Baker Tilly Staples Rodway Numbers Magazine Summer 2019

Numbers

BAKER TILLY STAPLES RODWAY MAGAZINE

ISSUE 52 SUMMER 2019

Growing opportunities for 2020

Inside Growing high performing leaders Reviving rural confidence Business planning in a low-interest climate Investment strategies beyond 2020 Tax pooling as capital Investing in marketing

A look inside this issue of Numbers...

04 Investing in leadership

23 Jono Bonifant Lentune Software Solutions

The path to growth

26 Cybersecurity 08 The future of farming

Beware the breach

Reviving the rural outlook

28 Ask an expert 12 Investing in 2020

Offshore property investors

Business planning in a low interest environment

14 Spending money to make money Investing in marketing

17 Tax pooling An unexpected source of working capital

20 Investments beyond 2020

30 Enviro Solutions Outgrowing the garage

34 RWC & Japan Digging a little deeper

36 Great conversations, great relationships, great futures Take a look at what we’ve been up to recently

DIRECTORS Auckland

David Searle

(09) 373 1128

Hamilton

David Heald

(07) 834 6801

Tauranga

Lisa Stirling

(07) 578 2989

Hawkes Bay

Dave Sawers

(06) 878 7004

Taranaki

Chris Lynch

(06) 757 3155

Wellington

David Hulston (04) 472 7919

Christchurch

Dave McCone (03) 343 0599

DISCLAIMER No liability is assumed by Baker Tilly Staples Rodway for any losses suffered by any person relying directly or indirectly upon any article within this document. It is recommended that you consult your advisor before acting on this information.

Chairperson's Message

After 30 years in the Baker Tilly network, Staples Rodway successfully rebranded to Baker Tilly Staples Rodway earlier this year. It is testament to our administrative and marketing teams, as well as our client facing advisors that the change has been so seamless for our clients.

The global message ‘Now, for tomorrow’ resonates well with our New Zealand firms and like our international members, ‘Great relationships, Great conversations and Great futures’ represent what we stand for and what we are working to achieve with our people and our clients.

It is fitting that the theme of this issue of Numbers magazine is ‘Growing opportunities for 2020’, as we continue to invest in our people and our firms to grow with our clients. This instalment of the CA ANZ Top 30 Accounting Firms has seen Baker Tilly Staples Rodway named the sixth largest accounting network in New Zealand and in 2020 we will for look continued growth for our clients and our firm.

With international political uncertainty and both New Zealand and America heading to the polls, predicting what the next year holds for the general economy would require a crystal ball, next year more than most. One thing is for certain: it will be an interesting year.

Our firms would not exist without the great clients that we have across the country. We hope that you have an enjoyable Christmas break and look forward to having continued great conversations with you next year.

David Searle Chairperson Baker Tilly Staples Rodway

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Investing in leadership The path to growth Leadership has no simple recipe for success. But there is clear evidence that those excelling in senior leadership roles are doing things differently. So, what do high performing leaders look like, and what do you need to invest in to become one?

STORY Andrea Stevenson Associate and Lead HR Consultant Baker Tilly Staples Rodway Hawkes Bay

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“ Before you are a leader, success is about growing yourself. When you become a leader, success is all about growing others.”

JACK WELCH, WINNING

Leadership is a big topic, and there are countless books, research findings and opinions. Much is also said on the difference between management and leadership.

Management has a role and has some similarities with leadership – directing, role modelling and advocating. But leadership is more about collaborating with and mobilising others. Leaders build a strong core team, establish a clear, compelling vision of what is to be achieved, and enable others to achieve that. Leadership also requires energy, which means leading by example, and motivating others, focus and empowerment.

Leading in times of turbulence The rate of change is ever-increasing, and this has meant a real shift in effective leadership behaviours. Whereas once leading was focused around process, methodology and managing work, now leadership is about people.

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The emergence of Agile has seen this further reinforced. Agile is more than managing process, technologies and work; it emphasises the focus on people (both employees and customers). More than a methodology, Agile is about people having a certain mindset in how they understand things, the way they work together, the values they share, and the manner in which they communicate with each other. In an ever-changing fast-paced world, leadership behaviours become particularly important.

This requires a new generation of leaders that do things differently. They have different ways of working, goals, roles, behaviours, values and ways of communicating.

Leadership behaviours So, what behaviours are crucial for leading in this fast-changing world?

It requires leaders themselves consistently embodying a new mindset in all of their words and actions, which requires personal commitment and organisational investment.

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There are specific behaviours that leadership needs in times of uncertainty. Based on the work of leadership specialist, RHR International, these include: Switching from strategic planning to scenario planning By addressing a range of hypothetical ‘what if’ questions (e.g. what happens if our revenue drops 10%?) and identifying contingency plans.

Rely on the senior team Utilise the best thinking from those around the table. Support each other but also hold each other to account. The success of the business is one of shared accountability across the entire senior team. This point is further reinforced in Patrick Leoncini’s The Five Dysfunctions of a Team.

Think about your employees and meeting them where they are at Employees will respond best when they are: • Kept informed • Remain connected • Provided with guidance and direction • United Applying these behaviours to your leadership practice is crucial and will help navigate employees successfully through change.

Develop new skills Leadership must recognise their gaps and then do something about building their capability in those areas. There is a need for a balanced thinking and decision-making style. To do this well in leadership, self-awareness is critical. A leader without

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self-awareness of their style, gaps, blind spots and potential derailers will not be able to develop themselves. If you ask me what the most crucial trait in a leader is, my answer is always self-awareness.

Self-management Building on the above, a leader must be aware of themselves, their stress levels, drive, stamina and overall wellbeing. More often than not, in the busy-ness of work and life, this piece is often not done well or happens too late. Think of it as “personal pulse-taking”.

A good coach, mentor or confidant is vital for a leader and can assist in this space.

“ Mastering self is true power.”

LAO TZU, CHINESE PHILOSOPHER

Last year I became accredited in The Leadership Circle®, a tool that pulls together a range of research (including Cognitive Psychology and Stage Development Theory) into one integrated framework. The framework looks at a range of behaviours that can inhibit leadership (which need to be toned-down) and offsets this with a variety of behaviours that contribute to leadership effectiveness (on which we should be focusing on dialling up). By undertaking a process of self-awareness and shining the light on the underlying thinking patterns that drive our current behaviour or that of our leaders, we then have access to a whole range of new choices, possibilities and opportunities in leadership and business performance.

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What this teaches is the importance of investing in developing courage.

The importance of courage In a major study in the US, leaders were asked the question; “What does the future need from you?” and the number one answer was "courage". Courage is an integral and important part of leadership. Change, disruption, innovation, and inclusivity, all take courage. Learning from mistakes and failure takes courage. Acting ethically takes courage. Getting the world we want takes courage. Having tough but honest conversations takes courage. Don’t be timid. Step up to the plate.

