When you move house, don’t forget to send the IRD and ACC a change of address notice.
Some clients may not be aware that petrol used off road can entitle them to a rebate of the road user tax built into the petrol price. Please contact Dorothea to discuss the records required to make these claims.
If you are going to allow your customers time to pay off their invoice or even pay it off in installments, make your customer aware of the consequences if the arrangement is ever broken. This should be – stop supply, passing to a collection agency e.g. E C Credit Control and the passing on of additional costs i.e. collection costs, legal costs and penalty interest charges.
Fonterra last month revised its milk payout forecast range for the 2012-2013 season down 30c to $5.25 per kilogram of milksolids from $5.50/k previously. This is a good time for farmers to be thinking about liquidity. Liquidity is a measure of the ability of a person to pay their debts as and when they fall due.
During credit contractions the premium put on liquidity is higher than usual. Asset prices fall and credit is hard to come by. When the heat goes on the banking system and the highly leveraged are forced to sell, there may not be demand for the assets! Prices will fall until demand is met.
Consider the old saying “cash is king” before contemplating that next purchase of an asset for the farm or private use. Talk to us about budgeting and tax planning to keep on top of your cashflow.