

Hiring a great accountant is definitely a better investment in your business than opting for DIY accounting. Instead of getting bogged down in bookkeeping, or going red in the face with record-keeping, just hand over the financial management workload to the experts.

We’re here to lighten the load, sort out your accounts and put you back in complete control of your finances and strategic decision-making.

Get in touch to discuss taking on your accounting tasks.

New Tax Thresholds in 2024 Budget. 

The New Zealand government has unveiled its 2024 Budget with a core election promise delivered regarding tax relief of $2.57b through bracket adjustments.

With an adjustment to income brackets, tax rates remain the same but the thresholds are raised.

The Budget stated that 1.9 million households would benefit from the overall relief package by an average of $30 a week. Households with children would benefit by $39 a week on average.

The Independent Earner Tax Credit is being expanded, with the upper limit for eligibility rising from an income of $48,000 to $70,000, with amounts reducing from $66,000+ instead of $44,000+.

A minimum wage worker could expect about $12.50 a week, while superannuitants would take home just $4.50 a week.

National campaigned on enacting these changes at 1 July, but the start date has been pushed back four weeks after advice from Inland Revenue to allow payroll providers more time.

The in-work tax credit will also go up by up to $25 a week from 31 July. National had campaigned on that kicking in from 1 April. The relief package also includes a childcare payment for low-and-middle-income households as already announced.

New Tax Thresholds

Other key government expenditure items in the budget include:

• $155m on Independent Earner Tax Credit eligibility changes in line with National’s election campaign
  
• $182m on In-Work Working For Families Tax credit by $25 a week, in line with National’s election campaign
• $729m on restoring interest deductibility for residential rental property
• $45m on adjusting the Brightline Test

Tax Planning Helps You Do More With Your Money. 

Tax planning is a strategic approach to managing your business’ financial affairs, with the aim of legally minimising your tax liability. In other words, you plan ahead to make sure you pay the taxes you should be paying, but not a penny more.

Working with your tax adviser, you can look for deductions, credits, exemptions and tax-saving strategies that will help to optimise your company’s overall tax position.

How does tax planning affect your business?

The primary goal of tax planning is to reduce the amount of taxes your business owes. But it’s also about making sure you stay compliant with all the tax laws and regulations applicable to your business.

But what are the main advantages? Let’s take a look at five of the big benefits of careful, strategic tax planning.

By planning your tax across the year, you can:

• Maximise your profits – strategic tax planning helps your company find the best available tax incentives, deductions and credits. This reduces your overall tax liability, cuts your annual tax costs and increases your overall profitability as a business. 

• Boost your cashflow – tax planning is a great way to open up more liquid cash and achieve a better cashflow position for the business. When you cut down the company’s tax payments, that frees up cash and helps you achieve a positive cashflow position. 

• Stay compliant and mitigate your risk – being proactive with your tax planning keeps the company compliant with the relevant tax laws and regulations. It’s a sensible way to tick the compliance boxes and reduce the risk of costly penalties and legal issues.

• Drive your strategic growth – smart use of tax planning helps you reduce your tax costs and reassign those funds to your strategic business goals. It’s a golden opportunity to invest in areas that promote long-term growth and competitiveness.

• Give your business a competitive edge – if managed well, efficient tax planning leads to lower operational costs for the business. This gives you a competitive edge when it comes to pricing, innovation, sales and revenue generation.

How can our firm help you with tax planning?

Getting strategic with your tax planning has many advantages for your financial stability as a business. But to maximise your planning, it’s important to work with an experienced adviser.

As your tax adviser, we’ll help you look ahead across the whole financial year, looking for the opportunities to reduce your tax liability and find the best tax deductions and incentives.

If you’d like to know more about the impact of tax planning, we’ll be happy to explain.

Get in touch to talk about tax planning.

Our Cashflow & Profit Improvement Meeting. 

In business, it’s not enough just to have a healthy profit; profitable businesses can fail due to poor cashflow. We want to help our clients better manage their cashflow.

The first step is to determine your business’s Cash Conversion Cycle. This tells you how long your cash is tied up in your inventory, debtors, and payables. The longer your Cash Conversion Cycle, the less money you have available in your bank account. We’ll then help you identify 1-2 strategies you can implement to shorten your cycle so you have more cash in your bank.

Of course, profit matters too, and increasing your profit can increase your cashflow. By implementing strategies to improve both your cashflow and your profit, you can set your business up for success. 

If you’re unsure of the difference between cashflow and profit and often wonder why there’s not as much money in your bank account as you expected, this meeting should be a priority. 

