PKF Francis Aickin Limited, Far North, New Zealand
view all of our services
08 Apr 2020
Cash flow planning and strategies
We have developed a simple cash flow and survival strategy tool. The objective is to determine what your cash flow deficit is going to be, how long your 20 April receipts will last, and what can be done to get through the next few months. It includes complete calculations on the effect of interest only terms on your borrowings. It is designed to be done quickly and we can roll this out for you at very low cost.
Talk to your PKFFA business adviser.
The wage and self employment subsidies
Key update points:
Commercial landlords and tenants
Government has hinted that there will be assistance for landlords whos’ tenants are unable to operate. Apart from a tax concession on depreciation on buildings, nothing further has been said. Modern commercial leases based on the Law Society template include a clause (27.5) which was inserted to address lock outs such as occurred in the Christchurch earthquake. This clause provides that “If there is an emergency and the tenant is unable to gain access to fully conduct the Tenant’s business ……. then a fair proportion of the rent and outgoings shall cease to be payable”.
Whilst this is not exactly an earthquake situation, and whether there is this clause or not, all commercial landlords and tenants need to negotiate. Our view is that because this closedown is in the best interests of society as a whole, landlords and tenants need to get together and discuss a fair sharing of the cost.
Banks and finance companies
The banks and finance companies are working flat out on applications. If you’re going to need banking help, get onto it now. Our cash flow planning tool (1 above) will help.
Companies who might be forced into technical insolvency by the impact of Covi-19 have been provided some relief. Basically, with the agreement of creditors, a business may be able to place existing debts into hibernation, and thereby not count them in the calculations as to whether the company is insolvent.
Contact us for more details on this, or follow this link : https://www.companiesoffice.govt.nz/about-us/what-we-do/insolvency-relief-for-businesses-impacted-by-covid-19/
Keeping in touch, working from home, and mental well being
Keeping in touch with employees, customers, and working from home etc is a new experience to many, but many of those who are using virtual meeting applications like Zoom and MS Teams are finding that this is a great way of communicating. In fact. It works so well that we won’t be surprised to see the practice continued in many workplaces.
Here is a useful link to a recent article on well being support for those in business in New Zealand. Note that for those of you who are Xero users, Xero provides a free wellbeing support service. Follow the link and go to the News article done on 21 November 2019. http://www.pkffa.co.nz/news-articles/
IRD close down
MY IRD will close down from 3pm Thursday until Thursday 16th. If you need to check or use anything over that time, download it now.
In our 50 years of business experience, we have never seen a better nor more important time to be thinking hard about the way we all do business. Many of you will have the luxury of some time at home to think, a time to plot and plan, and a new business environment coming up in which to launch new ideas.
If you are not doing this, be sure that others (and possibly your competitors) are. Already we are seeing innovation by some in the way they work and supply their products and services to their customers.
Here is a challenge for you: for each shut down week remaining (count that 3 if you start today), see if you can come up with one good idea as to how you can change or improve either a business process, or a way in that you deliver your product or service.
If you need help or guidance, or just want someone to help you chew over the future of your business, don’t hesitate to call us.
For more information on how we can help your business, get in touch