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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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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