issue one winter 09
04 Beat the squeeze
08 Three’s better than one
13 Sustainability in action
Protect your business
How many budgets do you need?
Making it count
beyond the numbers
| keeping your business future fit
Hayes Knight makeover Our Radiation-designed re-brand
5
Rise of the bargain hunter A new breed of shopper emerges
11 12
Building an advantage
Kalmar Construction rises above the gloom
Where’s the trust?
Consumers aren’t fooled
+ Advice on ... •
Holiday home tax deductions
•
Risk-protecting your business
•
Surviving the recession
Pictured: Jill Brinsdon, head of Radiation
issue one
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contents
beyond the numbers
| keeping your business future fit
Features
Welcome to our new-look client magazine! 2009 looks set to be a year of great change, both in New Zealand and internationally. Already many of the existing norms in the world’s economies have been unceremoniously thrown out the window. For many individuals and businesses, these changes will be challenging. But challenges also bring opportunities – if you are willing and able to take them. So we’ve taken the opportunity to change the way we provide updates and information to you. We hope you like the new format and, as always, would love to hear your feedback.
VTc h^da 5X]P]RXP[ 7TP[cW 2WTRZ A Financial Health Check will provide an independent assessment of your financial stability as well as help you make those critical business decisions. Looking at more than just the numbers in your business, it includes an analysis of the risks around legal issues, customers and supplier relationships, contracts, funding lines, assets, competitor analysis and debt levels. To find out more, contact your Hayes Knight adviser or visit hayesknight.co.nz
At Hayes Knight we are excited about 2009. We recognise many aspects of the year will be difficult, but it’s a chance for our team to use their skills and expertise to help our clients navigate the choppy waters ahead. If ever there was a time to have a good handle on your finances, it’s now. That’s why we have continued to invest in new technology, new premises, and most importantly, more great people with expert skills to help our clients not only survive but also to thrive.
04
Sound business in a tightening economy
05
A new breed of shopper
06
How we got beyond the numbers
What to expect and how to protect your business
Dealing with the rise of the bargain hunter
Brand specialist Radiation gives Hayes Knight a new look
11
Building an advantage
13
Sustainability in action
Things are getting tough, but Kalmar Construction is acting smart and succeeding
How we’re creating a better work environment
News, Views & Tools For Success
08
Three is better than one
12
A matter of trust
Good businesses will get better, as badly run businesses fall by the wayside. Opportunities will abound for the strategic and the smart. And the team at Hayes Knight looks forward to working closely with you to protect your business today and seize the opportunities of tomorrow.
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Holiday home tax
15
Hayes Knight team news
As Hillary Clinton said recently, paraphrasing an earlier elder statesman, ‘Never waste a good recession!’
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Cool stuff
18
The last word
Craig Fisher Chairman, Hayes Knight New Zealand
How many budgets does a well-run organisation need?
Do most companies balance economic, social and environmental responsibility well? Consumers doubt it
Could your holiday home give you a tax break?
The Audit team are moving to Broadway; Meet Ruth Murare, Audit Manager
Check out these great gadgets
Making your own magic in today’s economic climate
The information and advice contained in Beyond the Numbers cannot cover every financial situation or requirement. If you have further questions, we encourage you to contact a Hayes Knight business adviser for advice tailored to your specific circumstances. Hayes Knight is an independent member of Morison International and The Hayes Knight Group.
Beyond the Numbers is published for Hayes Knight NZ Ltd by HB Media Ltd. info@hbmedia.co.nz Editor: Deirdre Coleman Designer: Francis van Beek Printer: Image Centre
rise of the bargain hunter
beat the squeeze
Sound business in a tightening economy
A new breed of shopper is born
2009 is lining up to be a very unusual year. What should you expect and how can you protect your business?
The rise of the bargain hunter
Major corrections across the global economy in the second half of 2008 have created an environment very few business owners have ever experienced before. Even those who were in business during the 1987 stock market crash would say that current events are far more extreme. Despite the efforts of international governments to stimulate capital markets, we are still seeing a significant downturn in business activity. The year ahead is likely to be characterised by the following:
The general view is that markets are under pressure and it’s a buyers’ market. This is not simply a belief to which consumers are clinging. Consumer, business-to-business or investor – everyone believes that vendors are being squeezed and that goods, services and assets can be acquired at a lower price. Supply exceeds demand in most cases and economic theory says that this will drive prices down. This psychology is the reality for 2009. Enter the bargain hunter and an environment in which everything can be bought for less than its ticket price.
