Get up and running. Take your business to the next level

Transcription

1 Take your business to the next level

2 2 Contents It all starts with a vision 3 Getting started with small business registrations 5 Think strategically about your customers 7 If you want to expand, you often need to employ 8 Keeping your business running smoothly 10 Embracing technology 12 Preparing your books with MYOB online accounting software 14 Which accounting software is for me? 15 Looking for an Approved Partner, bookkeeper or trainer? 16 Find us 17 The information provided within this document is of a general nature and is intended to be a guide only, in accordance with our Legal Disclaimer. For specific advice regarding your particular circumstances, please consult your tax agent or the Inland Revenue Department as appropriate.

3 3 It all starts with a vision We ve all heard the term vision but what does it really mean? A vision is a simple yet compelling statement of where you re headed. It articulates where you want your business to be, and how you want it to look, in the future.

4 4 Developing an effective vision is one of the most important steps for anyone planning a successful business. Your vision should be based upon a perfect world scenario where everything goes to plan. The following five tips create an effective vision: 1Inspiration 2Passion and energy 3Action-oriented 4Memorable 5Live it Successful leaders use their vision to motivate and engage employees; the vision sells their ultimate objectives, and gets everyone pulling in the same direction. It must be able to drive you and your people through the tough times you might experience along your journey. Without action, your vision remains as a dream. Keep it short, sharp and punchy so it can be recited from memory. Prove that it s more than just words where possible, link achieving key aspects of the vision to rewards and bonuses.

5 5 Getting started with small business registrations By now, you ll most likely already know whether you re running your small business as a sole trader or a partnership. And you might have already reserved a company name with the Companies Office and received your NZ Business Number. Once your turnover is $60,000 or more, you ll also need to register for GST. As a GST-registered business, you collect GST on behalf of the Government by building it into the prices of your products and services, and then claim GST back on the products or services you ve bought as business expenses. As an employer, you are required to register with the Inland Revenue Department. As an employer, you have tax responsibilities relating to your staff. This includes ensuring new employees complete a tax code declaration, making correct salary deductions and filing employer returns. You must also: + + Work out whether your staff should be enrolled in KiwiSaver, make PAYE deductions, complete appropriate employer returns and account for any Fringe Benefits you provide to your employees. + + Keep records for 7 years.

6 6 There are a number of deductions employers are required to make from salary and wages. + + PAYE + + Student Loan repayment deductions + + Child support deductions + + Employer superannuation contribution tax + + KiwiSaver Filing and payment responsibilities for salary and wage deductions differ depending on your gross annual PAYE (including ESCT) payments. Employers with gross annual PAYE (including ESCT) of $100,000 or more must file their Employer monthly schedules (IR348/EMS) and Employer deductions (IR345/ EDF) forms electronically using ir-file. This option is also available to employers with gross annual PAYE (including ESCT) of less than $100,000. Employers with gross annual PAYE (including ESCT) of less than $500,000 must file an Employer monthly schedule (IR348) and Employer deductions (IR345) form, and make payments to us once a month. Employers with gross annual PAYE (including ESCT) of $500,000 or more must file an Employer monthly schedule (IR348) once a month and file Employer deduction (IR345) forms and make payments to us twice a month. GST is filed on either a monthly, 2 monthly or six monthly basis based on your turnover and is required to be paid by the 28th of the month following the end of the taxable period.

7 7 Think strategically about your customers For a small business, the marketing budget is often small or nonexistent. Taking a strategic and integrated approach can help maximise your marketing efforts and costs. Customer interest and needs sweet spot Unique brand expertise and value Your marketing, like your product or service, must start with your customers interests and needs. Unless your marketing addresses what they care about most, buyers will never see your small business as a valuable resource for information with viable product or service solutions. Think about what problems your customers face and how your business can resolve these problems. The convergence of these two areas is what is known as the sweet spot. By narrowing in on your sweet spot, you will help your business thrive, as your customers will see your business as a useful resource for problem solving.

8 8 If you want to expand, you often need to employ If you re looking at growing your staff numbers, take the following steps to see which of the above will be affordable for you: 1Know your bottom line. If you regularly review your cash flow, you may have the opportunity to take someone on board. 2Review expected revenue. If you plan to take on employees to make more money, consider how much additional revenue your new employee will help generate. 3Estimate how much you ll have to pay each employee you take on. Begin with researching comparable pay rates in your area.

9 9 Taking on staff also means you need to think about your payroll processes. If you re unfamiliar with payroll and legislations, you may find yourself subject to significant penalties. Employee type Advantages Disadvantages Require payroll Full-time + + A larger labour and skill pool to choose from + + Higher staff satisfaction levels Part-time + + Lower cost to acquire + + More expensive + + Less flexibility + + Higher costs of benefits + + It s harder to find skilled staff Yes Yes Payroll is the total amount of money you pay to your employees over a set amount of time. It s also all the financial records and data related to salaries, wages, overtime, bonuses, deductions, withholdings, and garnishments related to your business. + + Greater flexibility Contractor + + Even lower cost to acquire + + Lowers staff satisfaction levels + + Difficult to get them when you need them Yes + + Greater flexibility Check out the Employers Responsibilities page on the IRD website.

