Get ready for the minimum wage increases now so that you are paying your employees the correct rate next month.

Wage Rates Are Going Up

From 1 April 2025:

• The adult minimum wage will go up from $23.15 to $23.50 per hour.

• The starting-out and training minimum wage will go up from $18.52 to $18.80 per hour.

• All rates are before tax and any lawful deductions, for example, PAYE tax, student loan repayment, and child support.

What to Do Now

Take this opportunity to review your business processes, employment records, and systems.

• Check that your payroll system is ready and updated for the 1 April changes, whether you have a manual or computer-based system.

• Recalculate and update your budgets and cash flow as the increase may have an impact, including on items such as ACC levies, KiwiSaver contributions, and holiday pay.

• Review the pay rates for skilled employees from 1 April.

• Consider reviewing your pricing strategy.

Tools to Help You

The free cash flow forecast tool can help you plan for the minimum wage change.

➡ Cash Flow Forecaster (external link)

The free employment agreement builder can help you make sure future agreements have the correct minimum wage details.

➡ Employment Agreement Builder (external link)

Podcasts are often on our list of things to do, but for many business owners, there are often not enough hours in the day. The recent challenges and changes in business mean it’s the perfect time to make the opportunity to think about where you want your business to head in the future.

Here’s 9 podcasts to provide inspiration for your next business planning session, and are great to listen to when exercising. Find them on the author’s website, Spotify or iTunes.

1. TED Talks – super popular and there are thousands to choose from. Top picks include Simon Sinek and Brene Brown.
2. Lewis Howes School of Greatness – Downloaded over 4 million times a month, hear interviews with world-class game changers in entrepreneurship, health, athletics, mindset, and relationships.
3. The Bite-Size BizRoom – 15-minute podcasts with business advice you can easily action to grow your business.
4. The Mike Dillard Podcast – Captivating interviews with inspiring leaders to help you fulfill your potential.
5. The Happiness Lab – Surprising and inspiring stories based on the latest scientific research that will change the way you think about happiness.
6. Building a Storybrand – Donald Miller has helped thousands of businesses grow by getting them to clarify their marketing messages.
7. How I Built This – Guy Raz dives into the stories behind some of the world’s best-known companies. Hear about innovators, entrepreneurs and idealists — and the movements they built.
8. The Mindset Mentor – 10-20 minute podcasts designed to give small business owners a motivational boost.
9. Entrepreneurs on Fire – John Lee Dumas is the founder and host of this award winning podcast. With over 100 million listens and more than 3000 episodes it delivers high energy inspiration and valuable insights.

Business advice really can be a gamechanger. Whether you’re a new startup owner, or the CEO of an established business, it’s always helpful to have access to tips, resources and content that helps to guide the next chapter in your business story.

The new GoBusiness site from the New Zealand government aims to bring all the advice you might need together in one place. It’s your hub for all things small business related.

GoBusiness: your one-stop resource for business tips

The new GoBusiness site brings together all the different areas you might need to keep your finance, marketing, sales and security on track.

Let’s take a look at the key areas you can visit:

Finance, tax and your business – tips on getting your head around financial management, paying the right taxes and managing your bills and cashflow.

Marketing your business online – advice on the different marketing channels, how to connect with customers and getting the best results from your promotional campaigns.

Hiring and managing staff – explanations of when to hire your first employees, getting used to employment law and building a great place for your team to work.

Training your people – tips on providing on-the-job training, upskilling of your existing staff and getting the best performance from all your employees.

Export for growth – advice on how to go international with your sales, with tips on the logistics, tax law and marketing needed to be a global business.

Data for business – breakdowns of statistics relating to the New Zealand business economy, so you can benchmark where your company sits.

Managing your cashflow – tips for tracking your cash inflow and outflow, and how good cashflow management and forecasting helps your financial health.

Getting the business support you need – an overview of the different areas of advice you can make use of, both as a new business, or an established company.

Talk to us about how to overcome the business issue

Having a hub for all your general business resource needs is a great starting point for any business owner. But if you need more detailed, one-to-one advice, we’re always here to help.

You can talk to our team about managing your finances, keeping your cashflow healthy, or getting the right strategy in place for hiring and starting your export journey.

Are We Reaching the Peak of AI Hype? A Look Ahead to 2025

You can tell we’ve hit a hype saturation point when it’s hard to hear the words “artificial intelligence” (AI) without also hearing the audible groan that follows. After two years of hype around generative AI, there are clear signals that we’re entering the low that follows the high – when the gap between expectation and reality becomes evident.

This cycle isn’t new. History is full of seemingly false starts, where new technology burns bright and fizzles quickly. However, sometimes these apparent failures lay the groundwork for transformative advancements, even if it takes five to ten years to see their full impact.

With that long-term view in mind, here are some key signals to watch in 2025 as we consider the future of technology for small businesses, advisors, and communities worldwide.

