STAPLES RODWAY TARANAKI NEWSLETTER AUTUMN 2016
BOOKKEEPING JUST GOT EASIER FOR SMALL BUSINESSES
A WORD FROM OUR MANAGING DIRECTOR Like many other businesses, the new year is a great time to reflect and concentrate on improving performance moving forward. Our focus for this year is to continue to provide a quality service to you, our clients, making sure that we offer you the most suitable advice for your business needs. This is particularly true with regards to the Accounting Software we use, it’s definitely not a one size fits all system, we help you to choose the right package that will give you the best return on your investment whilst allowing you to run your business smoothly. I hope you find the information in this newsletter useful, we would like to take this opportunity to get your feedback (see page 9) on the newsletter to ensure we are giving you the best possible advice, in a way that works for you.
As a business in Taranaki supplying services to the agri-industry it is crucial for Ag Traction to be flexible and adaptive to the needs of their clients. Having cost effective systems in place
We look forward to hearing from you.
to ensure stock is well managed and that the The new law also introduced other changes to make
IN BRIEF
employment practices fairer, including a rule that you can’t cancel shifts without giving your workers reasonable notice
TIME’S UP FOR ‘ZERO-HOUR’ CONTRACTS
best price is given to their clients at all times is essential to help them stay consistent and adaptable in what is a very competitive industry.
or reasonable compensation.
As a small business with a staff of 7 dealing
NEED HELP?
with a large number of clients, Ag Traction’s Managing Director, Trent Hall, was struggling to
To find out more or to seek advice, contact our
keep up with lengthy administration tasks and
Changes to employment law will ban zero-hour contracts.
Employment Compliance Specialist Kearin Pollard on 06
found he was spending more time working on
Here’s what you’ll need to know for your business.
757 3155 or email him on kearin.pollard@staplestaranaki.
the financials of the business rather than in the business
co.nz
Bookkeeper that follows the processes and screening of a
itself.
large organisation means that we don’t have to worry about
MINIMUM WAGE GETS 50 CENT HIKE
Knowing that accurate financial billing and good cash flow
WHEN & WHAT: If you’re an employer, as of 1 April 2016 you must set out any agreed hours of work in the employment agreement
The adult minimum wage is going up from $14.75 an hour
for each employee.
to $15.25, with the starting-out and training rates rising too.
If you and your employee agree to set hours - eg. any
Here’s what you’ll need to know for your business.
number of days, start and finish times, or days of the week
WHEN & WHAT:
- include details in their employment agreement. Make
management would be crucial in the current market, he
Following on from this successful arrangement, Staples
sought advice from Staples Rodway Director and Business
Rodway has formed SR Books – a dedicated team of
Advisor, Philip Macey, and decided it was time to take on a
contracted Bookkeepers and Accountants to work directly
Bookkeeper.
with clients. All of the Staples Rodway Bookkeepers
But if you both prefer flexibility, you don’t have to agree to
•
Adult: $15.25 an hour
•
Starting-out: $12.20 an hour (up from $11.80)
our workplace and we are constantly learning from her.”
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Training: $12.20 an hour (up from $11.80)
“Accounting technology is constantly changing so having a
•
Starting-out and training minimum wages are 80% of
work, eg. on call, then you must give them at least some guaranteed hours of work.
commercial transactions across a range of industries. They
Bookkeeper and Accountant, Therese Fleming, to take the
1 April 2016. The new minimum wage rates are:
If you plan to require an employee to be available for
are trained by Staples Rodway and skilled at handling
Trent said: “Staples Rodway organised for a skilled
sure these are followed.
any set hours.
the time and cost involved in upskilling our staff.”
are specifically chosen based on the needs of the client and
pressure off and because of the experience she has and her
the accounting software they use.
range of accounting skills, it was easy to integrate her into
If you’d like to learn more about SR Books or would like a free, no obligation quote contact Philip Macey on 06 757 3155 or email srbooks@staplestaranaki.co.nz.
the adult minimum wage.