Another piece of courage is the courage to be you. Or in other words, authenticity. This is a trait that resonates with me in leadership.

“ Clear is kind, unclear is unkind.”

BRENÉ BROWN, DARE TO LEAD

Authenticity involves integrity. It involves knowing our own values and principles and ‘walking the talk’. At times it can mean a willingness to openly deal with difficult relationship problems – something that we don’t do particularly well in New Zealand, often opting for artificial harmony rather than holding an open, productive conversation.

Ironically, team morale can be damaged by this approach – the very thing we think we are avoiding.

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Listening also takes courage. Listening is proven to be the differentiating factor in performance, and yet many of us are guilty of not practising this skill. Effective leadership requires the ability (and courage) to think about others and consider their perspective, and we can only do this accurately by listening. Doing anything else is making an assumption, and these are often incorrect.

Behaviour Coach, Louise Evans’ Five Chairs Concept highlights this perfectly and provides a framework for shifting our thinking and listening – check out her TEDx Talk on communication and leadership.

Finally, don’t go it alone: collaborate, collaborate, collaborate.

As 2020 approaches, consider investing in your leadership and that of your Leadership Team. Set about undertaking a process to ensure there is a real consciousness of leadership style, thinking patterns, values, unconscious bias and identify the leadership competencies that need to be toned down and those that need to be extended and grown.

There are many tools and processes that can assist in leadership development. Longerterm leadership development programmes are particularly effective for sustained change.

Other proven interventions include blocks of one-on-one coaching or assessment tools such as Hogan Assessment Systems or The Leadership Circle. Workshops with the senior leadership team or a team profile could also prove to be an excellent investment. andrea.stevenson@bakertillysr.nz If you are interested in leadership building initiatives, please contact one of the Baker Tilly Staples Rodway HR Practitioners.

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The future of farming Reviving the rural outlook With farmer confidence plummeting to an all-time low of negative 33 per cent in Rabobank's latest Rural Confidence Survey, what can farmers be investing in during 2020 and beyond to ensure their long-term success?

STORY Amanda Burling Agri-Accountant Baker Tilly Staples Rodway Taranaki 08

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“ Rural confidence has dropped sharply from the previous quarter with farmers across all sectors now less optimistic about the prospects for the agricultural economy in the year ahead.”

RABOBANK RURAL CONFIDENCE SURVEY, SEPT 2019

The downbeat outlook of farmers recorded by the Rural Confidence Survey can be attributed to the financial situations some farmers find themselves in; from previous tough seasons of low pay-outs and/or drought, legislation and compliance issues that are potentially out of their control and, a big factor – the urban/rural divide. These challenges and the state of low confidence in the rural economy are also contributing to significant mental health issues for our farming communities.

While it doesn’t look encouraging, there are some key words and ideas to consider when trying to perform CPR to turn this negative position into a positive one. These are: Change, Planning and Resiliency.

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The current urban/rural divide issue is being fuelled by social media rhetoric. We know from other examples that people can be quick to believe ‘fake news’ and take opinion as truth. It’s dangerous when people believe propaganda and ignore the truth, failing to do their own research and fact checking.

Unfortunately, many farmers have borne this weight on their shoulders and we occasionally hear them saying things like “I am ashamed to tell people what I do.” To combat this, we must remain positive and take ownership of the work we do, paving the way to reshape perceptions.

Studies show that the expected population growth over the next 50 years means that the

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world is going to need to produce as much food in the next 50 years as it has from the beginning of time. Production of protein is going to be a massive player in feeding the world, and New Zealand farmers, being some of the most efficient in the world, are perfectly placed to play a big part in this.

Plan for change

time and knowing your reality – being able to explain why a shortfall occurred and knowing how you are going to fix it. Basically, controlling your finances, not letting your finances control you.

We recommend utilising this period of low interest rates and reasonable dairy and stock prices to maximise opportunities and build resiliency into your business.

I recently heard someone say, “it’s not just death and taxes you can be sure of anymore.

You can also be sure of change.” Change is the new normal, whether it’s legislation, market volatility, weather patterns or farming diversity. So, what can farmers do to be ready for change and ensure ongoing success? The simple answer: Plan. Plan for the unexpected.

Manage your farm as a business, build and grow financial awareness of your situation, know your position and respond accordingly.

Rainy day resiliency

Building resilience

Long term resilience

People talk a lot about building resiliency. After having a family and returning to agri-accounting, I didn’t really understand the depths of this term ‘resiliency’ that I kept hearing about. However, I quickly learnt resiliency means getting your business to a point that you can ride out some downturns and tough years, but still have a viable business.

In business terms, it is simply about being financially able to cope with the unexpected.

The first steps to building resilience are: • having a plan for today and every day; • having a ‘rainy day’ plan; and • having a long term ‘one day’ goal.

Everyday resiliency Meet your everyday obligations and make timely decisions. This means operating within overdraft limits, paying suppliers on

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Be prepared for the unexpected. Farmers are constantly going through volatile times, through low and heavily fluctuating market prices and drought, and ever-changing legislation. Maintaining good daily behaviours makes rainy day periods easier to navigate.

Understanding your risks and how to mitigate them, having a plan, acting quickly, setting up immediate access to funds, and generally just having options is key.

Have a long term ‘one day’ goal – setting SMART goals and having a plan in place to reach them. Along the way it is important that you celebrate milestone successes - no matter how big or small. It’s about recognising that these plans may change and need to be reviewed from time to time; and that’s OK. With banks facing as many, if not more, legislative changes than farmers, the landscape is changing for investing in farms. Farmers can no longer ride out losses or low profits and interest-only loans in the hope of a big capital gain to retire on.

Building up resilience to be able to cope with the unexpected and enabling business growth means focusing on making sure our farms are successful profitable businesses, not just production factories. We need to focus on continually building and growing our equity which provides the resilience to

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ride out storms and still come out in a good position.

The thought of creating plans, building budgets and setting goals can be a pretty daunting task for many people, so the head often is buried in the sand and we carry on like we always have. She’ll be right, right? Not really, and the low confidence in the sector reflects this.

Having a strategy meeting with your trusted business advisors is a great place to start. Figure out what it is that you want to achieve, what are you working towards and if what you are doing right now is going to get you where you want to be. Ask, “will I be happy if I am in the same position in 12-months’ time?”

What can farmers do to ensure success for 2020 and beyond?

Be courageous, be proactive, be flexible and adaptive to changing environments. Be inquisitive and passionate, be a lifelong learner.

