We love celebrating our clients success stories, and were delighted to read about two of our clients, Miraka, and Central Transport Ltd (CTL) working in partnership with one another.

Workplace burnout is becoming the new norm for many businesses. Workloads are high, budgets are tight, technology keeps us busy 24/7 and finding balance is challenging.

Incorporated societies are the backbone of community-driven initiatives across New Zealand, from local sports clubs to advocacy groups and cultural organisations. Recently, these societies have faced a series of significant updates to the regulations that govern their operation. The Incorporated Societies Act 2022 (the 2022 Act) and Incorporated Societies Regulations 2023 (the Regulations) came into force on 5 October 2023. Together, these put in place a modern legal, governance and accountability framework for incorporated societies and those who run them. In this blog we take a look at the key changes, and how they might impact you. If you have any questions or need advice, please feel free to contact your BFA advisor. 

It would be prudent as a business owner, to protect your company and the reputation you have with your clients and suppliers… in which case you need to bother. 

Living in rural and remote areas often means people can feel socially isolated. This can contribute to stress, anxiety and depression which can have a detrimental effect on people's mental health and wellbeing. Those in rural areas seem to be less likely to seek help in comparison to their urban counterparts.

Going into a business where you have no control over what you earn has taught me that farmers should consider utilising hedging tools to minimise financial risk. While milk production is predictable (weather permitted), we have no control over the milk price or major farm costs such as feed and fertiliser. However, farmers do have a range of financial tools available to help you deal with changing market prices and costs. By locking in prices through financial tools like futures contracts, you can manage your farm's risks better. This approach can make your financial planning more effective and could even help you get loans easier, because banks like businesses that have steady money coming in. Income - Milk price in New Zealand I often see clients reluctant to fix milk price as it’s a newer concept. If you change your mindset to ‘we fix interest rates on loans and have been doing that for years’, then you will realise that we are dealing with the same concept when it comes to fixing milk price.  By setting a fixed milk price, you can shield yourself from the risk of unexpected price drops and stabilise your income. You accomplish this through futures contracts or options through Jarden (which requires capital to front up with to meet the calls), or if you are a Fonterra supplier, by using their Fixed Milk Price options. If you are a Fonterra supplier, you can lock in up to 50% of your estimated milk production using Fonterra’s fixed milk price options. When deciding whether to lock in your milk price you need to know what your break-even price (BEMP) is, and you need to create a hedging policy for your business. This enables you to remove the emotion and the ‘gaming’ aspect from this decision. You can calculate previous seasons BEMP by looking at your farm accounts or a benchmarking report such as DairyBase. Use your budget to calculate a forecast BEMP. Interest rate management: Managing your interest rates is important. You can use different financial tools to control how much you pay for loans. For example, you can fix your loan's interest rate to avoid paying more if rates go up, which can save you money on your farm's expenses and help you keep more profit. Also, you have access to tools like overdrafts and credit lines that can help you with cash when you need it for your day-to-day operations. Stock feed management: Managing your stock feed is key to controlling costs. You can save money by contracting your feed for the season or even partially contracting your feed. This makes one of your biggest expenses in farming—feed costs—more stable. It also helps you plan your budget and finances better, keeping feed costs predictable and under control all year round. If you fix your milk price, interest rates and stock feed, I’m not saying you’re going to be more profitable, as markets do change and it may not have been the best decision. However, when there is a downturn and you have locked prices on the key income and expense items, you not only feel good about your decisions, but your mind is at ease knowing you have some certainty of your profitability. Hedging mechanisms help you deal with the ups and downs of prices and costs, making your business stronger, and more likely to last. To make the most of these tools, you need to really understand the market and the different financial products you can choose from. We have the experts to help you with this – give us a call to discuss how we can help you.