WHY: The Government wants to stop unfair employment practices. Workers who don’t have guaranteed hours of work find it hard to plan their finances and personal lives. WHAT YOU’LL NEED TO DO:
WHY:
WHAT IS SRBOOKS?
Government must by law review these pay rates every year.
SRBOOKS is our affordable new service which is designed to help small businesses with the
WHAT YOU’LL NEED TO DO:
bookkeeping and administrative tasks that are essential, but often end up in the ‘too hard basket’.
You and your staff can agree to any wage above the
Review your employment agreements to make sure they
minimum rate that’s most appropriate to them. You’ll also
include hours of work. Remember to include details of any
need to update your employment agreements to reflect
agreed set hours.
any wage changes.
There are several different packages to choose from or we can tailor a solution that best suits your business needs and what you can afford. If you’d like to learn more, checkout our website www.staplesrodway.co.nz/srbooks or phone the team on 06 757 3155.
source: business.govt.nz
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“Be prepared to only
liquidators will also file reports with the company’s office every 6 months until the liquidation is completed.
receive partial payment
HOW DO I CLAIM FOR MY MONEY?
as in most cases there are
The liquidators will send out, along with the first report, a
insufficient funds to pay
LIQUIDATION
Creditors Claim Form, which you must complete in order to be included as a creditor. They will then match this to
all creditors.”
what the company says they owe and add you to a list of creditors for future payments if any.
WHEN ALARM BELLS
DOES IT HELP CALLING THE LIQUIDATORS ASKING WHEN I WILL BE PAID?
them to request unsold stock to be returned or, if the stock has just been sold and not paid for, they can also
START RINGING
recover the funds owed on the stock sold. 3.
The liquidation process takes time, and the liquidators can’t tell you when, or even if, you will get paid until the full
Banks always ensure they have a general security
process has been completed. Their job is to maximise the
agreement (GSA) that they register over the remainder
return for all creditors, secured and unsecured. However, be
of the assets, this enables them to recover any of the
prepared to only receive partial payment as in most cases
remaining funds against their security.
there are insufficient funds to pay all creditors.
Preferential creditors The Dick Smith collapse has led to an investigation by National Australia Bank and HSBC to explore action against the six former directors of the company and its auditor, Deloitte, but who really is to blame? Staples Rodway Associate, Kylie Hollard, tells us the warning signs, the risks, and the ways to protect yourself from the dreaded word liquidation.
WHAT IS LIQUIDATION? When a company is failing to the extent that it can’t pay back its debts, it may be put into a process known as liquidation – to ‘liquidate’ (i.e., sell) all its unsecured assets to create funds to repay its creditors. A liquidator
The second level of priority payment goes to employees
WHAT CAN I DO TO PROTECT MYSELF?
for wages and holiday pay and anything outstanding to
There are several options available to protect yourself
IRD (excluding income tax and penalties), customs, lay-by
including registering a security interest on the Personal
customers and liquidation costs.
Property Securities Register (PPSR), ensuring you have strict
Unsecured creditors
credit terms, offering different payment options, and/or insisting on a credit rating when setting up accounts.
is put into place to control the company and manage the liquidation, and
These creditors are last to be paid and the least likely to see
carry out investigations to establish why the company failed.
any money. Most of these creditors find their businesses
Many credit application forms have Romalpa clause/
severely affected by any large unpaid debt.
Retention of title clauses in them, which allow you to rank over other unsecured creditors but are of little benefit
HOW DO I FIND OUT IF I WILL GET PAID?
The recent closure of electronics retailer, Dick Smith,
surprise to see a notice in the local paper advertising that
leading to around $400 million of debt being owed, poses
liquidators have been appointed and a company is in
Within five days of the liquidators being appointed a
many questions about how to protect yourself as a creditor
liquidation. But once it is, you must understand the process
“first report” is sent to all known creditors and filed on the
and what to do next if you are unfortunate enough to be in
in order to act appropriately.
company office website under the liquidated company. This
unless registered on the PPSR. Likewise, relying on just personal guarantees will not safeguard you from losing funds, as the directors of the company may not own anything personally either.
report will list all the assets and liabilities of the company,
this situation.