10 10 Keeping your business running smoothly Many small business owners experience stress when it comes to managing cashflow. Timing is everything and knowing how much you have to pay your suppliers and who still owes you money is critical to your business success. These invoicing tips can help you manage your cashflow and get your customers to pay faster.

11 11 Top tips to get cash flowing into your business quicker 1Make your payment terms clear 2Invoice your customers as early as possible 3 your invoices rather than posting them Get your customer to agree to your estimated price provided on a quote prior to the work they want done. If your payment terms are stated clearly on your quote or invoice, it is considered a binding contract. Try not to wait until the end of the month to do your customer invoicing. If you wait 20 days to invoice then that s 20 days of no cashflow. If your customers have addresses, use this as a faster, more reliable method to send your invoices. Posted invoices can easily be delayed or lost. 4Make your payment terms clear 5Invoice your customers as early as possible 6 your invoices rather than posting them Get your customer to agree to your estimated price provided on a quote prior to the work they want done. If your payment terms are stated clearly on your quote or invoice, it is considered a binding contract. Try not to wait until the end of the month to do your customer invoicing. If you wait 20 days to invoice then that s 20 days of no cashflow. If your customers have addresses, use this as a faster, more reliable method to send your invoices. Posted invoices can easily be delayed or lost.

12 12 Embracing technology Developments in technology help us run a business more efficiently, but its ever-changing nature can make it hard to keep up. In this way, embracing accounting technology can help you stay compliant and stay ahead of the game. It s also important to keep up with changing legislation, regulation and product or service standards to avoid putting your business at risk of penalties and other consequences. Accounting software like MYOB Essentials or AccountRight Plus is always up to date with the latest industry and regulation updates while continuously looking for ways to operate more effectively. This can help you stay up to date with changes in both technology and your compliance responsibilities giving you better peace of mind for your business.

13 13 Preparing your books with MYOB online accounting software Preparing your books using MYOB accounting software can save you a lot of time. It has all the smarts you need to complete your pay run like GST codes that you can allocate to each of your business transactions. Generate reports detailing GST related income, expenses and capital purchases to complete your GST return with ease and efficiency. Using MYOB to do my books has been a huge help. It makes it easy to file my GST returns, something I dreaded having to do. Denyse Forsyth Kruizey Kidz

14 14 Quick and easy to set up, MYOB Essentials has all the features you need to take care of your day-to-day bookwork, including: MYOB BankFeeds Link your bank account and save around 10 hours. All the features you need to take care of business. Always tax compliant Fast and easy updates ensure your business is in line with the latest tax legislation. Work together with your advisor Share information with your accountant or bookkeeper without having to be in the same place. Better manage cashflow MYOB Essentials lets you manage your cashflow, invoices and tax liabilities in real time. Safe and secure You can securely store and manage supplier bills in your accounts to make your monthly obligations easier. 100% online There s no software to install on your computer, MYOB Essentials is fully accessible via your web browser. Try for free

15 15 Next generation Payroll New ways to help businesses manage payroll - cut time spent managing payroll by 40% * Try for free Take care of your people Essentials Payroll has everything you need to take the hassle out of paying employees and meeting your employer obligations. Meet your employer obligations Essentials Payroll is the fast and easy way to manage your PAYE compliance requirements. Cut time spent managing payroll by 40% * Get real-time access to more accurate employee timesheets, when employees enter their hours via their smartphone or online using MYOB YourPay. Hours and notes are automatically imported to the payrun. Choose to take the hassle out of PAYE compliance with MYOB PayAgent Nominate MYOB as your payroll provider to outsource the processing of wage payments to employees, PAYE payments to IRD and reporting to IRD. * Source: Customer survey via MYOB Client Insights Panel, June 2014

16 16 Ideal for desktop users wanting to move online or needing a more customised solution. Stay competitive MYOB AccountRight is powerful accounting with business management capabilities so your business can stay competitive to get ahead. Stay in control Fully customisable, it enables you to stay in control of the most demanding jobs, inventory and multiple company accounts. Stay informed Includes 150 reports and a fully customisable dashboard for your specific business requirements. Stay compliant Improve productivity and efficiency, make compliance easy, and choose the plan that best suits your business needs. Learn more

17 17 Always out and about for work? Access the best parts of MYOB Essentials and AccountRight with MYOB s OnTheGo mobile app. + + Send and track invoices using your mobile + + Better manage your cashflow with real-time invoice tracking + + Easily see when customers view your invoices to minimise late payers + + OnTheGo updates your accounts automatically + + There s no need to rekey information back in the office. Payments made simple Take credit card and debit payments on your phone with BNZ PayClip. BNZ PayClip accepts EFTPOS, Visa and MasterCard credit and debit cards, using contactless, swipe, chip and PIN. With low fees and no strings, PayClip is the easiest and best way to take payments on the move. To learn more, visit myob.co.nz/onthego

18 18 Looking for an Approved Partner, bookkeeper or trainer? MYOB Approved Partners are accredited by MYOB to provide onsite support for MYOB products including sales, setup, implementation, training, advanced reporting, trouble shooting and bookkeeping. Find an MYOB partner nearest to you.

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