We recently let you know about come changes coming if you own and rent out (on a short term basis) a room in your home, the bach or an investment property. All of the platforms have now issued guidelines on what to do to be ready for 1st April, excerpts from the websites of Expedia (including Vrbo/Bookabach), Airbnb and Bookng.com have been included below for your information. It’s time for you to take action on your listings! Property Managers/listing agents, please read to the end as there are new proposed rules that were announced at the end of last week that may impact your business. Expedia (Released 22 March 2024) Expedia own Vrbo/Bookabach. Starting 1 April 2024, Vrbo/Bookabach will collect 15% GST on all listed short-stay and visitor accommodations to the New Zealand Inland Revenue Department (IRD) as noted below based on your GST registration status. What will I need to do on 1 April 2024? 1. Provide us with your New Zealand GST registration number (if any): On 1 April 2024, we will provide you with a separate email that will include instructions on how to review and update (where necessary) all your underlying properties’ GST information . This is to ensure we pay you out in the future correctly with or without GST Flat-rate Credit (see below). 2. Upload GST exclusive rates and fees for your properties: Starting with bookings as of 1 April 2024, Vrbo/Bookabach will add 15% GST to the rates and fees that are loaded into our portal. To avoid Vrbo/Bookabach adding 15% GST to a rate that already includes GST, please ensure you provide us with GST exclusive rates and fees. How will the new GST rules impact me? If you are a non-GST registered property owner, Vrbo/Bookabach will be required to add 15% GST on top of your rates and fees. Out of this 15% GST collected from the traveller, Vrbo/Bookabach will pass 8.5% GST back to you (as a so-called “Flat-rate Credit”) and remit the remaining 6.5% GST to the IRD. These GST changes may affect the total price the traveller pays – see our pricing examples here for more information. If you are a GST-registered property owner, instead of you it will be Vrbo/Bookabach that will remit the 15% GST to the IRD. In case you do not agree that Vrbo/Bookabach remits GST to the IRD, we will not be able to offer your listing on Vrbo/Bookabach starting 1 April 2024 until we have updated our systems. If you are GST registered and meet the opt-out eligibility criteria as set out by the IRD, you may instead consider listing your properties through Expedia Partner Central on our other Expedia Group sites. AirBnB (Released 23 March 2024) Under Inland Revenue Department’s (IRD) GST Marketplace Rules , Airbnb is required to collect and remit 15% GST on Hosts’ accommodation prices and cleaning fees (excluding Airbnb service fees and any other fees) for listings in New Zealand that are booked on or after 1 April 2024. Guests who book with affected Hosts will see a separate line item for the 15% GST collected when booking. You do not need to adjust your pricing in regard to this update as GST will be automatically calculated and collected by Airbnb. 1. To help us appropriately apply the GST Marketplace Rules, if you are GST-registered, please ensure that your GST status on Airbnb is updated as soon as possible. If you need to update your GST number, follow the steps below: a. Go to Account > Taxes b. Select “Add VAT ID number” c. Complete the VAT ID form 2. If you are GST-registered and have been remitting GST on accommodation through your own GST returns, IRD has instructed that you can cease doing so since Airbnb will levy and remit this on your behalf, unless an exemption applies (see below). 3. If you are not GST registered, an 8.5% flat-rate credit will be passed on to you when you receive your Host payout. If you are GST-registered and meet certain criteria , you can opt out to be exempted from these rules and will remain responsible for your GST obligations. How do I know if I meet the opt-out exemption criteria? If you are GST-registered and meet certain criteria , you can be opted out of the marketplace rules. You may receive a separate email from Airbnb outlining the details of the opt-out exemption. If you are a non-individual who is GST-registered and make (or expect to make) more than NZD 500,000 of taxable supplies in a 12-month period, you can notify us that you are opting out by contacting our Community Support team as soon as possible. For more details, please refer to IRD’s fact sheet under the heading “Who can opt out?”