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Reshaping Our Future

admin@intrepidbeancounter.com (Marcus Wolfgram) — Tue, 18 Mar 2025 13:34:08 GMT

n today's rapidly evolving business landscape, technological disruption and digital transformation have become more than just buzzwords—they represent fundamental shifts in how organizations operate, compete, and deliver value. As we navigate through 2025, these forces continue to reshape industries at an unprecedented pace.

Digital transformation refers to the integration of digital technology into all areas of business, fundamentally changing operations and value delivery. Meanwhile, technological disruption describes how emerging technologies can render existing business models obsolete, creating new markets and value networks.

The intersection of these two phenomena is where the most significant changes occur. Companies that embrace digital transformation proactively can become disruptors themselves, while those that resist change risk becoming obsolete.

Key areas where we're seeing profound impacts include:

Artificial Intelligence and Machine Learning : From predictive analytics to autonomous systems, AI is revolutionizing decision-making processes and automation capabilities.
Cloud Computing and Edge Technologies : The shift from on-premises infrastructure to cloud-based solutions has democratized access to computing resources.
Internet of Things (IoT) : Connected devices are generating unprecedented amounts of data, enabling new business models and operational efficiencies.
Blockchain and Decentralized Systems : These technologies are reimagining trust mechanisms in transactions and record-keeping.

For organizations looking to thrive in this environment, digital transformation isn't optional—it's imperative. The most successful companies approach transformation holistically, considering not just technology implementation but also organizational culture, talent development, and business model innovation.

As we look toward the future, the pace of technological disruption shows no signs of slowing. The organizations that will succeed will be those that can adapt quickly, innovate continuously, and harness emerging technologies to create new value for their customers.

Cash is King

admin@intrepidbeancounter.com (Marcus Wolfgram) — Sun, 17 Nov 2024 06:29:05 GMT

Mastering Cash Flow: The Lifeblood of Your Business

Cash flow isn’t just an accounting term—it's the heartbeat of your business. Whether you're a startup or a growing enterprise, managing cash flow effectively can make or break your success.

Here are a few key strategies to ensure healthy cash flow:

Understand Your Cash Flow Cycle: Know when money comes in and goes out. Having a clear picture of your inflows and outflows helps you predict potential gaps and avoid surprises.
Prioritize Your Receivables: Timely collections are crucial. Set clear terms and follow up with customers promptly. A solid receivables process can significantly improve cash flow.
Cut Unnecessary Expenses: Regularly review your spending. Are there areas you can streamline or eliminate? Every dollar saved adds to your cash reserves.
Build a Cash Cushion: It's always wise to keep a buffer for unexpected expenses. Having this cushion can help you ride out lean months.
Monitor, Adjust, and Plan Ahead: Cash flow isn’t static. Keep a close eye on it, adjust your strategies when needed, and plan ahead for both growth and downturns.

A steady, positive cash flow allows you to reinvest in your business, pay bills on time, and scale with confidence.

Support for Business Growth?

admin@intrepidbeancounter.com (Marcus Wolfgram) — Sun, 28 Jan 2024 00:52:47 GMT

Business growth is a multifaceted challenge. Whether you're a startup or an established company, understanding the type of support you need is crucial in navigating the journey of expansion and success. This blog explores various avenues of support that can fuel your business's growth.

1. Strategic Planning and Consulting

Overview : Strategic planning is the backbone of any successful business. It involves setting objectives, identifying opportunities, and creating a roadmap for growth.
Why It's Important : Proper guidance in strategic planning can help you avoid common pitfalls and align your resources effectively.

2. Marketing and Branding Expertise

Overview : Effective marketing and branding are essential for standing out in today's competitive market.
Benefits : Professional marketing support can increase your brand's visibility, enhance customer engagement, and drive sales.

3. Financial Management and Funding Solutions

Overview : Financial health is key to a business's sustainability and growth.
Key Aspects : Expertise in financial management can assist in budgeting, cost analysis, and identifying funding options like loans or investors.

4. Enhancing Operational Efficiency

Focus : Operational efficiency involves optimizing your business processes to reduce costs and increase productivity.
Impact : Streamlining operations can lead to significant cost savings and improved customer experiences.

5. Technology and Innovation

Role in Growth : Technology drives innovation and efficiency.
Advantages : Integrating the latest tech solutions can automate processes, improve data analytics, and open new avenues for business models.

Conclusion:
The path to business growth is diverse and requires a multifaceted approach. Identifying the right kind of support is essential in ensuring that your growth journey is effective and sustainable. Are you looking to grow your business but unsure which area you need support in? Contact us to discuss how we can assist in your growth journey, providing tailored solutions to meet your specific needs.

Do you struggle with liquidity management? Unlock these strategies!

admin@intrepidbeancounter.com (Marcus Wolfgram) — Sun, 10 Dec 2023 08:40:42 GMT

In the ever-evolving landscape of business, liquidity management remains a cornerstone of a successful financial strategy. Whether you're a startup, a growing business, or an established corporation, understanding and effectively managing your liquidity is crucial. Struggling with liquidity management? You're not alone. This blog unveils strategies to help you unlock the potential of efficient liquidity management.

What is Liquidity Management?

Liquidity management refers to how a company manages its cash flow and other liquid assets to meet its immediate and short-term obligations. Simply put, it’s about having enough cash on hand to keep the business running smoothly without compromising on long-term goals.

Key Strategies for Effective Liquidity Management

1.Cash Flow Forecasting :

Anticipate your cash needs by forecasting your cash flow. This helps in making informed decisions about paying debts, investing, or holding cash reserves.

2. Maintaining a Cash Reserve :

Always keep a buffer of cash. It acts as a safety net during unexpected market downturns or slow business periods.

3.Efficient Inventory Management :

Too much inventory ties up your liquid assets. Optimizing inventory levels ensures that you have enough to meet demand without over-investing in stock.

4.Debt Management :

Balance your use of debt. While some debt is necessary for growth, too much can strain your liquidity.

5.Diversifying Revenue Streams :

Diversifying your income sources can provide a more stable cash flow, reducing the reliance on a single revenue stream.

6.Negotiating with Suppliers and Customers :

Work out favorable payment terms with suppliers and customers. This might include extended payment terms with suppliers or encouraging early payments from customers.

7.Utilizing Technology and Tools :

Implement technology solutions for better visibility and control over your finances. Tools for automating invoicing, payments, and tracking can greatly enhance liquidity management.

The Importance of Professional Guidance

While these strategies offer a starting point, each business's situation is unique. Professional guidance tailored to your specific circumstances can make a significant difference.

Conclusion

Effective liquidity management is not just about surviving; it’s about thriving. It enables your business to seize opportunities and weather economic storms. If you're struggling with liquidity management or seeking to refine your strategies, contact us for personalized assistance. Our expertise can help unlock the potential of your business's financial health.

Smart Spending: Key to Business Financial Success

admin@intrepidbeancounter.com (Marcus Wolfgram) — Sun, 03 Dec 2023 06:08:56 GMT

Introduction:

Navigating the financial aspects of a business requires a different approach compared to personal finance. For many, personal spending is often influenced by emotions and personal preferences. However, in business, financial decisions must be based on rationality and strategic thinking.

Emotion vs. Rationality in Business Finances

Personal relationships with money are often complex and emotionally charged. In business, however, it's crucial to adopt a more detached and objective mindset. The key to effective financial management lies in making decisions that are not swayed by emotions but driven by practicality and foresight.

Two Critical Questions for Every Business Expenditure

Before making any business purchase, whether it’s hiring new staff, acquiring office equipment, or investing in software, ask two fundamental questions: Will this make money for the business, or will it save money? If the answer is affirmative, it's a green light for the investment. Otherwise, it's worth taking a step back to reconsider.

The Value of Being a Frugal Business Owner

Embracing frugality in business doesn’t mean being stingy; it's about being smart and value conscious. This approach sends a clear message to vendors and partners that your business prioritizes value and efficiency. It sets a standard that only the most confident and value-driven pitches will get your attention.

Limiting Non-Essential Spending for Long-Term Benefits

Limiting spending to essentials may seem challenging, but it's beneficial for long-term business growth. The resources saved from avoiding unnecessary expenditures can be redirected to areas that align with your business goals and vision, amplifying your firm's growth and success potential.

Conclusion:

Shifting from an emotional to a rational approach in business finance isn't just about saving money—it's about fostering a culture of strategic and thoughtful spending. It's an essential skill for any business owner looking to navigate the complexities of financial management and steer their business towards a prosperous future.

Remember, every dollar saved on non-essentials is a dollar that can be invested in what truly matters for the growth and success of your business.

