AS THE END OF THE FINANCIAL YEAR LOOMS

Jean Kappely • November 12, 2025

As the end of the financial year approaches for businesses in New Zealand, March 31st looms as the critical deadline for most. Its easy to feel overwhelmed by these extra tasks amid the hustle and bustle of daily operations. While some may view it as old-fashioned, maintaining a priority list for your end-of-year financial tasks can help you stay organized, especially for those items requiring input from others.


An important item on that list is always getting those outstanding invoices paid, in the bank. Then tidying up the bank reconciliation, there are always those pesky transactions that need to be reconciled and/or receipts found that are floating around somewhere.

The significance of accurate end-of-year accounts cannot be overstated. They facilitate the proper claiming and payment of taxes, provide valuable data for managing growth throughout the year, serve as a foundation for budgeting in the new financial year, and offer insights into the performance of your products or services through precise profit and loss statements. Without accurate financial records, assessing pricing performance becomes challenging, leading to potential long-term issues.


Ensuring your profit and loss statements are accurate is crucial for evaluating pricing strategies effectively. Flawed financial data can skew the perception of performance and hinder informed decision-making. Over time, this discrepancy can evolve into a substantial problem, impacting profitability and overall business viability.

In conclusion, as the financial year draws to a close, it's essential to prioritize tasks that contribute to the accuracy of your end-of-year accounts. By addressing outstanding invoices, reconciling bank transactions, and maintaining precise financial records, you set the stage for informed decision-making, effective tax management, and sustainable business growth. Embrace the discipline of consistent effort, and reap the rewards of a well-managed financial year transition.


This is where your bookkeeper will shine. All of the above is just part of what they contribute to your business. If you do not have your own bookkeeper or Accounts Manager then I strongly suggest you give me a call.

Your business deserves the investment.


As always, if you found this interesting please share with friends, family and business owners you may know.

"THIS YEAR WILL BE DIFFERENT" SAYS EVERYONE

By Jean Kappely • November 12, 2025
As Waitangi Day passes by, it's natural to reflect on our business journey, comparing where we stand now to where we were last year and the goals we set for ourselves in 2023. Yet, despite our best intentions, it's easy for those aspirations to fade into the background as daily demands take over. Perhaps you've had this conversation with yourself recently, or perhaps it's one worth having. While setting goals is essential, as James Clear emphasizes in his book "Atomic Habits," they only truly work when accompanied by small, actionable changes in behaviour. One effective strategy for realizing your objectives is to create a cashflow forecast. By translating your goals into financial terms and projecting the outcomes for the year ahead, you can establish smaller, attainable targets. Surprisingly, this approach applies not only to business objectives but also to personal aspirations such as spending more time with family, improving fitness, or expanding your professional network. For instance, dedicating more time to family might require hiring additional help, empowering existing staff, or exploring financial restructuring options with your bank. The key is recognizing that qualitative goals often have financial implications for both you and your business. The crucial first step is to complete a cashflow forecast for the upcoming year. This not only provides valuable information but also allows you to explore various "what-if" scenarios. Your bookkeeper should be able to give you cost effective assistance with this process. Alternatively, if you're unable to access professional help, we at SILK love helping our clients make better and empowering decisions for themselves and their business. If you found this newsletter insightful and helpful, please email me.

