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We are extremely proud to announce the appointment of Melissa Slattery as a director, effective from 1 April 2025. Melissa will join our leadership team alongside Ed, Jeanette, Darren, and Sharon. Her appointment is a testament to her expertise in agricultural business and reinforces our commitment to providing top-tier service to our clients in the farming sector and the dairy industry in particular. Melissa has a wealth of real-life experience in these areas. She understands the challenges her clients face and has a vested interest in their success. Melissa’s approach goes beyond just looking at numbers; she relates them to the current business environment while maintaining a forward-looking perspective. Her ability to put figures into context with what’s happening today, while focusing on tomorrow, is invaluable. Melissa has clients all over New Zealand, utilising the latest technology to ensure they receive the best service. She works with farmers from the far north to Southland and recently ventured down to Murchison on a Sunday to see clients. This dedication highlights her commitment to providing exceptional service regardless of location. Her colleagues have expressed high regard for her expertise and practical advice. “Melissa brings an extensive knowledge of the dairy and farming business and is best placed to provide practical advice for growth and sustainability,” noted Director Ed Wagstaff. This sentiment captures Melissa’s essence—she offers insightful, growth-oriented advice that drives success for our clients. Melissa is dedicated to helping her team and clients achieve their goals. She enjoys working closely with them to truly understand their businesses and assist in solving problems. Her collaborative approach ensures that she can offer tailored solutions that foster growth and resilience. As she steps into her new role, Melissa is eager to support the firm and its clients in their future growth endeavours. Her passion for helping others and her commitment to excellence align perfectly with our values and mission here at Diprose Miller. Outside of her professional life, Melissa values family time. She loves exploring the great outdoors, discovering new places, and taking the opportunity to unwind and relax. She calls herself an ‘active rester’ as she enjoys chasing a ball—in particular, netball, volleyball, and squash—though currently she is recovering from a knee injury. We are excited to welcome Melissa to our leadership team and are confident that her expertise and dedication will have a significant positive impact on our firm and clients. Melissa’s appointment marks a new chapter for us, and we look forward to the continued growth and success that she will help drive.

Over the last few months, we’ve had a number of clients contacted by scammers pretending to be representing Inland Revenue, usually via email. To be safe, we recommend that our clients never respond directly to requests from Inland Revenue. As your nominated tax agent, we should be the first point of contact for Inland Revenue staff. In most cases, genuine Inland Revenue requests can be dealt with without the client needing to be involved. Often the language used in the email, together with the domain name of the sender, will provide a strong hint that an email is a scam. However, the scam emails are becoming more sophisticated over time and less likely to arouse suspicion. The “golden rule” is easy to remember – refer any Inland Revenue queries and/or requests directly to us.

There are changes to the reporting standards for charities that administrators for charitable entities need to become familiar with. For reporting periods ending on or after 31 March 2025 , the new “Tier 4 (NFP)” standard will be compulsory for annual returns filed with Charities Services. This standard replaces the existing “PBE SFR C (NFP)” standard that currently applies. Both standards apply where cash-based reporting is used. An equivalent change applies to charities required to use accrual (non-cash) based reporting, with a new “Tier 3 (NFP)” applying. The changes are not significant. They simplify the content of the Statement of Service Performance and the Statement of Resources & Commitments and amend the standard reporting categories for receipts and payments for Tier 4 (or income and expenses for Tier 3). Guidelines for the new standards and their application can be found at www.charities.govt.nz/reporting-standards/about . If you’re responsible for annual reporting for a charity, contact us to check how these changes will apply to you.

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, cost control, and investment advice, 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 has its unique challenges and opportunities. One of the most important things you must 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. The benefits of being able to compare your actual results against your original expectations, particularly for a new business, cannot be underestimated. If you're unsure where to start or need help identifying areas for improvement, consider seeking advice from a financial advisor or accountant. They can provide valuable insights and help you develop strategies to manage your expenses more effectively.  Regularly checking your expenses is vital for all small businesses. 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!