3 Key Strategies for Enhancing Your Business's Financial Health

admin@intrepidbeancounter.com (Marcus Wolfgram) — Thu, 23 Nov 2023 12:43:05 GMT

Introduction:

In the complex and dynamic realm of business, maintaining robust financial health is not just an objective but a necessity for sustained success. Whether you’re steering a startup or managing a well-established enterprise, the principles of sound financial management remain fundamental. Here, we explore three critical strategies that can significantly enhance your business's financial health.

1. Streamlining Cash Flow Management

Cash flow is the lifeblood of any business. Effective management of cash flow involves not just tracking the money coming in and going out but also forecasting future financial needs.

Key Takeaways:

Conduct regular reviews of your income and expenses.
Utilize cash flow forecasting tools to anticipate future needs.
Implement measures to ensure timely receivables and manage payables efficiently.

2. Optimizing Profit Margins

Profit margins are a clear indicator of your business’s financial health. They reflect not only your pricing strategy but also how efficiently you manage your costs.

Key Takeaways:

Analyze which products or services offer the best profitability.
Continuously seek ways to reduce costs without sacrificing quality.
Explore strategies to increase the perceived value of your offerings, allowing for better pricing.

3. Managing Debt and Equity Balance

A sound debt-to-equity ratio is crucial for the financial stability of your business. It’s essential to strike a balance where you leverage debt to fuel growth while not overburdening your business with repayments.

Key Takeaways:

Regularly assess your debt levels to ensure they align with your business’s capacity.
Consider the cost of capital when evaluating financing options.
Maintain a healthy balance between internal funding (equity) and external borrowing (debt).

Conclusion:

Implementing these strategies requires a combination of keen insight, disciplined financial practices, and an adaptive approach. By focusing on streamlining cash flow, optimizing profit margins, and balancing debt and equity, you can significantly enhance your business’s financial health and position it for long-term success. Remember, the goal is not just to survive the economic ebbs and flows but to thrive and grow in an ever-changing business landscape.

Call to Action:

Looking to improve your business’s financial health but unsure where to start? Contact us for personalized advice and strategies tailored to your business's unique needs and goals.

Embracing Financial Agility: The Key to Thriving in Today's Dynamic Business Environment

admin@intrepidbeancounter.com (Marcus Wolfgram) — Fri, 17 Nov 2023 05:17:10 GMT

Introduction:

In an era of unprecedented change, businesses face a landscape that's constantly evolving. Market dynamics shift in the blink of an eye, technological advancements redefine strategies, and global economic fluctuations demand a new level of adaptability. In this context, financial agility has emerged as a crucial attribute for any business aiming to not just survive but thrive.

What is Financial Agility?

Financial agility refers to a company's ability to be nimble and responsive in its financial decision-making. It's about quickly adapting to market changes, efficiently managing resources, and proactively planning for future financial scenarios. In essence, it’s the art of staying ahead of the curve in financial management.

Why Financial Agility Matters Now More Than Ever:

Rapid Market Changes : The pace at which market conditions change today is faster than ever. Financial agility allows businesses to pivot quickly in response to these changes, ensuring they remain competitive and relevant.
Technological Innovations : With new technologies emerging at a breakneck pace, companies must adapt their financial strategies to leverage these tools effectively and stay on the cutting edge.
Global Economic Interdependencies : In today's interconnected world, events in one part of the globe can significantly impact markets elsewhere. Financial agility enables businesses to navigate these complexities and mitigate potential risks.

Key Components of Financial Agility:

Adaptive Financial Planning : Embracing a flexible approach to financial planning, allowing for quick shifts in strategy in response to market dynamics.
Efficient Resource Allocation : Utilizing resources in the most effective way, ensuring that every investment and expenditure drives value.
Proactive Risk Management : Anticipating potential financial risks and having contingency plans in place to address them swiftly.

How to Cultivate Financial Agility in Your Business:

Embrace Technology : Implement financial management tools and analytics to make faster, data-driven decisions.
Foster a Culture of Agility : Encourage a mindset of flexibility and adaptability within your team.
Continuous Learning and Adaptation : Stay informed about market trends and be prepared to adapt your business model accordingly.

Conclusion:

Financial agility is no longer just a desirable attribute; it's a necessity in today's fast-paced and ever-changing business world. By fostering this agility, businesses can ensure they're not only keeping up with the pace of change but are also positioned to capitalize on new opportunities as they arise.

Mastering the art of cashflows

admin@intrepidbeancounter.com (Marcus Wolfgram) — Wed, 30 Aug 2023 04:13:48 GMT

Welcome to our comprehensive guide on cash flows! Whether you're a business owner, an investor, or simply someone interested in understanding the financial health of a company, mastering the concept of cash flows is essential. In this blog, we'll break down the intricacies of cash flows, why they matter, and how you can use them to make informed decisions. So, let's dive right in!

Understanding Cash Flows:

Cash flows refer to the movement of money in and out of a business over a specific period. They are a vital indicator of a company's financial health and sustainability. Cash flows are divided into three main categories:

Operating Cash Flow (OCF): This represents the cash generated or used by a company's core business operations. It includes cash received from customers and cash paid to suppliers, employees, and for operating expenses.
Investing Cash Flow: This involves cash flows related to buying or selling long-term assets, such as property, equipment, or investments in other companies. Positive investing cash flows indicate the company is investing in its future growth.
Financing Cash Flow: This category includes cash flows resulting from activities involving the company's owners and creditors. It includes issuing or repurchasing stock, borrowing, and repaying loans. Financing cash flows indicate how a company is funded and how it returns value to its stakeholders.

Why Cash Flows Matter:

Understanding cash flows provides valuable insights into a company's financial health:

Liquidity Assessment: Positive cash flow indicates that a company has enough liquid assets to cover its short-term obligations, making it more likely to weather financial downturns.
Profit vs. Cash Flow: A company can show a profit on paper but still face cash flow issues if customers haven't paid their invoices. Cash flow analysis helps bridge the gap between reported profits and actual cash availability.
Investment Decisions: Investors use cash flow data to evaluate the potential return on investment. Positive cash flows may signify a company's ability to generate returns for its investors.

Using Cash Flows Wisely:

Here's how you can make the most of cash flow information:

Cash Flow Forecasting: Predict future cash flows based on historical data and expected changes. This helps businesses plan for expansion, manage debts, and allocate resources efficiently.
Identify Trends: Analyze cash flow statements over time to spot trends. Consistently negative operating cash flows may indicate underlying issues that need attention.
Debt Management: Positive cash flows are crucial for repaying debts. Monitoring cash flows allows you to strategize debt repayment schedules.
Investment Strategy: Investors use cash flow analysis to decide where to invest. Companies with strong positive cash flows might be better positioned for growth.

Cash flows are the lifeblood of any business, revealing its financial vitality and sustainability. Mastering the art of cash flows empowers you to make informed decisions whether you're a business owner, investor, or simply curious about a company's financial standing. By understanding operating, investing, and financing cash flows, you can navigate the financial landscape with confidence and make choices that lead to long-term success. Remember, cash flows tell the true story behind the numbers, so embrace their power and make your financial decisions wisely.

10 steps to Business Continuity Planning

admin@intrepidbeancounter.com (Marcus Wolfgram) — Sun, 28 May 2023 03:49:23 GMT

10 key elements to include for your ongoing business continuity plan

Digital communication and cloud technology have given us the ability to access company information, applications and communication channels. For many businesses this will allow you to keep at least some of your usual day-to-day operations ticking over.

However, there are a host of important business areas that you need to consider when developing your company strategy to deal with an emergency situation.

Here are 10 important elements to factor into your business continuity plan:

Location and workspace – Does everyone in the business have a good internet connection for remote working? Make sure you agree on the guidelines for maintaining workflow. Schedule regular online catch ups to check in and agree on the priorities.
Key products or services – which products and/or services will you be able to offer? For the business to continue trading, you need to identify a core set of products/services. Review which product/services will bring in the required revenue and cashflow, and which activities in the business should therefore be classed as essential.
Key staff and resources – who are the core people you need for the company to operate? Based on your decisions regarding essential activities, identify who your key management and staff members are. Think about how much resource is needed to trade, how you’ll get approvals and sign-off and what critical knowledge needs to be shared within the team.
Key contacts and connections – who are your main stakeholders outside the business? And which of these are vital to the running of your business? Make a list of your key suppliers, service providers, property contacts and customers and ensure you can have open communication with all these connections. Also, look at alternative suppliers so you can minimise any disruption to your operations.
IT equipment, data and infrastructure – what equipment, tools and software do you need to continue working? Essential hardware and software will include laptops, tablets or smartphones for your staff, paired with cloud services, video conferencing, communication apps and effective, secure access to your customer and business data.
Plant and manufacturing equipment for essential businesses – if you’re a bricks and mortar business, or a product-based manufacturing business, what equipment do you need to carry on your operations? This will include any machinery, hardware equipment and vehicles needed to manage the essential operations you’ve identified for the business.
Financial management – how will you access your key financial numbers during any outage? It’s sensible to move to a cloud-based accounting system NOW, so you have continuous, uninterrupted access to your financials. A platform like Xero online accounting allows you and your advisers to see those all-important figures.
Cashflow management – how are you going to ensure you maintain a positive cashflow position? We can help put a process in place to run regular cashflow statements. Use forecasting to project your cashflow position forward in time – so you can take proactive action to avoid any cash gaps in the near future.
Insurance – does your current business insurance policy cover you for all emergency situations? Review all your existing insurance policies so you understand what your policy covers. Securing the business in all scenarios should be your focus here.
Leadership – who could take over if you (the owner/MD/CEO), is left unable to run the business? Having a nominated deputy, with a clearly defined chain of command, means you can be confident that the company will be in safe hands, even if you’re indisposed.

