business budgeting - march 1
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Business Budgeting - March 1TRANSCRIPT
Mahurangimatters 1 March 2013 | 43
business budgetingFOCUS ON FINANCE
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Apps available to keep the budget conscious on track by Pauline Stockhausen
Let’s face it – budgets have been tight for a lot of people the past couple of years and these days getting the most out of every cent really matters. Budgeting doesn’t have to be a tedious and overly complicated process. In fact, today’s technology provides a multitude of ways to help individuals and families keep track of their budget and a great place to start is one of the many budgeting apps available online.If you have a smart phone or tablet, you can download many apps for as little as $6 – and for the seriously budget conscious, there are many others available free.
Budget Back in Black This is a very simple, easy to apply-to-real-life budgeting app that anyone can use. You can set income amounts, enter fixed expenses and apply a budget for all other spending. You can track your spending at a glance via the home screen. Other features include setting goals such as savings or credit card debt reduction. My favourite part of this app is the visual pie graphs that help me see where my money is going. Most banks have also developed a budget planner app with many of the same features.
Bills There is nothing worse than getting penalised for a late payment, so Bills is a great way to keep track of when your bills are due for payment. Very easy
to use, this app lets you list all your bills within the month; they can also be listed weekly or fortnightly. It sends you pre-alerts when a bill is due and rewards you when you have paid a bill on time.
iallowance This app allows children to keep track of their chores and they can also see how their money grows as they save, which helps children get into the habit of saving. The app has a reward system so parents can keep track of the targets too. No more comments such as: ‘but you said I could get a treat if I did all my chores for the week’. Parents can also use this app just for the reward system; so a child can receive
or lose stars, and stars translate into money.
Menu planner This might not seem like a budgeting app but it is because it allows users to track the items stocked in their pantry. The Menu Planner app then suggests different menus, making this app a great time and money saver. Each week you can organise what you want to cook for the week and it uses the items within the pantry and writes a list of items that are needed. A lifesaver.Pauline Stockhausen runs Hibiscus Matters’ popular Facebook page and owns social media company, Social Soup New Zealand.
| Mahurangimatters 1 March 201344
FOCUS ON FINANCE
business budgeting
Richard Gerard | Adviser09 425 7400 | 027 291 [email protected] 1 17-19 Elizabeth Street, Warkworth
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With the end of the financial year looming, many businesses will be tempted to buy a large capital item in the hope of saving a lot of tax, says accountant Darren Knight. However, he believes this strategy is flawed. “Buying a large piece of equipment or an expensive ute in March will only give you one month’s depreciation and this will not go a long way to saving you a large amount of tax,” he says.While it’s good to see builders and tradesman with plenty of work, caution is still needed, says Darren. “Don’t be fooled that because of the current property boom specific to the greater Auckland region that the global financial crisis is now over. “The world overall is still in a dire situation. Although banks have become more easy with lending again, we need to look back six months and realise how bad things were.”He suggests businesses prepare a budget and cashflow forecast now. “If you don’t know how to do one, talk to your accountant. Budget for those quiet periods such as Christmas/January where everybody is away and nobody is paying any bills. Budget for tax if you are self-employed.”Because the government is short of
Financial traps for the unwary
Darren Knight has recently moved into new premises in Morrison Drive.
Chartered Accountants & Business Advisors
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Cash flow – Planning / Improvement Forecasting / Budgeting – To make money Profit Improvement – Managing what drives your business Taxation – Payment plans, planning, IRD negotiation Bookkeeping systems – Are you wasting time unnecessarily
funds through tax collection, it is auditing more, says Darren, and he believes it has got tougher. “IRD will force property sales if they have to, and banks are reluctant to finance tax debt. Therefore have a good tax management system in place.”Darren started out in sole practice before becoming part of Bavage Chapman Knight in Warkworth. Due to business differences he has returned to sole practice, with offices underneath Bavage Chapman in Morrison Drive. “There were differences in the type of clients we were trying to target,” he says. “I also wanted to go back towards more personalised accounting practice, with a more hands-on traditional approach and service.”Darren is particularly proud of his links with local schools, surf clubs, real estate agents, bankers and solicitors. “We have a huge depth of experience with a team of four staff, some of whom have worked for both previous entities for more than 15 years.”
Mahurangimatters 1 March 2013 | 45
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The difference between profit and loss in business can be a very fine line. Time to balance the booksWhile there are times in business when companies run at a loss, at the end of the day if a company doesn’t make a profit at some point there is a good chance the business owner will be looking down the barrel of bankruptcy.Stephanie Paxton-Penman is a lawyer who deals with many businesses through her Warkworth office. Often businesses are successful due to the director’s entrepreneurial nature, she notes. “But entrepreneurs can find the administrative side boring. Unfortunately that’s the side that makes all the hard graft pay off – because it is this side that ensures you get paid, your employees get paid and your creditors get paid.”Business budgeting is a fairly simple exercise, says Paxton-Penman. “I can feel the eyes watering and the yawning starting – but honestly all you have to do is look at the last 12 months’ trading and ascertain on a month-by-month basis what the profit and loss is.” It boils down to three main factors, she says: costs, income and budget.Costs: There are fixed costs in a business, such as a lease, tax, and salaries. However, there are other costs which are negotiable. Do you need the water filter machine? Can you make savings on stationery? Can you get a better rate on your telephones, mobiles, photocopiers?