+ + + + +
Falling interest rates Rising unemployment An increase in business failures Profit downgrades from large corporates Reduced resource-sector activity due to a slow-down in China + Contraction in capital and funding available to businesses + Tougher lending criteria by banks + Deferral or cancellation of business projects and new activity
The consumer market has led the charge. Spending has slowed and most retailers have responded by slashing prices and margins. The real estate market followed suit with sales slowing and prices easing. Many agents are simply saying that the price needs to meet the market and, while sales continue, most are at a reduced price. Even the sale of businesses is being influenced by market sentiment. Where there are buyers, they expect to acquire at a discount and the common theme is that good assets can be bought for less.
As the year progresses all of these factors will flow through to the small- and medium-sized business sector and, compounded by reduced consumer confidence, will place pressure on many businesses. How can you risk-protect your business? It sounds simple, but protecting your business from risk starts with identifying what those risks are. This can sometimes be tricky, and the risks for every business and industry will differ. Without question, risk management is high on the agenda for any serious business owner. Protecting the downside is important. This is particularly true for more mature, established businesses where value has already been created in the business and it stands to lose a great deal more than a newer company. For this market, business reviews or health checks are a necessary part of a riskmanagement strategy. A business review or health check is a high-level review of the key areas of the business to identify if it is risk exposed, to what extent, and what can be done to mitigate the risk. This type of information can be invaluable to management, as it helps identify and quantify the problems (existing or potential) the business faces. The issues encountered by most businesses are predictable and can be identified well before they become serious or
Hand in hand with the changing dynamics of the economy comes a new wave of consumer behaviour, bargain hunting.
terminal. Many companies fail to recognise them simply because the operational requirements of the business are so time consuming. A business review cuts through all this and looks at a business’s sustainability, focusing on the key issues of profitability; liquidity and solvency; business risks; operational risks; and opportunities. These are the headline areas that will be important in 2009. A systematic review of these areas will not only identify the sustainability of the business, it will identify the risks present and the order in which management should address them. At the end of the review process, the company managers have access to a concise, factual report that sets out what the review found, what it means, problems to be aware of, and recommendations for protecting the business. Every business operator should consider undertaking a business review. At the very least it will be a valuable insight into your business, and at most it will help starve off a potentially unforeseen threat or problem that could devalue what you have worked long and hard to build.
“The issues encountered by most businesses are predictable and can be identified well before they become serious or terminal. Many companies fail to recognise them simply because the operational requirements of the business are so time consuming”
The greatest challenge for many businesses in 2009 will be to achieve their sales and revenue targets. Business is competing for fewer buyers, who are less inclined to spend and who believe that there’s likely to be a better deal just around the corner. They feel less pressure to buy and, in many cases, believe that time is on their side. In some instances, they smell fear in the market and are prepared to take advantage of it. The market will continue to pay for quality and value. Position your product and your business so that it has a clear value proposition to your market and it will continue to maintain its value. All of this means that your business strategy will be increasingly important in 2009. Just turning up and working hard may not be enough. The winners this year will be the smart companies who understand that we are in a different market and have positioned their business accordingly.
How do you operate in this environment? The answer depends on whether you are a buyer or a seller. Most SMEs are both, so you should modify the way you deal in order to manage market conditions.
Recognise the market conditions Don’t refuse to accept that they exist. Follow market sentiment. It is likely to get worse before it gets better. Most commentators are predicting that an upturn will not arrive until 2010.
Be prepared to bargain on price Don’t necessarily accept face price as being the best price you can buy at. You may be surprised at the number of companies that will discount price if the question is put to them. Having said that, some businesses simply aren’t playing the discount game – it all comes down to strength of position.
As a seller, you need to know: a. How your pricing compares in the market. The prices offered by your competitors may influence the expectations of your customers. b. Your margins and your break-even point. If you’re going to negotiate on price, it’s essential to understand the impact on your profitability. c. What your options are. Can you differentiate yourself in the market so your price differential can be justified?
Differentiating your business is more important than ever ‘Me too’ businesses will be under price pressure. And most SMEs do exactly that. Your product format, packaging, delivery methods and service arrangements can all help you stand out from the competition. The more you can differentiate your business in ways that offer perceived value, the more you separate yourself from your competitors. When you can do this, price is less comparable.
hello
Hayes Knight makeover
i n t r o d u c i n g to h ay e s k n i g h t
How we got beyond the numbers Hayes Knight recently approached branding specialists Radiation for some advice. The result: a new look that’s more in line with our positioning and attitude Your branding speaks volumes about who you are as a company – inconsistent or inappropriate branding just confuses customers and can drive away potential business. But when you get it right, and the image your company portrays matches its values, identity and positioning, it’s a powerful tool. You’ve probably noticed that Hayes Knight has undergone a bit of a makeover recently, and we’re proud of our new look. Our Business Improvement Director Matthew Bellingham, together with Chairman Craig Fisher, looks after marketing at Hayes Knight, worked closely with Radiation during the re-brand and is delighted with the results.