Why employee onboarding is so important

admin@intrepidbeancounter.com (Marcus Wolfgram) — Thu, 18 May 2023 02:57:18 GMT

The body content of your post goes here. To edit this text, click on it and delete this default text and start typing your own or paste your own from a different source.Even before you start recruiting for a position, you should be prepared to make a new employee’s introduction to the business as smooth and comprehensive as possible.

Onboarding (also known as induction) is a broad, structured process to provide a new team member with all the tools, information, and insight they need to quickly become an effective contributor, while at the same time integrating them with the company and its culture.

Sure, you could set the person up with tools they need, give them the company handbook, and tell them to get cracking on some initial tasks, but don't expect great results.

Onboarding is an investment in the long-term development of your people and your business. So let's look at the main reasons you should have a thorough onboarding process for all new employees:

Gets them up to speed faster - a structured approach fully prepares an employee for their position and provides support as they grow into it, which minimises disruption to the business.

Higher employee engagement - successful onboarding gets the employment relationship off to a solid start, boosting confidence, job satisfaction, and ongoing engagement.

Better staff retention - Research has proven that employees who complete a structured onboarding process are far more likely to stay with the company, which saves time and money in the long run.

Teaches about company goals and culture - successfully establishing a new employee while showing them how they contribute to the business' wider goals helps connect them to the company and the existing team.

Supports good hiring decisions and recovery from poor ones - induction is a crucial time for new workers to decide if the job matches their expectations and it also quickly shows employers if the person is right for the position.

Sets a base for further learning and development - initial job training lays a good foundation for ongoing growth and helps the business find out about a new person’s aspirations, so you can design a development plan to build their skills.

Better customer satisfaction - research shows that positive employee experience leads to better customer experience, which improves overall business profitability.

Key numbers to focus on in your business now

admin@intrepidbeancounter.com (Marcus Wolfgram) — Wed, 05 Oct 2022 02:36:23 GMT

As a business owner, it’s never been more important to have a good grasp on your finances.

For many businesses, priorities have changed, customer behaviours have mutated and revenue streams have had to evolve and pivot in order to create a viable business model. To track, monitor and drive your financial performance in this new business world, it’s increasingly important to have a handle on your key financial reports and metrics.

Getting to grips with your financial reports. Whereas in the past, extra cash in the business may have been seen as a surplus that needed to be spent on something, recent years have shown us that having these reserves is vitally important for the survival and long-term health of businesses. To truly be in control of this cash, it’s vital that you can dip into your accounts, financial reports and dashboards and ‘see the genuine story’ behind your financial position.

So, what are the key reports to focus on? Let’s take a look:

Budget – your budget is the financial plan that's tied in with your strategic plan. In essence, the budget is your approximation of the money it will take to attain your key strategic goals, and the revenue (income) and profits you hope to make during this period. It’s a benchmark you can use to measure your actuals (historic numbers) against, allowing you to see the variances, gaps and missed targets over a given period.

Cashflow Statement – a cashflow statement shows the flow of money into and out of your business. Understanding these cash inflows and outflows in detail allows you to manage this ongoing process, allowing you to aim for a ‘positive cashflow position’ – where inflows outweigh outflows. In this ideal positive scenario, you have enough liquid cash in the business to cover your costs, fund your operations and generate a profit.

Cashflow Forecast – forecasting allows you to take your historic cash numbers and project them forward in time. As such, you can see where the cashflow holes may appear weeks, or even months, in advance – and that gives you time to take action, whether it’s increasing your income stream, reducing your underlying costs, chasing up unpaid invoices (aged debt) or going to lenders for additional funding.

Balance Sheet – the balance sheet shows you the company’s assets, liabilities and equity at a given point in time. In a nutshell, it’s a snapshot of what the business owns (your assets), what you owe to other people (your liabilities) and what money and profits you currently have invested in the company (your equity). The balance sheet is useful for seeing what stock and equipment the business owns, how much debt (liabilities) you’ve worked up and what the company is actually worth – all incredibly useful information to have at your fingertips when making big business decisions.

Profit & Loss – your profit and loss report (P&L) Your P&L gives you an overview of the company’s revenues, costs and expenses over a given historic period of time. Whereas the balance sheet is a snapshot, your P&L is more like a moving video. It shows you how your finances are progressing by demonstrating how revenue is coming in and costs/expenses are going out (rather than cash coming in and going out, as you see in your cashflow statement and cashflow forecasts).

Building the protective moat by brand building

admin@intrepidbeancounter.com (Marcus Wolfgram) — Thu, 25 Aug 2022 15:36:56 GMT

It can be difficult to distinguish your products and services from the competition in a crowded marketplace. Focusing on building brand awareness and converting your existing customers and targets into brand advocates is crucial to achieving this goal.

It sounds easy, doesn't it? Developing a competitive advantage will not always be simple, but it is essential for carving out a niche and expanding to meet your customers' needs.

Clarify your brand's core values

Use your brand values to guide every business decision, from marketing to operations; for instance, if sustainability is a core value, it must be reflected in your choices regarding suppliers, packaging, distribution, and the causes you support.

When your company's values shine through in your marketing and customer interactions, it's easier to connect with the right customers, which is essential for establishing strong relationships.

Develop a distinct personality for your brand.

Consider the characteristics you associate with your favorite brands. Apple is innovative, aspirational, and technologically advanced, whereas Ben & Jerry's ice cream is eccentric, laid-back, and reflects the founders' hippy roots. How do you want consumers to perceive your brand?

Should your brand's personality sound expert, professional, and upscale? Or would your audience respond more positively to a personality that is warmer, more approachable, and friendlier? No matter what you decide, your brand's voice and personality must be consistent across all channels. Ensure that your website, marketing materials, and social media posts all have a consistent aesthetic and represent your brand in a way that is easily recognizable.

Have a distinct brand identity

A part of establishing brand recognition is having a distinct visual appearance. The logo you employ, the style of your web content, and the design of your packaging all contribute to a broader audience's recognition of your brand.

Be creative with your design and choose a "visual identity" consisting of colors, fonts, and images that reflect your desired brand personality. If you can commission the images (design or photography) yourself, the result will feel more genuine; however, stock image libraries also offer a wide variety of options. Avoid cliché images that do not reflect your brand, and whenever possible, strive to establish a distinctive identity that will help you stand out in your market.

Differentiate your brand from its rivals.

Does your product differentiate itself from similar products offered by competitors? The more unique your offering can be, the better. You can differentiate based on features, price, customer service, etc. to ensure that you are the customer's top choice in this market.

There is also the option of creating your own niche, in which there are few competitors. To maintain this position of preeminence, it is essential to provide consistently high-quality service, maintain close relationships with customers, and remain at the forefront of your field.

Know your price and how it fits the needs of your customers.

Price can be a significant differentiator, so you must be aware of how your prices stack up against those of your competitors. Is your product less expensive than those of competitors? Or are you pricing your product at the highest possible level?

It is important to be clear about whether you're offering a premium, standard, or economy product and how this relates to your customers' brand expectations. Affordability will be an important selling point, so keep an eye on the competitiveness of your prices.

Develop a community of devoted brand advocates

Do you have a strong customer network, or is a competitor gradually gaining market share and undermining your position as market leader? This requires regular review and evaluation.

Customer relationships must be prioritized. Offer discounts and exclusive deals to your loyal customers in order to maintain their support. So that you are aware of what your customers desire from your brand, solicit comments and feedback. And convert your existing customers into brand advocates, so they refer you to the rest of their network in the real world.

The difference between cashflow & Profit

admin@intrepidbeancounter.com (Marcus Wolfgram) — Sun, 07 Aug 2022 10:05:54 GMT

Making a profit is at the heart of every business. One of your primary financial goals as a business owner is to create enough sales with a large enough margin to generate a profit for your company. What is the difference between profit and cashflow? And why is it that currency reigns supreme?

What is the relationship between profit and cashflow?

In order to fully grasp the distinction between creating profit and managing cashflow, it is necessary to examine the definitions of both terms. Even if you believe that managing your profit and cash flow is a job best left to your accountant, you would be wrong.

