You think that handling your accounts yourself will save you money, especially if your business seems straightforward, right? Wrong! In today's complicated financial world, having a good accountant is essential for businesses and individuals. Accountants do more than just handle numbers; they offer valuable advice and strategies that can save you a lot of money. Here's how your accountant can help you save: Tax efficiency: Accountants save you money by making sure you use all available tax deductions and credits. They understand New Zealand's tax laws and stay updated on any changes. By preparing your tax returns accurately and planning ahead, accountants help you pay less tax and avoid expensive penalties. Financial planning and budgeting: Accountants help you make detailed financial plans and budgets. They set realistic financial goals and create strategies to reach them. By tracking your income and expenses, accountants find ways to cut costs and improve your financial health. Good budgeting prevents overspending and ensures you have enough money for future investments or emergencies. Cash flow management: Managing cash flow is absolutely vital for any business's survival and growth. Accountants help you keep track of your cash flow, making sure you have enough money to meet your needs. They can predict future cash flow needs and suggest ways to improve your cash reserves. This proactive approach can prevent cash shortages and reduce the need for costly short-term loans. Cost control: Accountants look at your financial statements to find ways to cut costs. They can spot inefficiencies and suggest ways to save money, like renegotiating supplier contracts or streamlining operations. By closely monitoring your expenses, accountants help you stay profitable and avoid unnecessary spending. Compliance and risk management: Following financial regulations is essential to avoid fines and legal problems. Accountants make sure your financial practices follow the latest laws and standards. They also help you manage financial risks by spotting potential threats and creating strategies to deal with them. This proactive approach can save you money by preventing expensive compliance issues and financial losses. Business growth and expansion: For businesses wanting to grow, accountants are key in planning and carrying out expansion strategies. They help you see if new projects are financially possible, secure funding, and manage the money side of growing your business. By giving insights into market trends and financial performance, accountants help you make smart decisions that boost growth and profits. Accountants are more than just number crunchers; they are strategic partners who help you save money and reach your financial goals. They offer expertise in tax efficiency, financial planning and cost control, leading to significant savings and better financial health. Whether you're an individual or a business, having a skilled accountant is an investment that pays off in the long run.

Running a small business, being a sole trader, or working as a contractor has its own challenges and opportunities. One of the most important things to do is to keep a close eye on your expenses. Regularly checking your expenses can help you find ways to save money, work more efficiently, and increase your profits. So, what are some of the key points you should consider when reviewing your expenses. The first step is to track every dollar that goes in and out of your business. Use accounting software or a reliable bookkeeping system to record all transactions. This will give you a clear picture of your financial situation and help you spot any unnecessary or excessive spending. Organise your expenses into categories like rent, utilities, salaries, marketing, and supplies. This makes it easier to see where your money is going and identify areas where you might be overspending. By categorising your expenses, you can also compare your spending against industry benchmarks and make better decisions. Fixed costs, like rent and salaries, stay the same no matter how much business you do. Variable costs, like supplies, change with your level of production or sales. Analysing both types of costs can help you understand your cost structure and find ways to save money. For example, you might be able to negotiate lower rent or find cheaper suppliers. Many businesses subscribe to services and memberships that may no longer be necessary or beneficial. Review all your subscriptions and memberships regularly to make sure you are getting value for your money. Cancel any that are not essential or that you can replace with cheaper alternatives. Take the time to review your contracts with suppliers and service providers. Are you getting the best rates? Can you negotiate better terms or find alternative suppliers with more competitive pricing? Building strong relationships with your suppliers can also lead to discounts and better service. Utility costs, like electricity, water, and internet, can add up quickly. Look for ways to reduce these expenses by using energy-saving measures, like energy-efficient lighting and equipment. You can also shop around for better deals from utility providers or consider bundling services to save money. Salaries and wages are often one of the largest expenses for small businesses. While it's important to pay your employees fairly, there are ways to manage these costs effectively. Consider offering flexible work arrangements, like remote work or part-time positions, to reduce overhead costs. Investing in employee training and development can also improve productivity and reduce turnover, saving you money in the long run. Creating and sticking to a budget is essential for controlling your expenses. A budget helps you plan for future expenses, set financial goals, and monitor your progress. Regularly review your budget and adjust it as needed to reflect changes in your business environment. If you're unsure where to start or need help identifying areas for improvement, consider seeking advice from a financial advisor or accountant. We can provide valuable insights and help you develop strategies to manage your expenses more effectively. Regularly checking your expenses is vital for small businesses, sole traders, and contractors. By tracking every dollar, categorising expenses, analysing costs, and seeking professional advice, you can find ways to save money and improve your financial health. Remember, every little bit helps in building a successful and sustainable business!

Colour to Win

As summer approaches, businesses need to manage cash flow while getting ready for the Christmas break. Here are some tips to help your business stay cash liquid and help you enjoy the holiday season.

