How to Maintain Compliance In the New Financial Year

6 May 2013

How to Maintain Compliance In the New Financial Year

As New Zealand’s construction and trades sector continues to work its way out of a sluggish recovery, cash flow and timing of customer payments remain the industry’s biggest challenges.

According to the March 2013 MYOB Business Monitor results, last year 31% of the industry saw an increase in revenue, while 26% reported a decrease. This year, 42% of businesses are expecting revenue rises and the same number expect revenue to stay the same. 11% expect to see a decline.

MYOB’s New Zealand executive director Scott Gardiner says in order to make the most of the 2013-14 financial year, those within the sector should plan with an accountant or financial advisor.

“With the industry on the cusp of more sustained growth, planning the new financial year with an accountant could make a real difference. Accountants can not only provide advice and support, but also offer expert knowledge of the industry,” he says.

The latest Business Monitor also reveals that 73% of SMEs in the sector stated some level of pressure from cash flow. 71% felt pressure from timing of customer payments, while 77% reported fuel prices as a challenge.

“Accountants are able to provide insight into successful industry practices that help businesses succeed, especially as costs rise and cash is constrained,” says Mr Gardiner.

“They can assist in implementing strategies to alleviate pressures, and can help you create a tailored business plan to make the most of opportunities within the current environment.”

In addition to economic pressures, there are many laws and regulations relating to running a business within the sector, as the industry is governed by strict safety and building legislation.

“Keeping up with laws and regulations can often be overwhelming, especially as they change frequently. Ensuring your business is compliant and up-to-date with current legislation will allow for more time to be spent on other facets of the business,” says Mr Gardiner.

“MYOB aims to make the running of a business as seamless and easy as possible and can help your business stay compliant. Software such as LiveAccounts enables you to conduct business from anywhere — which, for the likes of tradesmen who are often away from the office on job sites, is an important feature.”

“There are opportunities to be had in the 2013-14 financial year for those businesses in the construction and trades sector. By ensuring they have reliable accounting software and meet with their accountant regularly for business advice, they will go a long way towards great success this year.”

ENDS

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