Let's compare and contrast the two:

So, what exactly is a "profit"? As a business owner, profit is the amount of money you have left over after paying all of your expenses and taxes. In the end, it's all about making money and delivering value to your customers.

What does the term "cash flow" mean? Maintaining a steady supply of cash (or "liquid" cash) is an essential part of running a company. This is the source of the funds required to conduct business, pay suppliers, pay employees, and purchase raw materials, among other things.

What is the significance of having a steady flow of cash?

Cliche as it may seem, the cliché "Cash is King!" is a fundamental principle of any successful business plan. Making a profit at the end of the year is excellent, but if you don't take care of your cash flow, your company may not last till the next year.

Good cashflow management is the key to improving your financial well-being. Things might quickly go awry if you don't keep an eye on your finances.

It's possible for a company to make a lot of money and still have a tight cash flow situation. However, it may be able to make money at the end of the period, but it will have very little liquid cash on hand to fund its day-to-day operations throughout that time.

Learn how we can help you better manage your financial flow

When it comes to cashflow management, it's all about keeping a close eye on both your financial inflows and your cash outflows. Keep your inflows higher than your expenditures and you'll have a positive cash flow.

business continuity planning

admin@intrepidbeancounter.com (Marcus Wolfgram) — Wed, 27 Jul 2022 03:51:09 GMT

Keeping your business operational is a full-time job. It’s a balancing act that requires you to keep a multitude of plates spinning, while your executive team and employees support you at every stage of the operational journey. But what happens if these plates stop spinning?

Sudden unexpected threats can catch you on the hop. What if an unexpected circumstance comes up that derails your usual operational procedures? How will you cope? What will you do to overcome the issue? And how will you get the business back on target? The answer lies in having a thorough business continuity plan.

What’s a business continuity plan?

A business continuity plan is an executive plan that describes the risks that exist in the business, your strategy for dealing with these known and unknown risks, and how you will mobilise your team to overcome any issues, emergencies or gaps in trading etc. None of us truly knows what lies around the corner. Most businesses were not expecting the 2008 economic crash, or the 2020 Covid-19 pandemic. If you can plan ahead and put contingency plans in place, you'll be better prepared when a worst-case scenario does appear.

How do you formulate your plan?

Every organisation’s business continuity plan will be different. We all have different business models, different company hierarchies and different risks that are peculiar to our own sectors. But the fundamental basis on which you create your business continuity plan will be the same however your company works.

For example:

Identify the critical areas of your business – look at your operational business model and think about where it’s most likely to break down under pressure. Are you reliant on a specific supplier to operate? Which are the fundamental departments in your model and what do they bring to the business? Who are your core heads of department and staff, and who could deputise for them in their absence? In short, look for anything that could break down and how this could affect the whole business.

Create back-up continuity plans for each critical area – you obviously need your main continuity plan to cover the entire business. But it’s also important to look at the risks, essential personnel and key operational activities for each separate department in the company. Your finance team will need a very different continuity plan to your logistics and delivery team, for example. So, tailor each continuity plan to fit the needs of your main business areas, and make sure they’re all fit for purpose.

Assign a continuity lead and department leads – it’s a good idea to assign a main business continuity lead role or champion, so the responsibility for reviewing and updating the plan sits under someone’s remit. You’ll also need to have a lead person for each critical department, so every cog in the wider machine is represented.

Make sure everyone knows the continuity plan – a business continuity plan is useless unless the whole company is aware of the plan and knows what to do. Have a central phone number, WhatsApp group and email address set up for any business continuity emergency. And use your internal communications team to provide regular messaging, training and updates on changes to the ongoing continuity plan.

Keep the business operating – ultimately, your continuity plan exists to keep the company operating in challenging times. It could be that your HQ is flooded out and has to be closed down and moved to an alternative location. It may be that significant employee sickness hits you, leaving only a skeleton staff to run each department. Whatever the circumstances, your plan needs a contingency in place, so you and your remaining staff can continue to trade, make sales and bring in revenues.

Keeping your data safe as a remote worker

admin@intrepidbeancounter.com (Marcus Wolfgram) — Tue, 12 Jul 2022 13:28:38 GMT

Keeping your data safe as a remote worker

Using public WiFi in cafes, hotels and coffee shops is something we all do. It’s convenient and gives you the benefits of working online wherever you happen to be. But are you aware of the data security issues of working from a public network?

In an age where remote and hybrid working are now the norm for so many employees and self-employed people, it’s important to know the key ways to keep your data safe

Secure ways to work from a public network

Remote working is a flexible approach to work that’s increased in popularity hugely over the past few years. A recent study from Buffer found that 97% of people would like to continue working remotely, at least some of the time, for the rest of their career.

Working remotely is here to stay, it would seem. But what can you do to make sure you’re applying the best possible security protocols? And what are the key dangers to look out for?

We’ve highlighted the important elements of cyber safety to be aware of:

Unencrypted public networks and their flaws – a public network isn’t a safe environment when working. When you use your home network, only you and your family have access to the WiFi. If you log into a public network, literally anyone can join the network – and this can lead to all kinds of security issues and concerns.

Malware and other suspicious activity – hackers and those with malicious intent will see a public network as a potential backdoor to your data. Malware (malicious software), Trojan horses and other hostile programmes can be easily uploaded to your device, allowing hackers to access your programmes, hard drive and data.

Using a personal VPN to access the internet – if you’re using a public network to work, the chances are that you have access to confidential information and customer data via your device. To protect your device, it’s important to use a VPN (virtual private network). This creates a secure network for you, so you can safely share and access your important data, with fewer worries about hackers and malware etc.

Having proper security software on your device – it’s a good idea to also have cyber security software installed on your computer or smart device. Providers like Norton, McAfee and Kaspersky all offer complete internet security suites that include firewalls, regular scans of your drive and other tools to keep your data safe and sound.

Keeping up to date with the latest threats – no security system is 100% safe. But you can do a lot to improve your internet security by being aware of the current threats. Keep an eye out for news stories about cyber breaches and read the updates and social posts from your internet security provider. The more you’re in the loop about present dangers, the more you can do to update your security arrangements and keep your devices safe.

Start improving your internet security

We’ve all enjoyed the additional flexibility and time-saving benefits of working from somewhere other than the office. But as remote working becomes a standard working practice, it’s vital to improve your internet security and be more aware of the potential threats to your data.

Weighing up a big investment in your business

admin@intrepidbeancounter.com (Marcus Wolfgram) — Tue, 05 Jul 2022 14:17:40 GMT

Are you thinking about putting money into a new system to improve the efficiency or productivity of your company? Finding ways to maximise productivity is more important now than ever before because of the tight labour market. However, the cost of a new website, e-commerce platform, software system, or automations may be substantial. If you're weighing the costs and benefits of a significant investment, here are some questions to ask yourself.

How much will it cost up front, and how much will it cost in the long run? The design, creation of content, and development of a website, for example, all have significant up-front costs. It's easy to assume that once the costs are incurred, the job is finished, but that's not the case. It is possible to do this in-house, in which case a specific employee must be assigned to it, or to do so via an external vendor.

If you're considering making a significant investment, it's critical to take into account the long-term costs. You'll have to cut back on which of your current expenses. With a new system, some of your current costs may be eliminated. It could be as simple as cancelling an old subscription and no longer paying for it. The time saved by not having to manually enter data, process payments, or deal with customer issues that arise from an outdated system may also be a benefit to the company.

Calculating the financial costs of a project is straightforward. It's more difficult when it comes to time, but if you can, estimate how much time you'll save.

In the long run, how will this affect your costs? Take a look at the future of your company and how it will operate in five years. Is it possible to increase your profits without expanding your workforce with this new investment? How much time will you be able to devote to finding high-value clients and how much time will you be spending on processes?

Your company should run more smoothly, increase output, and easily pay for itself with any large investment. How long will it take for this investment to pay off?

To get a sense of when the investment will pay for itself, you need to have all the numbers in order.

Looking overseas for workers

admin@intrepidbeancounter.com (Marcus Wolfgram) — Mon, 13 Jun 2022 07:47:30 GMT

Is now time to look overseas for workers to New Zealand

It's difficult to recruit new employees right now since the labor shortage has reached a critical level, thanks to record employment and low immigration. If you're having difficulties filling critical employment openings at your company, you may be able to hire someone from another country.

Migrants with visas who are already in New Zealand have had their visas extended. They may normally work for any employer, however certain limits may apply depending on the visa. You may learn more about hiring migrants who have already arrived in New Zealand by clicking here.

Recruiting an employee from another country

You may also bring employees into New Zealand as an employer. This will take time and money, but it may be useful if you are having trouble finding someone to fill that critical function. If you're searching for someone in one of these positions, there's a vast list of permitted classes of important employees, and you may seek admittance. This includes personnel in the technology industry, veterinarians, advanced manufacturing experts, auditors, and many more.

