When I sat down a few weeks back to think about what I wanted to say in this newsletter, it was kind of like one of those

“rush of blood to the head” moments. Except in this case, it was a rush of expletives to the tip of my tongue!

Because, as most of my readers will probably well appreciate, sometimes being in business is hard (or should that be ^#$@#&* hard?). You know what I mean, don’t you?

It’s relentless, and even more so when times are tough like they are now. As

business owners, it’s hard to find the time to look up from the day-to-day detail and get on with the stuff you’re really supposed to be working on – like growing your business, or planning for the changes in GST.

If we are all busy dealing with the drama in the detail of today, when do we get time to deal with the big stuff looming in the future?

The short answer to that question is, you don’t. But it’s not the right answer, either. So, while I was trying to filter that rush of expletives down to something that Microsoft Word wouldn’t reject as a spelling mistake, I had time to stop and think about

what being in business is all about.

So I got to thinking about my old mantra – business is about four things: People, Strategy, Execution and Cash. And if you keep those things top of mind, even when the world has gone bonkers around you, it will help put the relentlessness into perspective and help you focus on what really matters in your business.

And I calmed down – sort of. I hope you also find a way of forcing yourself to look up from the detail and out towards the horizon. Even if it’s just for a few minutes. Your spell-checker will thank you for it.

Level 4, James Smith Building, 55 Cuba St, Wellington04 499 8460 enquiries@gofi8ure.co.nz

www.gofi8ure.co.nz

NEWS AND VIEWS FROM THE TEAM September 2010

From the horse’s mouth...

Here are some key things to think about as you prepare your business finances for the increase from 12.5% to 15% taking effect from 1 October 2010.

Be prepared – Whoops, I’m repeating myself! If you haven’t started preparing for the change, START RIGHT NOW. Better yet, give us a call and we’ll help sort you out.

All systems go? – Will your accounting software cope with having to deal with two GST rates during one financial year? It’s more than likely that you will have transactions covering both GST rates, so make sure you doublecheck with your software provider to find out what costs are involved and what staff training will be required.

Pricing – Review contract prices to ensure you are covered for the GST increase.

Pre GST hike spend-up – Back in 1989, when GST rose from 10% to 12.5% there was a major increase in consumer activity. If your customers are wanting to spend, spend, spend before the next increase, why not

encourage them to pay up-front for continuing goods

and services and take advantage of the cash influx?

Credit and debit notes – GST is generally recovered or paid at the rate of the original sale or purchase. It’s likely that you’ll receive some tax invoices for goods and services after 1 October, which will be at the old GST rate of 12.5%. Ensure your systems will be able to produce credit and debit notes at the old and new GST rates.

Contractual obligations – Amend all long-term contracts, agreements, voucher systems and any other ongoing commitments to ensure your business is covered for the increase.

GST returns – If the change to GST falls during your return period, you may have to file two GST returns (one as usual, and one transitional return). Check this out with the IRD if you’re not sure.

Calculating GST at the new rate – It’s a lot messier to work out the amount of GST in a GST-inclusive price with the new rate - you will need to divide it by 7.66 (recurring).

Are you ready for 15%?I was never a member of the Boy Scouts (for obvious reasons) but Lord Baden-Powell was definitely onto something when he thought up the Boy Scout’s motto, Be Prepared.

‘Be prepared’ is a bit of a mantra at Go Figure, and right now there couldn’t be a better time to be shouting it from the rooftops, what with the changes to GST looming so darkly on the horizon!

The increase in GST shouldn’t be seen as a negative change. In fact, it’s possible to make the change a positive thing for your business. But one thing is certain: it’s gonna be an absolute nightmare if you aren’t prepared.

What happens to work invoiced in September, but paid in October?

Our mobile accounting team is made up of Ronak, Gina and Jamie, and they’re the Go Figurines that will ‘go’ to you at your office or worksite and get your accounts on the ‘go’ again!

They’ve got experience coming out of their ears (we checked) and are ready to take your everyday accounting woes off your plate so you can focus on what you do best, no matter what your business is.

This newsletter was proudly brought to you by Newsletters Limited. Research, write, design, deliver. Print and Email.

www.newsletterslimited.co.nz 0800 10 90 90

If you’re wondering how your insurance payments, monthly parking fees or gym membership are going to be calculated once the GST increase comes into effect, it’s pretty simple.

The GST Act allows suppliers to increase their prices on existing agreements or contracts to allow for the increase.

For example, when you signed up to join the gym recently (good on you!), your monthly membership was set up at $120 including GST.

From 1 October 2010 your fee will increase to $122.67 including GST. Your gym should advise you of this increase in writing.

The IRD tells us you will need to make an adjustment for certain ‘qualifying supplies’. These supplies are goods or services sold or purchased before or on 30 September 2010, but not paid for in full by that date and not written off as a bad debt.

You’ll need to identify any of these qualifying supplies and make an adjustment on your return covering that period. It sounds confusing, but it probably isn’t as scary as it sounds. Remember, to call us on 04 499 8460 if you need a hand.

Ronak has been a Go Figurine for just over a year and a half after we poached him from the retail industry (he was wasted on a checkout – especially since he had recently graduated from Victoria University with a Graduate Diploma in Professional Accounting).

Ronak knows his way round the books for a wide range of busnesses, from legal, to constuction, design and consultancy. He’s also an awesome communicator with great rapport

with his clients. This came in handy recenty when he had to explain to a client that claiming

her pet chihuahua as a security expense just wouldn’t work!

Ronak has a life outside accounting, and enjoys playing cricket and squash.But don’t let those genteel pastimes fool you: he’s an extreme sport junkie, too. He’s been spotted abseiling, bungee jumping, sea-kayaking and white-water rafting.

We continue to live in hope that he turns up unscathed on a Monday morning!

Like Ronak, Jamie’s been part of the Go Figure team for around 18 months. We reckon he must have been a bit confused at university – given that he majored accounting, commercial law and chemistry, of all things.

We’ve decided that it’s more a case of ‘multi-talented’ than ‘confused’, because his exposure to those different disciplines means Jamie can wrap his head around a lot of different businesses. Which is a great thing for a Go Figurine to be able to do.

A ‘numbers’ fan, Jamie’s also good with people. In fact, we’ve heard he’s very good with clients’ cats, too. “A few of my clients work from home, and I’m often pushing their cats off the keyboard – only to see them jump right back up again! I didn’t realize cats had such a keen interest in paperwork.”

But the multiple talents don’t just stop at the end of the working day. Jamie has a strong interest in all sports and plays football at a high level for his local club. He’s also keen on drawing and painting when he can find the time.

After a few years working in the accounting industry, Gina came on board around a year and a half ago to train as a graduate and support sales and marketing while continuing her university studies. It didn’t take us long to decide she was a keeper!

Gina rose rapidly through our ranks and is now the most mobile ‘Mobile Accountant’ on the team. Her attention to detail, together with her deadline-driven and committed attitude is impressive. “I make an effort to speak my clients’ own lingo, which I’ve found is a great way to communicate and I’m often drawing pictures to outline what I’m trying to explain - which works really well.”

When we asked her what she did in her time off, Gina explained that she doesn’t have any spare time! But in the rare moments when she does find it, you’ll see her doing anything that involves the outdoors, like mountain biking, camping or skiing. And when the weather doesn’t permit, she’s busy renovating her house.

How to deal with automatic payments for goods and services

More tips for dealing with the GST monster...

GST

Meet the team - our mobile Go Figurines

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