Strategies for a financially stress-free holiday period
November 24, 2020
Christmas holiday breaks are a time to spend with family, friends & have a chance to recharge for the year ahead. We look forward to warmer weather and finally setting up an out-of-office email for the break. However, for business owners, this time can be stressful without careful cash flow planning. Even if you do continue to operate through the holiday season, your customers' financial behaviour may not remain the same.
It can be pretty tough working long hours all year only to find that once you have paid everyone else, there's limited cash for your time off. The below graph highlights that impact on NZ businesses that are generally cash flow positive throughout the year (2020 may have put a spanner in the works though!).
Notice the sharp drop in January - don't let this be you! We can help you manage this January impact.
Why is cash-flow planning particularly important at this time of year?
Staff leave needs to be covered in addition to your normal fixed overheads like rent, creditors and tax compliance. The budget and forecasting process ensures you know your numbers and are prepared. If you are shutting down, you won't be driving revenue during this period and sales may take time to get started again in the new year. Here are some simple strategies that can help:
- Decide your Christmas and holiday break dates – confirm these with staff, customers and suppliers.
- Budget and plan for annual leave – remember the pay rates may be higher than standard hourly rates, also factor in statutory public holidays.
- Payroll - remember that your staff still need to be paid throughout the Christmas break. You may be able to set up and schedule your pay run before you go on leave.
- Review your work in progress (WIP) - plan to complete jobs or services that can be invoiced and paid before Christmas (remember if you don’t invoice and get paid before Christmas, you may not see the money until late January or after).
- Invoice reminders - over this holiday period, there's no harm in sending out or scheduling invoice payment reminders to go out before the invoice due date. This gives you a better chance of getting paid on time. See a reminder of how to set these up in Xero HERE.
- Chase outstanding debtors - Follow up your outstanding debtors with a reminder, statement or even a personalised email. Sometimes that is all the prompt they need to make that payment. Focus on the largest and longest outstanding invoices.
- Allow debit and credit card payments via Stripe or GoCardless - these are payment services that connects with accounting software such as Xero and enable your clients to pay their invoices with a debit or credit card. You can set it up to pass on the transaction fees to your customers, so that you don't lose out. Set up Stripe HERE or set up GoCardless HERE. There is even the option for your clients to auto pay recurring invoices via these methods, so that they can set and forget, and the payments will automatically be made to you on the due date.
- Stock-take - Do you need to order in goods now to be able to complete work in progress, or before your suppliers close for the holiday period? Check that there is stock on hand available.
- Confirm your tax payment obligations - if you find you are not able to make payments by the due dates, it is possible to purchase tax and pay it off at your convenience. There are costs associated with this, however it may provide a solution that gets you through the holiday period. We are Premium Partners with Tax Management New Zealand (TMNZ) and can offer you an IRD-approved service that lets you choose how or when you make provisional or terminal tax payments. The benefit of doing this is that you save around 3% in interest (compared to if you don't set up an arrangement), there are no late payment penalties, and you continue to meet your tax obligations with the Inland Revenue. Contact us for more information.
- Review cash movements - in order to see your cash flow movements in Xero, you can run a Statement of Cash Flows report. You can choose the periods you want to compare, whether to produce GST inclusive or exclusive figures, as well as other customisable options. Read further instructions on how to run and customise this report HERE.
Do you want a more accurate picture of your cash flow movements?
We highly recommend setting budgets and forecasting your future cash flow, so that you are prepared. Spotlight Reporting is perfect for this purpose, producing visual representations of your cash flow situation now and in the future. We can work with you to complete a budget or cash flow forecast. Just let us know. Read more on
5 reasons why you need a cash flow forecast.