For these permitted types of employees, the function you're providing must pay at least $27 per hour, and you must show that you can't find someone locally to fill it. You can hire people who aren't on the list, but you'll have to pay them at least $40.50 an hour and prove you couldn't find a Kiwi to perform the job. One alternative is to use an agency to assist you in bringing in an overseas employee to fill a position inside your firm. This might take up to three months and cost as much as $10,000.

Keeping on top of small business cash flow

admin@intrepidbeancounter.com (Marcus Wolfgram) — Tue, 07 Jun 2022 00:12:03 GMT

Money in, money out. Cash flow is one of the most important measures of your business's health. But how do you monitor it?

It sounds simple to track sales on the one hand and expenses on the other – then compare the two. But a massive 65 percent of failed businesses say they closed down because of financial mismanagement, including issues such as lack of cash flow visibility. In other words, they didn’t know if they were making more than they were spending.

Why are people losing sight of cash flow?

Everyone knows a business needs to stay in the black. It’s not a new idea. So it can be hard to imagine why a business would lose sight of cash flow. Until you’re in business yourself and you realise tracking small business cash flow isn’t as easy as it seems.

For small businesses, this can involve:

Keeping track of all your expense receipts - which gets really tricky if there are multiple people making purchases
Recording all your sales revenue - making sure to account for discounts you might have given
Entering everything into your cash flow Excel spreadsheet or Google Sheet- including double and triple checks to make sure everything is entered correctly.

You may have to rely on employees or business partners to supply a lot of this information. Their paperwork will sometimes have scribbled notes in the margins, requiring a follow-up phone call. It takes a lot of time, patience and energy before you’re even ready to punch the numbers into a spreadsheet.

But even if you're vigilant, there’s a lag between when a sale or expenditure happens and when it’s entered into your spreadsheet. You’re taking a series of snapshots of your cash flow, and there can be big blind spots in between.

As business picks up, with more sales and more expenditure happening all the time, those blind spots become more significant. More things happen in between each cashflow snapshot. And cash flow snapshots get further apart because you’re too busy to update spreadsheets.

Consider using cloud accounting software

Because money in and money out is the ultimate measure of business health and sustainability, you know you must watch it carefully. Cloud accounting software can automate the process for you. In fact, 98% of users of accounting software recommend it to others.

Here’s how it works:

Cloud accounting software is generally sold on a flat monthly subscription. You don’t need to download anything and you can run it easily off your existing laptop, desktop or smartphone.

It can link to your business bank account (and point-of-sale system) to track sales and expenses as they happen, with no data entry from you. Because the data comes straight from the bank, it’s clean and accurate. Smart accounting software will also send out your invoices, so it shows what you’re owed. Next, the system pools all the data to create a dashboard of your financial situation, which is automatically updated every day.

Accounting software probably only needs to save you one or two hours a month to pay for itself. In reality, because it will save you time that you can spend on other areas of your business, it will do that many times over.

Business tips: Getting in control of your spending

admin@intrepidbeancounter.com (Marcus Wolfgram) — Mon, 16 May 2022 13:39:37 GMT

Making sure you get paid on time is crucial to your success. The process of making sales and generating revenue lies at the heart of any business model. But you can't manage your cashflow effectively or raise any profits if customers don't actually pay their invoices.

The easier you can make it for customers to pay you, the faster you'll see cash coming into the business. That’s good news for your financial position, your ability to cover your operational costs and your capacity to fund the growth and expansion of your business.

So, how do you speed up those payments and make sure you get paid on time?

Set out clear payment terms

Your payment terms are the starting point for healthy payment times. These terms set out when you expect to be paid and form a legally binding contract with the customer. You may expect immediate payment on receipt of the invoice. Or you might set out a specific number of days that the customer has to pay the invoice (generally 30, 60, 90 or 120 days, depending on your industry). This is sometimes called ‘trade credit’ and allows your customers to pay for goods and services at a later, pre-agreed date – helping them to spread the cost.

Your payment terms should also include details of any late payment penalties. If the customer doesn’t meet your agreed payment times, most businesses will add a 1% to 1.5% monthly late payment fee to the outstanding bill. This acts as a great incentive for the customer to pay the bill, before the penalty fees start mounting up.

Invoice customers as soon as you can

In a business-to-consumer (B2C) environment, your customers will generally pay for their goods and services immediately. But when you’re working in the business-to-business (B2B) world, you’ll need to send your customer an invoice, asking for the money to be paid.

A customer can’t settle their bill until you send them an invoice. So, it’s vital to send out the invoice as quickly as possible, so you can minimise the gap between doing the work and being paid for the work. In some industries, the project will be broken down into multiple invoices, paid across a period of time. This makes it easier for the customer to pay, and means you (as the supplier) don’t have to complete the project before receiving the money you’re owed.

Ideally, you want your invoices to go out as early as possible. This allows your payment terms to kick in and makes it easier to predict when cash will be coming into the business.

Be organised about your payment admin

Getting paid is a process – and the more organised you make the process, the quicker the payment will be received. When you send out the invoice, make sure you send it to all the relevant people in the payment chain. This will usually be:

Your main contact at the client – the person who you usually deal with
The person who will approve the bill – the person who will green-light the payment
The finance team – the person (or people) who will actually action the payment.

It’s also a good idea to quote any relevant purchase order (PO) numbers that the customer has raised, and to give a very clear description of the work done, or the goods purchased.

Embrace the available payment technology

Invoices used to be hard-copy printed bills, but in the digital age the vast majority of companies will send out e-invoices. Electronic invoices are easy to raise (usually from your accounting software or project management app) and can be emailed out instantly. Doing everything in the digital realm also makes it easier to keep records and keep track of payments.

Many e-invoice systems will also let you add a variety of different payment options for the customer. You could just include your bank details and wait for the customer to make a direct payment to your account. But you can also include payment buttons in the e-invoice that give customers the option to pay via digital payment gateways, like PayPal or GoCardless etc.

Offering more ways to pay makes the whole process more convenient for your customers – and will generally result in faster payment times as a result.

If you want to speed up your payment times and boost your cashflow, please do get in touch. We can help you streamline your payment processes and embrace the latest in payment tech.

Coping with the skyrocketing cost of living

admin@intrepidbeancounter.com (Marcus Wolfgram) — Tue, 19 Apr 2022 10:21:29 GMT

Whether it’s refilling your petrol tank or paying at the supermarket checkout, the higher cost of living is hitting every household hard.

Across the world, everyday essentials are surging in price, up 7.2% year on year across the OECD. Unfortunately, experts predict that prices will keep rising for at least the rest of the year.

What can you do to try to keep up with the increasing cost of living? Here are our 12 top tips:

Look for ways to earn more

Grow your business’s profitability (talk to us about improving your profits) or ask for a pay rise.
Take in a boarder or flatmate.
Sell your unwanted items online.

Cut back where you can

Prepare more meals at home and spend less at cafés and restaurants.
Create a budget and keep your spending under control.
Reduce the amount of meat you buy.
Find ways to use your car less.
Cancel your credit cards and your buy now pay later accounts.
Review all your ongoing expenses like utilities, insurance and subscriptions – cancel, switch providers or get better deals.

Invest in your future

Think about investing in ways that are likely to outperform inflation – both shares and the property market have historically provided returns higher than inflation.
Start a new business, launch a new product or service, or try a side hustle.
Teach yourself about money and finances using free tools online and books from the library. Better money management will help you make the most of what you’ve got.

If prices rise by 7% this year, it won’t be easy to increase your income by the same amount. But if you can increase your income by 5%, then make up the rest through savings, while also investing for the future, you can still come out on top once inflation settles down and prices stabilise.

Worried about money? Talk to us. We have years of experience through many economic cycles, including previous periods of high inflation – and we’re always here to help.

Building resilience in your people

admin@intrepidbeancounter.com (Marcus Wolfgram) — Sun, 03 Apr 2022 02:06:09 GMT

Having a healthy workplace is a win-win situation for employers and employees, but it can be a challenge to create an environment that truly supports mental health and builds resilience.

Research proves that investing in your people’s wellbeing is beneficial to both them and the business, overall, so let's look at ways leaders and managers can build resilience in the wider workplace, support employee wellbeing, and build an open and supportive company culture.

Benefits of a resilient workforce

There are many benefits to building employee resilience, from your team members being more engaged and productive to fewer problems with staff absenteeism, burnout, and turnover. It also means you meet your legal obligation to manage risks to employees’ mental and physical health, just like any other health & safety risk.

