Resilience & Adaptability

"Tough times never last, but tough people do." – Robert H. Schuller

Resilience & Adaptability are crucial mindsets for business owners because challenges, setbacks, and unexpected changes are inevitable. The ability to bounce back from failures and adjust to new circumstances determines long-term success.

Business is unpredictable -stay flexible, adapt to challenges, and learn from failures.

1. What is Resilience in Business?

Resilience is your ability to recover from setbacks, manage stress, and keep moving forward despite obstacles. It’s about maintaining focus, learning from failures, and staying committed to your vision.

Key Traits of a Resilient Business Owner:

• Optimism – Viewing challenges as opportunities for growth.

• Emotional Regulation – Managing stress, fear, and frustration effectively.

• Perseverance – Pushing through difficulties without giving up.

• Self-Awareness – Recognizing strengths and weaknesses.

• Learning-Oriented – Seeing failures as lessons, not defeats.

Example: A product launch doesn’t meet sales expectations. Instead of quitting, a resilient entrepreneur analyzes the feedback, adjusts marketing strategies, and relaunches with improvements.

2. What is Adaptability in Business?

Adaptability is your ability to adjust to new trends, market shifts, and unexpected challenges. Businesses that adapt quickly survive and thrive, while those resistant to change risk falling behind.

Ways to Cultivate Adaptability:

• Stay Curious – Keep learning and exploring new strategies.

• Embrace Change – Accept that uncertainty is part of business.

• Experiment & Pivot – Be willing to test new approaches.

• Listen to Feedback – Customers and data will guide your adjustments.

• Think Long-Term – Adapt while keeping your big vision in mind.

Example: A business relying on in-store sales adapts by building a strong e-commerce presence after noticing a shift in consumer shopping habits.

3. How to Build Resilience & Adaptability in Your Business

Here’s how you can strengthen both traits:

A. Mindset Shifts

Shift from "Why is this happening?" to "What can I learn from this?"
Reframe failures as stepping stones, not dead ends.
Develop a “bounce-back plan” for setbacks.

B. Practical Strategies

1. Create a Crisis Management Plan – Be proactive about potential risks.
2. Track & Analyze Trends – Stay informed about industry changes.
3. Build a Strong Support System – Surround yourself with mentors & peers.
4. Focus on What You Can Control – Let go of what you can’t.

Example: Instead of panicking during an economic downturn, a resilient business owner cuts unnecessary costs, explores new revenue streams, and strengthens customer relationships.

4. Action Plan: Strengthening Resilience & Adaptability

Identify a recent challenge you faced – How did you handle it? What could you do better next time?
What’s one area of your business that needs more flexibility? (Marketing, pricing, operations?)
Set a plan to embrace change: Try one new strategy or process this month.

Success in business isn’t about avoiding failure—it’s about rising after each fall and adapting to new realities. Stay resilient, stay adaptable, and keep evolving.

To help with your Resilience & Adaptability download the checklist below!

Contact Natalie

BUSINESS MINDSET

Why Emergency Funds Are Your Business’s Secret Weapon

As business owners, we all know that life has a funny way of throwing curveballs. Whether it’s a surprise equipment meltdown, an unexpected health scare, or a sudden drop in income, things rarely go according to plan. This is exactly why an emergency fund is not just a nice-to-have—it’s a must-have. Think of your emergency fund as the financial version of a fire extinguisher. You hope you never need it, but when you do, you’ll be glad it’s there. So, how do you decide how much to save, and where do you stash it, so you’re not tempted to spend it on "emergencies" like buying another fancy coffee machine for the office?

Key Points:

1. Decide ahead of time what your emergency fund will cover.

2. Aim for 3-6 months of operating expenses:

It sounds like a lot, but it’s the buffer that’ll keep you afloat when the unexpected hits. Think of it as the financial equivalent of a seatbelt—doesn’t do much until you need it, but when you do, you’ll be glad you have it.

3. Separate your emergency fund:

Don’t mix your emergency fund with other savings—like the "tax fund" or the "I’m off to Hawaii fund." You don’t want to accidentally dip into your emergency stash to pay for that spontaneous weekend getaway or the new office plants (as cute as they are). Consider putting it into a separate account that takes more effort to access, even if it is at another bank.