With many businesses expecting a lower profit this financial year, the more prepared you can be for the unexpected, the better. Managing expenses is a good idea at any stage in your business, and reviewing your pricing can also help improve your margins and support long-term sustainability. The challenge is knowing where to start. Before making significant changes, it pays to take a closer look at how your business is operating, where money is being spent, and whether your pricing still reflects the value you provide. Small adjustments can often make a meaningful difference to your bottom line. Smart ways to get your costs under control Cashflow has been a big issue for thousands of businesses this year, and when the money's not rolling in, it can help to rethink your costs. To do it effectively involves more than just keeping an eye on outgoings. It's about looking at all the moving parts of your business to see if your systems (or lack of them) are costing you unnecessarily. Here's how: Muck in - Do a cost control audit to work out where your biggest cost centres are and review the systems you have in place to manage them. Be aware - Don't just slash expenses without considering the impact. Track costs carefully and look for opportunities to streamline spending or achieve the same result in a more cost-effective way. Unite your team - Bring everyone together to monitor and analyse inputs and expenses. If you're reviewing or developing systems, seek feedback from the people using them every day. Look to your peers - How do your costs compare to others? If a business of a similar size is performing well while spending less, explore what they're doing differently. Seek advice - Whether you've identified some problem areas or you're unsure where to begin, talking with your advisors (that's us!) can help you determine the best next steps. How can I put my prices up without losing customers? If you need to change your pricing to make ends meet, be honest and up-front with your customers at all communication points. Make it clear on your website and social media that prices have changed and explain why. Send an email to let your customers and suppliers know about any changes in advance. If you're meeting customers face-to-face, ensure they're aware of any price increases before they're invoiced. No one likes an unexpected surprise. Support your team with clear information so they can confidently explain any changes and continue delivering a great customer experience. If you're concerned about customer reaction, consider introducing increases gradually across products or services over time. Get in touch if you'd like us to help analyse your margins, review your expenses, and identify opportunities to strengthen your business performance.
Keeping on top of your finances while you’re out and about just got easier! Xero has refreshed the Accounting App experience to make it simpler for you to access key features and complete everyday tasks from your mobile device. The updated layout improves how you move between core areas, helping you find what you need faster and stay on top of activity wherever you are. What’s Changed - The key improvements include: A simplified bottom navigation to help you move between key areas more easily Home as the main dashboard view for a clearer overview experience Key functions such as invoices, bills, bank accounts, and contacts accessed through a streamlined Menu for easier navigation This makes it easier for you to quickly locate what you need, whether you’re processing invoices, reviewing transactions, or checking account activity. How to Use the Refreshed App Navigation: Open the Xero Accounting App on your mobile device Use the simplified bottom navigation to move between key areas Tap Home to view your account overview Access core functions such as invoices, bills, bank accounts, and contacts via the Menu Navigate directly through the Menu rather than switching between multiple screens or tabs Next time you’re using the Xero mobile app, take a moment to explore the updated layout, it’s designed to help you move through tasks more efficiently, wherever you’re working from.
View our July 2026 General Ledger: - 2026 Budget Announcement - Cutting costs or increasing your prices? We can help - Xero Tip of the Month: The Refreshed Xero Accounting App Navigation - Welcome to the Team: Lavina - Tax Question of the Month: Case Study - The Incorrect Tax Code - IRD Upcoming Tax Payment Dates https://public2.bomamarketing.com/email/pdLw
Ever feel like your business expenses are adding up, but it’s hard to see exactly where your money is going? When you have a clear picture of your spending, it becomes much easier to manage cashflow and make confident business decisions. Small improvements in how you track and review expenses can lead to better visibility, fewer surprises, and stronger financial control over time. If you’re finding it difficult to stay on top of your business expenses or want more clarity in your reporting, we can help. We can support you with: Streamlining expense tracking Improving cashflow visibility Turning your numbers into clearer business decisions If you’d like to chat about improving your financial processes, feel free to get in touch with our team on 04 970 1182.
Hospitality never stands still. From early morning check-ins to late-night service, hotels, motels, restaurants and bars operate in a fast-moving environment where no two days are the same. Occupancy levels change, staffing needs fluctuate, supplier costs rise, and customer demand can shift quickly. Through it all, keeping a close eye on your financial performance is essential. Clear financial insights can help you: Manage cash flow with confidence Understand business performance Plan for seasonal peaks and quieter period Make informed decisions for the future At AAF, we work with hospitality businesses across Wellington and beyond to bring clarity and structure to their financial information, helping owners focus on delivering great experiences while staying in control of their numbers. Looking for support with your hospitality business finances? Give our team a call on 04 970 1182.