WHAT DOES IT ALL MEAN?
When you are owed money from a business there are often many warning signs that can alert you to the possibility
Once appointed, liquidators take custody and control of all
that the business may be in trouble. Payments to you may
the companies’ assets. They will sell all assets and recover
become slow and erratic, phone calls go unanswered
all debtor receipts outstanding and then allocate funds in
(particularly if the business uses caller ID), vehicles and
order of priority to secured creditors, preferential creditors
other assets of the business may not be maintained as
and then unsecured creditors.
well as they have before, staff turnover of the business
Secured creditors
may increase and levels of advertising and sponsorship
1.
how much debt the company has, broken down into the 3
If you need clarity around what to do then it is important to
creditor priority levels. This will give you a fair indication of
seek advice. We offer expert advice on how to implement
what is available. Generally this report is a first look at what
strategies that safeguard your business.
is available. The liquidation process can take anywhere from three months to several years depending on the
Creditors can have registered charge over the
complexity of the liquidation. The
debt owed on goods supplied e.g. hire purchase
liquidators should have a good idea
If alarm bells start to ring then you should ask questions to
agreements. These creditors get funds direct from the
after three-six months if there will
gain more knowledge around the companies trading and
sale of the assets.
be anything available for unsecured
decrease as costs are reduced.
decide if you should continue to trade with the company. 2. If you look out for these warning signs it shouldn’t be a
Creditors can also register charges over any stock they have supplied or funds from this stock. This enables
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NEED HELP?
detailing how much the shortfall of funds may be and
creditors and will do interim payments
ABOUT KYLIE Associate, Kylie Hollard specialises in liquidation matters and is experienced in dealing with a range of business types. Please contact her on 06 757 3155 or email kylie.hollard@ staplestaranaki.co.nz for more advice.
if there are sufficient funds. The
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It’s fast, compatible, and more secure. Windows 10 starts up 28% faster than Windows 7, resumes faster
HOW TO DO THE FREE UPGRADE
and comes with more security features. It’s also
IS IT TIME TO EMBRACE
•
designed to work with the hardware and software you
Simply visit microsoft.com/en-NZ/windows/
already use.
windows-10-upgrade and follow the instructions. Qualified Windows 7 or Windows 8.1 devices can
It has new features - Windows 10 comes with
upgrade for free.
innovations like Microsoft Edge, an all-new browser and
WINDOWS TEN?
Continuum, a feature that optimises touch or typing on PC’s and tablets. To help you with this, we have compiled a list of common
WHAT YOU MUST CONSIDER BEFORE UPDATING
accounting and payroll applications and their Windows 10 support status.
When it comes time to upgrade your computers you
If you’d like to discuss a planned upgrade to Windows 10 for
should be taking a good look at your applications (eg.
your business please contact our Information Technology
accounting software, engineering software) to check for
team on 06 757 3809.
their compatibility with the new operating system.
With 200 million active users at the beginning of 2016, Windows 10 has had the fastest uptake of any previous Windows operating system and with a much improved desktop experience, more intuitive integration of touchscreen features, new apps and generally a better performance, it was an easy decision for those in the know. But what about those everyday users, is the free upgrade enough to entice everyone? Or is it easier to stick with what you know? Information Technology Director, Rob McEwan, explains what it all means and why you should embrace the latest technology from Windows. In January 2016 Microsoft dropped a bombshell on its
It’s currently a free update to encourage users to keep up
customers when they advised that they would only
with the latest offering in both hardware and software and it
continue to support their Windows 7 and 8.1 operating systems until 17 July 2017. They also reported that anyone who buys newer hardware will need to be running Windows 10 and the only way to continue using Windows 7 is to hang on to those old PCs. But it’s not all doom and gloom and, in our experience of Windows 10, it’s the upgrade that has been badly needed
apps and better performance, make Windows 10 a worthwhile upgrade.
