Big small fish in a big pond

Found another great kiwi website design and hosting company this week that ticks so many boxes you'll just have to take my word for it that it looks pretty good.  If you are looking to setup a web store this is definitely a good place to start looking.  www.smallfish.co.nz.  But as always with any business you start make sure you have done your home work first and seek some independent advice.  As we all know what seems like a good idea at the time may end up costing you your shirt off your back or even worse your house.  But if you want to conquer the world this looks like a good place to start..............

How to Work with Someone You Hate

Another interesting article this week relates to people that we hate to work work with but have to.  In summary the ways to resolve the situation come down to some simple do's and don'ts from an HBR a article by Amy Gallo.

And remember if all else fails count to 10.

Principles to Remember


Do:

• Manage your own reaction to the behavior first
• Practice emotional detachment so the person's behaviors don't bother you
• Spend time trying to get to know the person and better understand what motivates him 

Don't:

• Assume that it is all about the other person — you likely play some part
• Commiserate with others who could be unfairly influenced by your negativity or may judge you for your complaints
• Give feedback unless you can focus on work issues and can avoid a personal conflict

How to Work with Someone You Hate - Amy Gallo - Best Practices - Harvard Business Review

Virtual Teams

During the week I came across an interesting article on managing virtual teams.


Here at Cross Group on top of our core staff in Invercargill we are putting together a team of people to service customers needs in all corners of not only New Zealand but also the globe.


Gone are the days of having multi story glass towers containing lots of rats running on a treadmill working on a centralised system.


Technology and just as importantly higher levels of security, allow cloud based inititives to be implemented that allow virtual teams to  operate at the highest level.  As our moto suggests change is inevitable growth is intentional.


How to Manage Virtual Teams

What is a 90 Day Trial Period and how does it work?

From 1 April 2011 all employers were be able to employ new employees on a trial period of up to 90 calendar days. 


As part of an employment agreement, an employer and employee can enter into a written agreement that, for the specified and agreed number of days but no more than 90 calendar days, the employer can dismiss the employee without the employee being able to take a personal grievance for reasons of unjustified dismissal.


The key part here is that the agreement should be signed prior to the employee starting work for the employer.


As an employee, a new employer can provide you with an offer of employment which includes a trial period. A trial period is voluntary, and must be agreed to by the employer and employee in writing in good faith as part of an employment agreement.  If you have previously been an employee with this employer then you will not be considered to be a new employee and a trial period cannot be entered into.


As an employer, you will be able to offer trial periods to new employees. Any trial period that you agree to with a new employee must be agreed to in good faith as part of their written employment agreement.


Written employment agreement should be signed by both you and your employee at the beginning of your employment relationship. A signed employment agreement may reduce the risks of legal challenge.


You and the employee must both bargain in a fair way.


Notice must be given within the trial period, even if the actual dismissal doesn't become effective until after the trial period ends.


The 90 Day Trial period and a Probationary period are not be confused with each other as they are two separate areas that will need to be negotiated with the new employee in an employment agreement.


Key points to remember are:
- The employee must be a new employee and not previously worked for the employer
- A written agreement should be signed prior to the employee starting work with the employer
- Notice must be given to the employee within the 90 Day Trial period.

By Aaron Brown - HR Manager Cross Group Services Ltd

Year end Check List for 2012

For many entities and individuals in New Zealand the 31^st of March is the end of the financial year and even more importantly the start of a new year is the following day.

However whilst it is important to not drive looking in the rear vision mirror there are a number of matters that need to be attended to to ensure that all your obligations are meet.

• Trading stock

Stock takes are only required if your stock is more than $10,000 and your turnover is more than $1.3m.

•  Fixed asset review

Review the fixed asset schedule from last year and identify any assets that are missing or have been broken or disposed of.

•  Bad debts

Bad debts must be written off before 31 March to be claimed.  Make sure you have evidence of what you have done up to the point where the debt was written off.  Accounting entries must also be made before 31 March.

• Portfolio investments

For investments in companies outside New Zealand, you will need to list and value them as at 31 March 2012. This forms the basis of the portfolio tax calculation under the foreign investment fund (FIF)regime.   Also note that 2012 is the last year that GPG has an exemption from the FIF regime.