“They interviewed a selection of stakeholders to discover what their impressions were of Hayes Knight,” says Bellingham. “It’s very enlightening hearing the comments from these different sources. Having someone from outside the company look at our business was a positive process and all the information that came out of that was worthwhile.
“We were extremely happy with the entire re-branding exercise,” says Bellingham. “The proof of the pudding was really the overwhelmingly positive response from our clients, suppliers and strategic partners. And for the staff, it was almost like a rejuvenation of the company.”
Brinsdon says the Radiation team was cognisant of the business category in which Hayes Knight works. The management of people’s wealth is serious, she says, and it was important to be respectful of this when developing a highly current brand.
Capturing the Hayes Knight Attitude Brand strategist Jill Brinsdon, head of Radiation, says Hayes Knight wasn’t looking for a re-brand as such, but was after a sense of where the company was positioned, and asked for a critique on its communications – more of a status report, she calls it. But once Radiation had familiarized itself with Hayes Knight, the scope of the project widened.
“We wanted the brand to be contemporary but solid as a rock, rather than just modern and flimsy,” she says. “The team and culture at Hayes Knight really is great – a real breath of fresh air in their category. When I met the directors I really liked their relentless pursuit of the next right answer. They don’t rest on their laurels and use the solution that worked yesterday – they really do look beyond the numbers to help keep their clients’ businesses future fit.”
“We try not to be too subjective in reviewing existing branding,” says Brinsdon. “It’s more about whether it’s right for their business and who they are. Hayes Knight is a very innovative, energetic, street-smart accountancy practice, and the old branding didn’t transmit that.
w w w. r adiation.co.nz
Photo b y si m on dev i tt
“Our goal was to make sure the messages Hayes Knight is sending out to the world are powerful representations of who they are. I can promise you that if our research revealed a conservative, middle-of-the-road accountancy firm, we wouldn’t have come up with such a contemporary positioning. We do what’s right for each business, and what they can genuinely deliver on.”
P i c t u re d: Jill Brinsdon, brand strategist and head of Radiation
spoke to a cross-section of the team, from the directors and managers to the receptionists and graduates, and also interviewed a number of our clients and even some potential clients, in order to get a feel for Hayes Knight as a company.
When developing a brand for a company, Radiation’s goal is that the brand will connect with people at an emotional, as well as a rational, level. Brinsdon says Radiation uses a process called Brand Mapping to establish a company’s unique and authentic attitude and create a brand that’s relevant, memorable and inspiring. Matthew Bellingham was particularly impressed with how thoroughly Radiation researched Hayes Knight. Radiation
And it was this brand promise that became Hayes Knight’s new tagline – Accountancy Beyond the Numbers – and communicated concisely how we work to help our clients stay ahead of the game in this fast-moving world. The new identity Radiation created for Hayes Knight incorporated the blue tones of the previous logo – a colour expressing strength and reliability – with green, which Brinsdon describes as a wonderful symbol of growth and new energy. A circle theme was chosen for the new logo to represent movement, growth and energy; and the final three dots are the exact blue of the original branding to provide continuity and a link from the old to the new. “They also act like a ‘dot dot dot’ in the logo – as in: ‘What’s next? Watch this space. To be continued’,” explains Brinsdon. “They’re a great symbol for a business that’s always looking out for what’s next for its clients. There’s a real sense of momentum with the team at Hayes Knight. We think the circle motif really captures that.”
“We wanted the brand to be contemporary but solid as a rock, rather than just modern and flimsy… The team and culture at Hayes Knight really is great – a real breath of fresh air in their category”
how many budgets?
making it count
Three is better than one
12 tips on surviving a recession
How many budgets does a well-run organisation need?
Before you do anything, you need to get your attitude right. This situation is temporary, it is not your fault, but you can do something about it. Here’s how:
The answer to this question may seem blindingly obvious. Surely one comprehensive financial budget based on the best available information is perfectly adequate. However, we are entering extraordinary times, and we believe these call for extraordinary measures. There is a high level of uncertainty surrounding many of the assumptions that we normally take for granted in budgeting. For example, in the not-for-profit world many organisations have come to rely on similar levels of income from year to year and from roughly similar sources. But in the current climate, this basic assumption is increasingly being put to the test. Here are some of the ways this is happening: Fewer grant funds Many grantor organisations rely on their investment income in order to provide their grants. However, we have seen a dramatic drop in the world’s equity markets and other investment products. This has resulted not only in reduced returns for such grantor organisations, but in many cases their underlying capital base has been dramatically eroded as well. The net result – fewer funds to distribute. Contract cuts Entities funded for services by government agencies are in many cases seeing their contracts and funding levels threatened due to enforced cutbacks in the funding of their agencies. Decreased donations Donations from the general public are likely to be put under pressure as households tighten their belts on discretionary spending. And, for some, the threat of unemployment may dramatically impact on their ability to make charitable donations. In the current market, it is prudent to consider a range of possible scenarios with regards to expected income. As a result, many well-run organisations are operating a threescenario budget model. This is, quite simply, an extension of their normal annual budgeting process; except that they are preparing budgets on a best-case, average-case, and worst-case scenario. By varying the income expectations, organisations can then better see if they will have to cut back on expenses and by how much under each scenario. As a further refinement of this process, it is also useful to analyse expenses into categories, such as: 1. essential; 2. those linked to certain levels of services/income; 3. discretionary; and 4. able to be scaled back if needed.
