GRA Blogs

Articles by John Rowe.

WAYS TO IMPROVE YOUR BUSINESS

AUTHOR: John Rowe
Retired Partner, Consultant to GRA

POSTED: 27 March 2014

Typically at the outset of a new new year, business owners focus on a fresh start, new beginnings and how they can make it better than the previous year.

Although we are already in March and the year is racing ahead, some businesses have not yet set their intentions for 2014 - perhaps because they've had a very busy start to the year. It's not too late if you haven't yet made clear resolutions, plans and goals - but you need to get cracking.

For many, 2013 was an uncomfortable year, so they will be looking to make improvements to ensure that 2014 doesn't become a repeat.

This involves a two-pronged attack:
1.Deal with the problems of 2013 so they are resolved.
2.Create a plan for a better, more successful 2014.

Here I will talk about point number 1; point 2 will be addressed in my next blog.

It is going to be very difficult to have a fresh start if you still have unresolved problems looming in the background, so they need to be identified and dealt to. The sooner you sort them out the better, because delaying only serves to exacerbate them.

Being behind in payments to creditors is one of the biggest and most common problems we see. More often than not, one of those creditors is the IRD and owing money to the IRD is a problem that can very quickly snowball into a disaster. The IRD is very aggressively pursuing people who are overdue in their payments, and we see activity in this area increasing all the time.

Unfortunately we have some clients who are now facing criminal prosecutions because they have ignored their problems - if you don't file a tax return for 10 years, or don't make PAYE, GST or income tax payments, you can't expect to come through unscathed. Pleading ignorance of tax laws is no excuse as far as the IRD is concerned.

Of course owing money to creditors is not the only area where businesses may have problems. There may be issues with systems and staff, for example, and these will need to be addressed e.g. by refining, updating or replacing systems and/or providing additional training and support for employees.

So first up, get real. Identify your problems, then ask for help to get them resolved. If you owe money to the IRD, or anywhere else, talk to us as soon as possible so we can work out a plan. The sooner you get on to this the better - preferably yesterday.

Once you've cleaned up your problems, you can start focusing on moving forward in 2014.

Request a Meeting

John Rowe
Retired Partner, Consultant to GRA

09 522-7955

© Gilligan Rowe & Associates LP

Did you like this article? Subscribe to our newsletter to receive tips, updates and useful information to help you protect your assets and grow your net worth. We're expert accountants providing expert advice to clients in NZ and around the world.

Disclaimer: This article is intended to provide only a summary of the issues associated with the topics covered. It does not purport to be comprehensive nor to provide specific advice. No person should act in reliance on any statement contained within this article without first obtaining specific professional advice. If you require any further information or advice on any matter covered within this article, please contact the author.

Comments

Testimonials

Good morning, Just wished to thank you again for your informative and interesting lesson last night. Whilst I thanked you for your time, I did not compliment you on your clear knowledge and insight into your area of expertise. So compliments! Kind regards, - G F - April 2016

Would you like to receive . .

. . tips, updates and useful information to help
protect your assets and grow your net worth?

Investing in residential property?

Put this at the top of your reading list.

If you're investing in residential property, seeking to maximise your ability to succeed and minimise risk, then this is a 'must read'.

Matthew Gilligan provides a fresh look at residential property investment from an experienced investor’s viewpoint. Written in easy to understand language and including many case studies, Matthew explains the ins and outs of successful property investment.