4. Start small, grow over time:

You don’t need to throw huge amounts of cash into your emergency fund right away. Even saving a little bit each month will add up. Think of it as your savings plan’s version of "slow and steady wins the race." Plus, it’s less stressful than trying to stash away a small fortune in one go.

Having an emergency fund is like having a superpower: It won’t solve everything, but it sure makes you feel invincible when life throws you a curveball. So, start saving today (even if it’s just a few bucks) and pat yourself on the back—you're future-proofing your business and preparing for whatever life decides to throw your way!

Contact Carley

sole Trader Cash Management

Tired of Tax Stress? Discover the Secret to Hassle-Free Payments!

Taxes can feel like a constant burden, unexpected tax bills, stressful instalments, and the frustration of paying this year’s hard-earned profits for last year’s tax bill. But what if there was a better way?

Introducing the Accounting Income Method (AIM) a game-changer for small businesses in New Zealand.

AIM eliminates the guesswork and helps businesses with an annual turnover under $5 million pay tax only when they’re making a profit. No more worrying about overpaying, underpaying, or being caught off guard by surprise tax notices!

Why Businesses Love AIM

• No More Big, Scary Tax Bills – Pay tax as you earn income instead of making lump-sum payments based on last year’s numbers.

• Keep More Cash in Your Business – Since AIM adjusts to your actual profits, you’ll never pay tax on money you haven’t made yet.

• No Use-of-Money Interest Stress – As long as your AIM payments are up to date, Inland Revenue won’t charge use-of-money interest.

• Get Tax Refunds Faster – If your income drops, AIM ensures you get refunds immediately, instead of waiting until the end of the financial year.

• Say Goodbye to Tax Paperwork Hassles – AIM integrates with your accounting software, automating calculations and simplifying compliance.

How to Switch to AIM

The good news? Pulse Accountants Ltd clients already use AIM-capable software, making the transition seamless.

Imagine a tax system that works with you—not against you. No more stress, no more guesswork, just tax certainty that lets you focus on growing your business.

Take control of your taxes today - contact Pulse Accountants for expert advice!

Contact Mandy

Bookkeeping Compliance

Company Dividends: To Declare Or Not declare

Does Your Company Need to Declare a Dividend Before the End of the Financial Year?

For businesses operating under a company structure, one key decision to make before the end of the next financial year (31 March 2025) is whether to declare a dividend. Understanding the role of retained earnings and the tax implications will help you to decide.

What Are Retained Earnings?

Retained earnings represent the net profits a company has kept within the business rather than distributed to shareholders. Over time, this balance may increase, reflecting the company’s profitability and the decisions made about reinvesting profits versus distributing them.

What does the retained earnings balance mean for your company?

Retained earnings can be an important source of funds for reinvestment, expansion, or paying down debt. However, the decision to distribute these funds as a dividend is not always straightforward. In some cases, it might be a strategic move to reward shareholders, while in others, it may be more beneficial to retain the profits within the company for future growth.

Tax Implications of Retained Earnings and Dividends

Before declaring a dividend, it’s critical to consider the tax implications. The tax cost of declaring a company dividend includes a 5% withholding tax calculated on the gross dividend amount. Additionally, dividends paid to individual shareholders may be subject to additional personal tax, depending on the shareholder's income level and tax bracket.

Key Considerations Before Declaring a Dividend

There are several factors to consider when deciding if it’s the right time to declare a dividend:

1. Are you planning to close your company in the next 1-5 years? If you are considering winding up the company soon, declaring a dividend now may be a good strategy to distribute accumulated profits before closure. Looking at this now will increase the options you have to ensure the best personal tax outcome.

   
   

2. Do you expect your income to increase or decrease in the future? If you anticipate a higher income in the future, it might make sense to take a dividend now, when you’re in a lower tax bracket. However, if you expect your income to decrease, you may want to hold off on declaring a dividend, as you could pay less tax in the future.

   
   

3. How will the timing of the dividend payment affect my earnings? The timing of the dividend can have a significant impact on your personal tax situation. If you declare the dividend before the end of the financial year, it will count toward your current year’s income. Alternatively, deferring the dividend until the next financial year could allow you to take advantage of any changes in your tax circumstances.