How to build a resilient workplace

Resilience hinges on giving people opportunities to build the knowledge, skills, and capabilities to really thrive at work and be able to respond effectively to stress, challenges, and change. Cementing wellbeing in the day-to-day work culture is mulit-faceted and takes individual and combined effort. Here are some key components:

Take the lead - look after your own health and promote honest conversations with your team.
Increase awareness of wellbeing and remove stigma around mental health.
Ensure the work environment is safe and encourage staff to look out for each other.
Design work to support better work-life balance, e.g. involve staff in decisions on when, where, and how work is performed, and closely monitor workloads.
Invest in training programmes, e.g. mental health awareness, stress management, recovery, and self-care.
Provide organisational support, e.g. Employee Assistance Programmes that give employees access to trained specialists.
Offer exercise and mindfulness programmes to support health, e.g. step challenges or lunchtime yoga.

Setting up the compliance foundations

admin@intrepidbeancounter.com (Marcus Wolfgram) — Sat, 19 Feb 2022 05:48:27 GMT

To trade as a business, you need to meet the right compliance requirements. It’s certainly not the most exciting part of creating a business, but setting up the right legal, accounting and tax compliance foundations ensures that you’re doing everything by the letter of the law.

Here are the main compliance steps to think about, and why they’re so important to the smooth running of your business.

Decide on a legal structure for the business

First off, you’ll need to make a decision about the legal structure of the company. There are two key choices here – incorporated (a limited company) or unincorporated (usually either a sole trader or a partnership). The key difference here is around liability. In other words, do you want your business to be a limited company, where you and the business are treated as separate legal entities? Or do you want to be unincorporated, like a sole trader, where you and your business are seen as one single entity.

Most startups will opt for the incorporated limited company route, keeping your personal and business finances separate and lowering your personal liability and risk.

Open a business bank account

To trade, take payments and pay your suppliers, you need to have a business bank account that’s separate from your own current account. This helps to create a tangible divide between the money you’ve generated from the business, and your own personal cash.

Most high-street banks won’t let you use a personal current account for business purposes. Banks will offer a variety of different business accounts, with varying levels of fees, overdraft levels and additional business features. Set up the business account and then use this account for ALL transactions going in or out of the company.

Set up a bookkeeping and accounting system

It’s a legal requirement for your limited company to keep adequate records and to submit annual statutory accounts. To be able to meet these requirements, it’s essential that you have a bookkeeping process and a reliable accounting system in place.

There’s a dazzling choice of different cloud-based accounting platforms aimed at the ambitious startup owner. Xero, QuickBooks, MYOB and Sage are big names in this space, and all offer easy-to-use systems that make the accounting process relatively straightforward. It’s a good idea to engage an accountant, right from the start, to get the best possible accounting advice.

Tax is an unavoidable part of running any business. It’s mandatory for you to register for the relevant business taxes, and you’ll also need to factor in that a certain percentage of your startup’s profits will end up going to the tax authorities at the end of each financial year.

If you’ve opted for the limited company route, you must register for corporation tax in your home territory. Corporation tax is paid based on a percentage of your year-end profits, once reliefs and other allowances have been taken into account. Approximately a quarter of your end profits will end up being paid over in tax, so it’s imperative that you put this money away in a separate tax accounting, or ring-fence it in your accounts, so you have the money to pay the bill at year-end.

Other taxes to register for include:

Self-assessment income tax – although you’ll pay corporation tax on your company’s profits, directors are also taxed on their own personal earnings too. If you’re an unincorporated sole trader, this is also the way you’ll be taxed on your business profits, as your personal and business income are treated as the same thing.

Goods & Services Tax (GST) – GST (or VAT in the UK and Europe) is an indirect value-added tax or consumption tax for goods and services. If you sell products or services that qualify for GST/VAT, you’re responsible for collecting these taxes and paying them to the tax authority on a monthly, quarterly or annual basis.

Pay-as-you-earn(PAYE)/Pay-as-you-go (PAYG) – if you have employees, and your home territory operates a PAYE/PAYG system, you’ll need to make income tax deductions from your employees’ wages and pay these taxes directly to the relevant tax authority. This is all done via your regular payroll run.

Get in touch to talk through your compliance needs. We’ll help you understand which taxes apply and how you register for them.

The Ledger: April 2020

Wed, 15 Apr 2020 05:19:17 GMT

Welcome to a New Zealand financial year end like no other

Black Ink 1: NZ Government Back Business Loans

As part of the government’s economic response to the Coronavirus, Finance Minister Grant Robertson has launched a scheme to support loans to small businesses via banks in NZ.. The $6.25 billion scheme is backed by the government, who cover 80% of the risk, with the remaining 20% covered by the bank. It is aimed at businesses with an annual revenue between $250,000 and $80 million. Loans are up $500,000 per operating business for up to three years, and must be repaid over this time period. What we know so far:

These are loans, not grants. Interest, standard fees and credit criteria will still apply. Criteria and interest rates will differ by each Bank.
Only NZ businesses are eligible and banks will assess applications from existing customers.
You may be required to draw down on existing facilities before you can draw under a BFGS loan.
Some industries and activities are excluded including property development and investment. See the full list.
Businesses will need to provide proof that they can repay the loan. This will involve up-to-date financials including trading figures up until lockdown and a business plan that shows the future sustainability of your business.
If you are looking for financial support for your business, the more information you can provide the better.

Black Ink 2: What to do in challenging times

‘Business continuity’ is the process of planning out how your company can continue trading – when disaster hits. In essence, it’s your Plan B for how to set up a means of trading, when you don’t have access to your usual offices, workspaces or equipment. Right now businesses are having to put ‘Plan B’ into action. 10 key elements to include for your ongoing business continuity plan

Location and workspace – Does everyone in the business have a good internet connection for remote working? Make sure you agree on the guidelines for maintaining workflow. Schedule regular online catch ups to check in and agree on the priorities.
Key products or services – which products and/or services will you be able to offer? For the business to continue trading, you need to identify a core set of products/services. Review which product/services will bring in the required revenue and cashflow, and which activities in the business should therefore be classed as essential.
Key staff and resources – who are the core people you need for the company to operate? Based on your decisions regarding essential activities, identify who your key management and staff members are. Think about how much resource is needed to trade, how you’ll get approvals and sign-off and what critical knowledge needs to be shared within the team.
Key contacts and connections – who are your main stakeholders outside the business? And which of these are vital to the running of your business? Make a list of your key suppliers, service providers, property contacts and customers and ensure you can have open communication with all these connections. Also, look at alternative suppliers so you can minimise any disruption to your operations.
IT equipment, data and infrastructure – what equipment, tools and software do you need to continue working? Essential hardware and software will include laptops, tablets or smartphones for your staff, paired with cloud services, video conferencing, communication apps and effective, secure access to your customer and business data.
Plant and manufacturing equipment for essential businesses – if you’re a bricks and mortar business, or a product-based manufacturing business, what equipment do you need to carry on your operations? This will include any machinery, hardware equipment and vehicles needed to manage the essential operations you’ve identified for the business.
Financial management – how will you access your key financial numbers during any outage? It’s sensible to move to a cloud-based accounting system NOW, so you have continuous, uninterrupted access to your financials. A platform like Xero online accounting allows you and your advisers to see those all-important figures.
Cashflow management – how are you going to ensure you maintain a positive cashflow position? We can help put a process in place to run regular cashflow statements. Use forecasting to project your cashflow position forward in time – so you can take proactive action to avoid any cash gaps in the near future.
Insurance – does your current business insurance policy cover you for all emergency situations? Review all your existing insurance policies so you understand what your policy covers. Securing the business in all scenarios should be your focus here.
Leadership – who could take over if you (the owner/MD/CEO), is left unable to run the business? Having a nominated deputy, with a clearly defined chain of command, means you can be confident that the company will be in safe hands, even if you’re indisposed.

Black Ink 3: Other NZ Government Measures

he Government has announced a suite of new measures to provide relief for small and medium-sized businesses during the COVID-19 pandemic. Finance Minister Grant Robertson says while the Government has already acted swiftly in response to the crisis, with about $20 billion in support already announced, it recognises that more is needed. The new measures include:

$3.1 billion tax loss carry-back scheme (estimated cost over the next two years)
$60 million estimated annual savings to business each year from changes to the tax loss continuity rules
$25 million in the next 12 months for further business consultancy support
Greater flexibility for affected businesses affected to meet their tax obligations
Measures to support commercial tenants and landlords
“We have taken decisive action throughout this pandemic to cushion the blow for our businesses and workers - today’s announcement continues that focus. We need our businesses to stay solvent to help with the economic recovery as we emerge from this health crisis.

“Our focus on cashflow and confidence continues through these measures. We have approved a tax loss carry-back scheme that will allow a large number of businesses to access their previous tax payments as cash refunds. Essentially this means a forecast loss in the current financial year can be offset against the tax paid on a profit from last year.” We are also changing the tax loss continuity rules to make it easier for firms to raise new capital without losing the benefit of their existing tax losses” Grant Robertson said. Minister for Small Business Hon Stuart Nash says some businesses are struggling to meet their non-wage fixed costs, like interest, rent and insurance, but are not currently in a position to take on additional debt. “We don’t want that to happen, so as well as the tax measures which should provide some cashflow relief, we are going to provide tailored support services to help businesses weather the storm, at no charge to the business.

