Services
Every organisation faces unique challenges throughout the business lifecycle. We understand the factors that govern growth and profitability and can tailor our...
We deliver full advisory service capability to navigate the array of opportunities, complex challenges and risks to help dynamic organisations achieve their...
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Business valuations
We offer expert valuation advice in transactions, regulatory and administrative matters, and matters subject to dispute – valuing businesses, shares and intangible assets in a wide range of industries.
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Capital markets
You need corporate finance specialists experienced in international capital markets on your side if you’re buying or selling financial securities.
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Complex and international services
Our experience of multi-jurisdictional insolvencies coupled with our international reputation allows us to deliver the best possible outcome for all stakeholders.
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Corporate insolvency
Our corporate investigation and recovery teams can help you manage insolvency situations and facilitate the best outcome.
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Debt advisory
An optimal funding structure for your organisation presents unprecedented opportunities, but achieving this can be difficult without a trusted advisor.
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Expert witness
Our expert witnesses analyse, interpret, summarise and present complex financial and business-related issues which are understandable and properly supported.
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Financial models
A sound financial model will help you understand the impact of your decisions before you make them. Talk to us about our user-friendly models.
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Forensic and investigation services
We provide investigative accounting and litigation support services for commercial, matrimonial, criminal, business valuation and insurance disputes.
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Independent business review
Is your business viable? Will it remain viable in the future? A thorough independent business review can help your organisation answer these fundamental questions.
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IT forensics
Effective ESI analysis is integral to the success of your business. Our IT forensics experts have the technical expertise to identify, preserve and interrogate electronic data.
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Mergers and acquisitions
Grant Thornton provides strategic and execution support for mergers, acquisitions, sales and fundraising.
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Raising finance
Raising finance - funders value partners who can deliver a robust financial model, a sound business strategy and rigorous planning. We can guide you through the challenges that these transactions can pose and help you build a foundation for long term success once the deal is done.
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Relationship property services
Grant Thornton offers high quality independent advice on the many financial issues associated with relationship property from considering an individual financial issue to all aspects of a complex settlement.
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Restructuring and turnaround
Grant Thornton’s restructuring and turnaround service capabilities include cash flow, liquidity management and forecasting; crisis and interim management; financial advisory services to companies and parties in transition and distress
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Transaction advisory
Our depth of market knowledge will steer you through the transaction process. Grant Thornton’s dynamic teams offer range of financial, commercial and operational expertise.
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Virtual asset advisory
Helping you navigate the world of virtual currencies and decentralised financial systems.
Does your tax bill get the same attention as your cost of sales or salaries and wages? Tax rates might be fixed but the rules and the risks aren't.
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Corporate tax
Grant Thornton can identify tax issues, risks and opportunities in your organisation and implement strategies to improve your bottom line.
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Employment tax
Grant Thornton’s advisers can help you with PAYE (payroll tax), Kiwisaver, fringe benefits tax (FBT), student loans, global mobility services, international tax
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Global mobility services
Our team can help expatriates and their employers deal with tax and employment matters both in New Zealand and overseas. With the correct planning advice, employee allowances and benefits may be structured to avoid double taxation and achieve tax savings.
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GST
GST has the potential to become a minefield and can be expensive when it goes wrong. Our technical knowledge can help you minimise the negative impact of GST
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International tax
International tax rules are undergoing their biggest change in a generation. Tax authorities around the world are increasingly vigilant, especially when it comes to global operations.
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Research and Development
R&D tax incentives are often underused and misunderstood – is your business maximising opportunities for making claims?
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Tax compliance
Our advisers help clients manage the critical issue of compliance across accountancy regulations, corporation law and tax. We also offer business and wealth advisory services, which means we can provide a seamless and tax-effective offering to our clients.
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Tax governance
Mitigate tax risks and implement best practice governance that will stand up to IRD scrutiny and audits.
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Transfer pricing
Tax authorities are demanding transparency in international arrangements. We businesses comply with regulations and use transfer pricing as a strategic planning tool.
Our experts have extensive experience in audit and assurance and produce outstanding work for leading New Zealand organisations in both the public and private...
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Audit methodology
Our five step audit methodology offers a high quality service wherever you are in the world and includes planning, risk assessment, testing internal controls, substantive testing, and concluding and reporting
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Audit technology
We apply our audit methodology with an integrated set of software tools known as the Voyager suite. Our technology has been developed to produce quality audits that are effective and efficient.
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Financial reporting advisory
Our financial reporting advisers have the expertise to help you deal with the constantly evolving regulatory environment.
Consulting is a multi-disciplinary team, delivering a range of expertise including internal audit, risk management, IT advisory, project assurance, and...
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Business architecture
Our business architects help businesses with disruptive conditions, business expansion and competitive challenges; the deployment of your strategy is critical to success.
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Cloud services
Leverage the cloud to keep your data safe, operate more efficiently, reduce costs and create a better experience for your employees and clients.
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Internal audit
Our internal audits deliver independent assurance over key controls within your riskiest processes, proving what works and what doesn’t and recommending improvements.
