It's that busy time again - the end of the financial year - check out the last article in this newsletter to ensure you do what is required.
A couple of other changes take effect from 1 April 2017: Changes to employment agreements which is mentioned below and also tax changes affecting contractor payments with the details set out on the IRD website here.
Talk soon, The Kendons Team
Changes to employment agreements - required by 1 April 2017
On 1 April 2016, important new employment standards came into effect which meant all new employment agreements had to comply with new requirements under the Employment Relations Act 2000 (Act).
From 1 April 2017 all existing employment agreements will also need to be compliant.
The main changes under the Act relate to:
availability provisions (often referred to as 'zero hour contracts');
secondary employment provisions; and
cancellation of shifts for shift-workers.
Simpson Grierson provide further information relating to these changes on their website and can be viewed here.
More to it than numbers
“A lot of accountants just do the numbers,” says Condor Pumps Director, Jeremy Cashmore. “But the guys from Kendons help you to understand the numbers, make sense of them, and grow the business.”
Condor Pumps meet with Kendons every quarter to review the strategic plan and the quarterly accounts.
“They make us accountable,” says Jeremy. “They’re not your average bean-counters. We find they are very practical and have developed a really good grasp of the business and how we tick. They provide us with a consulting service, based on a thorough knowledge of our financial performance.
“They give us a lot of confidence in making decisions, whether it’s about staffing numbers, or how to structure the company cars or other aspects of the business. They give us confidence we are on the right track.”
Condor Pumps is based in Lower Hutt and has been in business for more than 30 years. Jeremy is one of four directors with a staff of nine. The firm assembles and distributes a great variety of pumps in the agriculture, marine and food sectors, and the fuel and oil industries. They import from Italy, the United States and China.
They distribute throughout New Zealand, in the Pacific and to a smaller extent in Australia. They sell their own branded products, and suppliers’ brands as well.
“The secret to success long-term is to provide people with solutions to their problems,” says Jeremy. “If they use us, it’s our job to make sure they get the right product that solves their problem. A happy customer is the key. A lot of our business is repeat business. 80% of our business comes from 20% of our customers.
“Customer satisfaction is so important. In every email we send out, there is the opportunity for customers to rate us out of 10 and give us feedback. We generally receive a high rating.”
Love is in the air at Kendons - with two team members recently saying "I Do".
The end of January saw Jia and Rob tying the knot in Wellington and being lucky enough to get a beautiful summer day for their outdoor ceremony.
A few weeks later Dylan and Rosie had their turn with an amazing wedding weekend in sunny Whakatane.
Our congratulations to both couples.
7 ways to grow your business
Are you on track to achieve the financial results you want?
Do you want to increase the profit your business is making?
Are you looking for business growth?
Are you keen to find new strategies to improve your business performance?
If you do what you’ve always done you WON’T get what you’ve always got – customers are demanding and expecting more. In today’s ever changing market you need to be constantly monitoring your performance, and developing new strategies to achieve growth.
This 75 minute seminar will help you understand the 7 key areas of your business which you can influence to achieve growth and strategies you can adopt to support this.
By attending this seminar you’ll:
• Be challenged to change your behaviour and look at your business like you never have before
• Learn how to set a roadmap and cruise control dashboard for your business
• Discover how to measure and maximise business efficiency
• Discover the 7 ways to grow your business
• See worked examples of the Growth Equation in action
11 May 2017
Boulcott’s Farm Heritage Golf Club
33 Military Road, Lower Hutt
For most taxpayers, 31 March 2017 will be the end of the financial year. Certain matters need to be addressed so the financial statements and tax returns can be prepared.
How the value of trading stock is calculated is dependent on annual sales and the valuation method used for financial reporting purposes. Generally stock is valued at the lower of cost (excluding GST if registered) or realisable value (if less than cost).
If annual sales are less than $1.3 million and your estimated trading stock value is less than $10,000 then you have the option of using last year's stock figure.
Otherwise a physical stocktake is required and obsolete or slow moving stock should be identified and valued accordingly.
As in previous years, we will send you a copy of your fixed asset register and seek confirmation that the assets still exist. You also need to check whether any assets should be scrapped and a deduction claimed for the remaining adjusted tax value.
To claim a bad debt for the year ended 31 March 2017, it must be written off by 31 March 2017. Ensure all bad debts are written off before closing your computerised debtors ledger at 31 March 2017.
If you have a manual system, note in your records the amount owed, that the debt has been written off and the date of write off. Remove the bad debtor from your usual invoicing system and place in another folder for future follow up.
Print out a list of accounts payable at 31 March 2017 (usually these payments will be due on 20 April 2017).
Amounts owed to employees, such as holiday pay, bonuses and long service leave can be claimed in the 2017 year if they are paid out within 63 days of 31 March 2017 (i.e. by 2 June 2017).