Taking this sort of ‘what if?’ approach to budgeting at the outset helps many organisations objectively deal with the harsh realities before they’re forced to address significant issues such as a major decrease in funding. If you would like to discuss your budgeting and forecasting processes, Hayes Knight has the expertise to assist.
Plan A
“There is a high level of uncertainty surrounding many of the assumptions we normally take for granted in budgeting”
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Focus on efficiency. How can you produce the same output with less cost? Will investing in technology improve your performance? How can you lift productivity? Your customers are all looking for value – make sure you can provide it and stay one step ahead of the competition.
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2
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Make those tough calls that you’d rather put off, and do it early. Your mistake will be waiting until it’s too late.
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Focus on what really matters – drop outdated commitments and de-clutter everything.
Plan B Plan C
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Cash is king! Get on top of your debtors and do not let them stretch you out. Look at your credit terms, and put resource into collections.
Innovate, innovate, innovate! Break the cycle and look for better, smarter and more effective ways of doing things. Eliminate the ‘If it ain’t broke, don’t fix it’ philosophy. This is a myth in recessionary times – you must always strive to improve and stay ahead of the rest. Review your marketing strategy – not with the intention of pulling back, but by asking yourself what else you can do. Look for points of differentiation and yell them from the rooftops.
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Do not discount! Instead, try to reposition your product or service to emphasise economy or value for money. Take out costs so you preserve your margin. If you simply reduce the price without changing the feature/benefit mix, you’ll struggle to get your margin in the short term and you’ve made it much harder to reposition at a higher price later, when the economy picks up.
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Look for the opportunities – they will certainly be there. Your competitors will also be feeling the pressure and this may present some acquisition opportunities.
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Look to expand your markets and to sell more products into your existing markets. Remember the four ways to grow a business: a. Increase the number of customers b. Increase the frequency of transactions c. Increase the average dollar sale d. Increase the efficiency or Gross Profit
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Talk to suppliers about your buying opportunities, and look to the market for alternatives if necessary. Your suppliers will be very keen to keep your business, so stay with them if you can but remind them about alternatives and suggest ways you can both be better off.
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Squeeze the surplus cash out of your balance sheet. Reduce stock, sell up surplus assets and, as previously mentioned, collect all debts.
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Review your borrowing structure, pay off debt where you can and consolidate to get the most effective cost of funds.
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building an advantage
hello
Building an advantage Reacting quickly and cleverly when business began to drop has helped one construction company stay ahead of the recession A barometer for the health of the economy, the building industry profits during boom times but is the first to feel the squeeze when the market weakens, and it’s suffered significantly in the current global financial crisis. The past year has seen the demise of several big-name developers, and many architectural practices, construction companies, engineering firms and contractors are also struggling. But it’s not all doom and gloom – especially for those prepared to think outside the box, be proactive and maximise their expertise and experience. Hayes Knight client Kalmar Construction has taken a multipronged approach to maintaining its profit margins during the recession, and it’s a strategy other businesses could learn from.
P i c t u re d: Kalmar C onstruction co-directors ( f ro m left) Peter Kay and Bert Denée w w w. k almar.co.nz
Photo b y ton y ny b er g
Owned by co-directors Peter Kay and Bert Denée, Kalmar Construction does commercial, industrial, healthcare and civic construction. The company has an annual turnover of around $60 million and employs 45 full-time staff.
and cut out some of the margin. They have carpenters and expertise that we didn’t have, so that now allows us to build more efficiently and be more competitive.” Harbour Construction also has a civil division, and with Kalmar already employing civil engineers and supervising subcontractors doing civil work for the company, acquiring such a division has again cut out the margin on margin that previously existed. To add yet another string to its bow, Kalmar recently started up its own interiors company. K2 Interiors does commercial office fit-outs, but it also means Kalmar Construction can do its own studs, plasterboard linings and ceilings in the buildings it constructs. “We negotiated a $25 million apartment job recently, and we’ll be doing bulk excavation and the entire fit-out for it – something we’d normally get subcontractors to do. The staff we employ to supervise projects will be supervising their own people. It’s a step closer to the coalface for us, but it gives our people more employment opportunities.”