In today's constantly changing business environment, it's essential to frequently evaluate if your business model is still effective and relevant. What worked a few years ago might not be suitable today, especially with the rapid changes in technology, consumer behaviour, and market dynamics. Here are some key points to consider when evaluating if your business model is still fit for purpose. Market trends and consumer behaviour The first step in assessing your business model is to understand current market trends and consumer behaviour. Are your products or services still in demand? Have there been significant shifts in your industry that require adaptation? For instance, the rise of e-commerce and digital platforms has transformed how consumers shop and interact with businesses. Staying attuned to these changes can help you identify opportunities and threats. Technological advancements Technology is a major driver of change in the business world. New tools and platforms can enhance efficiency, improve customer experiences, and open up new revenue streams. Evaluate whether your business is leveraging the latest technologies to stay competitive. This might include adopting cloud computing, utilising data analytics, or implementing automation in your operations. Financial performance Reviewing your financial performance is essential to determine if your business model is still viable. Analyse key financial metrics such as revenue growth, profit margins, and cash flow. If you notice a decline in these areas, it might be time to rethink your strategy. Consider whether your pricing model, cost structure, or revenue streams need adjustment to improve profitability. Customer feedback Your customers are a valuable source of insights. Regularly seek feedback to understand their needs, preferences, and pain points. Are they satisfied with your offerings? Do they see value in your products or services? Use this feedback to make informed decisions about potential changes to your business model. Engaging with customers can also foster loyalty and trust. Competitive landscape The competitive landscape can change rapidly, with new entrants and innovations disrupting established markets. Conduct a thorough analysis of your competitors to see how they are adapting and what strategies they are employing. This can provide valuable insights into areas where you might need to innovate or differentiate your offerings. Regulatory environment Changes in regulations and compliance requirements can impact your business model. Stay informed about any legal or regulatory changes that might affect your industry. This could include new environmental standards, data protection laws, or industry-specific regulations. Ensuring compliance can help you avoid legal issues and maintain a positive reputation. Regularly evaluating your business model is essential to ensure it remains fit for purpose in a dynamic and competitive environment. By staying informed about market trends, technological advancements, financial performance, customer feedback, competitive landscape, and regulatory changes, you can make strategic adjustments to keep your business thriving. Adaptability and innovation are key to long-term success.

We’ve recently assisted with ACC claims for a number of clients who are also receiving National Super. During the process ACC clarified the rules around eligibility for “earnings related compensation” for superannuitants. They make interesting reading, so we’ve summarised them below.  If the claimant is injured before they turn 63, they are eligible for weekly compensation payments until they turn 65. If the claimant is injured after they turn 63 but before they turn 65, they are eligible for weekly compensation payments for two years from the date the payments start. If the claimant is injured after they turn 65, they can receive both National Super and weekly compensation payments for two years. After two years, they can only receive the National Super.

When, as a farmer, you receive a higher-than-expected payout, it can have several tax implications:  Increased Taxable Income : A higher payout means an increase in taxable income for the year. This could push you into a higher tax bracket, resulting in a higher overall tax liability. Provisional Tax Adjustments : You may need to adjust your provisional tax payments to reflect the increased income. This helps avoid underpayment penalties and ensures that you are paying the correct amount of tax throughout the year. Income Equalisation Scheme : You can use the Income Equalisation Scheme to smooth out your income over several years. By depositing some of the higher payout into the scheme, you can reduce your taxable income for the current year and withdraw the funds in a less profitable year, potentially lowering your overall tax burden. Deductions and Expenses : You should review your eligible deductions and expenses to ensure you are maximising your tax benefits. This includes costs related to farm development, maintenance, and other operational expenses. Tax Planning : It's essential that you engage in tax planning to manage the impact of higher payouts. Consulting with a tax advisor or accountant can help you develop strategies to minimise your tax liability and make the most of your increased income. Overall, a higher-than-expected payout can provide you with greater financial security and opportunities for growth and development. By planning and managing your finances effectively, you can make the most of this positive outcome.

Navigating the world of provisional tax can be daunting, but understanding the basics can help you manage your tax obligations more effectively. We provide some essential information on how provisional tax works and offer tips to avoid common pitfalls. What is provisional tax? Provisional tax is a way of paying your income tax in instalments throughout the year, rather than in a lump sum at the end of the year. This helps spread the tax load and avoid a large end-of-year tax bill. You are required to pay provisional tax if your residual income tax (RIT) from the previous year is more than $5,000. How does provisional tax work? Provisional tax is not a separate tax; it is part of your income tax. You pay it in instalments based on your estimated income for the current year. There are several methods to calculate your provisional tax: Standard Option : This method uses your previous year's RIT plus 5%. It is straightforward and works well if your income is steady or increasing. Estimation Option : Here, you estimate your income for the current year and calculate the tax based on that estimate. This option is useful if you expect your income to decrease. Ratio Option : This method is available if you are registered for GST and file returns monthly or two-monthly. It calculates provisional tax based on a ratio of your GST turnover. Accounting Income Method (AIM) : This option is suitable for small businesses using accounting software. It calculates provisional tax based on your actual income and expenses throughout the year. Payment dates The due dates for provisional tax payments depend on the method you choose and your balance date. Generally, payments are made in three instalments: 28 August, 15 January, and 7 May. For non-March balance date taxpayers, the payment dates are different. If you use the ratio option, you will make six instalments throughout the year. Avoiding common pitfalls Below are some of the common pitfalls that we see, and how to avoid them. Underestimating income : If you underestimate your income and underpay your provisional tax, you may be charged interest and penalties. It's important to make accurate estimates and adjust them if your income changes. Missing payment deadlines : Missing payment deadlines can result in interest charges and penalties. Set reminders and ensure you make payments on time. Ignoring changes in income : If your income fluctuates, consider using the AIM or ratio option to ensure your provisional tax payments reflect your actual income. Penalties and interest Inland Revenue (IRD) will charge interest on late or underpaid provisional tax. The interest charge is not a penalty, but a charge for the use of money, and is tax-deductible. Additionally, penalties may apply for late payments or underestimating your income. It's crucial to stay on top of your payments and make accurate estimates to avoid these charges. By making accurate estimates, keeping detailed records, and staying on top of payment deadlines, you can avoid common pitfalls and ensure a smooth tax experience. For more information reach out to us – we’re here to help.

