Newsletter
Optimising Your Business Profits
20 August 2009
Where are your profits coming from?
What are the strengths and weaknesses of your business?
UHY Haines Norton provides software called Optimizer that can quickly and succinctly summarise how your business is performing and key areas where improvements can be made.
Using the software we can provide insight and strategy into such crucial areas as:
- How to improve cashflow
- Methodology to increase sales
- Methodology to decrease costs
- Methodology to increase your gross profit or margins.
We have already had a great deal of success in improving client business performance using Optimizer as an initial guideline.
All we need is your financial accounts for two quarterly, 6 monthly or annual periods. It takes less than an hour to enter the information and a one hour consultation with you can reveal the key areas where you can improve business performance.
The cost of this consultation is $250+GST reduced from $750. If you are interested in booking an appointment please contact Michael Jamieson on 027 663 6062.
It is a very worthwhile exercise.
Recession, What Recession?
(or No Stopping Kiwi Ingenuity)
With so much news and discussion these days about the recession it is easy to forget that there are plenty of businesses continuing to thrive despite the economic downturn.
One such UHY Haines Norton client that is continuing to grow and prosper is the engineering firm Teknatool International Limited.
The Company manufactures high end consumer durable and stationary power tool products for the home woodworker/DIY workshop, including machines, electronic controllers, motors and supporting accessory products. Teknatool is also developing a market for its innovative direct drive motors, and anticipates that this side of the business will become its major income stream.
Whilst a New Zealand owned and managed company it has recently expanded its operations into China and is continuing to grow and develop its European and US export markets.
The Company currently employs 70 workers and was a recent winner in the NZ China Trade Association Annual Business awards winning both the business in China and the Supreme prize.
UHY Haines Norton has a long association with Roger Latimer, Managing Director of Teknatool. When the Company sought to set up a manufacturing base in China Mr Latimer sought the advice and expertise of UHY Haines Norton on the related structuring and tax matters.
Mr Latimer recognises UHY Haines Norton as a trusted business advisor and acknowledges the advice and expertise provided by the firm.
Mr Latimer is optimistic the Company will continue to grow and prosper despite the tough economic environment.
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Cash is King
Most people are familiar with the saying that “Cash is King” however this saying has never held truer than now.
As a result of the credit contraction and difficult trading conditions we have received numerous enquiries from clients as to how they can improve their business’s cashflow.
In fact we have had so many enquiries that we have developed a Profitability and Cashflow Checklist that provides practical ways that you can manage and improve your cashflows.
Contact Grant Brownlee on 09 839 0297 if you would like to receive a copy of our checklist or if you would like to discuss ways that your cashflow can be improved.
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Taxing Matters
Taxing matters provides a summary of topical tax information relating to individuals and business.
Legal Fees Deduction
From 1 April 2010 legal fees incurred of $10,000 or less in a tax year are fully deductible irrespective of whether they are capital in nature.
Changes in IRD Use of Money Interest
From 28 June 2009 the use of money interest rate for underpaying tax to the IRD fell from 9.73% to 8.91% while the rate for overpayments of tax paid to the IRD will fall from 4.23% to 1.82%.
Income Tax Rates for Individuals
New tax rates for individuals came into effect from 1 April 2009. The top tax rate is now 38% for income over $70,000 down from 39% previously.
FBT Rates
With the change to individual tax rates from 1 April 2009 the higher FBT rate of 64% has reduced to 61% (the 49% rate stays as is).
Employee Mileage Rates
The IRD’s mileage rate for employees is currently 70 cents per kilometre.
Cash Basis Persons Rule
The IRD has recently broadened the scope of “cash basis persons” to include all entities (including companies and trusts) subject to certain thresholds not being exceeded. Previously companies and trusts were required to accrue income earned but not received at 31 March 2009 (or at balance date for non standard balance dates).
Provided company’s and trust’s do not exceed the thresholds set they will no longer be required to accrue income at year end, instead they will only be taxed on income actually received. This rule change applies from 1 April 2009.
For further information regarding the above or for any other tax matters please contact us.
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UHY Haines Norton Close to Home
Waitakere Business Awards
UHY Haines Norton has continued its long association with the Waitakere Business Awards and is proud to be one of the main sponsors of this years awards. In addition UHY Haines Norton Director, Tim Livingstone is one of this year’s judges.
We would like to congratulate all those local firms who entered the awards and wish all those firms nominated for the various categories all the best when the award winners are announced on 16 October 2009.
Client Functions
Since officially opening its new offices in November UHY Haines Norton has held a number of successful client functions including hosting:
- Paula Bennett Minister for Social Development who gave an informative and entertaining presentation on the National Party’s first few months in office.
- Michael Cooper the renowned New Zealand wine author and critic (and UHY Haines Norton client) who educated and entertained participants on the finer aspects of wine tasting and drinking.
As these functions have been well received by clients we will be holding further functions in the future, we will advise you when the next function is due to be held. In the meantime if there are any speakers that you would like to hear please let us know and we will do our best to organise it.
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UHY Haines Norton is an accounting and business advisory firm based in Henderson, West Auckland. We specialise in providing accounting, tax, consultancy and audit services. We are part of the worldwide association of UHY Haines Norton firms operating in over 180 offices based in more than 60 countries around the world.
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