Farm Survey 2023

Produced for over 37 years

Providing insights into sheep, beef and deer farming across Central Otago, South Canterbury, West Otago and Southland

FARM SURVEY 2023

Insights on performance against the top 20%

MAGIC INDEX

Combination of Farm Working Expenses & Debt Servicing

A ratio below 75% allows financial progress to be made

The Farm Survey has been produced for over

37 YEARS

INTRODUCTION

We are pleased to share our farm survey information with you again this year and hope you continue to get value from the comparative data. We have decided to present our data using medians instead of averages. The median is the mid-point of any data set. We believe it will give a more accurate picture of each farm type as averages can be influenced by outliers. We have continued to include information for the last 5 years, including the top 20% data, in each farm class.

As farm accounting and business specialists, we are proud of the data and insights we can share with our farming clients. The objective of this survey is to highlight the financial and on farm performance levels being achieved by other farms within your farm class.

The top 20% group of farmers in each farm class have been identified and we then used the mid-point of this group based on the farm surplus per stock unit (Farm income minus Farm working expenses). This means that debt servicing, leasing costs, drawings and plant replacement do not influence the comparison.

All figures are based on total opening stock units (TSU) and total hectares, unless otherwise stated

and the survey is completed on a GST exclusive basis. The return on assets is based on a land and buildings value of $1,100 per opening stock unit.

We trust the farm survey will continue to be a useful tool to achieving more profitable results from your farming business. We would like to thank all our farming clients that participate in the survey, and if you have any questions or would like further advice based on these results, please do not hesitate to contact us.

We have recently sent out a survey to obtain feedback on our farm survey and intend using this feedback for continual improvement in the future.

Janette Matheson Director Simon Wearing Director Director Georgie McLean Director

+$12 Lamb and hogget prices per head for top 20%

OVERALL SUMMARY

FARM SURVEY 2023

The median farm is 6,200 stock units. For comparison purposes, we have assumed the top 20% farm is the same size. In reality the top 20% farm size is 6,500 stock units. Income has increased by $26 per SU from the previous year’s $118 to $144 (+22%). Income = $654/Ha. Farm working expenses increased by $7 to $82 per SU (+9%). Farm working expenses = $385/Ha.

With increased income and an increase in expenses, the farm surplus before debt servicing increased by $16 to $59 per SU (+37%). Farm surplus = $278/Ha.

The median debt loading per stock unit for those properties with debt increased to $266 per SU (+$18/SU). For the median property of 6,200 stock units debt loading is $1,650,000.

The Magic index (Farm Working Expenses plus Interest and Rent compared to gross farm income) for the top 20% of farmers is 57% and the median farm is 68%. A ratio below 75% really allows financial progress to be made because there is sufficient surplus in the business to reinvest and have the ability to repay debt.

The 2022 year was a year of financial progress for the vast majority of farmers.

Characteristics of Top 20% of Farmers:

- Earn more per stock unit from higher production levels and achieve higher value for most classes of livestock. Lambing %, +6% (132% compared to 126%), wool weights +0.60kg/SSU (5.22kg compared to 4.6kg), lamb and hogget price $12/head.

- Higher stocking rate/hectare.

- Spends similar per stock unit and therefore has much better efficiencies of production given higher production and income.

- Spends similar on fertiliser and repairs and maintenance per stock unit.

- Higher debt servicing and lease costs per stock unit ($14/SU but overall lower debt servicing % at 8% of income because of higher income (1% lower).

- Top performing farmers achieve a farm surplus 82% higher than the median farm (before debt servicing) (+$38/SU).

- Pay 12% more tax than the median group.

- The final result after all income and expenses, including personal drawings, capital expenditure and tax is $205,000 higher (+$33/SU) on the same scale of property.

- They pay off more debt and they have more debt per stock unit.

- Taxable income for the top 20% is 125% higher at $461,000 compared to the median taxable income of $205,000.