Know your obligations and be ready to tackle them. Manage your farm as a business, build and grow financial awareness of your situation and know your position and your vision.

Plan for the future, plan for change, plan for the unexpected. Monitor your plan closely and get the right people around you so you can utilise all of the tools available to you to achieve a successful outcome. amanda.burling@bakertillysr.nz

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Investing in 2020 Business planning in a low interest environment Heading into the New Year is a good time to reflect on what 2020 will bring. How can business owners plan what 2020 looks like, and take control of their businesses and investments?

STORY Hamish Chang Business Advisory Senior Manager Baker Tilly Staples Rodway Auckland

Since the Reserve Bank cooled the official cash rate in August, economists are predicting a stagnant or overall fall in interest rates over the next 18 months. This is good news as it provides businesses with more certainty and more opportunity.

With lower interest rates, the message from a lot of businesses is that they are investing in themselves for 2020 – taking advantage of the low rates to extend lines of credit, borrow money or take funding from external parties.

They are going back to basics and investing in their company, whether this is through their people or their product.

Planning for expansion or investment requires, as a first step, preparing a business case based on robust forecasting: one can’t happen without the other.

No bank or investor is going to lend to or invest in an under-prepared business, so it is crucial to have the mechanisms in place to show their plan, and what the projected outcomes will be. There are a lot of tools in the marketplace that can assist in preparing reporting and forecasting for investors. Along with the payback period, banks and investors want to know what the business looks like after the investment is made. Depending on the levels of borrowings, they will want to track progress on an ongoing basis and hold borrowers accountable. This requires variance reporting, project accounting and cashflow analysis.

The better prepared the business is when seeking investment, the easier answering the hard-hitting questions will be.

The picture is the same, whether it is an established business, or a new entrant trying to create momentum in their own space. The fundamental constraint is the same for both – cash flow. Enabling freer cash flow will create opportunities for businesses to thrive, and with lower interest rates, that barrier is lower.

Too often in planning or growth phases, cash is reinvested into the company for operating and one-off expenses, but not for investment. Whether the investment is best applied to infrastructure, people or products depends on the type of business, and evaluating what growth constraints exist or will emerge if the right investment is not made.

Conversely, for those who are risk-averse, consolidating and paying off loans at lower interest rates may be what they consider investing in 2020. Sensible decisions are often made with cash in the bank. It may not sit easy with ambitious business owners or individuals, but pragmatism may be more beneficial in 2020.

Whatever the reasons behind investing in 2020 and how much of a funding overhaul is needed, a low-interest rate environment provides an ideal the time for business owners to capitalise, plan for the future, and explore different types of financing. hamish.chang@bakertillysr.nz

The above general advice only should not be relied upon as specific circumstances can vary.

Please contact your usual Baker Tilly Staples Rodway advisor for assistance.

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Spending money to make money Investing in marketing Successful business owners know that to generate new business they must do some form of promotional marketing, putting more customers/clients into the ‘marketing funnel’ towards becoming loyal customers/clients.

STORY Sarah Ellem Marketing Manager Baker Tilly Staples Rodway Taranaki 14

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Business owners often ask how much they ‘should’ or ‘have to’ spend to see a return on investment. What we often see is businesses spending too much, or too little, and often in all the wrong places. At some point, even the smartest business owners get swayed by a savvy sales pitch, feel obliged to help with a sponsorship, think every opportunity to advertise is a good one or don’t know how to say no.

The short answer is there’s no ‘one size fits all’ amount you should be investing. In saying that, there is a simple ‘rule of thumb’ calculation that can help:

TOTAL REVENUE x 5% = Marketing budget required to maintain current awareness and visibility in your market

TOTAL REVENUE x 10% = Marketing budget required to grow and gain market share in your market

These rules of thumb are based on businesses that average at least six-figure revenue numbers. Businesses with smaller margins should assign a percentage of their net revenue based on estimates of what competitors are spending. (And yes, it will have to be your best guesstimate, as that data isn’t readily available. Chat to your accountant about what percentage is feasible for your business, based on your unique circumstances.)

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NZ Marketing Association data shows the percentage of investment in marketing in this country ranges between 5 - 29% of total revenue – which is a huge variation. Generally, B2Cs (Business to Consumer) invest more than B2Bs (Business to Business), and in recent years the trend to invest in ‘digital’ channels such as websites, social media, videos and blogs has dramatically increased.

The easiest way to determine how much you ‘should’ or ‘have to’ invest in marketing comes down to knowing what your business objectives are, who your customers/clients are and then identifying the right channels in which to reach them. By having a clear business plan and marketing strategy in place, it will help any business make good decisions on marketing investment, irrespective of their product or service offering.

A marketing budget should include all of the activities that may potentially bring a return on your investment – not just advertising.

Those channels may include (but are not limited to): • Logo and brand design, and associated collateral, e.g. business cards, email signature, banners and signage; • Photos, videos and website; • Expos, conferences, product demonstrations or tradeshow attendance; • Advertising – print, radio, web, social, digital, vehicles, Out of Home – (billboards, point of sale displays, bus backs/shelters, etc.), Over the Top (game consoles, Netflix, Red Bull TV etc.); and • Sponsorships, Public Relations, Customer Relationship Management (CRM) tools/ platforms or apps.

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These activities when done correctly can lead to new business – however, if done ad-hoc or without a clear goal in mind, you might as well buy a lotto ticket, cross your fingers and hope for the best.

Every business is different and will have different marketing needs to reach its goals.

We recommend you spend some time looking at what you’re currently doing and how much you’re investing and being critical of the results.

Marketing in today’s environment is challenging. There is so much ‘noise’ to compete with, consumers are time-poor, and it can be hard to keep up with all the options and the speed of change. Challenges aside, a robust marketing strategy will become your guiding roadmap and assist you in making smart and lead-generating marketing investments.

Photo by Nikita Kachanovsky on Unsplash

sarah.ellem@bakertillysr.nz

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TOP MARKETING TIPS 1. Develop a clear marketing strategic plan and make sure it’s complementary with your business plan activities and objectives.

2. Make sure you really understand your customers; their pain points and how you can solve their problems with your product or service.

3. Make sure your entire team are aware of what your marketing objectives are.

4. Monitor and review all your marketing efforts regularly.

5. Use available data (accounts, market research, sales data, Google analytics, etc.) to work out or consider your ‘Cost Per Acquisition’. In other words, how much do you have to spend to convert one customer (over a specific period or campaign)?

Tax pooling An unexpected source of working capital There’s a source of funding available to most businesses seeking finance that they do not know about (or have perhaps overlooked) – their provisional tax payments.