CASHFLOW IS LIFEBLOOD OF BUSINESS

By Jean Kappely • November 12, 2025
As we navigate through uncertain economic times, one of the most critical aspects of your business to manage is cash flow. Whether you're a small business or a larger enterprise, maintaining steady cash flow during a market downturn can be the difference between staying afloat or facing serious financial challenges. In this newsletter, we’ll explore why cash flow is so important during a downturn, how to manage it effectively, and tips for safeguarding your business during tough economic times. Why Cash Flow Matters During a Market Downturn Cash flow refers to the movement of money in and out of your business, and it is the lifeblood of your company. In a thriving market, businesses may feel more comfortable taking on debt, delaying payments, or investing in growth. However, during a downturn, cash reserves and liquidity become critical. Here’s why: 1. Unpredictable Revenues: Economic slowdowns often lead to reduced sales, delayed payments from customers, or even client losses. In these times, having cash on hand is essential for covering fixed costs like rent, utilities, and payroll, even when your revenues dip. 2. Access to Credit May Tighten: Banks and lenders become more conservative during a downturn. Businesses may find it harder to secure loans or may face higher interest rates. Strong cash flow can help your business remain self-reliant and avoid relying on external financing. 3. Operational Flexibility: During a downturn, opportunities may arise to pivot, invest in new strategies, or acquire struggling competitors. Without sufficient cash flow, your business might miss out on these valuable opportunities. How to Manage Cash Flow in a Downturn To protect your business, it’s essential to take proactive steps to manage your cash flow. Here are some strategies: 1. Cut Non-Essential Expenses Review your operating costs and identify any areas where you can reduce or eliminate spending without impacting the core of your business. This could mean delaying capital expenditures, pausing non-critical projects, or renegotiating contracts with suppliers. 2. Shorten Your Cash Conversion Cycle The faster you can turn sales into cash, the better. Encourage customers to pay faster by offering early payment incentives or tightening credit terms. Consider offering discounts for upfront payments or negotiating more favorable terms with your suppliers to improve cash flow. 3. Build a Cash Flow Forecast A cash flow forecast helps you predict how much money your business will have over a given period. Use historical data and adjust for market conditions to estimate your future inflows and outflows. This will help you identify potential cash flow shortages ahead of time and take corrective action. 4. Strengthen Relationships with Lenders Even if you’re not in immediate need of credit, keeping open communication with your bank or lenders can be beneficial. They may offer better terms or flexibility if you maintain a positive relationship and demonstrate strong cash flow management. 5. Focus on Core Revenue Streams During a downturn, it’s important to double down on your most reliable and profitable revenue streams. Focus on products or services that have proven customer demand and the highest margins. This strategy will help stabilize your revenue and conserve cash. Tips for Safeguarding Your Cash Flow 1. Build a Cash Reserve: Ideally, your business should have 3-6 months of operating expenses set aside as an emergency fund. This will give you breathing room if your revenue falls sharply during a downturn. 2. Regularly Review Your Cash Flow: Don’t wait for a crisis to assess your cash flow. Regularly reviewing your cash flow statements can help you spot trends and take corrective action before problems escalate. 3. Prepare for Multiple Scenarios: Market downturns are unpredictable, so plan for best-case, worst-case, and most-likely scenarios. Adjust your cash flow management strategies accordingly to stay prepared for any situation. Conclusion: Cash Flow is Your Lifeline In challenging economic times, managing your cash flow effectively is more important than ever. It ensures that your business can continue to operate, meet its financial obligations, and seize opportunities even when market conditions are less than favourable. By focusing on cutting unnecessary costs, shortening the cash conversion cycle, building a forecast, and preparing for different scenarios, you’ll put your business in a stronger position to weather the storm and emerge more resilient. If you need further guidance on improving your cash flow management or are looking for ways to optimize your finances during these times, feel free to contact us. Stay strong, stay proactive, and remember – cash is king!  As always, if you found this interesting please share with friends, family and business owners you may know.

ITS A BRAVE NEW .... Price

By Jean Kappely • November 12, 2025
​ As we reach the end of the financial year, it's a great time to pause and reflect on all that we've accomplished. Before your Accountant works their magic to handle tax compliance, take a moment to run some reports from your accounting package and see how you've fared. How did you do? Did you see growth on the bottom line (Net Profit)? ​ Often, year-on-year comparisons are overlooked, leading to unnoticed declines in margins and profits. Your pricing strategy plays a crucial role in this. If you haven't revisited the prices of your products and services at least annually, your purchasing power today will be less than it was last year. ​ While price rises are expected in most industries, failing to adjust your prices can result in your business losing value and money. That's not why most people start businesses, unless they operate in the Not-for-Profit sector, which is a different ball game altogether. ​ In recent years, we've seen inflation rates of nearly 7%. If you haven't kept up with this trend, you might have inadvertently decreased your income and purchasing power. If your clients are facing price hikes across the board, it's reasonable for them to anticipate the same from you. ​ I often hear concerns about potentially losing clients if prices are increased. But is this fear based on a probable outcome, a possible scenario, or an unchallenged assumption? Unless you operate in a monopolistic market (and if you are, you probably aren't reading this), competitors in your space have likely already adjusted their prices, leaving you at a disadvantage. ​ Remember, your clients choose you for your expertise. Don't undervalue the years you've spent honing your craft. You deserve to be compensated fairly for your skills and knowledge. ​ The best approach is to have open conversations with your clients about upcoming price adjustments. Avoid getting into any negotiation or making excuses; simply explain the situation as it is. While you may lose some clients (often the high-maintenance ones), new clients who join in the future will be onboard with the new rates. ​ If you need assistance with running those reports or want to explore strategies for increasing your charges, feel free to give me a call. I'd be more than happy to help you navigate this process. As always, if you found this interesting please share with friends, family and business owners you may know.