. If you opt out, you can “ add taxes to listing ” to manually collect and remit GST to IRD. How can I see the amount of GST collected by Airbnb? The amount will be displayed in the Gross Earnings tab of your Transaction History . I’ve been remitting GST to IRD on bookings. What do I do now? If you do not fall under any opt-out exemption and have been remitting GST on accommodation made through Airbnb to IRD, you can cease remitting GST to IRD on these supplies from 1 April 2024. Airbnb will now levy and remit this on your behalf. GST and input tax for other activities not made through Airbnb should continue to be accounted for in the usual way. How do I know if I get a flat-rate credit? A flat-rate credit will only be passed on by Airbnb to Hosts who have not provided us with their GST number. The flat-rate credit, if passed on, will be displayed in the Gross Earnings tab of your Transaction History . How will Airbnb be remitting GST collected to IRD? Airbnb is required under the GST Marketplace Rules to file a GST return that reports the total combined reservation revenue for all applicable Airbnb bookings and includes the GST collected for bookings made during the period of that return. IRD does not require Airbnb to provide any of your information on the GST return. However, we may share any of your information (including your personal data where relevant) with IRD and/or other authorities under other circumstances, in accordance with applicable law (including data protection laws), and/or as described in our Privacy Policy . Do I have any other tax reporting obligations? You may be responsible for other tax reporting obligations. Please refer to IRD’s website and/or seek independent tax advice for more information. Do I have any other obligations related to my listing? You are responsible for complying with any other local rules and regulations that may apply to your listing. More information is available on our Responsible Hosting in New Zealand page. To learn more about the changes to GST, please visit IRD’s website for more details. If you have any questions about the changes, please use this form so they can be collated and passed onto IRD. Booking.Com UPDATE Earlier this month, we let you know about new marketplace rules that affect Goods and Services Tax (GST) on reservations made via our platform in New Zealand. We're now writing to share more information about what this means for you. If you are GST registered We'll treat you as having opted out of the marketplace rules. That means nothing will change for you and you'll remain responsible for your own GST obligations. Unless you let us know otherwise, you agree and confirm to us that you choose to continue to be liable for the payment of GST on accommodation services that you provide, and responsible for all GST obligations. This includes providing taxable supply information to your guests. To opt out of the marketplace rules as a GST-registered partner, you need to either offer or expect to offer more than 2,000 nights of accommodation on one marketplace in a 12-month period, or have total turnover of more than NZ$500,000 in a 12-month period and be a non-individual. To find out more about these criteria, take a look at this Partner Help article . If you believe you don't meet the criteria for opting out, or if you don't want to, you can update your GST settings and opt back in in the extranet . To find out more about the GST obligations if the opt-out criteria apply to you, and what happens if they don't apply to you or you choose to opt back in, take a look at this Partner Help article . If you’re non-GST registered (or if you’re GST registered but you opt back in) We'll be required to collect 15% GST on the room or unit rate for all your completed reservations made via our platform on or after 1 April 2024 . If you're non-GST-registered, in line with the flat-rate credit scheme, we'll then pay 8.5% of the total value of the reservation (excluding GST) to you and the remaining 6.5% to Inland Revenue. We'll do this unless you're working with a listing intermediary who has contacted us, in which case the listing intermediary will pay you the flat-rate credit. In practice, since we won't withhold the GST amount directly from your guests, each month we'll send you a payment request for the GST on your reservations that we've paid to Inland Revenue. We'll update your tax rate settings in the extranet To prepare for this change, we’ll update your tax rate settings in the extranet from 1 April 2024: Whether or not you're registered for GST, we'll update your tax rate in your room or unit rate setup to 15%. If you currently have 15% VAT (instead of GST) set up as included in your room or unit rates, we won't make any changes. If you don't currently have any tax setup at all, we'll add 15% VAT as included in your existing room or unit rates. You can then update your room or unit rates to reflect this if you wish. Please update your IRD number and GST registration status