STORY Chris Cunniffe CEO Tax Management NZ

Most would typically never dare prioritise utilising money set aside for Inland Revenue (IRD) elsewhere, even if they knew it would ultimately generate a higher return. That’s because the threat of IRD’s high interest rates – increased to 8.35% on 29 August, despite market rates heading in the opposite direction – and late payment penalties, usually provide more than enough incentive to err on the side of caution by complying and paying their obligations on time.

As you are likely to be aware, a service called tax pooling provides provisional tax payment flexibility to anyone who requires it. Tax

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pooling allows businesses to defer these payments to future dates of their choosing, without facing the consequences from IRD. The reason there are no consequences is because the service is approved by IRD. However, despite operating since 2003, it is not as commonplace as it could be.

Why consider tax pooling when market lending rates are so low?

The tough lending environment. These are complicated times for businesses requiring finance.

The cost of credit is cheap, largely due to the Reserve Bank of New Zealand cutting the official cash rate to a record low as it attempts to rev up a slowing economy by encouraging more people to exchange their hard-earned money for goods and services.

Yet getting access to these funds may not be so easy.

Amid the backdrop of deteriorating business profitability and confidence (the latter has reached its lowest level since April 2009) and the dreaded ‘r-word’ (recession) is dancing the foxtrot in the minds of many, our banks appear to be playing things cautiously as far as lending goes. According to the Financial Institutions Performance Survey for the June quarter, the amount loaned to borrowers by New Zealand banks increased only one per cent.

Businesses are picking up on this decreased appetite for lending. A net 40 per cent of firms surveyed as part of ANZ’s New Zealand Business Outlook for September expected it to be tougher to get credit. Banks becoming increasingly more selective about who they lend money to is being keenly felt at the

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smaller end of town. The OECD’s report, Financing SME and Entrepreneurship 2019: An OECD Scorecard, shows loan rejection rates for small- and medium-sized business have more than doubled since 2016. The proportion of SMEs reporting credit as being available to them on acceptable terms is also down for companies with 6 to 19 and 20 to 49 employees.

Added to this is the possibility of our Reserve Bank following Australia, with regulations requiring banks to hold more capital. The full ramifications of such a move are unclear. A safer, more robust banking system may make accessing credit even harder in this current economic climate. After all, the riskier banks deem an investment (or the applicant), the less inclined they are to greenlight a request for credit, given they may end up having more of their own skin in the game.

Banks turning business away presents a bit of conundrum for those requiring credit for investment. Some are being forced to explore second-tier, non-bank lenders to secure finance.

Which brings us back to tax pooling.

Tax pooling offers a potential solution for those looking elsewhere for the working capital they require. It does this by freeing up funds put away for provisional tax so they can be put to better, more productive use now (rather than tied up at IRD as a deadweight cost) and then paid back later.

Businesses often choose tax pooling because approval is guaranteed. No security is required, and it allows someone to keep headroom in their existing lending facilities.

A taxpayer will have interest to pay with tax pooling, but this is lower than what IRD charges when tax is not paid and is generally less than a taxpayer’s existing finance rates.

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The mechanics of tax pooling So, how does it work?

Assume you wish to defer the full payment of a provisional tax amount to a time that better suits your business.

Ahead of your upcoming provisional tax payment, you would pay a commercial tax pooling provider (such as Tax Management NZ) a fixed, upfront finance fee and the tax pooling provider would make a deposit on your behalf into its IRD account. This deposit is date stamped as at the date the tax is due (e.g. 15 January 2020).

The upfront finance fee is based on the amount of tax required and the date in the future you wish to pay.

At the agreed upon future date, you pay the tax pooling provider the core tax and the tax pooling provider transfers the provisional tax deposit it is holding on your behalf from its IRD account to your IRD account.

As the deposit the tax pooling provider is transferring has been paid, and date stamped as at the original due date, IRD treats it as if you have paid your provisional tax on time when it processes this transfer. This, therefore, eliminates any IRD interest and late payment penalties.

The arrangement can also be set up to be paid in instalments.

The only difference when paying in this manner is the tax pooling provider’s interest is recalculated on the core tax owing at the end of each month. This is because you are choosing to pay off your tax liability as and when it suits your business cash flow.

This means the tax pooling provider is only transferring to your IRD account an amount of tax that matches the amount of every part

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payment you opt to make. IRD interest and late payment penalties will be eliminated once the arrangement is paid off in full.

Final thoughts It goes without saying that being able to source finance is of utmost importance for those wishing to invest or seize upon a business opportunity. Without it, you might as well try to conquer Everest while wearing a pair of jandals.

As banks react to the economic uncertainty denting New Zealand business’ confidence by tightening their lending criteria, anyone in search of finance needs to survey all options available in the marketplace to secure the funds they require.

That may include tax pooling.

Chris Cunniffe is the CEO of New Zealand’s first and largest tax pooling provider, Tax Management NZ. Prior to joining Tax Management NZ, he was one of its clients as the head of tax at BNZ and Air New Zealand.

Chris is also a member of the Chartered Accountants ANZ Tax Advisory Group.

Baker Tilly Staples Rodway works with a wide range of tax pooling providers, including Tax Management NZ. If you are interested in establishing whether tax pooling suits your situation, please speak to your usual advisor.

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Investments beyond 2020 Adapt to changing times but keep your investment fundamentals the same.

STORY M artin Pike Head of Investments FANZ

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The investment world is changing. In the past ten to fifteen years, there have been three significant changes: interest rates have dropped; bond funding durations are increasing; and growth stocks are outperforming values stocks. These are now affecting returns for investors and the risk (or volatility) in these returns.

Interest rates have fallen to extremely low levels, even negative in several countries You can see from this data, compiled from publicly available information, the 10-year government bond yields around the world now and 15 years ago.

The return investors were getting from bonds or term deposits previously is nowhere near the low level they are now.

The Duration of Bond funds is increasing, thus increasing volatility The Bloomberg Barclays U.S. Aggregate Index duration has increased from 4.5 years in 2004 to 6 years in 2019. Over the same period, the yield has fallen from 4.15% to 2.5% (Source Bloomberg Index Services Ltd as at 28/6/19). This means that not only are income yields going to be lower, but the volatility of the securities is likely to increase.

Value stocks have underperformed growth stocks for ten years now In the last ten years (to Jun 2019), growth shares have outperformed value shares over almost every period. In total, 3.3% per annum better off (using MSCI index data1) with the distribution between the two at its widest

10 YEAR GOVERNMENT BOND YIELD 6% 5% 4% 3% 2% 1% 0 -1%

U.S.

Canada

U.K.

France 1/10/2004

Germany

Switzerland

Japan

Australia

NZ

1/10/2019

1 The MSCI World Index stands for Morgan Stanley Capital International (MSCI), and is an index used to measure equity market performance in global markets. SOURCE: Investopedia.com

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now. This is contrary to numerous past studies (notably Fama and French and Warren Buffett) that suggest over the long-term the value approach outperforms growth.