OTAGO FLAT

SOUTHLAND WEST OTAGO HILL COUNTRY

HIGH COUNTRY MERINO

Lambing % for top 20%

147%

55% Magic Index for top 20%

OTAGO FLAT

Farms classified in this sector are typically on the valley floor areas of Central Otago. They have a mix of irrigated and dryland. They are diverse livestock systems and can often include some dairy grazing and cropping. The median stock units is 4,600 with a median land area of 650 hectares and a stocking rate of 6.3 stock units per hectare.

4,600

The median stock units including grazing stock units

650Ha

Median land area

6.3 Stock units per hectare

Production Figures

OTAGO FLAT

Other Useful Indicators

OTAGO FLAT KEY STATISTICS

2022 Top 20%

55% Magic Index

Lambing % for top 20%

160% Magic Index for top 20%

61%

SOUTHLAND WEST OTAGO

These farms have a reliable rainfall as they are on the flats and lower hill country of Southland and West Otago, generally providing reliable pasture production. Properties in this region tend to be smaller in size and have a more intensive farming system, which includes a higher lambing % and higher lamb weights for sale. The median farm size is 320 hectares and the median stock units is 4,150.

320Ha

The median farm size

4,150 Median stock units

11.4 Stock units per hectare

Production Figures

SOUTHLAND WEST OTAGO

Other Useful Indicators

SOUTHLAND WEST OTAGO

KEY STATISTICS

2022 Top 20%

3,363 Total Opening Stock Units

$2,210/Ha Farm Income

$1,200/Ha Farm Surplus

61% Magic Index

76% Closing Equity as a % of Assets

132% Lambing % for top 20%

61% Magic Index for top 20%

HILL COUNTRY

These properties are predominantly in Central Otago, North Otago, South Canterbury and Northern Southland and include some hill and high country. They run quarter-bred, half-bred and cross-bred sheep, breeding cattle, and deer and many have some form of irrigation. The median farm size is 7,900 stock units spread over 2,000 hectares and have a median stocking rate of 3.5 stock units per hectare. They are typically summer dry.

7,900 Median stock units

2,000Ha

Median farm size

3.5 Stock units per hectare

Production Figures

HILL COUNTRY

Other Useful Indicators

HILL COUNTRY KEY STATISTICS

2022 Top 20%

9,860 Total Opening Stock Units

+$22.00 Gross Income Difference per SU

$10.00 Lower Farm Working Expenses Difference per SU

58% Magic Index

71% Closing Equity as a % of Assets

Wool price per kg for top 20%

97% Lambing % for top 20% $13.18

54% Magic Index for top 20%

HIGH COUNTRY MERINO

These properties run merino sheep and the majority of them are in Otago and South Canterbury high country. Some have irrigation. Wool typically makes up 50% of their income.

Lambing % is lower and the median is 92%.

Merino hoggets are often wintered and sold in the spring. The median Merino property is 8,150 stock units spread across 5,100 hectares.

50% Income comes from wool

92% Lambing median

8,150 Median stock units

2.3 Stock units per hectare

Production Figures

HIGH COUNTRY MERINO

Other Useful Indicators

KEY STATISTICS HIGH COUNTRY MERINO

2022 Top 20%

8,150

Total Opening Stock Units

+$43.84

Gross Income Difference per SU

+$4.55 Working Expenses Difference per SU

54% Magic Index

86% Closing Equity as a % of Assets

EXPLANATION OF

KEY FINANCIAL RATIOS

USED IN THE FARM SURVEY

The following financial benchmarks are in no particular order. The benchmarks have been derived from the performance of the top 20% of clients. They indicate the key financial drivers, which are leading to a very good financial performance for these top 20% of farmers on an ongoing basis.

There are top farmers who can go outside one of the financial benchmarks and still generate healthy financial performances on an ongoing basis, however breaking two key benchmarks over a reasonable period could severely challenge even the top farmers’ ongoing viability.

The key point with ratios is to analyse them over a number of years to identify the trends.

KEY FINANCIAL RATIOS

Total Farm Working Expenses As A Percentage Of Gross Farm Income (GFI)

This is a measure of the amount of farm related expenses required to generate gross farm income (farm working expenses excludes interest, plant replacement and depreciation).

The benchmark in this area is 50-55% of GFI, unless development expenditure is being undertaken.