Kay says they felt the first signs of a downturn in early 2008, specifically in the area of multi-unit residences.
And retaining its good staff is the company’s top goal.
“With some of the projects we had lined up, the developers were struggling to secure mezzanine funding as the finance companies introduced stricter lending criteria,” he says. “Throughout last year, there was a steady increase in the number of apartment buildings being shelved.”
“If a client is happy at the end of the job, it means we’ve succeeded. To do that you have to perform, and that requires competent people. We have great staff and we want to look after them, especially during the recession so that when things pick up we still have that A team.”
In response to this, Kay and Denée implemented the first of several strategies to help the company diversify, subtly shift its focus and offset lost opportunities from cancelled projects. An effective first step was to form strategic alliances with other contractors.
Although positive about the future, Kay knows the coming year is going to be hard, but hopes the building industry will rally in early 2010. Kalmar Construction has work on its books for the next 12 months and beyond. Kay says the year ending 2010 isn’t looking too bad either, but he remains cautious.
“We aligned ourselves with bigger contractors or with those with different types of expertise so we could take on projects we normally wouldn’t,” says Kay. “We have expertise in healthcare construction so we could lend that to others. On our own, we wouldn’t usually go for a $200 million job – this way we can.”
“We need to be very flexible and to take any work we can. We’re doing a lot of smaller jobs, property maintenance work, and looking at refurbishments of multi-million dollar houses. It’s not work we’d normally do, but we’re keen to look at anything at the moment.”
Diversification is another weapon in the company’s arsenal. When Kay and Denée noticed the market easing, they made moves to acquire a concrete and formwork subcontractor with whom they’d worked in the past. “We decided that if we could get Harbour Construction as part of our group, we could build these structures ourselves
The tightening construction market means more jobs are being tendered so price is now increasingly important. While Kalmar Construction must remain competitive, Kay is adamant the company has to be able to make a profit. Rather than coming in with the lowest price, they prefer to differentiate themselves in terms of their service, quality and integrity. And when it comes to that bottom line, Kay says Hayes Knight has been “fantastic” and helps out on a frequent basis.
“We have great staff and we want to look after them, especially during the recession so that when things pick up we still have that A team”
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a matter of trust
making it count
A matter of trust More than 50 percent of consumers say they have stopped buying from businesses they don’t trust and will tell their friends! New research from Hayes Knight subsidiary company Sustainable Advantage shows that overall our trust in the ability of companies to balance economic, social and environmental responsibility is not strong. Businesses that can fill this gap create the opportunity for a sustainable competitive advantage.
Accounting for tax on your holiday home Could your holiday home give you a tax break? The IRD has issued a draft statement regarding Income Tax Treatment on holiday homes. It confirms that rental income derived from renting out a holiday home is taxable. However, the deductibility of expenses such as interest, insurance, depreciation and rates depends on the connection with the rental income earned. If the holiday home is rented to a tenant on an arm’s-length basis under a tenancy agreement for part of a year, then the owner is generally able to apportion those costs on a timerented basis. If the holiday home is available to the owner and only available to rent to third parties on a limited basis, then the IRD will apply the following principles:
+ The owner can’t claim a deduction for expenses for periods the house is not rented. + If the house is rented on an arm’s-length basis, the owner can claim a proportion of expenses equal to the time the property was actually rented. Where part of the property is not available to the tenant (eg storage space for owner’s possessions) then an apportionment will be required for the part of the property that is available.
+ If the house is rented for less than full market rental, a deduction will generally be limited to
Nick Jones, Director of Sustainable Advantage, says that businesses that don’t understand this relationship could be left behind. “In today’s connected world, consumers are better informed and use this knowledge in their purchasing decisions,” says Jones. “They want to buy from businesses they can trust to be looking after more than just their own self-interest.” Consumers are sending a clear signal to business that in more competitive markets, companies must recognise these changing needs or face the consequences. The research also uncovered two key findings on the need for businesses to build trust with their customers. It found that 75% of respondents say they don’t buy from businesses they don’t trust. And more than half of the respondents (55%) said that in the last six months they had stopped buying from businesses they didn’t trust. The negative impact from a lack of trust only increases, as close to 70% of consumers surveyed will complain, 60% say they tell family and friends, 36% will talk to work colleagues, and 3% will go online and tell the world in a blog. Above all, the research from Sustainable Advantage indicates that as a business owner there is no better time to review your approach to how you balance economic, social and environmental responsibility, and to use this to build trust with your customers in order to achieve a competitive advantage.
the amount of rent received for the period.