These changes are now making investors think about alternative ways to invest their savings. For example, investors who require a regular income stream have previously achieved this from bank term deposits or direct fixed interest. They used to obtain a consistent income of around 5-8% per annum with a low level of risk. This level of return is now not available for that level of risk. Investors are having to either lower their regular income requirements or, more likely, look for alternative investments to achieve the desired level of income. This can be from high yielding stocks, like property or energy stocks in New Zealand, or higher-yielding riskier bonds globally.

Similarly, in this low-interest rate environment, equity investors are looking to invest in megatrends, such as aging populations; rapid urbanisation; or technological breakthroughs.

These growth sources are unrelated to cyclical factors and interest rates.

When investors look to 2020, there are many ways to capture these changes. However, they must keep to the investment fundamentals:

Diversification Diversification can help mitigate investment risk in your portfolio.

Asset allocation Select the right mix of assets to meet your investment objectives.

Stick to your strategy Particularly valid when markets are down.

Stock prices fluctuate more than companies’ fundamentals.

Time, not timing It is more important to stay invested in the markets.

Review and rebalance You should review your portfolio at least annually to make sure your asset allocation stays on track.

While some things change, the investment fundamentals remain the same. martin.pike@sbsbank.co.nz FANZ Private Wealth is a boutique investment advisory service who specialise in providing personalised and impartial investment solutions for individuals and trusts.

Call 0800 727 2265 to contact an adviser.

This information is of general nature only and has not been prepared with regard to the needs of any investor. Investors should be aware that future performance may not reflect the historic performance of a fund, and that repayment of any capital or any particular rate of return are not guaranteed.

Details are current as at the date of preparation and are subject to change. FANZ Private Wealth is an operating division of Funds Administration New Zealand Limited (FANZ). FANZ is a subsidiary of SBS Bank which is a registered bank. Neither FANZ nor FANZ Private Wealth is a registered bank.

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INTERVIEW

Jono Bonifant Lentune Software Solutions Jono Bonifant, CEO of Lentune Software Solutions, leads an agile Christchurch team of problem solvers who are passionate about maximising business efficiency to enable strategic transformations. They have developed a sophisticated software tool which can harvest key supplier information from PDF invoices, unblocking clerical bottlenecks.

We sat down with Jono to discuss how Lentune is embracing technology to help businesses optimise processes and consequently improve profits.

STORY Matthew Shallcrass Director Baker Tilly Staples Rodway Christchurch

What problem does your business solve?

We help New Zealand businesses transition from inefficient paper-based workflows to a paperless, cloud-based work environment with shorter invoice processing times, enabling greater visibility and control of their business.

What is your background, and how did you find yourself at Lentune?

I have been on a bit of a journey, I suppose.

I have studied Finance and Economics at Otago University, and then I spent seven years working in the financial markets. In 2013, my wife and I moved to London, and

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I joined the sales team of the UK’s leading wine and spirits merchant. Following the birth of our first daughter, we moved home, and I started looking for a new opportunity and joined Lentune. In short, I am not a coder, but I have a strong business background, and that’s the way I tackle it.

How long was Lentune in existence before you joined?

Lentune was founded by Matthew Reid over 20 years ago. We have a longstanding and solid customer service reputation. In the last four years, we have grown our automation solutions presence, focusing particularly on invoices.

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What are some of the biggest challenges you have faced during your time with Lentune?

When I first joined Lentune, we were examining our development strategy, and we have found that the key to our growth was finding the right people to invest in us and put their trust in us. Nowadays, with being more established in the market, we have a strong reputation and credibility behind us, which keeps propelling us forward.

Who is your ideal customer?

Medium to enterprise-level businesses that are distributing and manually approving paper invoices. We have been targeting

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construction or trade-based businesses, which typically have a lot of manual approval processes required; however, our software can be used in any industry. We have, to date, made a big impact on the businesses we have worked with by providing them with immeasurable value.

Where are your customers located?

While we are a Christchurch based software company, most of our customers are throughout New Zealand and overseas. We would like to increase the number of international customers, especially in Australia, but for the next 12 months we are placing our focus on New Zealand businesses.

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Can you describe one of the proudest moments in your business’s success so far?

I believe the entire journey with Lentune to date has left me feeling quite proud, especially seeing how far we’ve come. I know I feel especially proud when I hear our new customers’ glowing reviews a short time after we’ve onboarded them. I make sure to feed that back to the team as it’s always invigorating for us to know that we’re making a difference and that we’ve got a cool product that people love.

How does the team contribute to the success of Lentune?

My business partner, Matthew Reid, has 40 plus years of experience in coding and is a very intelligent individual who has been pivotal in terms of the architecture of our product. We also have an expert team of developers and seasoned customer support as well. I firmly believe that if you want to succeed, you must surround yourself with a trustworthy and fantastic team because you can’t make all the decisions as well as bring in new ideas all yourself. Everyone on the team knows our vision and what we are trying to achieve and are behind us one hundred per cent.

How has your sales experience helped Lentune grow?

I think that the time in the UK and my experience in the sales team were super helpful.

However, I believe that the key skill that I have learned over time is to actually listen to people. When you really listen to people, you can then understand their business and frustrations. We can then create solutions which tackle those problems head-on. I think listening has most likely been my key skill. I have seen too many salespeople just concerned with selling their product. They

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forget to listen to what the customer actually wants. Listening to our customers has helped us with product development as well.

With day to day accounting tasks becoming more automated, what should the role of the accountant be?

There is technological disruption everywhere, and I think we are definitely seeing that in the accounting space, where accountants nowadays are moving into a consultant-based role. I think we’d probably need to look at accountants more as business advisors. Accountants are the one point of contact who have your business as their primary interest. There is a lot of noise in terms of people offering solutions, however, actually having an advisor who is looking out for your interests and works with numerous other businesses that are similar to yours is a really valuable asset.

What does the future hold for Lentune?

For the next 12 months, we’re really just going to focus on New Zealand as there is a lot of opportunity for us and it is quite an accessible market for us with no challenges of conducting our operations offshore. Currently, we are assessing industries where our software is applicable, and then from there, we look to add to the suite of products to further assist our existing product customers. I believe we have a bright future ahead of us in terms of growth. For us, the current strategy is to manage our growth and take a balanced view as to the steps we are taking forward. matt.shallcrass@bakertillysr.nz If you would like to transition your organisation from labour-intensive workflows to smarter, automated processes visit www. lentune.co.nz.