• Imputation credit account

Irrespective of a company’s balance date, you need to ensure that your imputation credit account (ICA) balance is not in debit at 31 March. If an ICA is in debit at 31 March  additional income tax equal to the debit balance, must be paid to the IRD together with a 10% penalty.

• Loss offsets and subvention payments

Loss offsets and subvention payments relating to last year’s tax must be dealt with by 31 March of the year following the year the deduction was claimed (regardless of your balance date).

• Look Through Companies

A company that is currently a standard company can elect to become an LTC for the 2013 income year provided that it files an election prior to its 2012 balance date. A Qualifying company has 6 months following its balance date to make an election for the 2013 income year.

• Dividends

For a dividend to be paid by the end of the income year you need to pass appropriate resolutions prior to year end. RWT, if applicable, will be due 20th of the month following.

• Trust distributions

For distributions to be classed as beneficiary income they must be made during the income year or within 12 months of balance date if the trust deed allows it. Appropriate trustee resolutions must be completed within this timeframe for the distribution to be effective.

• Extension of time arrangements

31 March 2012 is the last day for 2011 tax returns to be filed under extension of time arrangements (“EOTs”). If your 2011 return is not filed in time you risk losing your EOT & may incur a late filing penalty which could be between $50 and $500.

• GST

An adjustment in your GST return for GST for 3/23rds of the previous year’s non-deductible entertainment expenditure must be made in the GST return period in which your income tax return is due or filed. 

31 March will also be the end of the first adjustment period for mixed use assets. You will be required to compare your actual use of the assets against your intended use and make any adjustment required in your GST return aligning to 31 March.

• Pre-payments

Certain pre-paid expenses can be claimed even though they relate to the following year.

• Holiday pay and bonuses

Employee benefits, like holiday pay and bonuses, owing at 31 March can be claimed if paid by 2 June. Bonuses must be incurred before 31 March to be claimable.

• Provisional tax

You must elect to be a provisional taxpayer to receive use of money interest on any overpayment made for the 2012 year. This election must be made when first furnishing your 2011 tax return.

• Due date reminders

If you have a March balance date any terminal tax for 2011 is due 7 April 2012, unless your EOT has been lost. For employers, all wages/salaries paid or credited to staff on or before 31 March 2012 must be included in the ir-File for March 2011 or for the 2012 financial year.

• Fringe benefit tax

31 May is the due date for filing and paying FBT for the 4^th quarter of the year and furnishing annual FBT returns. An election to use the multi-rate FBT rates is made when filing the FBT return. FBT savings can be gained by doing a multirate calculation.

• Tax payments

Review your profit and ensure sufficient provisional tax has been paid. An extra payment can be made to reduce use of money interest accumulating at 8.89%.

• Revenue account property (e.g. subdivided land)

 Losses on revenue account property are only deductible if losses are realised on or before balance date.

This information is of a general nature only and should not be used as a substitute for detailed professional advice.  Specific check lists are available based on further discussions. 

Kiwisaver – Can you really get your money back?

KiwiSaver is a vehicle persuading New Zealanders to save for their own retirement , but the continued unrest in the economy is making the cost of saving for the future that much harder for some.

KiwiSaver funds are locked in to the fund for the long haul until either 65 or you have been a contributor for five years (whichever is the later), except in cases of financial hardship, sickness, buying your first home and moving overseas permanently, where members can apply to the Trustees of their fund to access some of their fund.

Those affected by the Canterbury earthquakes also have grounds to apply for relief (a category of financial hardship that has been specifically added to those previously available). This criteria is added to the existing list including:

• inability to meet minimum living expenses; or

• inability to meet mortgage repayments on the principal family residence resulting in the mortgagee seeking to enforce the mortgage; or

• the cost of modifying a residence to meet special needs arising from a disability of a member or a member’s dependant; or

• the cost of medical treatment for an illness or injury of a member or a member’s dependant; or

• the cost of palliative care for a member or a member’s dependant; or

• the cost of a funeral for a member’s dependent.

How it affects you:

If you are experiencing hardship and have been contributing to a KiwiSaver scheme you may be able to withdraw all or some of your contributions from the scheme. The process is quite comprehensive and requires the applicant to show they have tried other avenues for funding, completed a statutory declaration about assets & liabilities and provide any other documents or information to support the application.