Whether or not you’re registered for GST, we’re also required to collect your IRD number (tax file number). Please provide us with this in the extranet as soon as possible, and also check that your GST registration status is up to date. To find out how, take a look at this Partner Help article . Please also keep in mind: If your GST registration status changes, please update this in the extranet as soon as possible. If you become GST registered and you don’t let us know right away, you may receive a flat-rate credit from us that you’re not entitled to, and this could lead to penalties and adjustments in your GST return. If you're non-GST-registered, we'll be required to continue to charge GST on our commission invoices for the services we provide to you. This isn’t affected by the new rules on GST on your reservations. If you work with a listing intermediary, such as a property management company who lists your property on our platform, please contact them to make sure you both understand these new GST rules and what they mean for you. For more information about marketplace rules, take a look at this Partner Help article and the Inland Revenue website . If you have further questions, we recommend that you contact your client advisor. PROPERTY MANAGERS If you are a property manager or listing agent, IRD has announced proposed legislation changes that may affect you. The important things to note are: If you are a listing intermediary, you: will need to administer the flat-rate credit scheme may need to help larger accommodation hosts opt-out may be able to agree with the marketplace you will be responsible for the GST. Here is the full IRD brief released on 22 March 2024. Property managers and agents – listing intermediary rules (ird.govt.nz)  Airbnb New Zealand GST Marketplace Rules - Opt-out agreement under the Listing Intermediary exemption (Released 21 March 2024) You should have received our previous communication today titled “Important: Airbnb will collect and remit GST in New Zealand”. A “Listing Intermediary” is a GST-registered person who: Lists accommodation services on an electronic marketplace on behalf of a Host who makes those supplies through the electronic marketplace; and Enters into an agreement with an operator of an electronic marketplace to list or advertise accommodation services provided by the Host. Based on IRD guidance, by default, a “Listing Intermediary” is required to administer the flat-rate credit and pass on the 8.5% flat-rate credit to Hosts who are not GST-registered. Based on IRD guidance, if you are a “Listing Intermediary”, you can also ‘opt out’ of the GST Marketplace Rules if you meet the following requirements: You have provided Airbnb with your GST number (via “Account > Taxes > Add VAT ID number”); You list or advertise accommodation services provided by Hosts on more than one electronic marketplace; You enable or facilitate the supply of accommodation services through the use of an electronic system (you can see this via “Account > Privacy & Sharing > Connected Services”) that can facilitate and manage automatically the bookings made by Guests of those services; and You will agree with Airbnb in a written document (e.g., a Google Form) that you are liable for the payment of GST in relation to accommodation services supplied through Airbnb. By opting out, you will be responsible for remitting 15% GST to IRD on the accommodation price and cleaning fees for listings in New Zealand booked on or after 1 April 2024. You will also be responsible for administering the flat-rate credit and passing on the 8.5% flat-rate credit to Hosts who are not GST-registered and must also meet all requirements under the flat-rate credit provisions. If you wish to opt out, please fill in this Google Form as soon as possible. SUMMARY That’s a lot of information to absorb. In short, you need to update all platforms (unless you use a property manager and they control your property), with your GST status and consider whether to adjust your nightly rates for GST. Understand how each platform is going to be charging your guests. They will be adding GST to your nightly rate. You’ll need to provide a GST exclusive rate if you wish to keep your rates the same as before 31 March 2024. Booking.com is assuming you meet the opt-out rules and you have t inform hem if you don’t. This is important as the opt out rules only apply if you have more than $500,000 in revenue, sell 2,000 bed nights or are a listing intermediary (property manager). Most of you will need to update your Booking.com details and opt back in. We’ll keep you updated as we learn more, but please do check your booking platform for the latest information and policies. If there is anything you wish to discuss, please contact us.