   
   

4. Will I have to pay more tax if I receive a dividend from my company? Receiving a dividend could result in additional personal income tax, depending on your overall earnings. If you’re already in a high tax bracket, taking a dividend may not be the best option.

   
   

Additional Considerations

• Cash Flow Needs: Ensure that your company has sufficient cash flow to meet the demands of a dividend payment.

• Retained Earnings vs. Future Growth: Consider whether retaining earnings for future investment or expansion is more beneficial to the long-term growth of your business than distributing the profits now.

Conclusion Deciding whether to declare a dividend involves multiple factors, including tax implications, company plans, and personal financial goals. If you're unsure whether declaring a dividend is the best move for your business, book a time with us and we can help guide your decision.

Contact Mel

Company Taxation Specialist

Best Banks for Profit First in NZ

Your bank account is your best friend when you operate your business using the Profit First Methodology. Unfortunately, NZ banks don’t seem to share the love! Besides the fact that they are slowly disappearing from our main streets, it’s almost impossible to open new business trading bank accounts. For this reason, if you are converting to Profit First cash management system, I suggest making an appointment with your bank asap because the process can be painful! Here’s the list of the best banks in New Zealand for small businesses, based on criteria such as fees, overdraft rates, reputation in lending, and mobile banking app usability:

 # 1. ANZ

- Fees: Current monthly trading account fee is $8.50, with 200 free transactions a month. Business premium call accounts have no monthly account or transaction fees. You would use this type of account to save for GST, Income Tax and Profit.

- Overdraft Rates: ANZ provides functional overdrafts with 200 fee-free transactions per month.

- Lending Reputation: ANZ has been rated the No. 1 bank for small businesses in NZ by Canstar for four consecutive years, highlighting its strong support for business customers.

- Mobile Banking App: The ANZ GoBiz app is known for usability, with no specific limits on the number of accounts you can manage through it. It is easy to personalise by re-ordering accounts and uploading pictures.

# 2. ASB

- Fees: There is no monthly base fee on our standard business accounts including Business Account, Business Saver, Commercial Flexible Finance Facility, and Business Credit Facility. Transactions are also free on standard business accounts.

- Overdraft Rates: Available, with flexible options – Although a little confusing on their website.

- Lending Reputation: ASB is popular for its competitive business banking services and seamless integration with accounting software like Xero and MYOB.

- Mobile Banking App: User-friendly, but no specific limits on the number of accounts noted, making it suitable for managing multiple Profit First accounts. Also easy to personalise the App.

# 3. Westpac

- Fees: $7 monthly account maintenance fee; fees apply after 100 free transactions per month.

- Overdraft Rates: Offers overdrafts and options for EFTPOS and direct debit facilities.

- Lending Reputation: Well-regarded for supporting local businesses.

- Mobile Banking App: Westpac One app allows for easy management of funds but be aware of potential transaction limits. I have had clients struggle when wanting to add extra Profit First accounts and they’re often getting the third degree about why!

# 4. BNZ 

- Fees: No monthly base or account fee and no electronic or manual transaction fee.

- Overdraft Rates: Flexible with reasonable interest rates.

- Lending Reputation: Known for accessible business loans and tailored support for small businesses.

- Mobile Banking App: The BNZ app is noted for ease of use and integration with multiple accounts, which can be beneficial for Profit First clients.

# 5. Kiwibank

- Fees: Account management fee is $5 per month on their trading account. They have a .20c per item on bulk payments fee (for multiple payments and batch uploads). No account management or payment fee on the Notice Saver or Business Online call account. 

- Overdraft Rates: Competitive rates with flexible terms.

- Lending Reputation: Known for supporting local Kiwi businesses and offering straightforward lending criteria.

- Mobile Banking App: Easy to navigate, though it’s best to check specific account management features for any limitations.

 A note regarding lending, in my opinion, you can’t go past using a mortgage broker to look after this. It’s simple, much faster than the bank and they always know the best deals. We love Fiona de Barre from NZ Mortgage Advice. She has efficiently helped many of our clients secure Personal and Business lending.

These banks offer a range of services that are beneficial for small businesses, especially those looking to implement a Profit First system. When choosing a bank, consider the specific needs of your business (including branch location) and whether the bank's account fees and app usability work for you.

Disclaimer: Content accurate as at 24.2.25

Contact Gail

certified Profit first Specialist