Hugh's Views
See Us First!
Client News
Your Business Can Run Better Without You!
KiwiSaver - Key Dates
Why Customers Go Elsewhere
IRD Updates
Around the Office...
Not many sleeps till Santa comes
Disclaimer
HUGH'S VIEWS
At this time of year it seems a bit pointless spending too much time considering technical matters and as you will see, our Newsletter is taking a look at what has happened in our office and with some of our clients over the past few months.
It is great to see some of our clients being rewarded for the work they have put in, not only to their businesses but also to the community in which they work, and our congratulations go to them all. You can read about their successes further on in the newsletter.
In our own office, two of our younger members have just completed exams relating to early accounting qualifications, and we are very pleased with the way they have put the time into their assignments during the year, and have little doubt that they will be rewarded with positive results when they are announced. There will of course be some others of our staff who will be wanting to take some of the credit for the coaching given!!
I think it would be fair to say that most of us in the office have enjoyed the 2006 calendar year after two or three years of frustration. While there is little doubt that the New Zealand economy has cooled in the past 12 months, there are a lot of factors in Central Otago which seem to keep things bubbling along at a reasonable level. The recent rain and firming of some wool prices will certainly not be doing our catchment area any harm. The National Bank Economist indicated that long-term prospects are very sound, but we could expect some falling off in the next 12 months.
While I agree with these sentiments I believe that we should not be getting too concerned about these projections as there still appear to be plenty of opportunities for improving our business results which are not reliant simply on increasing our sales.
We have always been promoters of good systems and a recent article in a business magazine emphasised this point.
“ Bad systems full of brilliant people make terrible mistakes, however good the performance of management. Good systems make ordinary people perform better, bad systems do far more damage than bad people, and a bad system can make a genius look like an idiot.”
Their advice is - try redesigning systems and jobs before you decide that a person is useless.
I trust you all have a very Merry Christmas and an enjoyable New Year and we will look forward to working with you during 2007 and beyond.
Hugh
SEE US FIRST !
PLEASE... if you are contemplating buying new accounting software, contact us before you buy. This will ensure you get the best software solution possible. It will make life easier for us all.
Need coffee on the go... look no further than The Coffee Express. Robbie & Anne Hodge have recently setup the Coffee Express together with Angie & Gerald Patterson, you can find them opposite the rail trail at Lauder. They sell a variety of coffee, sandwiches, cakes, icecreams, cold drinks, CO dried fruits and more, currently operating 7 days. All the best in your new venture.
Congratulations to Nev & Ritchie at Trail Journeys. They were finalists in the Westpac Business Excellence Awards in the Tourism Sector.
Well done to Scott Kunac and his team at Allan Miller Hunting & Fishing in Dunedin. They have recently been judged the Best Sports Shop in New Zealand. Congratulations on landing such a huge achievement.
Where do you find the best savaloy in town? Ian and Jo Sutherland from Bucks Butchery in Cromwell recently took top honours at the NZ Butchers Awards - Congratulations.
Grant Lyon recently competed in the Tour of Southland - Well done on a huge effort in completing this grueling race. Grant’s team was sponsored by Ian MacDonald at Placemakers. Grant’s cycle shop Alexandra Cycle World has secured rights to the Icebreaker range of apparel and will be available from his new premises between Placemakers and Caltex. All the best in your new premises Grant.
Congratulations to Shane Ramage on finishing The Lake Taupo Cycle Challenge, held at the end of November. Shane took part in the Enduro event which consisted of two laps of the lake. How much punishment can one person take??
The NZRFU congratulates Jock Martin as their Volunteer of the Year for Otago, for his contribution to Rugby. Jock is the first ever winner for the Otago area to go forward to the NZ Finals, and is now one of three finalists in the NZ Volunteer of the Year. Best of luck to you Jock.
Keeping it in the family... sisters, Camille O’Conner and Maree Bowden (nee Grubb) continue to excel in the netball world! Camille has joined the Otago Rebels for the 2007 year while sister Maree has been selected for the Silver Ferns Squad. Two huge achievements, congratulations to you both!
Phil Oliver from Altitude Adventures recently took to new heights taking a bike tour in the mountain ranges of Nepal. He also found himself in California biking in Mt Marin County, Lake Tahoe and Mammoth Mountain. What a way to see the world!
YOUR BUSINESS CAN RUN BETTER WITHOUT YOU !
We talk of business success, but what about business succession? Very few people plan their exit from their business. When should you start planning for someone to take over from you? If you subscribe to the Stephen Covey concept of "begin with the end in mind", you should start planning your exit before you even start your first day in your business.
Common problems caused by not having someone able to do your job include:
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Feeling trapped in the business with no easy way out.
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Your staff have no choice but to come to you when important decisions need to be made. The business remains totally dependent on you
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You can rarely take time off for a proper holiday and even if you do get away, you can't stop thinking about how the business is surviving without you.
