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Business valuations
We offer expert valuation advice in transactions, regulatory and administrative matters, and matters subject to dispute – valuing businesses, shares and intangible assets in a wide range of industries.
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Capital markets
You need corporate finance specialists experienced in international capital markets on your side if you’re buying or selling financial securities.
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Complex and international services
Our experience of multi-jurisdictional insolvencies coupled with our international reputation allows us to deliver the best possible outcome for all stakeholders.
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Corporate insolvency
Our corporate investigation and recovery teams can help you manage insolvency situations and facilitate the best outcome.
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Debt advisory
An optimal funding structure for your organisation presents unprecedented opportunities, but achieving this can be difficult without a trusted advisor.
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Expert witness
Our expert witnesses analyse, interpret, summarise and present complex financial and business-related issues which are understandable and properly supported.
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Financial models
A sound financial model will help you understand the impact of your decisions before you make them. Talk to us about our user-friendly models.
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Forensic and investigation services
We provide investigative accounting and litigation support services for commercial, matrimonial, criminal, business valuation and insurance disputes.
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Independent business review
Is your business viable? Will it remain viable in the future? A thorough independent business review can help your organisation answer these fundamental questions.
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IT forensics
Effective ESI analysis is integral to the success of your business. Our IT forensics experts have the technical expertise to identify, preserve and interrogate electronic data.
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Mergers and acquisitions
Grant Thornton provides strategic and execution support for mergers, acquisitions, sales and fundraising.
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Raising finance
Raising finance - funders value partners who can deliver a robust financial model, a sound business strategy and rigorous planning. We can guide you through the challenges that these transactions can pose and help you build a foundation for long term success once the deal is done.
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Relationship property services
Grant Thornton offers high quality independent advice on the many financial issues associated with relationship property from considering an individual financial issue to all aspects of a complex settlement.
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Restructuring and turnaround
Grant Thornton’s restructuring and turnaround service capabilities include cash flow, liquidity management and forecasting; crisis and interim management; financial advisory services to companies and parties in transition and distress
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Transaction advisory
Our depth of market knowledge will steer you through the transaction process. Grant Thornton’s dynamic teams offer range of financial, commercial and operational expertise.
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Corporate tax
Grant Thornton can identify tax issues, risks and opportunities in your organisation and implement strategies to improve your bottom line.
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Employment tax
Grant Thornton’s advisers can help you with PAYE (payroll tax), Kiwisaver, fringe benefits tax (FBT), student loans, global mobility services, international tax
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Global mobility services
Our team can help expatriates and their employers deal with tax and employment matters both in New Zealand and overseas. With the correct planning advice, employee allowances and benefits may be structured to avoid double taxation and achieve tax savings.
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GST
GST has the potential to become a minefield and can be expensive when it goes wrong. Our technical knowledge can help you minimise the negative impact of GST
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International tax
International tax rules are undergoing their biggest change in a generation. Tax authorities around the world are increasingly vigilant, especially when it comes to global operations.
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Research and Development
R&D tax incentives are often underused and misunderstood – is your business maximising opportunities for making claims?
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Tax compliance
Our advisers help clients manage the critical issue of compliance across accountancy regulations, corporation law and tax. We also offer business and wealth advisory services, which means we can provide a seamless and tax-effective offering to our clients.
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Transfer pricing
Tax authorities are demanding transparency in international arrangements. We businesses comply with regulations and use transfer pricing as a strategic planning tool.
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Audit methodology
Our five step audit methodology offers a high quality service wherever you are in the world and includes planning, risk assessment, testing internal controls, substantive testing, and concluding and reporting
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Audit technology
We apply our audit methodology with an integrated set of software tools known as the Voyager suite. Our technology has been developed to produce quality audits that are effective and efficient.
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Financial reporting advisory
Our financial reporting advisers have the expertise to help you deal with the constantly evolving regulatory environment.
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Business architecture
Our business architects help businesses with disruptive conditions, business expansion and competitive challenges; the deployment of your strategy is critical to success.
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Cloud services
Our team is led by cloud business experts who tailor services to the needs of your organisation, from strategy and implementation to ongoing services assurance.
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Internal audit
Our internal audits deliver independent assurance over key controls within your riskiest processes, proving what works and what doesn’t and recommending improvements.
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IT advisory
Our hands on product experience, extensive functional knowledge and industry insights help clients solve complex IT and technology issues
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IT privacy and security
IT privacy and security should support your business strategy. Our pragmatic approach focuses on reducing cyber security risks specific to your organisation
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Organisational & cultural change
The key to sustainable and future growth is a unified organisation operating within a strong cultural context, where transparency and communication are the priority for Kaimahi, and where visible leadership means walking the talk – but where does that journey begin?