+ If family or friends use the property and don’t pay market rent but make a contribution towards the owner’s expenses, this payment will generally not be rental income and the owner will not be able to claim a deduction for any expenses. In order to deduct expenditure while the holiday home is unoccupied, there must be sufficient evidence that the home is genuinely available for rent (eg active and regular marketing) and that there is a real prospect of the property being occupied and rental earned. Advertising that is sporadic or of a nature unlikely to attract tenants is insufficient, as is having the home only available for rent for limited or undesirable periods or being offered at an uncompetitive rental. For more information see the draft statement ‘Questions we’ve been asked’ QB0066: Holiday Houses - Income Tax Treatment on the IRD website
Key research findings:
+ 27% of respondents trust businesses to balance economic, social and environmental responsibility with the companies’ own self interests
+ 37% don’t trust businesses to deliver this balance + Over a third were uncertain and could tip either way depending on the business type
+ A resounding 67% of respondents said this balance was important
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Sustainability in action Operating in a sustainable manner is a crucial part of the Hayes Knight strategy for building business success. This means integrating a sustainability focus into the systems and processes we use every day, and supporting our clients to do the same Over the last six months, a dedicated group of Hayes Knight team members have been working away behind the scenes as part of the Sustainability Council. Meeting every six weeks this group identified a list of things that Hayes Knight are currently doing well and some things we can improve on. Breaking it down into four key areas they were able to analyse the business from a holistic point of view. The key areas they looked at were: Social (looking after our people, our clients and the communities we live in), Environmental (minimising our impact on natural resources), Economic (ensuring prosperity for Hayes Knight including employees and our clients) and Cultural (our sense of who we are as people, as a community and, as a country). They found the area in which we could most improve related to the environmental side of things. The council identified projects to start on immediately to reduce our costs by minimising our resources such as energy and paper. Based on this short-term goal three teams were established within the council: waste, energy and transport. See the initiatives put together by each team in the table to the right. We’ll keep you posted on how these initiatives are progressing and what cost savings Hayes Knight has managed to make as a result.
Waste The Waste Team calculated that Hayes Knight uses 1,810,000 sheets of photocopy paper per year. That’s a paper trail that would lead from the Parnell office all the way to Levin, or 543km.
Energy The Energy Team carried out an energy audit, counting all light bulbs (579 in total), fans (45) and heaters (38). They then went through past power bills to work out our average annual power usage per year. The result: 150,493kW.
Transport The Transport Team kicked off the Travel Plan with the Annual Walk to Work Day. Twenty team members carpooled, walked or caught the bus to work on this day.
Target Reduce paper usage by 15%
Target Reduce energy usage per FTE by 10 -15% in 2009
Target Reduce emissions from travel to and from work
Initiatives Print everything double sided
Initiatives Research energy suppliers to find the cheapest and most energy efficient
Initiatives Improve the available biking/walking facilities with showers and bike stands
Place switches/sensors in low-occupancy areas such as the bathrooms and the boardroom. This will ensure that if a room is not being used then there’ll be no power wastage
Organise car-pooling initiatives
Remove all bins from beneath desks and replace with five bins on each floor Increase the amount of paper we recycle. Recycling costs 50% less than shredding
Use travel-friendly suppliers like Urgent Couriers
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Hayes Knight team news
Hall of Fame Hayes Knight is proud to sponsor the Enterprise North Shore Business Hall of Fame awards for the first time. These are being held on the 18 June at a Black Tie dinner at the North Harbour Stadium.
Hayes Knight Director Matthew Bellingham speaking at the 2008 Westpac Enterprise North Shore Business Excellence Awards
The prestigious awards recognise individual business people whose exceptional efforts in business and the community have had a positive impact on economic growth and business success in North Shore City. Past winners include: Stephen Tindall, The Warehouse; David Levene, OBE; Peter Maire, Navman; Peter Menzies, formerly of Mainzeal Ltd; and Dianne Foreman, Emerald Food Group. To be nominated individuals must have conducted a successful business for a minimum of 10 years, with a turnover of more than $25 million per annum and be based in North Shore City. They must also have demonstrated business excellence, leadership and generated respect in the business community, entrepreneurship in business and service to the community at large.
name our new swift and win!
Celebrating excellence in business It’s time to honour local companies, their people and their extraordinary achievements As part of our ongoing support of the business community, Hayes Knight Director Matthew Bellingham has once again been appointed Convenor of Judges for the 2009 Westpac Enterprise North Shore Business Excellence Awards. This is Matthew’s seventh year of involvement in the awards, which were begun by Enterprise North Shore in 1998 with the continued support of major sponsor Westpac. Past winners include Adis International Ltd, which took out the first Westpac Supreme Award, followed by Phonak New Zealand Ltd, Recreational Turf, Ancare, Smith & Davies, High Modulus, Orcon Internet, LinkPlas, BCS Group, Eco Insulation and Orica Powder & Industrial Coatings. The winners will be announced at a gala dinner on 28 August at the North Harbour Stadium. Entries close on 4 June, so Matthew is presently rallying his judges in preparation to select the finest businesses in North Shore City.