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IT advisory
Our hands on product experience, extensive functional knowledge and industry insights help clients solve complex IT and technology issues
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IT privacy and security
IT privacy and security should support your business strategy. Our pragmatic approach focuses on reducing cyber security risks specific to your organisation
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Payroll assurance
Our specialist payroll assurance team can conduct a review of your payroll system configuration and processes, and then help you and your team to implement any necessary recalculations.
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PCI DSS
Our information security specialists are approved Qualified Security Assessors (QSAs) that have been qualified by the PCI Security Standards Council to independently assess merchants and service providers.
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Process improvement
As your organisation grows in size and complexity, processes that were once enabling often become cumbersome and inefficient. To maintain growth, your business must remain flexible, agile and profitable
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Procurement/supply chain
Procurement and supply chain inputs will often dominate your balance sheet and constantly evolve for organisations to remain competitive and meet changing customer requirements
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Project assurance
Major programmes and projects expose you to significant financial and reputational risk throughout their life cycle. Don’t let these risks become a reality.
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Risk management
We understand that growing companies need to establish robust internal controls, and use information technology to effectively mitigate risk.
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Robotic process automation (RPA)
RPA is emerging as the most sophisticated form of automation used to help businesses become more agile and remain competitive in the face of today’s ongoing digital disruption.
If you're a Chinese investor wanting to explore business opportunities in New Zealand, or a Kiwi business keen to do business in China, our China Services team...
Helping aged care and retirement village operators deliver on their mission and purpose in an increasingly demanding environment.
Our unique offering to the financial services sector may be the catalyst you need to take your business forward, safely and prosperously.
The true measure of society is how it treats its most vulnerable people. Your success is vital to ensuring our country remains a fair and civil one.
Minimise your risk and cost while maximising your returns for the best chance of success in today’s market.
Our public sector team goes beyond expectations so you can too.
Technical guide
Cashflow forecasting: Your secret weapon in tough economic times
17 Mar 2022Reduced consumer spending. Finding talent. Rising interest rates. Inflation. Supply chain challenges. Exponentially increasing petrol prices. Escalating conflict in Europe. To say doing business is difficult in New Zealand (or anywhere) right now is an understatement.
It all paints a bleak economic outlook. These ever increasing head winds means it’s important you understand your businesses’ pressure points now more than ever; if cash is going to be tight, what you can do about it?
Strong cashflow management can mean the difference between survival and failure.
Cashflow is key – but don’t confuse it with profit.
Cashflow shouldn’t be confused with profit. Profit is the difference between income and expenses. This can include non-cash items such as depreciation, foreign exchange gains or losses, and amortisation of goodwill. Profit is frequently used as a measure of growth and performance in a business, but it won’t provide a clear picture of your company’s liquidity.
Cashflow, on the other hand, is the level of funds available to pay wages and bills – the lifeblood of the business. It comprehensively measures not only net cash received from business activities, it also includes debt repayments, asset sales and purchases, GST payments, and capital introduced from owners.
Forecasting your cashflow is crucial.
The timing of cash receipts and cash payments is vital. While a monthly forecast provides an overall estimate of the company’s cash requirements, it doesn’t take into account inter-month fluctuations which can be material, leaving you in the dark about if and when key commitments (such as wages) can be met in advance.
Preparing a detailed granular cashflow forecast is the best way to monitor these requirements and prepare for any unexpected financial issues on the horizon. It gives you the ability to assess your upcoming cashflows to survive periods when there may be a cash shortfall, and the business can’t pay its debts as they fall due.
A range of possible outcomes can be built into your forecast to cover all areas of uncertainty that may impact your business. These potential outcomes will help you identify the need for any additional finance requirements to cover a predicted shortfall and/or necessary changes in repayment obligations to try and negate deficits.
But wait there’s more…
- Cashflow forecasting also gives you the ability to assess your current practices by highlighting some ways to improve cashflow, including:
- Invoicing regularly and consistently
- Adding late payment charges, fees or interest for late payments
- Allowing instalment payments on larger debtors
- Consolidating loans to simplify repayment obligations
- Paying bills on their due date unless there are discounts offered for early payment
- Reviewing purchasing systems to reduce stock on hand
- Reviewing supplier terms and payment timeframes
- Holding a sale to move old stock
- Avoiding overestimating provisional taxes
- Reassessing sales prices and passing on any recent cost increases to the purchaser
- Avoiding big ticket purchases in the short term and leasing instead
- Expanding your customer base and increasing sales
A tool to help you get started
There will always be big economic factors beyond your control. The Resilience Wheel helps you manage five areas within your control: Contingency planning, people, stakeholder management, setting up a crisis management team, and of course, cash management.
Also contact:
Russell MooreNational Managing PartnerM: +64 21 618 435 E: russell.moore@nz.gt.com |
Stephen KeenSenior Manager, Financial Advisory ServicesM: +64 27 203 2374 E: stephen.keen@nz.gt.com |
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