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Payroll assurance
Our specialist payroll assurance team can conduct a review of your payroll system configuration and processes, and then help you and your team to implement any necessary recalculations.
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PCI DSS
Our information security specialists are approved Qualified Security Assessors (QSAs) that have been qualified by the PCI Security Standards Council to independently assess merchants and service providers.
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Process improvement
As your organisation grows in size and complexity, processes that were once enabling often become cumbersome and inefficient. To maintain growth, your business must remain flexible, agile and profitable
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Procurement/supply chain
Procurement and supply chain inputs will often dominate your balance sheet and constantly evolve for organisations to remain competitive and meet changing customer requirements
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Project assurance
Major programmes and projects expose you to significant financial and reputational risk throughout their life cycle. Don’t let these risks become a reality.
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Risk management
We understand that growing companies need to establish robust internal controls, and use information technology to effectively mitigate risk.
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Robotic process automation (RPA)
RPA is emerging as the most sophisticated form of automation used to help businesses become more agile and remain competitive in the face of today’s ongoing digital disruption.
What gets measured gets managed: How financial reporting can help run your business
Reporting regularly and controlling costs is essential to successfully running a business, especially if the business runs on tight margins.
Costs and profit drivers need to be understood; controlling costs has an immediate positive effect on a business’s bottom line and it’s often easier to save a dollar than to generate additional sales.
There are four key aspects to reporting that will assist with management decisions:
- Weekly reporting
- Monthly reporting
- Forecasted cash flow
- Annual reporting
Weekly reporting
Analysis reports for sales/margins/wages typically come from point of sales (POS) reports. These should be used by managers to track outcomes for a given period e.g. to drive sales, push higher margins on certain products or manage hours worked by staff. Managers should be using this information to analyse and measure against forecasted results.
A manager should be able to determine what level of daily sales is required to break-even and then map the week out accordingly. Sales reports should assist managers in determining whether staff are upselling, how much each staff member is ‘selling’ per hour and how much income is generated per head of staff. This is all valuable information to drive sales and to train staff in how and what products to promote.
Margins need to be closely monitored and wage costs need to be factored in to this.
Information about wages taken from POS reports can assist with determining when busy and quiet periods occur. To get the maximum bang for buck, adjust employee starting times accordingly based on when sales typically start kicking off and send staff home early (if possible) during quiet periods.
Monthly reporting
Essentially a profit and loss statement (P&L) shows how much profit the business has made. The balance sheet demonstrates how that profit is being spent and the health of the business’s financial position.
A monthly P&L is a useful tool to monitor margins against benchmarks. Ideally, over time a business will gain some economies of scale and therefore the percentage of wages and overheads should be decreasing as sales increase. Comparing month-on-month P&L results with previous years will assist with determining seasonality fluctuations and be useful for forecasting.
The balance sheet shows how much cash would be available if the business stopped operating. It includes income tax liabilities, GST, debt repayment obligations, capital expenditure, owner’s drawings and working capital. Working capital is important because it tells you whether the company has sufficient cash in order to pay its short term debts and operating expenses.
Forecasted cash flow
Remember that ‘cash is king’. A business should always have enough of a cash buffer to pay creditors and taxes. If a slow period is looming, ensure sufficient cash reserves are available to cover this downturn.
A forecasted cash flow provides an idea of when money is expected to come in and at what level, and compares this with money going out. If cash is tight, forecast the outgoing cash flow for at least the next 10 weeks and prioritise creditors and defer payment as much as possible. Also, there is the trade-off of shareholders wanting to take money out of the business verses ensuring there is enough cash to pay debts. A forecasted cash flow will give owners a better handle on when they can take money out.
Annual reporting
The annual report should be used to track year-on-year performance and to assist with forecasting. At this point there should be no surprises as the report should confirm the results from the monthly management accounts, which in turn were confirmed from the weekly analysis reports. If the results are drastically different to what was expected, it’s time to revisit and drill into the detail.
Further enquiries, please contact:
Andrew Harris
Grant Thornton New Zealand Partner, Privately Held Business
T +64 (0)9 308 2986
E andrew.harris@nz.gt.com
Fono Sosene
Grant Thornton New Zealand Manager, Privately Held Business
T +64 (0)9 308 2596
E Fono.Sosene@nz.gt.com