Have you seen the new Hayes Knight car? It’s a black Suzuki Swift and it’s running circles around the competition We’re looking for a personalised number plate for our new swift. We already have the plates HAYES and KNIGHT but we need one to go with our new tag line Accountancy beyond the numbers. Think you know a good one? Email competitions@hayesknight.co.nz with your suggestion and go in the draw to win two fabulous bottles of Villa Maria wine. Entries close 30 June 2009.
We encourage all Hayes Knight clients based on the North Shore to enter the awards. For more information on eligibility and how to enter, visit www.ens.org.nz/awards.
Launch of the 2009 AIMES Awards The North Harbour Club AIMES Awards were officially launched at the Bruce Mason Centre, Takapuna on the 27 May 2009. Now in their 14th year they are for young people aged 13 to 25 who are living in the North Harbour area. The awards are for those who have achieved excellence in the categories of the Arts; IT, Innovation & Science; Music; Education; Sport and Service to the Community (AIMES). Hayes Knight are proud to sponsor the Emerging Talent Awards a subset of the AIMES Awards, in which the efforts of North Harbour’s ‘rising stars’ are recognised and rewarded with unconditional cash grants. Not only do the awards ease the financial burden of pursuing excellence, many winners go on to win a major AIMES Award in the future. Last year, six promising young men and women received a Hayes Knight Emerging Talent Award. Each received a cash, unconditional grant of $4000.
Hayes Knight team news
Staff profile: Ruth Murare, Audit Manager, Parnell A New Zealand-born Rarotongan, Ruth joined Hayes Knight as an AUT graduate six years ago, and was recently promoted to the role of Audit Manager. How did the opportunity for secondment to the UK come about? A secondment opportunity is always open to Audit, and we have fostered good relationships with Tenon (UK) and Hayes Knight Australia. I put my hand up because I wanted to experience something different while having the security of coming back to my existing job. What are some of the highlights of your career? The UK secondment was a major highlight. I loved being able to work and travel in the UK and Europe.
Another was becoming an ACA (Associate of the Institute of Chartered Accountants). And just meeting new people – both Hayes Knight team mates and clients. What was it like to come back to Hayes Knight and be offered a management position? I feel really privileged to have been given the opportunity. This is an indication of Audit and Hayes Knight management’s vote of confidence in my abilities, and an acknowledgement of all my hard work. It demonstrates Hayes Knight’s attitude towards attracting and retaining staff, and motivating them to grow and challenge themselves professionally and personally.
What do you like to do outside of work? I enjoy going out for a drink, travelling, and hanging out with family and friends. I’m an avid rugby league supporter, and a recently converted Warriors fan. What is your favourite thing about working at Hayes Knight? The people and family culture, and the ‘work hard, play hard’ philosophy. What do you think about Audit expanding and moving location? I think this is a testament of the growth that we have experienced in Audit and at Hayes Knight. Our client is base growing and more people are recognising the high standard of our work, and the relationships we maintain with our clients.
Secure access to your documents Coming soon... the new Client Vault is a safe and secure way to download, share, and transfer files between your Hayes Knight advisers and your own team. Stored in one secure place, it’s accessible online through the Hayes Knight website using your unique client login and password. As well as making it easier to share large MYOB and Excel files, it helps reduce endless searches for documents, and copying, postage costs and courier fees.
Audit Team to Relocate Hayes Knight Audit are moving to Broadway! Parnell House has been a great home for many years, but our Audit department has expanded and has plans to get even bigger. The spacious new Audit office, which will house up to 45 of our friendly auditors, is in the old Nestle building at 1 Broadway, Newmarket. The Business Services and Business Support teams will remain at Parnell House. The new building is being refurbished by Arrow International and, in line with the Hayes Knight sustainability project, the fit-out will be designed and built to a 4-star Green Star NZ standard. Between August and October this year, Hayes Knight Audit will move into level one, with Arrow International as the downstairs tenant. We look forward to welcoming you to our new premises.
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cool stuff
Quantum Leap Originally based on Sarah Ulmer’s gold medal-winning custom-designed bike, the Avanti Quantum has evolved into a high-performance road bike so sleek it’s the envy of European designers. As Ulmer rolled across the finish line in Athens, Avanti knew it had something special. The win sparked a three-year design project called The Pista Project culminating in the roll-out of road, track and BMX platforms, all ridden by Kiwi cyclists and triathletes in Beijing. Avanti’s design team is already toiling on a secret project to bring home the gold from London.
Logitech Ultimate Ears earphones Ultimate Ears have been designed by sound technicians to produce the clearest quality of sound while cutting out all the background noise. Long used by musicians, Ultimate Ears are now available to the public and come with a range of attachments designed to fit perfectly into the ear passage while blocking outside interference. Even better, the range includes attachments for MP3 players and iPhones, allowing you to use your earphones as a hands-free headset. Available from leading electronics stores.
