Five ways to lift profit before your next tax year-end

Most NZ businesses use year-end to find out what happened. The better use of it is to change what happens next. Here are five areas worth looking at while there is still time to act.

Overall profit can hide the fact that some work makes money and some does not. Look at gross margin on your main lines of work. If you are not sure how to measure it, your accountant can help you set it up from your existing accounts.

Costs move over time. If your prices have not moved with them, your margin has quietly shrunk. A small, well-timed price change is often the quickest way to lift profit.

Go through your profit and loss statement and question anything that has crept up. Subscriptions, insurance, vehicle costs and bank fees are common places to find savings.

Profit is not cash. Slow-paying customers tie up money that you could use to pay suppliers, staff and tax. Tighten your invoicing and follow-up.

Waiting for year-end accounts means finding problems months late. Monthly management reports let you adjust as you go.

If you want help to go further and build a structured plan, Ridgeline Advisory offers profit improvement advice for NZ business owners.

You may also find our Business Advisory page useful for understanding how Eastmure works alongside advisory partners to support your business.

Need help with your accounts or tax? Contact Eastmure & Associates.