For example:

Gross Farm Income/SU $140 $120

* Farm Working Expenses/SU $70 $60

Cash Farm Surplus/Stock Unit $70 $60

* Farming Working Expense to GFI = 50%

Debt Servicing As A Percentage Of Gross Farm Income

(Debt Servicing represents interest and lease costs).

The benchmark in this area is a maximum of 25% of gross farm income. A Debt Servicing percentage to GFI below 20% is really the benchmark required going forward, especially if farm working expenses to gross farm income are above 55%.

Magic Index

This is a combination of farm working expenses and debt servicing (including rental payments). Ideally this ratio would not exceed 75%. For a farming business that has a gross income in excess of $800,000, then this ratio could be as high as 80%.

The lower the ratio the better the magic in terms of profitability and cash farm surplus. The amount left after farm working expenses and debt servicing is required for personal drawings, taxation, plant replacement, capital expenditure and development, life insurance and cash surplus or principal repayment.

Return On Total Farm Assets

This is the Return that would be earned on the Total Farm Assets after the costs of a farm manager are taken into consideration.

This is calculated by taking the farm surplus after deducting farm working expenses, deducting an allowance for wages of employing a manager ($40,000 to $130,000 depending on property size), deducting depreciation of plant and machinery, and dividing this figure by the estimated value of the total assets employed (land, buildings, stock and plant and farm-related shares). All land and buildings, including leased land, were estimated to have a starting value of $1,100/stock unit as at 1 July 2022. Stock and plant were taken at opening book value.

Gross Farm Income To Book Value Of Plant & Machinery Assets

This ratio measures the amount of capital tied up in plant and machinery at year end, compared to the Gross Farm Income generated.

A guideline ratio for sustainable profitability and efficiency needs to be:

To get a feel for the true annual cost to maintain plant and machinery at the same basic quality and productive capacity at year end, as it was at the beginning of the year, then a farming business should multiply the book value of their vehicles and plant by 15% to 17.5%.

Depreciation for plant and machinery is on average $8.76/stock unit. Another way of measuring the ratio is to look at the depreciation charge of vehicles, plant and machinery compared to gross income. A depreciation charge above 8% of gross income would tend to indicate either there is insufficient gross farm income or there is an overcapitalisation of vehicles, plant and machinery.

INTEREST COVER RATIO (EBITDAR/ Total Interest & Rent)

The benchmark in this area should be in excess of 2.

Where the ratio is below 2, or even up to 3, we find it means there is either insufficient gross farm income or an over capitalisation of plant and machinery on the property. Sometimes it is a combination of the two, and sooner or later it will mean that too much of the gross and net income is tied up in plant replacement.

For those farmers with ratios below 2, it may be important to consider that even though good vehicles and plant are the engine room of New Zealand agriculture, you need to have a handle on the true annual costs of vehicle and plant depreciation and replacement, and the relativity these costs have to your gross farm income and your cost of production.

This is calculated by dividing farm surplus (EBITDAR - earnings before interest, tax, depreciation, rent and drawings), by the total interest and rent expense. This determines how many times an entity can pay its rent and interest on outstanding debt. Ideally this ratio would be well above 2.0 times, but 1.25 times as a minimum.

Interest Cover Ratio can be a bank covenant and is often based on a longer term status quo interest rate rather than the current interest rate.

DEBT/EBIT RATIO (Debt Coverage Ratio)

This is starting to become more commonly used by banks.

The upper limit for the benchmark for Dairy and Sheep & Beef is a ratio of

debt being no more than 11 times EBIT (Income – Farm Working Expenses –Drawings – Depreciation). The limits for Horticulture and Sharemilkers are 9 and 8 times respectively.

This can vary from year to year depending on returns and farm working costs but the key is to look at the trend over time.

PRODUCTION RATIOS

Lambing, Calving & Fawning Percentage Calculations

The lambing percentage for ewes is calculated on the basis of lambs sold and retained, divided by total ewes wintered. If two-tooth ewes are not mated this would reduce the lambing percentage, and if ewe hoggets are mated, this would increase the lambing percentage.

Calving percentage for cows is calculated on the basis of calves sold and retained, divided by cows wintered. If rising two year heifers are mated, this would increase the calving percentage.