If you own and rent out (on a short-term basis) a room in your home, the bach or an investment property, you need to understand the changes coming on 1 April 2024. If you have booked a property for a work or family trip, anytime after 1 April 2024, you should also continue reading, as there are possibly implications for you too. In 2023 legislation was passed to make all “Electronic Marketplace” transactions subject to GST in New Zealand, even if the person delivering the service, e.g. the home owner, is not GST registered. National campaigned on repealing this law if they got into power, but confirmed in December 2023 that they will now leave the legislation in place. This has meant that platforms like Airbnb, Booking.com, Expedia, Vrbo etc. are all having to frantically update their software to allow for the collection and payment of GST to Inland Revenue (IRD). Some of the team at BFA have properties listed on Airbnb, Vrbo and Booking.com and we have a vested interest in understanding what’s going on, and we admit, it’s pretty disappointing to be this close to 1 April 2024 and not have all the answers! This new legislation covers more than just properties, it also covers Uber and Uber Eats, for example. We are focusing on the property implications. So, what does the law say? That the platform is required to charge GST on all transactions and pay this GST over to IRD where the owner of the property:  is GST registered - to pay 15% to IRD IS NOT GST registered - to pay 6.5% of the GST to IRD and pay the remaining 8.5% to the property owner Where the property owner is GST registered, they now have to report their income as Zero rated on their GST return. This ensures the income is declared and you do not pay the GST twice. This means that you claim your GST on expenses, and will likely receive refunds each GST return. If you are not registered for GST there is nothing for you to do. You only qualify for an exemption if: your income from these activities is over $500,000 per year, or you had more than 2,000 nights booked in a year We have been made aware of the following: Expedia They have NOT been able to update their software and will be removing ALL NZ listed properties from 1 April 2024, unless you qualify for the exemption above. If you have a property listed on Expedia, they possibly may remove it. There is no clear guidance as to what happens if you have bookings for the future but we suggest you contact your guests. Be careful how you do this though, as it’s against Expedia’s rule to make contact with guests outside of their system. If you are travelling and made a booking on Expedia, you may have an issue. contact your host to work out what to do. Vrbo (ex Bookabach) While owned by Expedia, they have upgraded their software and will be able to cope with the new GST. But be aware, from 1 April they will automatically add 15% GST to all bookings. So, this will increase your nightly rate by 15% and make your property more expensive. You will have to manually update your rates should you wish to. Airbnb They too have decided they will add 15% GST to every booking from 1 April 2024. Their system says they are not yet set up to deal with NZ GST. Booking.com They have not yet provided guidance on what they are planning to do. Will they be like Expedia and just stop supporting NZ properties or will they be like Airbnb and just add 15% to all bookings? So, a warning, if you are not GST registered, and you have not told your platform provider, it appears they will default to adding 15% GST to your property and pay this 15% to IRD. How you get your 8.5% back remains a mystery. If you are planning on booking accommodation, be wary of using Expedia or Booking.com, potentially a booking after 1 April 2024 could cost you 15% more!. In any event landlords and holiday makers should revert to their booking platform for the latest information and policies. If you are wanting to know more please reach out to your Client Advisor.

Starting a trade business is an exciting adventure, but also a challenging one. You have to plan, market, hire, and more. And you have to do it all while climbing a steep mountain of growth. But don't worry, you can reach the top with some smart strategies and hard work. Whether you're new to the game or an old pro looking for a fresh update, here are some tips to help your trade business thrive. Choose your next team member Apprentices Hiring an apprentice is a big milestone in any company’s growth plans. But it’s not always as easy as it sounds – finding the perfect match for your business is hard enough without the trade labour shortage that’s being felt worldwide. Subcontractors Taking on new staff doesn’t have to be a permanent commitment. Hiring a subcontractor can help propel your business forward without the financial and administrative burden of long-term employment. Full-time employees Feel like you need an extra pair of hands to help tackle your workload? Employing full-time staff is a sure sign that your business is growing. If all goes to plan, having one or more full-time staff members should take a lot off your plate so you can focus on winning work and maximising profit. Review your financial situation Income and expenses Running a business requires a lot of financial management. You need to pay your staff, buy equipment, and cover operational costs. If you are having trouble with your finances, you should review your income and expenses. You can also hire an accountant to help you with this. Pricing strategy Setting the right price for your services is important for your growth. A good pricing strategy ensures that you are not losing money by charging too little, and you are not losing customers by charging too much. Streamline your administration tasks Save time and money on