During the Cashflow & Profit Improvement Meeting, we’ll:

• Calculate your Cash Conversion Cycle
• Determine strategies you can implement to improve your cashflow and profit
• Use our calculators to demonstrate the impact these strategies can have on your cash position and profit
• Identify actions you should take to implement these strategies and achieve your improvement targets

The sooner you attend a Cashflow & Profit Improvement Meeting, the sooner you can start increasing your profit and cashflow and increase the money in your bank account.

By attending a Cashflow & Profit Improvement Meeting, you’ll:

• Understand the difference between cashflow and profit
• Identify the key cashflow drivers and the Cash Conversion Cycle in your business
• Learn how to improve your debtor days, inventory days, and payable days
• Discover the impact small changes can have on your profit and cashflow

Get in touch with us, we look forward to meeting with you to identify the cashflow and profit improvement opportunities in your business.

3 Power Moves Every Smart Business Owner Must Know!

Does it ever feel like your business is running you instead of the other way around? Like your to-do list never ends, your stress is sky-high, and you barely have time for yourself?

Here’s the thing—you didn’t start your business to work more. You started it for freedom. More money, more time, and more flexibility. So, how do you take back control?

There are three simple things every successful business owner uses:

✅ A simple One-Page Business Plan that actually helps.
✅ A smart Money Plan (Financial Forecast) so you always know what’s coming.
✅ A way to stay on track with accountability and regular check-ins.

1. A Business Plan That Works

Forget those huge business plans that no one reads. Yours should be one page, easy to see, and super clear. What do you really want? More money? More free time? A bigger impact? A simple plan helps you focus on what matters most.

2. A Money Plan That Keeps You Safe – Your Financial GPS

Most business owners don’t check their numbers until something goes wrong. That’s like waiting for a rainstorm before checking the weather! A Financial Forecast helps you see problems before they happen—so you can plan ahead and avoid stress.

3. The Game-Changer – Someone to Keep You Accountable

Even the best plan won’t work if you don’t follow through. That’s why every great business owner has someone to check in and help them stay on track. It could be a coach, mentor, or business friend—someone to push you forward and keep you focused.

Think about elite athletes. They all have coaches. Why? Because accountability accelerates progress. You don’t need to do this alone.

Your Business. Your Vision. Your Success.

The truth is, success isn’t about working harder. It’s about working smarter. If you’re ready to take control of your business (and your life), let’s talk. Your business should help you—not hold you back!

Start 2024 Strong: 5 Proven Steps to Help You Shine! 

Cheers to Progress: Reflecting on a Year of Collaboration and Thanks. 

A Year of Gratitude: Thank You for Being Our Pillars of Support

As we approach the culmination of another remarkable year, it’s with immense gratitude that we extend our heartfelt thanks to our esteemed clients and cherished members of our mailing list. Your trust, unwavering support, and collaborative spirit have been the cornerstone of our success.

Client Partnerships: A Testament to Trust

To our valued clients, we express our deepest appreciation for choosing us as your partners on your journey to success. Your confidence in our abilities has fueled our passion to deliver exceptional results. Your unwavering support has not only strengthened our relationship but also guided us in elevating our standards.

Acknowledging Our Community: Thank You for Your Openness

To the wonderful individuals on our mailing list, your willingness to engage with us is truly appreciated. Your enthusiasm and openness to our communications have been a source of inspiration. Your feedback and receptiveness have enabled us to tailor our efforts to better meet your needs.

Strengthening Partnerships and Beyond

As we reflect on the year gone by, we are fueled by a profound commitment to continual improvement. Our journey is not just about achieving milestones; it’s about the meaningful impact we make. We remain steadfast in our dedication to enhancing our services, enriching our relationships, and contributing positively to the communities we serve.

Empowering Growth: Our Commitment

Looking ahead, we are excited about the possibilities that the future holds. Our commitment to innovation, excellence, and your success remains unwavering. We are driven by the desire to not just meet but exceed expectations, to not only assist but empower, and to not merely succeed but inspire positive change.

Office Closure for the Holidays

Please note that our office will be closed for the holidays from Friday, December 22, 2023 to Monday, January 15, 2024. During this time, our team will be taking a well-deserved break to recharge and spend time with loved ones. 

A Shared Journey: Moving Forward Together

In this season of gratitude and reflection, we reaffirm our pledge to you. We are here to listen, to evolve, and to support your aspirations. Together, let’s continue to create meaningful partnerships, nurture growth, and make a difference in our shared communities.

As the year draws to a close, we extend our warmest wishes to you and your loved ones. May this festive season be filled with joy, peace, and moments of togetherness. Thank you for being an integral part of our journey.

With heartfelt gratitude.

Your Team at Business Navigators.