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Cybersecurity Beware the breach A Google search for ‘cybersecurity’ delivers 234,000,000 results (and growing daily). A lot of the information can seem very doom and gloom; businesses get hacked, monies and reputation are lost, security breaches cause trading chaos, and it appears to happen daily.

STORY Greg Taylor Business Computing Services Baker Tilly Staples Rodway Taranaki

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In our Business Computing Services team, we see the consequences of cyber crime first-hand. Often we are the ambulance at the bottom of the cliff.

Unfortunately putting your head in the sand and ignoring potential threats to your business doesn’t make the problems go away. Quite simply, if you don’t invest in your IT systems, including a fraud and detection strategy, then it’s probably only a matter of time before you are affected.

There are a few easy steps you can take that will start you on the path to a more secure IT infrastructure, and some of them are very simple and a great starting point to being more proactive about protecting your business assets.

Protect USB drives Most people use USB drives, but few protect the information on them. Would you be fine with someone finding one of yours and accessing sensitive information? An easy way to encrypt the data and add a password to your USB drive is to use BitLocker, a free product available to anyone using Windows 10. It takes a couple of minutes to set up, but it will mean that any info you have saved on it is considerably safer. Should you lose the USB drive, it would be useless to anyone that finds it.

Think before you click One of the biggest causes of security breaches is not your system being directly hacked, but from the people in your organisation making mistakes. Opening emails or attachments from unknown senders are just some of the way people can allow cybercriminals access to your most important data. There are phishing simulation tools that you can run, which will test your team’s Numbers · Summer 2019

ability to identify fraudulent emails. You can see who opens risky emails, opens attachments within the email or click on any links.

Once the test is completed, people are given information about what to look out for when opening emails. You can then re-run the test a few weeks or months later and hopefully see an improvement.

A password is not enough Implementing multi-factor authentication (MFA) is moving from a ‘nice to have’ to a mandatory for most businesses, regardless of size. This means that employees must use at a minimum 2-step verification when logging in to applications used in the organisation. These include Office 365, banking and accounting services, as well as social media accounts. These only add a few seconds when logging into the applications but could save you thousands of dollars, hundreds of hours and most importantly, your business reputation. Government website CERTNZ (Cyber Security NZ) recommends businesses consider using systems that support MFA. Once you have introduced it to the business, make sure your people know that it is a mandatory requirement, not optional.

Find the weak links A Cyber Security and Fraud protection audit is a good way to have an open and honest look across your IT and business network and systems to identify any weaknesses. These audits can identify unused user credentials, weak passwords and user work habits, as well as many other indicators. It may be required of your industry or board compliance to have a regular independent audit, or you may want to know that you or your IT support provider is applying best-practice standards across the network. greg.taylor@bakertillysr.nz 27

Ask an expert Offshore property investors A READER ASKS:

“I am an offshore property investor, and there have been a lot of changes lately to the rules in New Zealand. What do I need to consider?“

STORY Richard Williams Director Baker Tilly Staples Rodway Waikato

Offshore property buyers need to keep a close eye on changes to our taxation system and Overseas Investment Office (OIO) rules, which can differ depending on whether it is residential or non-residential property being considered.

Property investment decisions have turned into a decision-making minefield with many hidden traps and pitfalls for the uninformed.

Here is a summary of the main questions that we are asked.

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Are foreign investors allowed to buy under their personal name?

Ordinarily, no. Individuals can only purchase residential property in New Zealand where it is intended for their own occupation and use, with the consent of the OIO (exceptions do apply).

Residential development land can be purchased personally or by a nominated entity with the consent of the OIO. Numbers · Summer 2019

Commercial and industrial property which isn’t “sensitive land” under OIO regulations can be purchased individually or by a nominated entity.

Is there stamp duty for foreign investors?

No Are foreigners allowed to use a company to acquire property?

If the company is an “associate” (i.e. controlled by) of a foreigner, then the same rules as above apply.

Are there involved?

any

additional

costs

OIO application costs and related legal fees vary depending on the nature of the property purchase.

Are mortgage deductible?

interest

costs

Yes, where they relate to income-earning assets. For New Zealand resident companies, interest is deductible by default, other than where they are a Look-through Company.

Any tax losses arising from a residential rental activity are ring-fenced and carried forward for offset against future income of the same character.

Is a sale of property caught by a limited ownership period?

The sale of residential land requires income tax to be paid on gains from the disposal of residential property acquired and disposed of within five years, with the exemption of the main family home.

For commercial properties, there is no minimum ownership period (refer to next question about CGT).

Will Capital Gains Tax be incurred?

New Zealand has no comprehensive Capital Gains Tax regime.

Where property is part of a business of dealing, dividing or developing land or part of an undertaking or scheme devised for profit, sale proceeds will be subject to income tax.

Where the entity owning property in New Zealand is associated with an entity in the business of dealing, dividing or developing land, sale proceeds from property will be subject to income tax where the property is sold within 10 years of acquisition.

If that entity is associated with one which is in the business of erecting buildings on land, sale proceeds from a property will be subject to income tax where the property is sold within 10 years of construction of the building on that property.

Where property has been acquired with the purpose or intention of disposal, sale proceeds will be subject to income tax.

However, there are exemptions that may apply to the scenarios above.

There may be taxable depreciation recovered where depreciation on buildings has been claimed previously or where fit-out is recorded separately.

In the case of property purchased by a New Zealand tax resident company, withholding tax can apply in some circumstances to the distribution of capital gains to a non-resident shareholder. richard.williams@bakertillysr.nz

The above general advice only should not be relied upon as specific circumstances can vary.

Please contact your usual Baker Tilly Staples Rodway advisor for assistance.

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Enviro Solutions Outgrowing the garage When a new business is booming, it can be tempting to take a gamble and go all in.

For Zac Puddick of asbestos removal company Enviro Solutions Limited, a level head and sound advice have been the keys to growing the business at a sustainable rate.

STORY Matt Bonner Associate, Business and Taxation Baker Tilly Staples Rodway Wellington

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Zac Puddick quit his job as a qualified joiner based in Wellington in 2011 and headed down to Christchurch. It was post-earthquake, and the construction industry was booming. He fell into working for a company that specialised in removing asbestos and was quickly promoted to the position of Regional Manager. Zac didn’t have any previous experience with asbestos removal, but his background in a trade and the sheer quantity of work that was available meant his progress was fast-tracked. The opportunities in Christchurch meant Zac was able to learn the ins and outs of the industry very quickly.

Wellington opportunity Zac decided to make the move back to Wellington in 2014 and use the skills he acquired in Christchurch to start his own removal business – Enviro Solutions Limited.

He saw an opportunity in the Wellington market for another specialist removal company and was keen to get back to Wellington where most of his friends and family lived.

