to contact us call
0800 11 33 99
jamie@e3accountants.co.nz
Office: 10 Oxford Terrace, Christchurch, NZ
Invitation

We promise your annual accounts, delivered at a fixed price and on a fixed day.

If you have any business query or problem, email me for a free of cost response.

Jamie Tulloch
Managing Director

Call me on (03) 379 2343 or email jamie@e3accountants.co.nz

BUSINESS TIP
This week's focus point: What are your minimum and maximum objectives for an initiative, a meeting, a negotiation? (I call this "min/max.") Unless you create your own expectations, you can't calibrate your own progress. If you constantly surpass minimums, perhaps your goals are too modest. If you never meet maximums, you're either underperforming or have unreasonable goals. Don't rely on others' feedback, create your own.  Thanks to Alan Weiss

PROFIT TIP
12 reasons why your gross profit percentage disappears

  1. You are offering too many discounts to friends, family and especially mates (who all want mates’ rates).
  2. You are creating more customers by having discount sales but then find you need even more customers to recoup the lost gross profit on the discounted sales.
  3. Your suppliers have increased their prices and you haven’t adjusted yours.
  4. Your product or services costing model is flawed and your margins are not what you thought they would be.
  5. Stock is being purchased and paid for but not getting into your stock control system.
  6. Products and services are being sold but only partially invoiced – or not al all!
  7. Your physical stock take procedures are not thorough and may be missing stock.
  8. Stock shrinkage – for whatever reason – is occurring.
  9. You have a variety of products or services with different cost structures but this is not accounted for in your costings.
  10. Your direct labour costs have increased but your prices remain the same.
  11. You only measure GP% at the end of the year when your annual accounts are done which is far too late to arrest the trend when it first started.
  12. You know all the above but do not adjust your prices because you are afraid of losing customers.
PROFIT TIP
So why is GP% so important?

Think of your gross profit percentage as the engine room of your business. If the engine cannot perform (it has a low gross profit percentage) then once all other expenses within the business have been cut back as far as economically possible, there is no where else to go but to either increase sales or increase gross profit percentage - ideally both. And increasing sales volume on a low GP% is going to make you work damn hard for little reward. No business can survive for long on low margins unless huge volumes are guaranteed.



TAX TIP
Personal Grievance Costs - some good news  
The legal fees and settlement costs of dealing with a personal grievance claim are deductible on the basis that the costs are incurred in the normal course of carrying on business. The rules of there being a relationship between earning income and the cost of earning that income apply.

Be aware that exemplary damages awarded by the court may well not be deductible. 

 
 By the Way ... 

Dragon's Den is back. Friday 8:30 TVOne. This is the original English one which is the best. See the harsh criteria applied by investors when entrepreneurs want their money and expertise. Yes, it is well stage managed to be entertaining but there's also much to take heed of.

Honey is the only food that does not spoil. Honey found in the tombs of Egyptian pharaohs has been tasted by archaeologists and found edible.

Coca-Cola would be green if colouring weren’t added to it.

On average a hedgehog's  heart beats 300 times a minute.

More people are killed each year from bees than from snakes. (see the Bee movie for why)

More people are allergic to cow's milk than any other food.

The placement of a donkey's eyes enables it to see all four feet at all times!

Earth is the only planet not named after a god.

You're born with 300 bones, but by the time you become an adult, you only have 206. (where do they go?)

Some worms will eat themselves if they can't find any food!

Dolphins sleep with one eye open!

It is impossible to sneeze with your eyes open. Try it.

Queen Elizabeth I regarded herself as a paragon of cleanliness. She declared that she bathed once every three months, whether she needed it or not. (Now very fashionable for saving water and power.)

A giraffe can clean its ears with its 21-inch tongue!

Carl Zwanzig "Duct tape is like the Force. It has a light side, a dark side, and it holds the universe together..."

Douglas Adams "There is a theory which states that if ever anybody discovers exactly what the Universe is for and why it is here, it will instantly disappear and be replaced by something even more bizarre and inexplicable. There is another theory which states that this has already happened."

 

TAX CALENDAR

 

April 7 2010

 

Terminal Tax for 2009

(March April, May and June Balance dates)
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