Exciting News – Connect2 is Joining Forces with Maisey Harris & Co!
Clients of two of the North Island’s most reputable accounting firms are set to experience an increase in the level and number of services as Hamilton and Tauranga-based Maisey Harris & Co and Tauranga-based Connect2 announce their upcoming merger. Speaking candidly on the recent merger with Connect2 Chartered Accountancy firm, Pete Harris, Co-Founder of Maisey Harris & Co, acknowledges the excitement of capitalising on the synergies between the two brands, “Pedal to the Metal is the approach that we pride ourselves on. Partnering with our clients to allow them to thrive in business and achieve their goals is what we do best, and this merger with Connect2 will only drive this further. Jocelyn and her team have worked hard to build a great culture that is underpinned by a strong set of values. Core values that include being ‘Proactive’ and bringing ‘Positive Energy’, align well with Maisey Harris & Co, as we strive to bring high energy to everything we do! Maisey Harris & Co’s client-centric approach also blends well with Connect2’s focus on helping family businesses achieve growth and success!”. Clients of Maisey Harris & Co can look forward to benefiting from the extended support and experience that the team will have access to following the merger. With a larger network to collaborate with and a wider range of services and expertise to draw upon, the team at Maisey Harris and Co will be more empowered than ever to help their dedicated clients meet their business goals! Additionally and from a day-to-day level, nothing changes for Hamilton clients! Despite the two firms working under one ownership, both teams are proud to reassure their customers of their plans for a long-term transition, and a commitment to prioritising customer satisfaction across both entities. Jocelyn and her team will remain at the helm of Connect2 but with the added input and support of the Maisey Harris & Co team. Boasting a number of awards, including the Xero Peoples Choice Awards two years running and the Waikato Business Awards small business of the year, to name a few, Maisey Harris & Co look forward to affording the loyal and long-standing customers of Connect2 access to the same efficient and technology-driven services as their Maisey Harris & Co customers receive. In the coming months, clients can expect to see Matt, Maisey Harris & Co Partner and General Manager of the Tauranga branch, working alongside Jocelyn and her team to facilitate a smooth transition for everyone! Meanwhile, Nathan, Pete, and the full Maisey Harris & Co management team will be working hard behind the scenes to ensure added value for all clients and team members moving forward!
GST Invoice Rules are Changing
GST invoice rules are changing – making life easier No more piles of receipts and invoices required! Dealing with GST invoices will be much simpler under Inland Revenue’s new rules, which come into effect on 1 April, 2023. The goal is to modernise your record-keeping systems, which means you’ll be able to get closer to a completely paperless business. Physical paperwork or PDFs no longer required From April next year, you won’t need to keep a physical copy of a tax invoice, a credit note or a debit note. Your taxable information supply can be digital – included in your accounting software, in your transaction records or in contractual information. New wording is coming into use – you no longer need to label your invoices as ‘Tax invoice’. The new wording is ‘taxable supply information’, but you don’t need to specify that on any invoices. It’s just the Inland Revenue’s way of explaining that certain information needs to be included on the documentation – you don’t need to make any alterations. These changes are necessary to make e-invoicing legal, so without any actual paperwork or even a PDF moving around, your system-to-system invoices are still valid. We’re here to help If you’re not sure which records you need to keep, just give us a call or drop us a note. We can chat with you about how these changes might impact your business, and how you can use e-invoicing to reduce your risk of invoice fraud. Get in touch! Contact us
The 7 causes of poor cashflow
The 7 causes of poor cashflow. Cash is the life blood of any business. In fact, even profitable businesses can and do fail because of poor cashflow. What’s important is that you understand your key drivers of cashflow. Improving cashflow is often all about changing your business’s processes, for example, how you order stock and pay for it, how you bill for your services, and how you make sure you get paid by your customers. Don’t treat the symptoms of poor cashflow without fixing the underlying causes! Inadequate cashflow is a symptom of management problems in a business, NOT the cause. In order to fix these underlying causes, you need to make the necessary changes to your processes. By making these changes, you will build a much better and valuable business, as well as improve your cashflow. While there are many causes of poor cashflow, most relate to one or more of the following seven categories. 1. Your cash lockup.This is the cash that isn’t in your bank account because it’s locked up in work in progress (work you’ve done but not yet billed for) or you’ve billed your customer but are waiting for payment. 2. Your accounts payable process.If you don’t have spending budgets in place and aren’t taking advantage of the best possible supplier terms, your cashflow will be impacted. 3. Your stock turn.If stock is moving too slowly, it will take longer to turn the stock you’ve already paid for into cash. 4. The wrong debt or capital structure.For example, if your loans are being repaid over too short a term, this will place a big strain on cash reserves. 5. Gross profit margins are too low.Your gross profit margin is what’s left from sales after variable costs are deducted. If it’s too low, it won’t be enough to cover fixed expenses and your drawings from the business. 6. Overheads are too high.Every business should do a thorough review of its overheads each year. 7. Sales levels are too low.If sales levels don’t support cash demands on the business, then sadly, the business is not currently viable. “If I had to run a company on three measures, those measures would be customer satisfaction, employee satisfaction, and cash flow.” – Jack Welch