Construction and Trades: How to maintain compliance in the new financial year

01 May 2013

As New Zealand’s construction and trades sector continues to work its way out of a sluggish recovery, cash flow and timing of customer payments remain the industry’s biggest challenges.

According to the March 2013 MYOB Business Monitor results, last year 31% of the industry saw an increase in revenue, while 26% reported a decrease. This year, 42% of businesses are expecting revenue rises and the same number expect revenue to stay the same. 11% expect to see a decline.

MYOB’s New Zealand executive director Scott Gardiner says in order to make the most of the 2013-14 financial year, those within the sector should plan with an accountant or financial advisor.

“With the industry on the cusp of more sustained growth, planning the new financial year with an accountant could make a real difference. Accountants can not only provide advice and support, but also offer expert knowledge of the industry,” he says.

The latest Business Monitor also reveals that 73% of SMEs in the sector stated some level of pressure from cash flow. 71% felt pressure from timing of customer payments, while 77% reported fuel prices as a challenge.

“Accountants are able to provide insight into successful industry practices that help businesses succeed, especially as costs rise and cash is constrained,” says Mr Gardiner.

“They can assist in implementing strategies to alleviate pressures, and can help you create a tailored business plan to make the most of opportunities within the current environment.”

In addition to economic pressures, there are many laws and regulations relating to running a business within the sector, as the industry is governed by strict safety and building legislation.

“Keeping up with laws and regulations can often be overwhelming, especially as they change frequently. Ensuring your business is compliant and up-to-date with current legislation will allow for more time to be spent on other facets of the business,” says Mr Gardiner.

“MYOB aims to make the running of a business as seamless and easy as possible and can help your business stay compliant. Software such as LiveAccounts enables you to conduct business from anywhere — which, for the likes of tradesmen who are often away from the office on job sites, is an important feature.”

“There are opportunities to be had in the 2013-14 financial year for those businesses in the construction and trades sector. By ensuring they have reliable accounting software and meet with their accountant regularly for business advice, they will go a long way towards great success this year.”

-ENDS-

For further information or immediate comment, please contact:

Kristy Sheppard

MYOB

Tel: 09 925 3560

Mob: +61 407 450 860

Email: kristy.sheppard@myob.com

Gerard Blank

The Agency Communications Limited

Tel: 03 341 5841

Mob: 0275 243 629

Email: gerard@theagencynz.co.nz

About MYOB New Zealand

Established in 1991, MYOB is New Zealand's largest business management solutions provider. It makes life easier for approx. 1.2 million businesses across New Zealand and Australia, by simplifying accounting, payroll, tax, practice management, CRM, websites, job costing, inventory and more. MYOB provides ongoing support via many client service channels including a network of over 40,000 accountants, bookkeepers and other consultants. It is committed to ongoing innovation, particularly in cloud computing solutions, and now spends more than NZ$35 million annually on research and development. In 2013, MYOB expanded its offerings with the acquisition of accounting solutions provider BankLink. For more information, visit myob.co.nz.

About the MYOB business monitor

The MYOB Business Monitor is a national survey of 1,000+ New Zealand small and medium business owners and managers, from sole traders to mid-sized companies, representing the major industry sectors. It has run since 2009, commissioned to independent market research firm Colmar Brunton. This most recent survey ran late January/early February 2013. The Monitor researches business performance and attitudes in areas such as profitability, cash flow, pipeline, technology usage and the government. The weighting of respondents by both geographical location and sector is based on overall market proportions as established by Statistics New Zealand and is drawn from an independent survey group, which includes both MYOB clients and non-clients.