Fawning percentage for hinds is calculated on the basis of all hinds wintered including the rising two year (yearling) hinds.

Crop/Grazing Income

Where Crop and Grazing Income is part of the farming system, we have included crop units to give a per crop unit measure of income. This also ensures other measures based on total stock units are more accurate. Dairy cow grazing is based on $185/stock unit and heifer grazing is based on $155/stock unit. For other crop income, we have equated this to $190/stock unit.

TAX FACTS

Basic Tax Information

Taxable Income levels for when Use of Money Interest charges may apply under the third point, for the year ended 31 March 2024 are:

Independent Earner Tax Credit

The Independent Earner Tax Credit is aimed at middle income earners who do not get any state assistance, which includes Working for Families or Superannuation . The rebate is $520 per year and is available to those with incomes over $24,000 and under $48,000. From $44,000 the rebate reduces at the rate of 13 cents in the dollar.

Notes:

* It was announced in the 2023 budget that income retained in trusts will be taxed at 39% from 1st April 2024

** Except for beneficiaries under 16 years who are taxed at trustee’s rate of 33%. Beneficiaries under 16 can receive up to $1,000 as beneficiary income at their marginal tax rate.

Provisional Tax and Use of Money Interest

1. The Provisional Tax threshold is $5,000. If you have less than $5,000 of Residual Income Tax to pay, then you will not be required to pay Provisional Tax going forward.

2. Where your residual tax liability is less than $60,000, there is no interest applicable prior to your Terminal Tax due date, provided you have made your previous payments under the standard methodology. There is therefore no advantage in a voluntary payment under this scenario.

3. Where your residual tax liability is more than $60,000, you will need to have paid your full residual tax liability by the final provisional tax instalment date to prevent Inland Revenue charging use of money interest (10.39% at time of print) from this date. This assumes you have met all your earlier provisional tax instalments under the standard methodology.

Working for Families

Family Tax Credits

The Family Tax Credit (previously called Family Support) is an entitlement to assistance based on your income levels and the number of children in your care. The full entitlement is as follows:

Upper level of combined income where assistance ceases:

Minimum Family Tax Credit

The Minimum Family Tax Credit is an additional credit available to low-income families that are on PAYE income. The purpose of this is to further support families that earn less than $34,216 (after tax). It tops up family income to at least $658 a week from 1 April 2023. To receive this, you must work for salary or wages, are not self-employed and one parent must work at least 20 hours for a single parent family, or 30 hours for a 2-parent family. In any week that you work less than the minimum required hours, you are not eligible.

In-Work Tax Credit

This is for families who are normally in paid work and do not receive a Student Allowance or an income-tested benefit. You will still be eligible if you receive ACC payments, Survivor payments or Paid Parental Leave. Families no longer need to work a minimum number of hours to receive this but need to be in paid work. From 1 April 2022, you can keep receiving your In-Work Tax Credit for up to 2 weeks during an unpaid break from work, for example, changing jobs. The eligibility of this is linked to Working for Families. The In-Work Tax Credit for 2023 and 2024 is based on combined parental taxable income. The abatement threshold to get full In-Work Tax Credits is $42,700.

Maximum In-Work Tax Credits:

Per family (1-3 children) $3,744

Per additional child $780

Best Start Tax Credit

Each family can get $69 from 1 April 2023 for each child born after 1 July 2018, and all families will receive this payment until the child turns 1 regardless of household income. You cannot receive both Paid Parental Leave and Best Start payments at the same time. Best Start payments will begin after your Paid Parental Leave finishes.

Households whose income is under $79,000 will continue to receive $69 from 1st April 2023 until the child turns 3. An abatement of 21 cents in the dollar will occur for income earned over $79,000 but up to $95,133 ($96,295 for year ended 31st March 2024) after the first year until year 3.

Paid Parental Leave (Maternity Leave)

Paid Parental Leave is paid for up to 26 weeks. You must work at least 10 hours a week, in at least 26 of the weeks in the year before the due date or the child comes into your care. Paid Parental Leave can be transferred to your partner if both partners are employees or self-employed people, and the partner will stop work to care for the child while they are receiving the Parental Leave payment.