WHY THE PUSH TO UPGRADE?
APPLICATION
COMPATIBLE WITH WINDOWS 10?
SUPPORT STATUS Operates on all versions of Windows
is expected that there will be a big bump in upgrades as the
Accredo
✓
Operates on Windows 7 or later
year long free offer ends on 29 July 2016.
Ace Payroll
Operates on Windows 8 (no verification for 10 yet)
WHY SHOULD YOU UPGRADE TO WINDOWS 10?
Attache BI
✓
Operates on all versions of Windows
Attache Pro
Operates on Windows 7/8.1
•
It’s free and easy
Banklink
✓
Operates on all versions of Windows
•
It’s familiar - the start menu is back and improved. You
Concepts Cashmanager Rural
Windows 10 supported but generates E Convert error
IMS Payroll
✓
Operates on all versions of Windows
Moneyworks
✓
Operates on all versions of Windows
MYOB
✓
Account right v19.8 or newer will operate on all versions
Ostendo
Operates on Windows 7 and 8
PlusFactor
✓
Operates on Windows Vista or later
Reckon Desktop
✓
Operates on all versions of Windows
task bar will be waiting for you.
more intuitive integration of touchscreen features, new
change in application.
✓
be preserved and the apps that you’ve pinned to the The combination of a much improved desktop experience,
compatible or, realistically, you should be considering a
Accomplish Cash Manager
can access your favourite things quickly. Your files will
ever since the launch of Windows 8.
If they’re not compatible, find out when they will become
Microsoft has learnt that supporting a myriad of versions across many
ABOUT ROB
hardware platforms is an expensive nightmare, they now want to have
Director, Rob McEwan has over 30 years of commercial I.T experience having worked with
Windows 10 on 1 billion devices in
companies around the world. His passion is to assist clients with the development and
the first 2-3 years of its availability.
implementation of cloud computing strategies. Please contact Rob on 06 757 3155 or email rob.mcewan@staplestaranaki.co.nz for more advice.
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OUR SERVICES ACCOUNTING •
Tax
•
Business Advice
•
Audit/Assurance
McEwan, presenting how to use cloud
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Cloud Accounting - SR RealTime
technology to drive business performance
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Bookkeeping - SR Books
at our recent Cloud Business Workshop.
•
Succession Planning
•
Valuation
•
Governance
•
Specialist Rural Advice
•
Insolvency & Liquidation
•
Internal System & Processes Reviews
Information Technology Director, Rob
INFORMATION TECHNOLOGY •
IT System Design, Install & Support
•
Business Process Automation & Improvement
•
User Support
•
Cloud Technology
HUMAN RESOURCES
TRAINING & EDUCATION
•
Leadership Development
•
Microsoft Office Training
•
Organisation Development
•
Business Management Training
•
Employment Relations
•
Seminars & Workshops
•
Recruitment & Selection
•
Accounting Software Training inlcuding
•
Change Leadership
•
Xero Upskill
•
HR Compliance
•
MYOB Upskill
•
Coaching
DID YOU KNOW?
TELL US WHAT YOU THINK ABOUT OUR CLIENT NEWSLETTER AND RECEIVE A $100 TRAINING VOUCHER.
Your business may qualify for a 50% training subsidy. Contact us on 06 757 3155 to determine if your business qualifies.
We want to make sure we’re providing you with the best possible content in a way that suits you. To get this right, we need your feedback, so please send an email to Rebekah.lock@staplestaranaki.co.nz with your thoughts on our Client Newsletter and your preferred method of receiving it, and we will send you a Training Voucher worth $100.
$100 VOUCHER This voucher entitles you to receive $100 towards the cost of a Microsoft Office or Business Management course delivered by Staples Rodway Taranaki. VALID UNTIL 1 JULY 2016