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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.
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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.
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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.
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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.
Government move on compliance leaving many businesses exposed
Government moves to lower the costs of compliance for small to medium sized businesses come with a two edged sword. They remove the requirement for an estimated 98 per cent of New Zealand businesses to prepare general purpose financial statements, but they have left many businesses rudderless when navigating the financial oceans.
In a just released white paper, Tim Keenan, Partner and National Director, Privately Held Business at Grant Thornton New Zealand, said the intent of the law change is good, but it has the potential to leave many businesses not knowing exactly where they are financially.
“The naïve business owner only prepares accounts that the law requires. However, the astute operator prepares regular management accounts, cash flow statements and forecasts, which gives them a snapshot of where they are at and lets them plan for the future. Also, other stakeholders such as banks often require regular financial reports,” he said.
Keenan said that financial statements are more than a compliance issue; they’re one of the most critical tools available to ensuring financial performance supports the long-term survival and success of the business.
“The bottom line is that not preparing general purpose financial statements is likely to cost more in the long term than the medium and, short term savings resulting from not preparing them.
“For a small business, there are some perfectly acceptable accounting software packages that can be bought off the shelf or from the cloud. A small investment can pay big dividends in planning and understanding the day-to-day financials of the business,” he said.
The recent media coverage of construction companies getting into financial strife in the Christchurch rebuild market is an indication of a lack of financial understanding and planning among many of these owners, according to Keenan.
“Many of these companies could have averted the financial pressures that they are under by taking some simple steps that would have kept them away from the abyss. And as I have already said, the cost of preparing financial, income and cash flow statements, as well as a balance sheet, are small compared with the damage that can occur when a business gets into trouble and the knock on effect that can hurt owners, staff, customers and subcontractors.”
Keenan said that that there are four simple steps a business could take to ensure they have a clear understanding of their financial position and performance. These include preparing:
Financial statements
A starting point is the regular preparation of financial statements, which is a formal record of the financial activities of a business. These statements allow business owners to:
- see the role cash plays in every business decision
- understand whether the business is running at a profit or a loss
- calculate funds needed now and in the future to ensure short-term positive cash flow and medium to long-term growth.
For lending purposes, financial statements help owners to:
- judge their ability to repay loans
- assess whether lending is justified and, if so, how much and over what term
- decide whether to buy or lease assets, and if buying, whether to seek financing for them
- assess what collateral is available to secure a loan.
Income statement
The income statement summarises revenue and expenses. The bottom line of the income statement shows net income. Net income, in turn, shows whether the business is profitable or not – right now.
Balance sheet
The balance sheet is, literally, a snapshot in time. It lists the assets and liabilities of a business on a given date, comparing what the business owes against what it owns.
Like the income statement, however, the balance sheet is a powerful indicator of business health. As every business owner should know, cash is critical – and the balance sheet allows owners to calculate how many days of working capital they have available, which in turn measures the business’s ability to pay its bills during typical fluctuations in revenue.
Failure to understand this metric can lead even a profitable business to insolvency if it has a period of loss without a sufficient cash cushion. In the worst-case scenario, it can also lead to directors of the business facing litigation, based on demonstrable mismanagement.
As a general rule of thumb, a business should have at least 60 days of working capital. A strong balance sheet (business) will typically have 120 days or more.
Cash flow statement
If you think cash is king for a business, you’re right. And the power behind the throne is the cash flow statement.
This statement shows how much money has come into and gone out of the business over a given period, and how much will be kept on hand to cover emergencies. Keeping the statement current and valid forces the business to make sound predictions about future sales and purchases – and, as far as possible, meet or exceed the former while staying within the latter.
“Too often a business owner has no problem buying the latest ute or “toy” but will baulk at any form of investment in financial/accounting advice. That’s unfortunate, because a relatively small investment in regular financial advice could mean that they ensure their business is profitable and sustainable so they can keep their utes and toys in the future,” he said.
Further enquiries, please contact:
Tim Keenan
Partner & National Director, Privately Held Business
M +64 (0)21 670 323
E tim.keenan@nz.gt.com