Income: How are you making your money? Which products sell? By analysing your income you will be able to ascertain what part of your business is successful and what part of your business is bringing your bottom line down. Budget: Once you have got a handle on the income and liabilities, look at the interchange between them. Are you paying for things before you get paid? Do you pay your staff before they bill out their time? These things can make a significant difference.Paxton-Penman agrees budgeting can be boring. But without it you won’t secure funding, your business won’t grow and there is a good chance you won’t be meeting your outgoings, she says. “It’s a no-brainer that every successful business has a budget.”
Stephanie Paxton-Penman
| Mahurangimatters 1 March 201346
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If you’re taking your first dip into marketing your business online it’s not uncommon to feel like you’re drowning in trends while struggling to keep your head above water.The good news is, it’s not as hard or time consuming as you might think. Like learning to swim, it starts with remembering to breathe and having confidence.There are lots of ‘how, where and why’ tips online. The ‘who and what’ is up to you. Here’s some 101s, for our print edition, to get you started. Read the extended version on LocalMatters.co.nz.Business as usual: Do what you do well. You don’t need to reinvent the wheel and make it square – it might fit the box but it won’t spin! Online is simply an extension of your existing marketing.It’s all about the story: Social networks are a powerful way to tell your story, emotionally connect and talk to a wider audience. So keep it real to get real results. Cost: Yes, time is money. But can you afford not to be where your customers, and competitors, are hanging out – in our interconnected, social and mobile world.Own your identity: Register your website domain name, email and usernames now. Use the same name for your social networks by going to namechk.com to find out what’s available first. Make sure you fill in your profile information, keep it consistent and updated.Be social: This can seem scary, but the solution is in the title – ‘social’ networks. Stay in touch, talk about
Tips for marketing your business onlineBy Cathy Aronson
what you’re up to (in real language, not marketing speak), share things you like, ask for opinions and have conversations. Avoid faux pas, like shouting in CAPITALS or ignoring people when they talk to you. The most common social media today is Facebook and Twitter. Connect: LinkedIn is the world’s largest business network to connect with your employees, contacts, wider industry and business groups.Find your friends: Make it easy for them to find you. Include links to your social media on your website and business cards. Ask your customers for their social media contacts. Search related networks, regions and businesses. Local matters: People want to find what they need, right now, where they are – often via their phone. Include and enable your location in your online and social networks and make sure you’re on Google Maps.Cathy Aronson is the LocalMatters.co.nz online editor.
The proliferation of scams was the subject of a talk by BNZ security and fraud coordinator Bronwyn Groot, at the Warkworth Mens Probus Club meeting last month.Under the title Scam Savvy, Bronwyn spoke about the many scams circulating and the need for people to keep their money and information safe.She said scams were designed to trick the targeted person into giving away their money or personal details. They came in many forms – mail, email, telephone, over the internet and door-to-door. “The scammers try to suck you in by promising things like great prizes, true love or easy money, but before they deliver anything they will ask you to send money or give them your bank account or credit card details,” she said. “They always pretend to be legitimate banks or businesses. If you give them your personal details, they could steal your money and your identity.” Bronwyn said scams work because they look like the real thing.“Take care of your personal information. PINS and passwords are highly confidential so it is important not to write them down. The banks will never ask you to disclose your PIN number.”She also warned against putting old mail that contains sensitive information in the rubbish bin – shred it or burn it, she said – and never click on suspect links in emails that look as though they are from a bank or a Government department. For information about Probus, phone Bill Speed on 425 8414.
Keep information safe from scammers
FOCUS ON FINANCE
business budgeting
Mahurangimatters 1 March 2013 | 47
Understanding employment rules I recently read a case that highlights the importance of understanding the nature of your employment relationship. Ms Fisher moved to Wanaka without employment and sought work as a nanny. Ms O’Brien, a mother of five, was not actively seeking childcare support, however after an informal conversation agreed to hire Ms Fisher on an “as needed basis”. Shortly after commencing her childcare duties, Ms Fisher asked Ms O’Brien for more work and accepted Ms O’Brien’s offer to regularly clean her home each Monday.Sometime later, Ms O’Brien’s children alleged Ms Fisher was swearing and speeding in the car during periods they were in her care. This was addressed, albeit informally, in a single conversation. No verbal warning or other disciplinary action was taken. Discord between Ms Fisher and the children continued and culminated in an evening engagement being interrupted by multiple phone calls to Ms O’Brien. The next morning, Ms O’Brien sent a text message to Ms Fisher advising the arrangement was not working and would not continue.The Court found that Ms Fisher was unjustifiably dismissed and was entitled to an award of $5779 plus costs. Ms O’Brien believed a casual employment relationship with Ms Fisher existed, and that this afforded her the right to end Ms Fisher’s employment at will. The Court, however, found that an employment relationship can change. Here Ms Fisher was employed on a casual basis until she started cleaning Ms O’Brien’s house every Monday. At that point, Ms Fisher became a part-time employee for her cleaning duties at least, with an expectation her employment would continue indefinitely. Employers have a responsibility to act in good faith and in a fair and reasonable manner towards employees. In abbreviated form, this requires an employer to raise their concern with an employee prior to taking action and to provide the employee with a reasonable opportunity to respond before genuinely considering an employee’s response and taking appropriate action.Ms O’Brien fired Ms Fisher without outlining her concerns or giving Ms Fisher an opportunity to respond. Although the Employment Relations Authority will have regard to an employer’s resources, ignorance of employment law does not excuse an employer from failing to follow a fair process. Such behaviour is likely to result in an award being made against an employer. Prior to addressing an employment relationship issue it is important to obtain legal advice so that you understand the nature of your employment relationship and associated rights and responsibilities.
The lawwith Nathaniel Heslop [email protected] Wynyard Wood Lawyers & Notaries
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