Managing staff isn’t just about what happens at work; it’s also about managing holidays. As an employer, you’re responsible for keeping accurate, up-to-date records about much-deserved time off.

In our latest round of Community Fund applications, we’re pleased to announce the successful recipients were: Valley Cricket Kiwanis Club of Morrinsville Positively Morrinsville Radio Auckland / Hauraki Dairy Industry Awards Living Well Trust Turua’s Event Committee A huge congratulations to you all! Just a reminder that our Diprose Miller Community Fund assists with funding for projects and events carried out by not-for-profit organisations and individuals in our local area. We want to support those people working to make our communities a better place to live. The fund aims to provide financial support towards ongoing operating costs and/or projects which help the people in our community. Key outcomes of our fund are to ensure that: our community wellbeing is protected; we’re supporting our community and cultural identity, and we’re helping people feel that they belong and can take part in the community. If you know a local organisation that could benefit from some funding support, our next round of funding closes at the end of December 2024. Click here for the full details.

Hubdoc is a data capture tool which extracts key data from documents, then creates transactions in Xero. You can: email bills and receipts straight into your Hubdoc organisation, and use the mobile app to upload a photo. As soon as Hubdoc receives a document, it extracts the key data such as contact, date, and amount. When you publish the document, Xero creates the invoice, bill, credit note, or spend money transaction with a copy of the document attached. You can set up Hubdoc to automate every step, so all you need to do is reconcile the transaction against your bank statement line in Xero. This is particularly useful if you get regular bills from the same supplier. Hubdoc also stores documents, so you don't need to keep paper copies of bills and receipts. You can organise the documents in Hubdoc using tags and folders or send them to another cloud storage system your business might use, such as BILL or Dropbox. Like Xero, you can invite the team at Diprose Miller into your Hubdoc organisation, so that we can support you at any time if needed. Using Hubdoc and Xero together If your Xero organisation is on a business edition pricing plan, Hubdoc is included in your Xero subscription. If your Xero organisation is on a partner edition pricing plan, you can still connect it to Hubdoc, but Hubdoc isn’t included in Xero so you're billed separately by Hubdoc . Hubdoc and Xero connect on a one-to-one basis, so if you have multiple Hubdoc organisations, you need to connect each one to a separate Xero organisation. Within Xero you can create a new Hubdoc organisation, or connect your existing one. Hubdoc offers a trial of 30 days, if you are interested in signing up, contact us and we can start the ball rolling for you.

The manufacturing industry is a cornerstone of New Zealand's economy, providing jobs and supporting economic growth. However, managing payroll and HR issues in this sector can be complex. From compliance with employment laws to maintaining staff morale and retention, manufacturing businesses face numerous challenges. We share some important tips to help navigate payroll and HR issues in New Zealand’s manufacturing industry. 1. Ensure Compliance with Employment Laws Manufacturing employers must comply with a range of employment laws. We have robust legislation around minimum wage, leave entitlements, working hours, and health and safety. The key pieces of legislation include the Employment Relations Act 2000, the Holidays Act 2003, and the Health and Safety at Work Act 2015. Tip: Regularly review your employment agreements and payroll practices to ensure they align with legal requirements. Payroll errors related to leave calculations can result in significant fines and legal penalties, which could impact your business’s reputation and finances. Leave entitlements are a particularly sensitive area. The manufacturing industry often involves shift work, which can lead to complex calculations for sick leave, annual leave, and public holiday pay. Use payroll systems that automate these calculations to reduce your risk of human error. 2. Accurate Payroll Management Managing payroll in the manufacturing sector can be challenging due to shift work, overtime, and varying pay rates. A reliable payroll system is crucial for keeping track of hours worked, ensuring employees are paid accurately, and staying compliant with tax obligations. Tip: Implement a modern payroll software system that integrates time and attendance tracking, employee records, and wage calculations. This helps streamline payroll processes and avoid common pitfalls such as underpayments or miscalculated leave payments. Accurate tracking of time, including for break periods, is also vital to ensure you comply with all employment standards. Also, ensure that the payroll team is well-versed in calculating allowances, shift differentials, and penal rates that are common in the manufacturing industry. Mismanagement of payroll can lead to wage disputes and affect employee morale. 3. Prioritise Health and Safety The manufacturing industry is inherently high-risk due to the presence of heavy machinery, hazardous materials, and complex processes. This makes the management of health and safety compliance a top HR priority. Failing to provide a safe working environment not only puts employees at risk but can also lead to legal and financial repercussions. Tip: Develop comprehensive health and safety policies and ensure regular training for all employees. Create a culture where workers feel comfortable reporting hazards or concerns, and act on these reports promptly. Keeping proper records of incidents, accidents, and safety training is critical, as WorkSafe New Zealand often audits workplaces to ensure compliance with safety standards. 4. Effective Workforce Planning and Retention The manufacturing industry faces workforce retention challenges, particularly in securing skilled labour. A high turnover rate can lead to productivity losses and increased recruitment costs. Additionally, the need for skilled workers, combined with rapid technological advancements, can make recruitment difficult. Tip: Implement a strong workforce planning strategy that focuses on both recruitment and retention. Consider offering competitive wages and benefits, training and development opportunities, and fostering a positive workplace culture. Engaging employees through upskilling and career progression programmes can also improve retention and reduce turnover rates. Investing in diversity and inclusion initiatives can also help attract a broader talent pool, improve workplace culture, and boost overall productivity. A diverse workforce brings different perspectives, which can lead to innovative problem-solving and higher employee engagement. 5. Navigating Union Relations Many manufacturing employees are union members, which can add an extra layer of complexity to managing HR issues. Strong union relationships can improve communication, resolve disputes quickly, and ensure fair treatment of workers. However, poorly managed union interactions can lead to disputes, strikes, and a breakdown in workplace relations. Tip: Foster open communication with unions and involve them in key decision-making processes that impact workers. Transparency and collaboration are essential in maintaining a positive working relationship. Regularly consult with union representatives on changes to working conditions, pay structures, or health and safety practices. It’s also essential to understand your legal obligations when dealing with unions, particularly around collective bargaining and employee rights. 6. Managing Employee Well-being Manufacturing environments can be physically and mentally demanding. Managing employee well-being is critical to maintaining a productive workforce. High-stress environments, long working hours, and physical strain can lead to burnout and absenteeism. Tip: Promote employee well-being through mental health initiatives, flexible working arrangements, and clear communication channels. Providing access to mental health support services and encouraging work-life balance can help reduce burnout. Recognising employee contributions and providing opportunities for growth and development also improve overall morale.  Conclusion Effective payroll and HR management is essential to the smooth operation of your manufacturing business. By ensuring compliance with employment laws, implementing accurate payroll systems, prioritising health and safety, and focusing on workforce retention, you can navigate many of the common challenges in the industry. Moreover, fostering strong union relations and prioritising employee well-being will ensure long-term success in maintaining a motivated and productive workforce.