The entitlement is based on the applicants weekly taxable income up to a maximum of $661.12 (before tax) with a minimum of $212 increasing to $227 from 1 July 2023.

Student Loans and Allowances

Student Loans and Interest

The Student Loan repayment threshold from 1 April 2023 is $22,828. The repayment rate is 12 cents in the dollar. Student Loans are interest free if employed in NZ. For those working overseas, a 2.8% interest rate applies when a student lives overseas for more than 6 months. The late payment interest rate is currently 6.8%.

Student Allowance

This is only available to those studying full-time for an undergraduate or bachelor with honours degree and at an approved education provider. There are limits to how long you can receive a Student Allowance for.

The amount of student allowance provided is dependent on the income earned by the student through the year. If you earn above $258.08 per week for the entire year the student allowance maybe reduced.

For students who are single with no children, the full entitlements per week after tax are:

Under 24 years After Tax

At Home $257.53

Away from Home $300.18

24 Years and Over After Tax

At Home $291.64

Away from Home $342.82

Full entitlement to student allowance starts to abate when joint parents’ taxable income reaches $65,370/annum.

It is abated back to Nil when living away from home at $127,808 a year. The abatement level will increase if there is more than one child being supported.

KiwiSaver

If you are contributing to a KiwiSaver scheme, the Government will contribute up to $521.43 per annum if you contribute at least $1,042.86 per annum. This figure does not include employer contributions.

The employer minimum contribution is 3% and the employee minimum contribution is 3%, up to a maximum of 10%.

Properties and Assets

KiwiSaver First Home Grant

This grant is aimed at first home buyers or previous homeowners to help them purchase a property. If eligible, each applicant may receive up to $5,000 for existing houses ($1,000 for each year of contribution) or up to $10,000 for a new house or new build ($2,000 for each year of contribution). The grant is subject to value caps on property purchase price, which are location dependent. These caps have recently been increased.

KIWISAVER FIRST HOME GRANT CONTINUED

Eligible KiwiSaver members can withdraw their KiwiSaver funds to purchase their first home, but $1,000 must remain in the KiwiSaver account. The Government Tax Credit is eligible to be withdrawn.

If you are a previous homeowner, please visit the Kainga Ora website for further requirements not outlined below. The buyer must meet the following requirements:

- Have a minimum 5% deposit.

- Have been saving with KiwiSaver (or another complying superannuation fund) for at least 3 years.

- Will live in the house for at least six months.

- Meet income requirements, in the 12 months before you apply, you must have earned:

- $95,000 or less before tax for a single buyer

- $150,000 or less before tax for 2 or more buyers.

Bright-Line Property Rules

The Bright-Line Property Rule means that people who sell a residential property that is not their main home may need to pay income tax on the profit between the purchase price and the sale price.

- If the property is acquired between 29 March 2018 and 26 March 2021 – subject to 5 year Bright-Line test.

- If an existing property is acquired on or after the 27 March 2021 – subject to 10 year Bright-Line test.

- If the property is classified as a new build acquired on or after 27 March 2021 - subject to 5 year Bright-Line test.

The Bright-Line Property Rule has exemptions where it does not apply, including when:

- The property is your family/main home.

- You inherited the property, which was the home of the deceased.

Interest Deductions on Residential Rental Properties

Interest Deductions on Residential Rental Properties are being phased out, except for new residential rental dwellings. No deduction is allowed for property acquired after 27th March 2021. There are exemptions which may apply – these are land business, property development and new build exemptions. For all other residential properties acquired before 27th March 2021, interest deductions are as follows:

- 75% claimable from 1 October 2021 to 31 March 2023

- 50% claimable from 1 April 2023 to 31 March 2024

- 25% claimable from 1 April 2024 to 31 March 2025; and

- No interest deduction claimable from 1 April 2025.

Budget and Recent Government Announcements

2023 Flood Relief

Medium and large-scale adverse event categories have been established to provide relief for farmers affected by recent cyclones Hale & Gabrielle in the North Island. The relief comes mainly in the form of:

- Allowing late deposits under Income Equalisation Scheme for the 2022 income year. To qualify, a farm needs to be “significantly adversely affected”. On the flip side of the late deposit early refunds will be allowed on a “class of case” basis.