While he had all the necessary qualifications, he poured everything he could into acquiring the equipment and expertise required to go out on his own. At a minimum, he needed: • insurance; • a robust health and safety system; • specialist equipment; • specialist consumables; and • the ability to deal with subcontractors and suppliers.

Initially, the Enviro team consisted of Zac and two full-time employees. Zac used his mum’s garage as a storage space for all the gear and operated on-site out of a trailer. Zac tendered for Enviro’s first contract and got lucky when a successful construction company decided to give the new young business owner a shot. Not only did Zac’s mum store most of the gear, but she also helped with a lot of the Numbers · Summer 2019

behind-the-scenes administration, ensuring that Enviro’s two employees got paid.

Early approach The industry was still coming to grips with the relatively new rules and regulations regarding asbestos removal. There were a lot of unknowns and a lot of different approaches.

Zac knew the Code of Conduct inside and out, and took pride in ensuring that Enviro worked to the highest standards. The first contract started off as a relatively straightforward project but quickly grew into a major undertaking. The scope of work kept increasing, and Zac’s choices were to either quickly grow Enviro to cope with the additional work or hand it over to another company.

Asbestos removal is a labour-intensive process. Zac decided to get more employees on-board and used temp workers where possible to keep up with demand. Not an easy task as there isn’t a big labour pool of qualified workers, and it meant Zac had to train most of his staff from scratch.

Enviro’s approach of providing a high-quality service paid off, and the company began to get more and more work in the Wellington market.

Growing pains Eager to say yes to any potential contract that came Enviro’s way, Zac figured out early-on that growth for growth’s sake isn’t ideal for anyone involved. A team and operation that wasn’t too big were crucial to providing a high-quality service and also ensured that if the business had a quiet patch, the cost of overheads wasn’t through the roof.

Asbestos removal isn’t a well-known career opportunity, and Zac said it’s hard to find motivated employees that have the on-thejob experience, and also the crucial ability to deal with contracts, clients and manage staff.

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ZAC'S TIPS FOR NEW BUSINESS OWNERS 1. Find a mentor.

Zac sought advice from his dad, a business owner himself. Getting a second opinion or even just talking through an issue was very helpful, even more so when the person you’re talking to might have been through it themselves. Zac also stressed the importance of being up-front and honest in these discussions – you can’t get great advice if you don’t show all your cards.

2. Invest in your team.

Asbestos removal is a heavily regulated industry, and it’s crucial that the entire team is constantly up-skilled and refreshed on the dos and don’ts. This not only includes training but treating the team like a family and making sure that they are well looked after and have all the tools required to do a good job.

3. Give people the benefit of the doubt.

Zac has been up-front and honest with his employees, clients and suppliers from day one and assumes the same in return.

4. Keep on top of your finances.

Use a cloud-based accounting system and ensure that everything is accurate and up to date in real-time. Knowing how much cash is coming in and going out at any given time is crucial to business success.

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The small team feel is further reinforced by having family involved. Zac’s sisters Kate and Molly both work for Enviro and have been a key part of business success.

Zac says working with family can be challenging at times; you can 100% trust your sister, but at the same time, it is easy for the usual employer/employee dynamic to be non-existent!

Today Today Enviro have a team of 20 employees and have thankfully moved out of mum’s garage, into a yard with office space located in Lower Hutt. Zac is happy with the size of Enviro as it is today – big enough to have multiple jobs on the go at one time, but at the same time, Zac and his senior team can keep a close eye on operations to ensure that standards are being met.

Baker Tilly Staples Rodway Wellington communicates regularly with Zac and Enviro to ensure we are providing timely advice.

This means that the business decisions Zac makes have been well thought out and issues like tax are considered upfront, rather than an afterthought. These regular meetings cover general business performance and business issues, but also consider higher-level issues such as succession and structure.

Josh from Baker Tilly Staples Rodway Wellington’s Business Advisory team works closely with Enviro’s Office Manager Nicole, answering day-to-day accounting questions. Having a key point of contact is important, as Josh knows Enviro and their needs well and ensures that questions are answered quickly and efficiently.

This close contact ensures that Enviro’s accounting system is accurate, and its financial position and performance are easily measured in real-time. matt.bonner@bakertillysr.nz Numbers · Summer 2019

The re-strengthening works at the historic Ford assembly plant in Seaview, Wellington required the methodical removal of 40 tonnes of asbestos cement roofing by Enviro Solutions.

ASBESTOS RISKS IN CONSTRUCTION Asbestos refers to a group of six naturally occurring minerals made up of fine, durable fibres. These fibres are resistant to heat, fire and many chemicals.

Asbestos can be found in roofs, walls and eaves, as well as floors, tiles, pipes and many unsuspected products.

The problem with these fibres is that they are very harmful if we are exposed to them. The main way a person is exposed to asbestos is by breathing in air that contains asbestos fibres. Inhaling significant quantities of airborne asbestos can cause asbestosis (scarring of the lung tissue), mesothelioma (malignant

tumours) and cancer of the lung, larynx and ovary. Asbestos-containing material that is intact is not a risk; it is when the material is disturbed (commonly through the demolition process) that health-related problems can occur.

Although now banned, asbestos was used in a wide range of construction materials from the 1950s to the 1980s, including concrete, hard panels, and even glue.

The asbestos removal industry is now heavily regulated through Worksafe and asbestos removers must be licensed and comply with the Code of Practice for the Management and Removal of Asbestos.

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RWC & Japan Digging a little deeper For us Kiwis, the Rugby World Cup did not end as we had hoped.

For those dedicated fans who followed our All Blacks to Japan to watch the games, their misery will have been offset by the magical experience of Japan.

STORY Annette Azuma Director Baker Tilly Staples Rodway Auckland

Incredible hospitality, mouth-watering food, ancient traditions and super technology make Japan a truly unique destination.

I’ve had a long love affair with Japan and often describe myself as living in a “Japanese bubble” here in New Zealand. I head Team Japan at Baker Tilly Staples Rodway and have the privilege of dealing with many wonderful clients and our dedicated team of native Japanese speakers.

My family is also Japanese.

I was fortunate to be in Japan for part of the World Cup, attending the Japan New Zealand Business Council Conference in Kashiwa no ha.

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It was incredible to be part of “NZ Inc” and attend so many fantastic events. This included being at our stunning New Zealand Embassy in Shibuya for the launch of Tourism New Zealand’s brilliant brainchild, New Zealand says 39, to thank the people of Japan for hosting the Rugby World Cup and our All Blacks. 39 in Japanese translates as san kyu – meaning thank you.

Another highlight was a reception for Prime Minister Jacinda Ardern. New Zealand put on an impressive show and “NZ Inc” leveraged over fifty events in the nine-week period!