Agentic AI: From Insights to Action

Generative AI might be nearing its saturation point, but “agentic AI” – AI that can take action – hasn’t had its moment yet.

Imagine digital assistants functioning like autonomous employees, performing tasks and assisting customers without human intervention. Self-driving cars like Waymo offer a glimpse into this concept, making decisions in real time. Similarly, businesses might soon see AI autonomously handling fraud detection, customer queries, or inventory management.

As this field evolves, balancing the promise of agentic AI with ethical and legal considerations will be pivotal. The potential is immense, but so is the responsibility to implement it thoughtfully.

Ambient Computing: The Next Frontier

The rise of wearables and smart devices is paving the way for ambient computing – technology that seamlessly integrates into our environment.

From smart glasses like Meta’s Ray-Ban collaboration to smart rings and watches, devices are becoming more intuitive and context-aware. Imagine shop owners interacting with products through smart glasses or virtual avatars providing real-time sales insights.

As battery and display technologies improve, it’s only a matter of time before everyday objects incorporate AI and AR features, transforming how businesses operate.

Crypto and Blockchain: Quiet Progress

Despite skepticism, blockchain technology continues to develop and show promise. Central banks are experimenting with digital currencies (CBDCs), like China’s Digital Yuan and The Bahamas’ Sand Dollar, to improve cross-border payments.

Stablecoins and blockchain-based solutions are also emerging for non-financial use cases, such as decentralized digital identity and verifiable ownership of digital assets. These advancements could provide small businesses with tools for securely managing intellectual property or combating counterfeit goods.

Looking Beyond the Short Term

Roy Amara, a futurist, once said, “We overestimate the impact of technology in the short term and underestimate its long-term consequences.”

As we move into 2025, it’s essential to approach technological advancements with patience and perspective. While some innovations might not dominate headlines this year, they could define the decade ahead.

Stay tuned for a dynamic period of growth, adaptation, and transformation.

What trends are you most excited about in 2025? Share your thoughts in the comments below!

With many businesses expecting a lower profit this financial year, the more prepared you can be for the unexpected, the better. Managing expenses is a good idea at any stage in your business and you can also consider increasing your prices to improve your margins.

Smart ways to get your costs under control

Cashflow has been a big issue for thousands of businesses this year, and when the money’s not rolling in, it can help to rethink your costs. To do it effectively involves more than just keeping an eye on outgoings. It’s about looking at all the moving parts of your business to see if your systems (or lack of) are costing you unnecessarily. Here’s how:

• Muck in – Do a cost control audit to work out where your big cost centres are, and look at your systems for managing them.
• Be aware – Don’t just slash your expenses without considering impacts. Also track costs and look out for opportunities to trim fat or take a different approach to get the same result.
• Unite your team – Bring everyone together to monitor and analyse inputs and expenses. Reviewing and developing your systems? Get your team’s feedback.
• Look to your peers – How do your costs compare to others? If a business of a similar size and production system to you is performing well, but spending less, explore what they’re doing differently.
• Seek advice – Got a good idea of where the issues are, or feeling totally confused? Talk to your advisors about your next steps.

How can I put my prices up without losing customers?

If you need to change your pricing to make ends meet, be honest and up-front with your customers at all communication points.

• Make it clear on your website and social media that prices have changed and why.
• Send an email to let all your clients and suppliers know about the changes.
• Meeting people face-to-face? Make sure they’re aware of the price hikes before they’re invoiced, no one likes a nasty surprise and many countries and regions have fair trading and/or consumer protection acts.
• Provide the best customer experience you can by updating staff on any changes and advising them on how to communicate these with customers.
• Worried you’ll lose fans? Consider staggering price increases of individual products over time.

Get in touch if you’d like us to help with an analysis of your margins and expenses.

Do you have direct debits and online payments set up for your business? Making it easy for your customers to pay you is vital to business success. Getting direct debits and alternative payment methods linked to your business is so easy these days there’s no excuse not to give your customers multiple ways of making payment.

Many service-based businesses choose direct debit arrangements with their clients to avoid late payment. If you’re often chasing overdue payments, consider implementing direct debit arrangements to reduce your administration time.

If you’re already using online accounting software, check the add-on solutions and choose one that integrates with your accounts. This means the payment platform information feeds directly into your accounting software to be easily matched to customer transactions.

Make it Easy

You probably already have bank transfer information set up, but adding several other methods such as PayPal, debit cards, and credit cards allows customers to choose the method most convenient for them. Many customers appreciate the automation and simplicity of direct debits. Make sure your payment terms and conditions are clear on your website and invoices and don’t forget to include all your chosen payment methods for customers!

Worried About Costly Fees?

You have the option to choose whether you will absorb the cost of the payment gateway processing fees or whether you will add the cost to your invoice and charge clients extra. Your accounting software will then allocate the funds accordingly to invoice payment and fees received.