- Destroyed Assets and Tax Rollover Relief regarding insurance pay-out for depreciation recovered if replaced within 5 years.

- Temporary Adverse Event Exemption for ETS registered forests (post 1989 forest land will not earn or be liable to surrender any NZ Units (NZUs) until the trees regenerate to pre-event carbon stock levels).

- Government Grants are available for up to $10,000 for pastoral & arable farmers and up to $2,000 per hectare (to a maximum of $40,000) for orchardists. These are GST inclusive.

Covid-19 Concession

Concession provided for Covid-19 for donated trading stock has been extended to 31 March 2024.

It means that a farmer donating baleage and hay to flood affected farmers is not deemed to have disposed of these at market value.

Minimum Wage

Minimum adult wage has increased from $21.20 to $22.70 per hour from 1 April 2023. Minimum wage calculation does not include non-cash benefits but includes any accommodation provided.

The training minimum wage has increased from $16.96 to $18.16 per hour.

Superannuation

Superannuation has increased by approximately $100 for a couple and $70 for individuals per fortnight (after tax). Final figures will depend on living situations and tax rates of individuals.

ACC FACTS

Accident Compensation Corporation

There are 3 types of ACC Levies:

- Earner’s Levy (covers accidents outside the workplace)

- Work Levy (covers accidents inside the workplace)

- Working Safer Levy (collected on behalf of the Ministry of Business Innovation and Employment to support the activities of WorkSafe New Zealand).

Using The Correct ACC Code

Using the correct ACC code is important in determining the ACC Levy that will be charged. For example, if the duties of the shareholder/employee include less than 5% farming activities and 95% plus of administration activities, then the administration code can be used, which has a much lower ACC rate.

Maximum Earning Level

The Maximum Earning Level liable for ACC has lifted to $139,384 for the 2023/2024 year.

Full Or Part-Time

If you work less than 30 hours per week over all sources of income (PAYE, self-employed, partnership, and shareholder employee), then your Levy is based on your actual income. The minimum ACC cover of $43,349 therefore, does not apply, if your earnings are less than this figure and you nominate the part-time ACC code. This means for self-employed/partnership income, you can significantly lower your ACC premiums by choosing a Part-Time ACC code if you work less than 30 hours per week.

CoverPlus Extra (CPX)

CPX is a more flexible alternative to the normal compulsory ACC cover, which enables you to negotiate an agreed level of cover with ACC. This is an opportunity to reconsider your ACC options, which may enable you to achieve some of the following:

- Reduce unnecessary ACC cover with consequent savings in ACC Levies.

- Raise the level of ACC cover where taxable earnings are at an artificially low level.

- Fix a level of ACC cover without having to establish loss of earnings from your farm.

- Provide ACC cover in the first year of a new business.

- Return to work on reduced hours but still able to receive ACC payments.

We can help arrange ACC CoverPlus Extra and discuss with you the best arrangement for your circumstances.

CPX & Private Insurance

Another alternative to consider where a shareholder salary is being paid, is to apply for ACC CoverPlus Extra at a prescribed level, or alternatively for the minimum ACC CoverPlus Extra of $34,679 or $667 gross per week) for the 2023/2024 year, and then arrange for a top up from private insurance cover (designed specifically for farmers), which may be able to cover both accident and sickness work-related compensation.

2023 NATIONAL AVERAGE MARKET VALUES FOR LIVESTOCK (HERD SCHEME)

2023 NATIONAL STANDARD COSTS FOR SPECIFIED LIVESTOCK

FARM TRENDS 2022

Assets, Equity and Debt 20012022

Lambing % and Lamb & Ewe Prices 20072022

Wool Price 20012022

Yearly Percent of Return on Assets & Land Value Growth

WE ARE LEADING FARMING SPECIALISTS

ICL Chartered Accountants

have been providing specialist advice to NZ and International clients, farming, and local/rural communities for over 70 years. We give our clients not only their numbers but the advice to help them grow and achieve their goals. Within our own business we are progressive and innovative. Our values are innovation, accountability, teamwork, integrity, and commitment to our clients and community. It’s these values that drive not only how we think and operate, but the way we work. We foster relationships, so we understand your needs to help you reach the right outcomes.