“Using established services including the Regional Business Partner Network and the helplines run by the Employers and Manufacturers Association and Canterbury Chamber of Commerce, we can get specialist, tailored advice where it is needed, fast. This could range from human resources advice to business continuity planning to financial management – because every one of these small businesses will have a different need,” Stuart Nash said. New measures are also being announced to support stability in commercial property transactions, extending the timeframes required before landlords can cancel leases and mortgagees can exercise their rights to sale or repossession. Justice Minister Andrew Little says many businesses may be finding it difficult or impossible to pay rent if they are no longer able to access their property, and if landlords are not receiving rent, they may not be able to meet their mortgage obligations.

“As a result, the Government will extend the current 10 working day timeframe that commercial landlords may cancel the lease to 30 working days. This will be for both the period the tenant is in arrears before the notice is given, and for the period to remedy the breach. “The Government will also extend the timeframes for lenders from 20 to 40 working days for mortgaged land, and from 10 to 20 working days for mortgaged goods. This will apply to commercial mortgages and home loans. However, the already announced mortgage deferrals are likely to be the first port of call for residential borrowers. “These measures will ensure an orderly process to deal with commercial lease disputes caused by COVID-19," Andrew Little said. Legislation enacting the changes announced today will be introduced on April 27 and will apply effectively retrospectively once the bill is passed. Work is also underway on further support for businesses and households as the impacts of COVID 19 become clearer.

Black Ink 4: China's economy showing signs of life

With the coronavirus outbreak in China seemingly under control, everyone is watching the world's second-largest economy for signs of life after lockdown. Companies are getting back to work, more and more people are out shopping, there was a record expansion in bank lending in March, and exports and imports weren’t as bad as expected, according to data on Tuesday. However, it’s too early to uncork the champagne yet, with data due Friday expected to show that the economy had a historic contraction in the first quarter. China's government enforced a strict lockdown of Wuhan, the capital of Hubei province, from Jan. 23 to April 8. Whether the economy is out of the woods and can drive global growth like it did after the global financial crisis remains to be seen. And even if the domestic economy looks to be improving in April, the real hit to foreign demand hasn’t really materialized yet.

Some Asian nations or regions have done better in containing the virus outbreak than the U.S. or Europe have, and China’s exports to those nations were stronger. Shipments to South Korea, Singapore and Taiwan rose, while those to Japan only fell 1.4 per cent. But much of that trade is of electronic components for goods which are exported elsewhere, so the shutdowns, job losses and social distancing in other parts of the world will likely affect that in the future.

Trade with Europe and the U.S. was hit much harder, with exports to the European Union down more than 24 per cent, and those to the U.S. falling almost 21 per cent from a year ago. With companies there canceling export orders from early March, the declines will be even worse in April, according to Iris Pang, an economist at ING NV in Hong Kong. (scse Bloomberg)

Government's $6.25 Billion Business Guarantee Scheme and more

admin@intrepidbeancounter.com (Marcus Wolfgram) — Fri, 27 Mar 2020 12:09:15 GMT

As I write this post in isolation (having got back from Singapore) it’s good to see the Government and society pulling together to get through the Covid-19 crisis. As announced, Key government initiates are below:

Wage subsidy cap lifted

Cabinet will remove the $150k wage cap and extend eligibility to all businesses that can demonstrate revenue loss, compared to a similar period. Businesses less than a year old are now also eligible, as are self-employed people, registered charities, NGOs, and incorporated societies. The scheme is available for 12 weeks - but it will be reviewed and could be extended. The total cost of the scheme was originally 5.1 billion and has been increased, with this announcement to 9.3 billion.

Rent freeze

We probably all know about this however, the second decision taken is to freeze rent increases and to stop no-cause terminations.

Business financing guarantee scheme

The Government has announced a $6.25 billion Business Finance Guarantee Scheme. The scheme will include a loan of up to $500,000 per business. This will apply to firms with a revenue between $250K and $80M PA. The Government will underwrite 80% of the loans and the banks will underwrite 20%. So the Government will act as a back stop for most of the loan, should there be a default. In addition to the 80/20 underwrite, bank core lending ratios will be reduced from 75% to 50%. Funding will be provided through the banks and they will continue to use their own lending criteria. It’s important to note, Government won’t prescribe lending criteria. The loans will be for a maximum of three years at competitive rates.

These are all great initiatives to keep our country working and I have been working with clients on making use of help provided by government at this time.

I'll keep you posted

A guide to remote wokring

admin@intrepidbeancounter.com (Marcus Wolfgram) — Fri, 27 Mar 2020 12:07:59 GMT

In unprecedented times, businesses must adapt to remain productive. If face-to-face meetings are a key part of your daily business operation, here are some tips to take your meetings online with minimal disruption.

Find the best system for you.

There's a range of free or low-cost platforms, including GoToMeeting, ezTalks, Join.me, Zoom, Google Hangouts, and TeamViewer.

Before you choose one, consider:

How many people generally attend your meetings?
Do you require screen share functionality?
How many meetings do you run? (If it’s a lot, a small monthly subscription may pay off due to better functionality)
Schedule your meeting.
Depending on your chosen system, consider how you schedule your online meetings. It may be that you include a link generated by your system into an email calendar invitation. However you do it, make it easy for your meeting attendees to be reminded of the meeting and access the meeting at the time.

Check your tech.

Do you need a webcam (usually built into laptops) or an audio headset? These are a must for any online meeting. Communicate the need for this technology to your meeting attendees, and if required consider completing a quick online tech-check before the first meeting.

Set a clear agenda.

Like any face-to-face meeting, you’ll need a well-structured agenda to follow. You’ll also need to specify the time a length of the meeting, and respect this. Decide who will take minutes, define the next steps, and if appropriate - BAMFAM (Book a meeting, from a meeting).

Does it need a meeting?

These unfortunate times act as a friendly reminder that some meetings can be emails. Consider using free tools such as Loom to document a longer and more engaging message in a video to send via email. The recipient can view the video multiple times before responding, resulting in a more considered reply.

Online meetings have been a great tool for global businesses for some time; maybe it’s time for your business to adopt online meetings as part of social distancing. They also create capacity for you to do other, more productive, things through reduced time spent travelling to face-to-face meetings.

How healthy is your working capital

admin@intrepidbeancounter.com (Marcus Wolfgram) — Sat, 22 Feb 2020 11:10:36 GMT

We all know that cash is king when it comes to business success, but what exactly is ‘working capital’ and how does this financial metric help measure the health of your business?

Working capital is made up of the cash and assets that are available in the business to fund your operations and keep you trading. It’s worked out by taking your current assets (the things you own) away from your current liabilities (the things you owe to other people).

So, why is working capital such a critical metric?

Having the liquid capital needed to trade

It’s possible for your business to be busy, successful and profitable, but for your cash position to still be in poor health – and that can have a serious impact.

If you can’t readily convert your assets into liquid cash, it’s a struggle to meet your cashflow goals, pay your bills and fund your day-to-day operations. But with the optimum level of working capital, you strengthen your balance sheet and put the company in a solid financial position.

To achieve this healthy level of working capital you’ll need to:

Proactively manage your cashflow – cashflow feeds your working capital by pumping liquid cash into the company and keeping the balance between assets and liabilities in a strong position. But to achieve this, it’s vital to achieve a positive cashflow position, where your cash inflows are greater than your cash outflows. This means getting paid on time, lowering your outgoings and keeping a close eye on your ongoing cash position.

Monitor and forecast your financial position – running regular financial reports helps you stay in control of your finances. With careful monitoring and forecasting of your cash position, you can ensure you don’t end up in a negative cashflow position, without the requisite working capital to trade and fund the next stage in your business plan. Cloud accounting software and business intelligence apps have made it easier than ever to create up-to-date, real-time reports and run dashboards that show your key metrics.

Use additional finance when required – if working capital is looking thin on the ground, then additional funding may be needed to bolster your balance sheet. Short-term finance options (such as overdraft extensions or invoice finance) and longer-term business loans can be needed to keep working capital on an equilibrium.

Talk to us about optimising your working capital

Working closely with your accountant is vital if you want to promote the ideal level of working capital in the business. We can help manage your cashflow, monitor your financial metrics and provide access to additional finance and funding when your capital needs a boost.

Get in touch to start maximising your working capital.

Getting ready to exit your business?

admin@intrepidbeancounter.com (Marcus Wolfgram) — Sat, 22 Feb 2020 11:07:36 GMT

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When you sell up, you want your business to have as much inherent value as possible – so you get a good price, a great return on your investment and the best possible payout.

So, how do you take yourself ‘out of the business’ as the founder, add the best value and set up an effective and financially beneficial exit strategy?