The decision with hardship applications is made by the KiwiSaver Scheme’s independent Trustee and not the Scheme Provider.   The KiwiSaver Scheme’s independent Trustee analyses applications and makes the final decision.

Do not be put off making an application . If you need help, contact your business advisor or scheme provider for assistance.

Do you have Entrepreneurial Flare or Flair

So you have the fire and passion to be entrepreneurial.  That's great.  But the best tool that a entrepreneur can have is objectivity, as without it your venture will more than likely fail.


Here are 3 ways that you can make sure that your entrepreneurial flair doesn't turn into a smouldering mess.

1. Don't rely on praise - Praise is not the same as success but praise should be used as marketing tool but don't let it distract you from your real goals.
2. Don't lie to yourself - Being honest with yourself is sometimes the hardest part of being a self employed entreprenuer.  Do I really have all the skills to run all parts of my business.  Would my time be better spent being creative 24/7 and leave the other stuff to someone else.
3. Don't flare out - Knowing when to pull the pin and move on to the next venture is a trait of some of the best entreprenueral leaders in the world.  Don't go down with the sinking ship.

Adapted from "The Danger of Entrepreneurial Passion" By Daniel Isenberg

Employer - Employee Relationship Problems

By Aaron Brown - HR Executive Cross Group Services Ltd

Problems can sometimes occur in the workplace, and usually the best way to deal with them is to apply a common sense approach. The sooner an issue is dealt with the better and the best way to achieve this is to follow a well documented process.

Employers need to have good processes and procedures in place for dealing with issues and should make sure that employees are aware of them and everyone in the workplace should understand what is expected of them in the event of an employment dispute.

If there’s a problem, it’s important to:

1. have a clear idea of the issues, check the facts 
2. make sure that both sides have the time and opportunity to take advice and think through the issues. 

Taking advice at the earliest opportunity helps ensure both sides are fully aware of their options in the circumstances.

Every employment agreement must contain a clear explanation of the processes for resolving problems. This explanation should be written very clearly, so everyone knows what processes they are required to follow, what their rights are and what happens when a problem is raised.

It is important that all parties, in good faith, try to resolve any problems directly. Some may be able to settle their differences quickly through a mediator with less formal support and cost than a formal process.

There are some problems at work that can also have health and safety implications, particularly where these problems may involve stress, fatigue, bullying or workplace violence.

Whatever the issue or the problem that has been raised it is vitally important to be proactive and reach a resolution for the benefit of both the employee and the employer aka win win.

So check your procedures manual and employment agreements today as an hour spent today may save a lot of time and money further down the track.

Is your small business really ready to rebuild Christchurch?

Subject: Small Business accounting - Christchurch earthquake - Strategic Planning - Accounting systems

25 January 2012 by: Jamie Cross - Cross Group Services Ltd

The pace of the rebuild in Christchurch appears to be quickening.  With some building projects you sometimes see a short burst of building activity followed by a sudden slow down.  What you will see in Christchurch is the momentum increase steadily over the coming 12 months and will likely extend well into 2021.  That’s over a decade of increased activity not seen in New Zealand’s history.

The question is “Is your small business really ready to help rebuild Christchurch?”

Most small business accounting systems and processes will not allow you to compete with the big boys will be dictated by the way your business is perceived by your customers.  Perform poorly in any part of your operation and your reputation and ability to grow will be hampered. Small business accounting out of shoe box will not let you achieve future growth.

Whether you are looking at starting out or have big plans for your small business; to assist Cantabrians with their rebuild there are 5 fundamental issues that need to be addressed:

1. Do I have a strategic plan in place to control my growth and do I have an exit plan?
2. Are my processes and procedures properly documented to allow me to take time off?
3. Is my administration technology up to date and capable of producing the KPI’s (key performance indicators) that are required to manage my growth?
4. Do I have the right people doing the right jobs?
5. Can my working capital support business growth (Cashflow)?

If you don’t think that your small business accounting systems are up to the task or you answered no to any of the questions above contact your accountant as soon as possible to get help with answering these questions.  Failure to answer these questions will result in your small business being left behind and you missing out achieving your growth potential.