We have offices in Alexandra and Ranfurly and are based in Winton and Cheviot. We offer our clients high quality accounting and business advisory services that can be tailored to your requirements.

We offer not only accounting/ advisory services but business support services, including HR, Payroll and IT.

Business Advisory

We can support and assist with critical decisions and help to step you through the financial process. From whether to sell or buy property, wanting to set up or close a business, or when it’s time to put up your feet and retire. Through due diligence and meetings, we can help to shape a new path for your future.

- Business Growth

- Business set up or sale

- Buying and selling property

- Investment Decisions

- Retirement Planning

- Financial Structuring

- Debt Management

- Succession Planning

- Business Restructuring

- Forestry and Emission Trading Scheme (carbon credits)

- Business Planning - Governance, processes and systems

Accounting and Tax

Let us keep you on track with tax and legislative requirements. We can make sure you don’t overlook the important dates and deadlines and that you always comply by helping you to keep on top of your tax payments, producing your annual accounts and keeping you up to date with legislative changes.

- Financial Statements

- Annual Accounts

- Tax Returns

- GST or Goods and Services Tax

- Provisional Tax

- Resident Withholding Tax

- Tax Exemptions or Certificates

- Working for Families Tax Credits

- ACC

Business Reporting and Budgets

We encourage our clients to think about the big picture and to be prepared. We do this through providing budgets and cash forecasts to help them make informed decisions on what can be spent or where cuts might be needed. It is this information that helps to take a business forward and smooth the cashflow.

- Cashflow Reporting

- Forecast Reporting

- Monthly Management Reporting

- Budgets

- Tax Calendars

Budgets are a staple item for banks today when reviewing or considering loans.

Benchmarking and Farm Survey

Benchmarking reports can quickly determine the health of your business by measuring and comparing your financial and/or production performance to others within the same sector. Annually we prepare and provide our clients with the Farm Survey – this benchmarking data provides performance indicators to other comparative properties.

Accounting Software

Looking for a software to help you manage your books and compliance?

We offer our clients advice on choosing the right accounting software for their business.We look at your business needs and help find the solution that is going to give you the best result and value for money.

We also support our clients if they need training to ensure they can fully utilise the software and tools available.

We are certified in and preferred partners with:

- MYOB

- XERO

- Figured

- Farm Focus

People ConsultingHR and Payroll

Our HR services are designed to help you get the best out of your people and teams through:

- Recruiting the right people

- Up to date employment agreements

- Advice on tricky employment situations

- Helping to manage performance issues

- Policies and procedures

- HR health checks

- Payroll and Remuneration

We

currently

run the pay for over 500+ employees!

Go paperless with our Smart Payroll service that offers electronic timesheets where employees can record their time and leave using their mobile phones. We also take care of all your payday filing and provide you with the right reports to help your run your business.

Systems Consulting - IT

Smart business practices come from having the right technology and understanding how to use it. When the right technology is used correctly it can help do the heavy lifting.

Whether it’s hardware, software, security, training, virus protection or networks our IT specialist is able to assist for a faster more efficient business.

Administration and Company Secretarial Services

Let us file, form, transfer, change or prepare documents for:

- Companies (including overseas)

- Trusts

- Incorporations

- Deeds

- Gifting

- Minutes

- Share Transfers

- Resolutions

From incorporating a company, deeds of retirement, change of directors, or company annual returns our team of administrators can help.

We also offer speciality services in:

- Company Secretarial/Minute taking

- Invoicing and Statement services for clients (Accounts Payable/ Receivable)

- Stock takes.

Alexandra Branch

69 Tarbert Street

PO Box 267

Alexandra 9340

Central Otago

(03) 440 0100

enquiries@iclca.co.nz

Ranfurly Branch

11 Charlemont Street

Ranfurly

Central Otago

(03) 444 9158

enquiries@iclca.co.nz

www.iclca.co.nz