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Victorinox SwissFlash The makers of the world’s most popular portable tool have introduced something for the more modern traveller’s kit. Along with the usual gadgets in the trusty Swiss Army knife, there is now a USB flash drive. With up to 16GB of memory, it can carry pictures, files and music—all well protected by the heavy-duty Swiss Army casing!
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Apple iPod Shuffle (4G) This nifty new edition to the iPod range is the world’s smallest music player. Less than 5cm tall and 7.8mm thick, this tiny creation can hold up to 1000 songs! Apple has introduced an exciting new feature called VoiceOver that lets your iPod tell you when it needs charging, what you’re listening to and what’s coming up next! The best thing about this tiny iPod is that you won’t even realise you’re carrying it. It clips onto your clothing or slides into your pocket with ease – the perfect travel companion. Available at Apple retailers nationwide.
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Pick of the Bunch The new Vodafone Blackberry Bold is a convenient accessory for the tech-savvy, particularly if you’ll be conducting business remotely. It directly links in with your Outlook calendar, and you can sync notes and messages from your computer, so it’s like taking your desktop out and about with you. You can even watch movies and listen to music, or take photos and videos, which can be directly updated to your Facebook or blog site. Need directions? It’s also got a GPS, and those in Australasia can connect with the Yellow Pages Find-and-Go service.
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1 - 2 In February the Hayes Knight directors and managers joined the Australian directors for a four-day conference at the Sheraton Denarau in Fiji. But it wasn’t just all work, the Survivor-themed conference included team-building exercises and social activities. 3 In March, the Hayes Knight indoor netball team, known as the Shady Hayes, won their division. Well done, guys! 4 The Interfloor Challenge was recently won by our Top team. They challenged the First team to a softball match and took out the trophy. 5 – 7 Bruce Mellor recently enjoyed a 10-day Antarctic expedition. A fellow member of the group was British adventurer Bear Grylls, from the Man vs Wild TV show. 8 In April Craig Fisher presented the Hayes Knight-sponsored Cooperative Award to top graduating student Kyle Stutter at the AUT Business Awards. Hayes Knight’s involvement in the awards is part of our ongoing goal of supporting excellence. 9 - 11 Hayes Knight teams enjoy the last of the summer sun with barbecues in the Parnell carpark and on the Albany deck.
As a business advisor watching from the front row, I can’t help but think that I’m attending a never-ending theatrical production on business sorcery. Maybe it’s more akin to a performance by the great Harry Houdini, where, in today’s economic landscape, we’re witnessing escapology rather than magical illusions. If we break down this economic showcase into scenes, we might find the following:
1dbX]Tbb 1^^bcTa If you’re looking to boost the numbers in your business then this workshop is for you. Part of the strategy for a successful business is understanding the key drivers of your business and knowing how to measure and improve them. In fact interpreting the numbers is the first step towards unlocking your business potential. By coming along we guarantee you will get as excited about the numbers as we do. For information on upcoming workshops visit, hayesknight.co.nz
1. The house of cards – you only need to think of the property and finance sectors, the motor vehicle industry or tourism and hospitality. 2. Pulling-a-rabbit-out-of-the-hat routine – what’s the magic answer? 3. Now you see it, now you don’t – top line, bottom line, cash reserves, customers‌ all vanish in the blink of an eye. 4. The straightjacket tussle – how am I going to get out of this one? It seems that many business owners are watching and waiting for someone else to provide the magic trick that will prevent the curtain from coming down on their show. From where I’m sitting, it’s obvious that watching and waiting aren’t enough. The successful player is the one who searches for that next special moment or breakthrough in their performance. I believe that those business owners with a script will be tomorrow’s star performers. By this, I mean a strategic business plan that takes into account today’s market and includes a price-competitive policy, while creating an efficient production/service line in order to maintain margin. Marketing is essential, as you need to focus more on this area in times when sales are harder to win. Cash-flow forecasting has moved from one of basic corporate governance to an essential component of success. Not only do you need to know where you’re going and what cash road you’ll experience along the way, but the chances of a successful meeting with your bankers drops significantly without this core business tool.
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These business leaders may be revered as the pioneers of the next era’s successful corporates. They will have survived the current financial meltdown, but will also have fine-tuned their operations, given stronger limbs to their business, and focused more on the future by identifying ongoing critical success factors. They will have planned, implemented and reviewed.
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Keeping your business future fit is about being better equipped to make bold and powerful financial decisions. At Hayes Knight, rather than just work the numbers, we interpret them. The result is a more empowered, knowledgeable client able to be proactive with the next steps of their business. To find out more, visit hayesknight.co.nz