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Paul Martin Chartered Accountant Ltd :: Accounting, Taxation and Business Advisory :: Auckland, New Zealand
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Dealing with uncertainty - tips for business owners

Paul Martin • November 5, 2024

Inflation may be down but there’s still real uncertainty for business owners.

We’ve been trading in challenging times for a number of years now. Knowing what step to take next is a key worry, we know you invest more than simply time and money into your business. It is more than a job but part of your identity.


So, how do you get more clarity for your future plans? And how do you work on the short-term future of the business, when sales, income and cash may be in short supply?


Focusing your efforts in the right places


As a business owner, you can always think of new business-critical issues – but the reality is that you CAN’T control all these elements. This sense of mounting uncertainty is likely to raise your stress levels and make you more anxious. 


So, how do you overcome these worries and find a practical solution? 


Try to focus on the things you can control:


  • Identify the things that matter to the short, medium and long-term success of the business


  • Find the things you can control and over which you have some influence.


It's too overwhelming to try and work on everything at the same time. Instead, try to focus on one major thing you can achieve each day to improve business performance.


Review your overheads and costs – one way to reduce your cashflow worries is to reduce your spending. Look at your controllable overheads and see if there are ways to negotiate better terms with suppliers, cut down on expenses or pause any subscriptions.


Talk to debtors and creditors – if you can bring down your aged debt, that will help your overall financial health. Talk to any late-paying customers and agree when these debts will be paid. And talk to suppliers about extending payment terms, if possible.


Consider alternative revenue streams – if your current business model isn’t working well, are there other services that you could diversify into? Any new revenue streams will help to bolster your income and cash position, working with partners could be a key way to grow your revenue.


Update your website and marketing – having a great online presence is vital, is yours up to date with all the changes we've seen over the last 4 years?


Encourage your team – maintaining motivation and nurturing team spirit is even more crucial in this more rapidly changing world. The more engaged your team is, the easier it will be to embrace change together.


Please contact us to review your current situation and make a plan for dealing with uncertainty in your business.

Are you heading away for a break from the business this year?

By Paul Martin • December 16, 2024
This time of year can be hard on small business. Your expenses continue and your cashflow can suffer when your debtors go on holiday.

How the new Government and coalition agreements might affect owners of residential rental properties

By Paul Martin • December 4, 2023
There were some key takeouts of interest to many of our clients from the recently signed coalition agreements between National, ACT and New Zealand First and the formation of the new Government. In particular there are a number of policies which will likely benefit landlord clients who own residential rentals. I have summarised some of these below. 1. Return of Interest deductibility for residential rental properties Interest deductibility for residential rental property owners will return. It will be phased back in over three tax years: • 2023/24 tax year: 60% of interest cost will be deductible. • 2024/25 tax year: 80% of interest cost will be deductible. • 2025/26 tax year: 100% of interest cost will be deductible. 2. Reduction in bright-line period National signalled in their pre-election campaign that the bright-line period for residential rental property sales would reduce from 10-years to 2-years. While the exact implementation of this policy is not yet known, it is good news on the horizon for residential property investors. 3. Reinstatement of 90-day no-cause termination notices The new government will reinstate 90-day no-cause tenancy termination notices. This will avoid many unnecessary disputes in the Tenancy Tribunal and gives landlords more confidence in letting to possibly “marginal tenants". Many landlords have avoided what they considered to be risky tenants because eviction for anti-social behaviour was so difficult. With this reinstatement, landlords might be more inclined to give a marginal tenant a chance because they know that if the tenant misbehaves, they won’t be stuck with them. If you would like more information on how these changes might affect your personal circumstances, please feel free to contact us to discuss further.

How does provisional tax work, especially in an economic downturn?

By Paul Martin • July 18, 2023
If you had to pay tax of more than $5,000 in your last income tax return, you may have to pay provisional tax for the following year. Provisional tax is like making progress payments on next year's income tax.
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