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If you sell, you might get less for your business or be asked to commit to a period where you have to work in it to train the new owner.
Plan for your succession by having someone else able to do your work, and enjoy these benefits:
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You can focus on more important strategic issues, rather than being bogged down by urgent day-to-day tasks. You can then be more effective and make the business more profitable.
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You can take holidays when you like, because you know the business can run without you. This allows you to come up with new ideas to improve the business.
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The business has a value in its own right. You have choices. You can sell the business or you can continue to own it and derive the profits.
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It will sell for a higher price and will be easier to sell.
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Your life is free of stress.
Should you start your succession planning now? We think so.
KIWISAVER - KEY DATES
The KiwiSaver savings initiative is set to start on 1 July 2007.
In 2007 the IRD will be sending general information about KiwiSaver, as well as KiwiSaver starter kits and a supply of information packs to all employers for distribution to employees. Key dates include:
September 06 - KiwiSaver Act passed.
September 06 through to May 07 - Information about KiwiSaver will be published and available through employer conferences and forums. IRD will also write directly to employers.
April 07 - The updated version of the Four-weekly and monthly PAYE deduction tables (IR341) will be ready, with calculations tables to make it easier to work out KiwiSaver deductions.
May & June 07 - Employers will receive starter kits and an initial supply of KiwiSaver information packs for new employees. You’ll be able to order more through INFOexpress.
July 07 - More information will be available on the website www.kiwisaver.govt.nz including details of how to manage your employees’ KiwiSaver details, and operational and technical support available for employers.
Customers are the most important people in any business. They are not dependent on us, we are dependent on them. They are not an interruption of your work, they are the purpose of it. Your aim is to bring them back time and time again, and surveys show that the rewarded customer does come back. Look at these statistics showing why customers go elsewhere.A survey has indicated that the reasons customers quit a business were:
- 3% move away
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5% develop other friendships
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9% go to a competitor
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14% are dissatisfied with the product or price
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68% quit because of the indifference of the owner/management/employee. This means that nearly seven out of 10 customers decided to shop elsewherebecause they felt nobody cared about them or their custom.
Some key statistics relative to customers:
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A typical dissatisfied customer will tell eight to 10 people while a typical satisfied customer will tell five people.
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It takes 12 positive service incidents to make up for one negative.
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The average business spends six times more to attract new customers than it does to keep existing ones, yet customer loyalty is in most cases worth 10 times the value of a single purchase.
Find your competitive edge, market it effectively and make your business an enjoyable place in which your customers do business.
IRD UPDATES
Very recently we attended an update by the Inland Revenue Department with respect to a number of matters, but of most interest to us was the update on Kiwi Saver. Having previously been fairly skeptical about this politicians proposal, we are now able to see that there are some opportunities for businesses to benefit from this in assisting their employees and, in some cases, themselves. Perhaps one of the most interesting facts is that the deductions made from wages can be directed towards the repayment of a mortgage rather than to the accumulation of savings, and if you add this to the ability for the employer to subsidise this payment by up to 4% with no tax implications, then you may appreciate what my previous comments relate to.
It was also a relief in many respects to find that the new proposals with respect to the combining of GST and provisional tax payments are not compulsory and there are various options which allow participation if it is considered appropriate. This legislation is some way off yet, and we will be able to provide you with more information next year as it is released.
Fingers crossed for both Kathryn and Ellen who have recently sat their accounting exams We are sure all those Study Days taken will pay off. We look forward to our morning tea when you both pass with flying colours. Good luck.WELL DONE HUGH on your recent Hole in 1 at the Dunstan Golf Course. It seems he plays better when he doesn’t practice!
There must be something in the water!!! Our office has two brand new grandparents. Congratulations to Paul on the arrival of Grandson #1, Harlem and to our newest Nana, Patti, on the very early but safe arrival of Madison. Any excuse for a morning tea and we are there! Thanks guys.
NOT MANY SLEEPS TILL SANTA COMES
That time of year again, before we know it we’ll be into 2007. We’d like to let you know our office hours over the Christmas break this year.
We will be closing the office at midday on Friday the 22nd of December and reopening on Monday the 15th of January.
While we won’t be officially open for business, if you do need our assistance with something please call the office, 448 8060, and you will be able to leave a message or you may be diverted to Leo Hulme who will be our on call person over the Christmas break, and will be able to help.
We hope you have a nice break and we will see you in the New Year.
DISCLAIMER
We don’t claim to know it all, so with that in mind here’s what we’re obliged to say; this newsletter has had input from a variety of sources, people and publications. For all input we are grateful. Grateful and careful. Whenever we can, we do our very best to ensure all the information contained in this newsletter is accurate and timely. If there’s something here you plan to place some considerable reliance on and we haven’t made the implications totally clear to you, get in touch and we’ll clarify it for you.