Cuffs Chartered Accountants and Business Advisors

What should I do about a customer who is late paying me? 💲⏰💸

It’s not the most pleasant part of doing business, but following up with customers who are late in paying you is important. Most of us will have to deal with a late payment from time to time – sometimes it is just a simple oversight by your customer or a slight timing issue – but poor debtor management can lead to a lot of your business’ cash being tied up that could be better used to keep driving your business forward.

Having clear terms of trade makes a real difference. This sets the expectations with your customers and will also outline payment timeframes, interest and how overdue accounts are handled—it removes ambiguity later. You’re not making it up as you go; you’re simply applying the terms that you have both agreed upon. Also, you don’t need to provide credit to everyone. Make sure you do your background checks first.

Make it easy for your customers to pay you. Make sure your invoices are clear on how much you are owed, when it is due and what methods can be used to pay you. Don’t lose momentum with you invoicing either. Send the invoice once the goods are supplied or the work has been completed.

If payment is late, follow up with a reminder. The earlier you make contact the more relaxed that contact can be. With modern accounting systems reminders can be emailed out automatically but make sure you regularly reconcile your banking, so you don’t annoy customers who have actually paid on time. Consider using your phone and calling the customer, as invoices and statements sometimes end up in the spam email folder.

If the customer is still tardy with their payments and they are not responding to you, adopt a ‘stop credit’ policy. This will limit any further losses if the customer does not pay.

Cuffs Chartered Accountants and Business Advisors Our motto is "together achieving results".
At Cuffs Ltd we like to think of ourselves as partners i

Normally after the Budget we are scrambling to advise our clients about the tax changes that have been announced by the Government but this year there are no major tax announcements, just some tinkering around the edges!

The main change relates to FBT calculations for vehicles. These are being “simplified”, changing from days available for private use to a classification for what the vehicle is mainly used for. The change will likely take effect from 1 April 2027.

Cuffs Accountants is your locally owned and operated accounting firm proudly serving the West Coast community. With a strong understanding of the people, businesses, and industries that make the West Coast unique, our team provides personalised accounting, taxation, and business advice tailored to local needs. At Cuffs, we are committed to building lasting relationships through trusted expertise, practical solutions, and friendly, professional service.

In case you missed Jeff's Ask a Professional in the Messenger, have a read below of his latest article.⛽🚘🚜⛽

What should my business do about the increasing fuel costs?

For many New Zealand businesses, fuel is a basic expense. Diesel, in particular, is needed to keep transport companies, builders, farmers, tradespeople, and delivery drivers moving. When fuel prices rise, the cost of business increases immediately.

If you haven’t already, consider what the increase in fuel prices has done to your costs, the effect it will have on your profitability and adjust your prices.

With the uncertainty around fuel prices, it can be difficult to calculate budgets or quotes. Make sure you update them to the latest fuel prices and consider building in a price sensitivity. For quotes, make sure they have a short acceptance timeframe, so you aren’t caught out by another large increase.

Although the Government has repeatedly assured there is no risk of disruption to our future fuel supply, it may be prudent to make some plans in case the supply of fuel starts becoming scarce. If appropriate, could you put a ‘work from home’ policy in place? Can you reduce the number of trips required by the business? Personally, I’d be filling my tank when it is half full rather than waiting for the ‘low fuel’ warning, just in case.

For our farmers, it may be time to consider applying for your fuel excise refunds if you aren’t already. Petrol that is used off road in a business, like farm bikes, chainsaws or water blasters are eligible for a fuel excise duty refund. These refunds are claimed quarterly from NZTA. Claims can go back up to two years, although a 10 percent penalty applies for old returns.

If rising fuel costs are affecting your business, talk to your accountant about your options and how to manage the pressure.

As we begin another financial year, we would like to thank all our valued clients for your continued support.
The team at Cuffs (and our photo bomber) wish you a safe and happy Easter.

From 1 April 2026, KiwiSaver contribution rates will increase from 3% to 3.5%. This change applies to both employee and employer contributions for all eligible employees enrolled in KiwiSaver.

Employees may apply through myIR for a temporary contribution rate reduction from 1 February 2026, allowing them to remain at the 3% rate for up to 12 months. Where an employee elects to do this, the employer is permitted to match contributions at the reduced rate.

Additionally, from 1 April 2026, individuals aged 16 and 17 will be able to voluntarily opt into KiwiSaver (previously available only from age 18). However, these employees must not be automatically enrolled.

Please also note that there are plans to further increase KiwiSaver contribution rates to 4% in 2028.

Employers who use a Total Remuneration approach should ensure that, following the increase in contribution rates, employees’ take-home pay does not fall below the minimum adult wage. Employer KiwiSaver contributions must not be deducted in a way that reduces an employee’s earnings below the applicable minimum wage.

From 1 April, the minimum adult wage will increase to $23.95 per hour. The starting-out and training rates (80% of the adult rate) will increase to $19.16 per hour.

Please ensure any salaried employees paid by automatic payment are updated accordingly. You should also confirm that salaried employees do not exceed their maximum hours per pay period; if they do, their salary must be topped up.

Note that the increase applies based on the date worked, not the payment date. This may require splitting a pay period across two rates. Many employers choose to apply the new rate to the entire week for simplicity.

Cuffs Chartered Accountants and Business Advisors Our motto is "together achieving results".
At Cuffs Ltd we like to think of ourselves as partners i

Don’t leave bad debts hanging. If you’ve got unpaid invoices that you want to be written off in the 2026 tax year, you need to write them off before your balance date, which is 31 March for most. Finalising your bad debts now means you'll get a tax write-off for them in this financial year.

Merry Christmas from the team at Cuffs 🎁🎄🎅🏼