Major changes to KiwiSaver were announced in Budget 2025. Some of these changes have now come into effect, so it’s important to check that you’re complying with the new rules. Let’s look at what KiwiSaver is and the impact of the recently changed rules. What is KiwiSaver? The KiwiSaver voluntary savings scheme is aimed at helping New Zealand workers save for retirement or buy a first house. But with the rising cost of living, action was needed to make KiwiSaver fit for purpose and more fiscally sustainable as a savings scheme. Changes to the KiwiSaver rules How will the changes to KiwiSaver affect your employees and your small business? Here’s a brief rundown of the changes that are already in effect, those that came into effect in April 2026 and those that will hit in April 2028. Legislation that’s already in effect: If an employee is aged 16 or 17, they qualify for government contributions, so long as they meet other eligibility requirements. From 1 July 2025, the government will contribute 25 cents for each dollar your employee contributes to KiwiSaver each year, with the maximum government contribution being $260.72. If they earn more than $180,000 of taxable income a year, your employee does not qualify for the government contribution. Legislation that came into effect in April 2026: For employees: If an employee is contributing at the default rate of 3%, this will automatically rise to 3.5% for both the employee’s contribution and your employer’s contribution. As an employer, you will deduct 3.5% from 1 April (unless your employee applies for a temporary rate reduction). The new rate will affect all pay days from 1 April. So even if your employee’s pay period covers before and after 1 April, the whole contribution for that pay period will be deducted at the new rate. If an employee is contributing more than 3% already, their contributions will not change. However, if your contribution as an employer is 3%, this will rise to 3.5%. For employees aged 16 or 17: Younger employees will qualify for employer KiwiSaver contributions of 3.5% of their pay from 1 April 2026, so long as they meet other eligibility requirements. If an employee is an existing KiwiSaver member, as their employer, you will start making contributions automatically. The employee doesn’t need to do anything. Temporary rate reduction: A temporary rate reduction is available for people who want to carry on contributing at 3% from 1 April 2026. Employees can apply for a temporary rate reduction for between 3 and 12 months. Their contributions will be reset to the default rate after 12 months. They can apply for the rate reduction as many times as they like. As their employer, you can choose to match their temporary rate reduction. Once they move from the temporary rate to a higher rate, as their employer, you’ll be notified. If you’re an employer: You will need to: Ensure your payroll settings are updated to apply the default employee and employer contribution rates of 3.5%. Make employer contributions for your 16- and 17-year-old employees who are existing KiwiSaver members or join through a provider. Process any temporary rate reduction letters your employees give you. Legislation that will come into effect in April 2028: From April 2028, the default KiwiSaver contribution rate will rise again to 4% (from 3.5%) for you and your employees. Helping you comply with the KiwiSaver changes: These amendments to KiwiSaver could have a significant impact for your small business. Increased employer contributions will increase your payroll costs and stretch your cashflow, as will making contributions for younger workers in the 16 to 17-year-old age bracket. It’s important for your payroll software and processes to be updated, ensuring that you’re making the correct contributions for the right people, at the right rates. Come and talk to the team about complying with the KiwiSaver changes.
Say goodbye to tab-jumping and constant back-button clicking. Xero’s Quick View panel is here to make bill management significantly faster. With split-screen editing, you can now review, edit, and approve bills without ever losing sight of your main list. How to Use Quick View for Bills: 1. Under Purchases, select Bills 2. Click the View (eye) icon next to any bill to slide open the split-screen panel. 3. Within the Quick View panel, you can: Approve bills quickly with Approve & Next or arrow buttons Edit bill details and line items instantly Check attachments - View the source invoice alongside the data entry. Update supplier info or adjust payment dates Resize the panel or show/hide columns to suit your workflow Next time you’re working through your payables, use Quick View to speed up your workflow and complete your bill processing in record time.
View our May 2026 General Ledger: Changes to KiwiSaver: How to Comply With the New Rules - Important Notices - Xero Small Business Insights: What the Latest Data Means for You - Xero Tip of the Month: Faster Bill Management With Quick View - Welcome to the Team: Abel - Tax Question of the Month: Side Business Income and the Automated Tax Assessment - IRD Upcoming Tax Payment Dates https://public2.bomamarketing.com/email/mln9
Whether you’re purchasing your first rental, growing a portfolio, or developing property, the numbers behind the investment matter just as much as the property itself. At AAF, we support clients across a wide range of industries - and property is one of our key specialist areas. We work with investors, developers, and business owners to help them: Understand the right structure (personal, company, trust, or LTC) Stay compliant with evolving tax and property legislation Improve cashflow visibility and forecasting Make informed decisions around growth, refinancing, or expansion See the full financial picture - not just the purchase price or rent received.