quoting and invoicing As a trade business owner, you don't want to waste 18 hours a week on paperwork. You want to focus on growing your business and delivering quality work. That's why you need a software solution that can help you create and send quotes and invoices quickly and easily. For example, Tradify. Manage your jobs efficiently More jobs mean more growth for your business. But, if you lose track of your jobs and miss deadlines, you'll lose customers and reputation. That's why you need a software solution that can help you monitor and manage all your jobs, giving you a clear overview of what's done, what's due, and what's next. Update your website Your website is often the first contact point for potential clients, so make sure it showcases your business in a positive way. Follow the basic principles of modern web design – keep it clean and professional, with clear information about your company and the services you provide. Photography is important. You don’t have to hire a professional photographer, just make sure your photos are good quality, in focus and showcasing the best of your business. Register with an online directory A strong online presence is vital for your trade business. You don't want to lose customers to your competitors because they can't find you on the web. There are lots of directories available specifically for tradies. Use free online tools You can market your trade business without breaking the bank. There are many free online tools to help you reach more customers. For example, MailChimp is a great tool to grow your business by sending newsletters, surveys, and special offers to your email list. You can use their basic plan for free, or upgrade to their premium service if you need more features. Another must-have tool is Google My Business. It helps you show up on Google Search and Google Maps, so people can find you easily. Use customer reviews According to Forbes, 84% of people trust online reviews as much as a personal recommendation, and 74% say that positive reviews make them more likely to trust a local business. Social media Social media is a powerful tool for digital marketing that you can use to grow your business and connect with your customers. Many tradespeople are already on social media, sharing their work, their stories and their tips. Here are some of the best practices for making the most of your social media presence: Be authentic . People want to see the real you, not a sales pitch. Show your personality, your passion and your values. Don't be afraid to be yourself and have some fun. Be responsive . When someone messages you on social media, they expect a quick reply. If you take too long, they might lose interest or contact someone else. Try to answer as soon as possible and show them that you care about their needs. Show your work . One of the best ways to attract new clients is to show them what you can do. Post photos and videos of your projects, before and after shots, testimonials and reviews. Let your work speak for itself and impress them with your skills. Be the expert . You have a lot of knowledge and experience in your trade, so why not share it with your audience? Post relevant articles, news, tips and tricks that can help them with their problems or questions. This will establish you as an authority in your field and build trust with your potential customers. Link to other platforms . Social media is fast-paced and dynamic, so you might not have time to update all your profiles every day. You can reuse content across different platforms and link them to your website where they can find more information about you and your services. Other marketing options Not everyone is online or on social media, so you need to reach out to them in other ways. Offline marketing can help you attract more customers and grow your business. Here are some tips: Advertise in print media. Newspapers and newsletters are still popular among some customers, especially the older ones or those who enjoy reading on weekends. They might notice your ad and contact you. If you have company vehicles , use them to display your logo and contact information. That way, people will see your business wherever you drive and may remember you when they need your services. Wearing uniforms or t-shirts with your business name and logo makes your staff look professional and united. It also helps people identify your business and trust you more. Word of mouth is a powerful marketing tool. You never know who might need your services or who might refer you to someone else. So, chat with your neighbours, friends, colleagues, and anyone else you meet. You can also join local business networks and make more connections. Review what you do and how you do it Things can change drastically over a few months. You can easily get swept into the motion of running a business and be doing things the same way 10 years on – and your business could be suffering because of it. It’s important to take an occasional step back to review how things are going, re-evaluate and refresh areas that need it. Review your finances, look at your cash flow, ask your staff for feedback on what is working well, not working well, and how they are feeling. To keep your business healthy, you need to step back occasionally and look at your business from the outside – and be prepared to make changes, even drastic ones, if that is what is needed. Work hard and see your business flourish You love your trade business, but you want to make it even better. To do that, you need to invest time, energy and persistence – and you need to have a plan for growth. The key areas to focus on are your marketing, finances and staff – these are the foundations of your success. If you put in the effort, your business will reach new levels of excellence.