The decision to own or lease equipment is a significant one for businesses in the transport and manufacturing industries. Each option has its own set of advantages and disadvantages, and the best choice often depends on the specific needs and circumstances of the business. We explore some of the key considerations for both ownership and leasing, to help you make an informed decision. Ownership of Equipment Advantages: Long-term cost savings: Owning equipment can be more cost-effective in the long run. Once the initial purchase cost is covered, the ongoing expenses are generally lower compared to leasing. This can lead to significant savings over time. Asset value: Owned equipment is a tangible asset that can be used as collateral for loans or sold if necessary. This can provide financial flexibility and security for your business. Tax benefits: Ownership can offer tax advantages, such as depreciation deductions, which can reduce taxable income. Control and customisation: Owning equipment allows for greater control over its use and maintenance. You can customise the equipment to better suit your specific needs without restrictions imposed by leasing agreements. Disadvantages: High initial costs: The upfront cost of purchasing equipment can be substantial, which may strain your business’s finances. Maintenance and repairs: You, as the owner, are responsible for all maintenance and repair costs, which can be unpredictable and expensive. Depreciation: Equipment depreciates over time, which can reduce its resale value and the overall return on investment. Leasing of Equipment Advantages: Lower upfront costs: Leasing requires a lower initial investment compared to purchasing, which can be beneficial if your business has limited capital. Access to latest technology: Leasing allows businesses to upgrade to newer, more advanced equipment more frequently, ensuring you have access to the latest technology. Predictable expenses: Lease agreements typically include maintenance and repair services, providing predictable monthly expenses and reducing the risk of unexpected costs. Flexibility: Leasing offers flexibility, allowing your business to adjust its equipment needs based on changing demands without the long-term commitment of ownership. Disadvantages: Higher long-term costs: Over time, leasing can be more expensive than owning due to ongoing lease payments. No asset ownership: At the end of the lease term, your business does not own the equipment and must either return it or negotiate a new lease. Usage restrictions: Lease agreements may impose restrictions on how the equipment can be used, which can limit operational flexibility. Considerations for the Transport Industry In the transport industry, the decision to own or lease equipment often hinges on the nature of the business and its financial health. For instance, if you are a large transport company with stable cash flow you might prefer owning your fleet to capitalise on long-term savings and asset value. Conversely, if you are a smaller company or a startup you might opt for leasing to minimise initial costs and maintain financial flexibility. Considerations for the Manufacturing Industry  For manufacturers, the choice between owning and leasing equipment can significantly impact your operations. Owning equipment can be advantageous for long-term manufacturing operations that require specific machinery tailored to your needs. However, leasing can be beneficial if you need to manage cash flow carefully or want to access the latest technology without the burden of high upfront costs. Ultimately, the decision to own or lease equipment depends on various factors, including financial stability, operational needs, and long-term business goals. By carefully weighing the pros and cons of each option, businesses can make informed decisions that best support their growth and sustainability.