Adding value to the company

Whether the goal of your five-year plan is an acquisition by a larger corporate, or selling your share of the company to a chosen successor, it’s critically important to focus on adding value.

The more attractive the business looks in the market, the better the price you’ll achieve, or the better the yield you’ll see on selling your company shares.

To drive that value:

Work on the business, not in it – so you’re no longer a fundamental part of the day-to-day operations, and can focus on the higher-level strategic elements.

Invest in adding value – keep profits in the business, reduce your personal drawings and plough that money back into growth and investment.

Improve your financial health – by taking control of your finances and building a strong balance sheet, positive cashflow and attractive profit forecasts.

Have a proper exit strategy – with a plan that has agreed targets, so you can track and measure whether goals are hit, and a strategy your team can get behind.

The Ledger: January 2020

Sat, 22 Feb 2020 08:29:20 GMT

Let's get Started

Hello and welcome to all clients and others to the last edition of The Ledger for 2019. As a Beancounter it is my job to help nurture businesses, as well as ensure they are compliant with the Taxman. I have created The Ledger to provide bite-sized snippets and concepts you can apply immediately if you so choose. So let's get started.

Black Ink 1 : Getting back into work after a break can be hard.

“In a world that’s changing really quickly, the only strategy that is guaranteed to fail is not taking risks.” - Mark Zuckerberg

This concept applies to your entire team. Motivate them to work in their Performance Zone instead of their Comfort Zone but have processes in place to prevent their burn out. If you notice someone coming in early, staying late and visibly stressed, find out why. Speak to them about the Performance Zone and offer support to help them manage their workload, prioritise work and reduce their stress levels.

The aim is to set goals and implement changes to move beyond your Comfort Zone into your Performance Zone. If you do find yourself hitting the Danger Zone, it’s ok. Retreat back into your Performance Zone… not back to your Comfort Zone. You’re here to improve your business performance, that won’t happen from your Comfort Zone.

Be wary of putting the full throttle down though. If you stretch too far out of your Comfort Zone, past the Performance Zone, you may find yourself in the Danger Zone. Committing to a massive amount of change all at once can lead to volatility, burnout, mistakes resulting re-work, the loss of a key team member, and cause you to work even longer hours for no gain (apart from stress gain).

Working in The Performance Zone enables you to break bad habits and form good ones, achieve your goals, and improve the value of your business. When working in your Performance Zone, you’ll be engaged in your work and adopt new learnings, processes and technology to streamline your business and make it more efficient.

It’s easy to hang out in your Comfort Zone. We just keep doing what we’ve always done because so far it’s worked… and there’s no motivation to change. However, sitting comfortable in times of such rapid change can leave you exposed. Your competitors, those working in the Performance Zone, setting goals and making incremental changes and improvements, could squeeze you out.

The ‘Performance Zone’ sits between the ‘Comfort Zone’ and the ‘Danger Zone’.

You might be struggling to get back into your routine and engage your brain in work. Or, perhaps you spent time setting your goals and planning your year and you’re full speed raring to go. There is, however, an optimum approach somewhere between these two scenarios - we call this hitting ‘The Performance Zone’.

Black Ink 2: Your small business has a great story to tell

Your small business has a great story to tell. If you are looking to employ a PR consultant to help drive media coverage, make sure you have done your ground work for your best chance of success.

Here are the four questions to ask internally:

1. Have you nailed your value proposition and business objectives?

Your announcement must be newsworthy not just news. When you are competing with hundreds of other press releases on a journo’s desk, you need to be saying something new and interesting. It might be a new product or service or the unique culture in your business.

2. Are you ready to respond? Ensure your online and operational systems are running smoothly. If your public relations firm gets press coverage for your business make sure you are ready and able to respond to questions, interviews and (ideally) demand. If you are driving sales, are you prepared with appropriate online functionality (or sales team) and sufficient inventory before going live with a campaign?

3. What’s your goal for your return on investment? If you are bringing in an external agency, make sure you have defined what you want to achieve and how you will measure success. Discuss your outcome expectations.

4. How much can you do yourself? The right agency will bring you access to key journalists and media in your sector. They will be honest with you about the best approach and help find a way to communicate your brand to the media in the most effective way. But there are no guarantees and if a dramatic event happens on the same day as you release, it can be hard to get traction.

However, there is a lot you can do yourself to tell your own story. Put your great news on your website’s blog and share it on your social media channels. Add social sharing buttons to your blog pages so it’s easy for people to share your news with their network. Does your website have details on the team, information about your business and easy ways to get in touch? If your press release stimulates interest in your company, make sure your house is in order when they go online to find out more.

Black Ink 3: Want more money, more time or less stress?

We believe our clients all deserve the three freedoms: Financial Freedom; Time Freedom; and Mind Freedom. In other words, more money and time to spend on important things outside of their business, along with less stress. Is your business stifling your freedom?

Being in business is tough. At times, you might be worried about whether you’ll have enough cash in the bank to pay your team and suppliers. Perhaps you’re working 80-hours a week just to stay on top of things. Or, maybe the stress of daily business life is impacting how you turn up at home.

What would Financial Freedom look like for you?

This is about having enough cash in the bank - both in your business’s bank account and in your personal bank account - to do the things that will enrich your life. That could be buying new assets for the business or your family, having an amazing team Christmas party, or taking your family on a much-needed holiday.

We can help you achieve the cash levels you need for your desired lifestyle.

How would having Time Freedom impact your life?

As a business owner, do you feel like you need to be the first to arrive, the last to leave and even take work home with you? You could be too busy working in the business to spend time working on your business strategy. It’s also highly likely that there’s little time left for friends and family, let alone yourself.

We can help you achieve balance so that you are not only less stressed in your home life, but more effective when you’re working in your business.

What is Mind Freedom?

Mind freedom is being able to sleep soundly at night. It’s not burning yourself out before taking that much needed holiday, and it’s not getting sick the moment your holiday starts. Attaining financial and time freedom can be the first step to achieving mind freedom. More money in the bank and more time outside your business generally leads to better perspective and less stress. We believe it’s not only our duty to help our clients meet their taxation obligations, it’s our duty to help them achieve Financial, Time and Mind Freedom. Contact us for more information on how we can help you grow your freedom. “Your business should deliver you the cashflow you need and the discr

There are three fundamentals to successfully scale up your business: having a clear organisation structure, having comprehensive systems, and developing great leadership.

Heard the quote, “What got you here won’t get you there”? These are wise words (and the title of a book you should read!) are from Marshall Goldsmith. Choosing to scale your business does not come without risk!

Many leaders focus on their systems and teams when looking to scale, which is important, but they must also focus on scaling themselves.

Fundamental three: developing great leadership

Most reasons why businesses fail, directly and indirectly, point to leadership failure.

From poor planning to poor hiring, poor communication to poor process, poor capacity to poor execution - most things can be fixed with great leadership.

Scaling the business will make new demands on a leader’s time and attention and it’s critical that these are both focused on the right things:

1. Planning:

Setting a clear vision and relevant business goals, regularly reviewing progress, and resetting goals to drive performance improvement.

2. Inspiring:

Motivating others to achieve more than before; showing them their potential to make an impact.

3. Empowering:

Enabling your team to find their own solutions by guiding them with your support, trust and encouragement

4. Culture:

Demonstrating allegiance to the team and standing for the business’s core values.

5. Innovating:

Continuous improvement in people, product, and process.

6. Personal growth:

Developing and supporting your future leaders with mentoring and guidance

Black Ink 4: Collect your debtors faster

Great leadership is about influencing others in the direction of a common goal.

While there can only be one leader of a business, there are seven operational departments that need individual leaders. People can lead multiple departments initially but, as the business grows, should look to empower others and delegate the leadership of some departments to ‘leaders in training’.

On a scale from 1 to 10, how well do you rate your performance on the above six categories? Where can you scale your leadership? Need help? Get in touch.

Did you know that you still have to pay tax on your debtors, even if you haven’t yet collected them?

This is because you pay tax on your sales figures, whether you’ve collected the cash or not.

So, how do you collect your debtors faster?

Agree your payment terms at the time of sale.

Ensure your customer signs your Terms of Trade before you start the job.

Include a guarantee in your payment terms.

Invoice as quickly as you can.

Ask for a deposit prior to starting the job.

Change your payment terms to within 7 days of invoice or on delivery.

Send statements with only two columns - current and OVERDUE.

Follow up the day after the due date.

Have someone other than the owner be responsible for collection of debtors (owners are usually too soft!).

Document any changes to your standard payment terms in writing.

Use a debt collector sooner rather than later - the longer you leave it, the harder it is to collect.

Don’t provide credit to customers who’ve been late payers in the past, and don’t offer more credit to customers with outstanding payments.

Don’t procrastinate on your debtors. Establish clear payment terms and ensure you stick to them.