Seeing the world’s reaction to Japan and the Brave Blossoms, and observing our All Blacks on and off the rugby field made me a little philosophical. A few years ago Baker Tilly Staples Rodway hosted an event with New Zealand rugby great Sir John Kirwan as the keynote speaker. Sir John had coached the Auckland Blues as well as the Italian and Japanese national rugby teams. My question to him was simple; “What was different about coaching Japan?”. His rather unforgettable answer was; “The Japanese team would do whatever you asked them, no matter what. If you said to run into a brick wall, they would.”

The Brave Blossom’s staggering results in Rugby World Cup 2019 showed sheer determination, doing what was asked of them and never giving up. It reminded me of Japan’s

Numbers · Summer 2019

economic miracle, which saw Japan soar to be the world’s second-largest economy from 1978 to 2010.

These same traits are what I see in my team at work and in my family. There’s an old saying in Japan 七転び八起き “fall down seven times, get up eight”. It’s one of our family mantras, and a 間仕切り wooden screen painted with this has a prominent place in our lounge (pictured above).

The All Blacks were gracious and humble in defeat. They thanked Japan in unique ways – through New Zealand Says 39 and as the first country to bow after a game.

New Zealand and Japan are two great nations, incredibly different, yet remarkably similar. Perhaps that’s one of the reasons why so many New Zealand rugby players spend years in Japan. Steve Hansen is about to join them. We all know collaboration brings great results, and the connections between New Zealand and Japan are getting stronger all the time. annette.azuma@bakertillysr.nz

FAR LEFT: Annette Azuma with All Black hooker Liam Coltman in Tokyo

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Great conversations Great relationships Great futures Take a look at what we’ve been up to lately

Auckland rugby event Our Auckland team was pleased to host Sir Graham Henry for a group of clients prior to the kick-off of the 2019 Rugby World Cup. Sir Graham regaled our guests with stories and anecdotes from across his career with his trademark wit and style.

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Ronald McDonald House cook off Our Christchurch team joined accounting automation company Lentune in a cook off for patients and families staying at Ronald McDonald House Charities New Zealand. On the menu was a chicken and ricotta lasagne followed by a strawberry and blueberry crumble with ice-cream for dessert. Both courses were judged as being equally delicious!

PICTURED (L-R): P atrick Fruean, Luke Stuart, Carrie Stuart, Gareth Simpson, Kirsten Turner, Rachel Harris, Matt Shallcrass & Jono Bonifant

Steptember We were pleased to support the Cerebral Palsy Society again this year by participating in Steptember. Our teams across the country raised $4,000 with over 20 million steps!

Critical Point Network Keynote Speaker – Justin Flitter AI is becoming increasingly ubiquitous in the conversation about the future of any industry. The Auckland team were pleased to host Justin Flitter, Global Chief Marketing Officer for ValocityGlobal.com, for our Critical Point Network guests.

Justin brought us an engaging and thought-provoking session on how to engage your team and leverage the power of data to maintain relevance in light of the coming technology.

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TSB Business Excellence Awards Congratulations to Taranaki clients Boon, Texas BBQ Foods, Taranaki Weddings, Port Taranaki, Van Dyck Fine Foods (Marcel's Pancakes), Rotakare Scenic Reserve Trust and TimberCo who all took home awards at the TSB Bank Business Excellence Awards recently. Well deserved!

BELOW FROM TOP: Murali & Josh of Boon, Ash from Texas BBQ Foods with Nicole & Sarah from Baker Tilly Staples Rodway Taranaki, David from TimberCo

Blue Do Our Christchurch team held a ‘Blue Do’ morning tea to raise money for Kiwi men affected by prostate cancer. Over $700 was raised for the Prostate Cancer Foundation of New Zealand, with every cent helping to provide support, campaign for greater awareness, advocate for better diagnosis and treatment outcomes, and fund vital research.

With around 3,000 men diagnosed per year in New Zealand, and more than 600 who will die, prostate cancer is as prevalent in men as breast cancer is in women.

BELOW (L-R): Leanne Chapman, Tracy Shylan, Dina Kubala, Spencer Smith, Rebecca Reside & Jon Robertson

Alumni function In October our Auckland team hosted a function to network with our alumni. It was great to catch up with past colleagues and celebrate their recent success as well as our rebrand.

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Access to Property Investment Hosted in conjunction with ANZ, Access to Property Investment brought together industry experts to share their expertise with our guests. With an introduction by Sharon Zollner, ANZ Chief Economist, and a panel discussion chaired by Claire Dilks, Auckland Associate Tax Director, this was a full-house event packed with practical advice.

PICTURED (L-R): Amanda Spratt, Melissa He, Jessica Glover & Claire Dilks

Money Week Taranaki Director Kylie Hollard presented Alex Guerriero with $100 for himself and $1,000 for Moturoa School. Alex won Taranaki’s Money Week competition by telling us the importance of saving money.

Wellington team building Our Wellington office has regular team building activities, with their latest outing including a bit of friendly competition in the form of go-kart racing. With Matt Bonner ahead after the first few rounds, Joshua Murray snatched victory in the final round and was crowned with the unicorn helmet and the ultimate prize – being pushed around the track by the two with the slowest times.

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Auckland Level 9, 45 Queen St PO Box 3899 Auckland 1140 auckland@bakertillysr.nz T: +64 9 309 0463 Waikato Level 4, 354 Victoria Street PO Box 9159 Hamilton 3240 waikato@bakertillysr.nz T: +64 7 834 6800 Tauranga Level 1, 247 Cameron Road PO Box 743 Tauranga 3144 tauranga@bakertillysr.nz T: +64 7 578 2989 Hawkes Bay Cnr Hastings & Eastbourne Streets PO Box 46 Hastings 4156 hawkesbay@bakertillysr.nz T: +64 6 878 7004 New Plymouth 109-113 Powderham Street PO Box 146 New Plymouth 4340 taranaki@bakertillysr.nz T: +64 6 757 3155 Stratford 78 Miranda Street PO Box 82 Stratford 4352 stratford@bakertillysr.nz T: +64 6 765 6949

About Baker Tilly Staples Rodway Baker Tilly Staples Rodway is a national association of independent practices, with eight locations throughout New Zealand.

We are proud to be a member of Baker Tilly International, a top ten global network of independent accounting and business advisory firms, whose member firms share our dedication to exceptional client service.

Wellington Level 6, 95 Customhouse Quay PO Box 1208 Wellington 6140 wellington@bakertillysr.nz T: +64 4 472 7919 Christchurch Level 2, 329 Durham Street North PO Box 8039 Christchurch 8440 christchurch@bakertillysr.nz T: +64 3 343 0599 www.bakertillysr.nz