Better Transaction Recording

When you integrate direct debits and online payment methods with your accounting system, you dramatically reduce errors in recording customer payments – which means less time spent on your accounts!

Not Sure Where to Start?

If you’d like to make it easier for customers to pay you, talk to us about which solutions are best for your business. We can discuss which platforms have the best and most secure integrations with the accounting software you use. We’ll help streamline your payment systems.

Welcome to our latest roundup of updates in Xero. Over the past two months, we’ve introduced features designed to save time, reduce errors, and provide greater flexibility for businesses and advisors. Let’s explore what’s new and how these updates can enhance your workflow.

Global Updates

Client Insights in Xero HQ and Practice Manager

Xero partners now have access to the client insights screen in Xero HQ, with Xero Practice Manager integration on the way. This tool provides a snapshot of financial data for all business edition clients, helping you identify those who could benefit from advisory support or a timely discussion about their finances.

Xero Accounting App Enhancements

• Users can now search, sort, and filter bank statement lines during the reconciliation process, making it easier to manage finances on the go.
• Sharing invoices has been simplified for iPhone users. You can now send invoices via apps like Messages or WhatsApp with just a few taps, improving efficiency when you’re out and about.

Inventory Management Improvements

• New filtering options in Xero Inventory allow you to distinguish between tracked and untracked items, and you can apply these filters to exports.
• Exported files now include quantities, and you can customise columns and save these as default views. These updates make it more efficient to manage stock levels and ensure you have what you need on hand.

Report Layout Editor

A new preview panel in the report layout editor helps you fine-tune report formats with ease, reducing the effort needed to customise your layouts.

Duplicate Bill Detection

This eagerly anticipated feature alerts you to potential duplicate bills, regardless of how they were created, reducing overpayment risks and helping to avoid mistakes.

Streamlined Bill Reviews

A new quick-view option lets you view and approve bills directly from a single screen, saving time and eliminating the need to switch between multiple tabs.

Updates for New Zealand, UK, and Australia

Payment Checkout Without Invoices

Businesses can now create payment links to accept payments without needing to generate invoices. Simply share a payment link with your customers, track payments, and get paid quickly. No setup is required, but you’ll need to connect with a provider like Stripe, GoCardless, or PayPal.

These updates reflect Xero’s dedication to helping businesses and advisors succeed. Whether you’re improving inventory management, streamlining payment processes, or avoiding duplicate payments, these new features make it easier to run your business smoothly.

You keep your system firewalls current with regular updates and a switched-on IT provider. What about the human factor?

Scammers using social engineering can fool business owners and employees into revealing key business data. Just as people become wise to one technique, scammers develop another. They rely on people being friendly, helpful or naïve. Raise the subject regularly in team meetings to alert your team to scams and strategies to block them.

For instance, ‘pretexting’ is a scam where the scammer pretends to be a genuine contact to obtain sensitive data:

• A caller says they’re from the business’ IT consultant and asks for login details because they’re doing ‘routine maintenance’ and need remote access
• An official-looking announcement appears on the bulletin board saying the number for the help desk has changed. When employees call for help, a call centre asks for passwords and IDs, gaining access to the company’s data
• A contact comes through social media as a prospect interested in what the business offers, lulling you into revealing sensitive information
• The friendly new reps for one of your suppliers turn up at reception with morning tea for the team and cheerful questions about your business operations and assets

Run scenarios with your team. Learn to take a minute. Think. Who do you call to verify the contact is genuine? Your in-house IT Manager, your IT consultant or your General Manager? Put procedures in place to safeguard what information is given out, when and to whom.

Organisational structure is not top of mind for most business owners. Small businesses do well with flat structures. The team deals directly with the owner. There’s a friendly, informal, ‘just get on with it’ feel. With growth, change may be needed.

Hierarchical structures can have negative connotations, suggesting unnecessary bureaucracy, oppressive to people who work in them, frustrating to customers. But the right structure can improve morale, productivity and overall business success. It can be a pragmatic solution when a business is growing and suddenly the team (and you) can’t keep everything in their heads any more. It’s possible to create structure, with individual roles and responsibilities, and still encourage employees to express ideas freely.

Aim for

1. A guideline for employees to understand where they fit and what needs to be achieved.
2. Good communication flow; knowing the right person in each section to connect with to solve problems.

Avoid

1. Environments where employees feel a lack of power or devalued.
2. Stifled creativity when those at the bottom of the pecking order lack confidence to come forward with new ideas and approaches.

What should you do?

• Involve your team.
• Let them know why you want to change the current structure.
• Seek their views. What works? What doesn’t?
• Whiteboard the major processes to identify bottlenecks and where the business would benefit from better systems e.g. a ticketing system for repairs and complaints.
• Talk through options.
• Hold regular meetings to support innovation and strengthen the company culture.