One of our clients also tells us how our advisory services help him and his business.  At Diprose Miller, we offer advisory accounting services that go beyond traditional accounting tasks like bookkeeping and tax preparation. Advisory accounting involves providing strategic advice and insights to help businesses grow, improve efficiency, and achieve their financial goals. Our advisory accountants work closely with clients to understand their unique challenges and opportunities, offering tailored solutions in various areas. Our advisory accounting services include: Financial GPS: We help businesses identify their long-term goals and provide a roadmap to achieve them. We offer regular updates and guidance to keep clients on track and ensure they reach their objectives. Business Strategy: We support business growth and profitability by working with clients to identify growth opportunities, develop strategic plans, and implement effective solutions. Smarter Farming: We specialise in helping farming and agricultural clients improve their performance and prepare for the future. Our tailored advice and solutions address the unique challenges faced by the agricultural sector. Cash Flow Management: We assist businesses in managing their cash flow to ensure they have the necessary funds to operate and grow. Performance Improvement: We identify areas for improvement and implement strategies to enhance business performance and profitability. Risk Management: We advise on risk mitigation strategies to protect the business from potential threats. By leveraging our expertise and experience, and by using the latest software and technology, we aim to support our clients in achieving their business objectives and navigating the complexities of the financial landscape. At Diprose Miller, we are committed to delivering exceptional advisory accounting services that drive success and growth for our clients. But don’t just take our word for it, see what our client, Pete Norris, Financial Advisor at Keystone Wealth, has to say about our services: We have been referring our clients to, and working with, Diprose Miller on our clients’ behalf for the last 3 or 4 years. Ed and his team have been providing fantastic service and just “made it easy”, which is high on my priority list, especially when they also “get it right first time”. I switched my business accounting to Diprose Miller when my previous accountant retired a couple of years ago. Switching accountants had been on my to-do list for several years but it always seemed like a low priority/high workload task. In reality, it was the opposite and I should have done it five years earlier! Ed has been brilliant to work with. Nothing is too difficult, and he is happy to source external information when required for those more complex situations (and some of mine get complex!). The whole team at Diprose Miller work cohesively, are responsive, and are helpful. They make it easy, which is exactly what I want and what I need. Ed and Diprose Miller handle the end-of-year accounts for many of our investment clients. They manage our accounts and GST for our Investment and Retirement Advice business, Keystone Wealth. They provided the structure and establishment advice, and manage the ongoing accounts, for my investment property company. They are providing advice (GST, currency, Xero, structure etc) and will assist me with establishing the right structure and ongoing accounting as we branch out into invoicing Australian suppliers for our investment education for Advisers programme that we are establishing. They will shortly be providing structure and accounting advice as we commence providing our investment portfolios to other investment advisers. They removed a massive barrier that used to exist in my planning stages of business growth. Now I just fire through my thinking and some questions and Ed calls me with what I need to know. It’s perfect! Pete Norris If you require any advice or help with your business, whatever type it may be, please give us a call or drop in to see us at the office.

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.

One of the areas that we are qualified to provide advice on, is forestry and transport. The forestry and transport industries are among the most demanding industries that can bring high rewards but are also fraught with high risk. What makes our team exceptional specialists in this area is our complete knowledge and experience of the forestry sector. In a commodity-based industry we recognise that you must be quick to adjust to economic changes. Contractors, transport operators, and forest owners must stay current with management issues, pricing, investment analysis, and project evaluations including land use, crop types, and most typically, advice on the Emissions Trading Scheme. Planning ahead, mitigating risk, and asset protection, is critical. With our key experience in the industry, we can help you with all aspects of forestry and transport, and this is just the start – we have a qualified team who can then ensure that all those other specialist areas that you may need, like succession planning and property matters, are incorporated into your business solutions. We start with great financials and tax planning, so that we can create the best decision-making process on rates, cash flows, budgets, and funding. We will protect your assets, and when the going is good, we help you diversify your opportunities outside of the forestry and transport industry. We think ahead by looking at what volume of work is coming online, what is current and projected in the world markets, and what challenges are coming up with mechanisation and technology.

Your transport business is going well - now what?