Why Profitable Businesses Still Run Out of Cash
One of the most common things I hear from business owners is:
“We’re making sales, we are profitable, so why does the bank account still feel empty?”
Honestly, it’s a fair question.
A business can look profitable on paper but still struggle to pay
Understanding the Difference Between Cash and Profit
Understand the difference between cash and profit, why your business can be profitable but still struggle with cash, and what to watch for to stay in control.
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PAYE (Pay As You Earn) is the tax deducted from employees’ wages and paid to the IRD.
Because this tax is taken from employees on behalf of the government, it is not considered the employer’s money. For this reason, IRD treats unpaid PAYE very seriously.
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From 1 April 2026, the KiwiSaver default employee contribution rate will increase from 3% to 3.5%. This change is intended to help boost long-term retirement savings.
However, employees who are not ready for the higher contribution still have the option to temporarily reduce their contribution back to 3% for a period of 3 to 12 months.
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As the new financial year begins, employers need to prepare for another round of minimum wage increases taking effect from 1 April 2026. These updates are part of the government’s ongoing adjustments to support fair wages across the workforce.
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Payroll Changes Coming in 2026 (and Beyond): What New Zealand Employers Need to Know
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Why Cashflow Dips After Christmas (and How to Plan for It)
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Choosing the Right Bookkeeper for Your Business
Clear numbers. Calm decisions. Better business outcomes.
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When you’re running a small business, every dollar counts, and knowing what expenses you can claim can make a big difference to your bottom line.
If you’re unsure what “deductible expenses” even means, you’re not alone. Many small business owners miss out on valuable claims simply because no one explained it clearly.
So let’s break it down.
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Think budgeting is only for big corporates or number-crunchers in suits? Think again.
As a small business owner, I get it, you’re juggling a million things: clients, emails, GST, payroll, trying to remember if you actually ate lunch. Budgeting might feel like something you’ll “get to later” … when things calm down.
But here’s the truth:
Budgeting isn’t a luxury – It’s a lifeline!