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TAANZ - Travel Agents Association New Zealand link to website

T. 09 524 6178      F. 09 524 6179     E. contactus@taaccounting.co.nz

Cash Flow CHRISTMAS 2012

Welcome to our Christmas newsletter!

This month is directed at CASH FLOW– if you know anyone who may benefit from this review – please pass it on.


Are you prepared for the next two months? Cash Flow is critical to survival.

How to maximise your cash flow!!!

Manage the financial resources of your business:

- Ask for a larger deposit on all bookings.

- Retain funds as long as you can before paying suppliers.

- Get your debtors on Credit Card or Full Payment upon booking.

- Pay your monthly creditors later than usual.

- Use your company credit card to extend your time to pay suppliers.

- Ask your suppliers for extended credit terms – payment over 3 months or longer.

- Get your GST refunds completed promptly.

- Chase overrides due and supplier rebates and hotel commissions.

- Sell any unwanted assets on Trade Me.

- Check your tax calculations and put off payment until next year if feasible.

Minimise your expenses

Manage your business expenses better if you have not already done so:

- Decide who can afford to take unpaid leave.

- Reduce the number of paid days per week.

- Ask your landlord for a rent holiday – repaid next year.

- Pay your telephone bill on a Credit Card.

- Reduce your expenses both business and personal to the minimum.

- When business is quiet get staff to take their holidays – this maximizes productivity when they return.

- Get any projects completed over this time when staff is not so busy.

Get funding in place early

- Request a temporary overdraft well before you need it.

- Obtain a loan using the equity in your property.

- Obtain a loan using the equity in your Insurance policy.

- Obtain a line of credit for emergencies well before your may require the funds.

- Flexirent any Computer purchases.

- Extend the credit limit on your Credit Cards.

- Match your long term assets with long term debt so you have the cash to pay your bills.

Tax tips

Motor Vehicles – employees and shareholder employees of companies are entitled to claim for the business use of their motor vehicle. If the shareholder employee takes regular drawings or is on PAYE then they can claim unlimited KM’s from the company – but on a decreasing scale. Other shareholder employees can only claim up to 5000 KM p.a.

Holiday hours

We will be closed on midday 21st December and re-open Wednesday 3rd January.

For any urgent queries / problems please call Paul on 027 473 2231.

Happy Holidays, Merry Christmas

Paul Davies - Travel Accounting