Tag Archive for: Savage & Savage Chartered Accountants

Foxy Boxy

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As we get very close to Christmas and the annual struggle to find the perfect gifts for people we care about, there are lots of local options, be it wine or gourmet treats to enjoy over a few days I think a food and beverage gift is a lot better than a trinket that will never be used.

If you’re not sure what to buy the local gift box business Foxy Boxy is here to help. Last week I caught up with owners Melissa and Charlie Evans to find out just what they can do to help you find the perfect gift for everyone this Christmas that showcases local Nelson products.

As Charlie says “we cater to a wide range of gift givers, from businesses who want to give something to staff or clients as well as individuals looking for something special”, but a big part of their business right now is people sending gifts to family and friends in Auckland. “With Covid and families not being able to visit one another people are sending lots of gifts, people want to stay connected so there’s lots of ‘keep your chin up’ type messages.”

Charlie and Melissa met in Auckland and, as all young Kiwis do, headed off to explore the world, travel and have adventures overseas. While living in Canada, Melissa was looking for something to send to her mother in New Zealand, “I wanted to buy a gift for my mum that was just a wee bit special with something that was a real treat for her but I couldn’t find a gift box suitable for her at the quality I wanted.”

This is how the idea for Foxy Boxy was born. “Because I couldn’t find anything that ticked the quality and presentation boxes, we saw an exciting business opportunity which we could do really well when we returned to New Zealand. With our backgrounds in graphic design, e-commerce and marketing, we knew we had the skillset to create an awesome business.”

When they set up Foxy Boxy they knew that to be successful in a competitive gift-giving market they had to focus on three key things; firstly the quality of the product had to be excellent, without compromise. Secondly the design of the products and gift packaging had to be both enticing and scream quality and finally their service had to be exceptional.

Melissa says it’s important to have premium products that also looked stunning when the box was opened. “The look of every product is important and how it’s presented it is vital. ”

Melissa told me one part of their success is that they are really fast on delivering gifts, “We use our courier partner’s express overnight service which enables our gifts to be delivered as fast as possible throughout NZ, this is really important.”

Hogarth’s Chocolate is just one of the many tasty treats packed into some of the gift boxes on offer.

Many of their gift box options have local products as well as premium products from other regions. “We test all our products and we only select products that wow us. If they don’t wow us they won’t wow the gift recipient and we want people to be really excited when they receive the gift.

“A lot of thought goes into preparing the gifts, we think of it as a curated gift box rather than filling a box with void-fill (tissue paper) with some stuff from the supermarket, our boxes are full of product. We don’t use any box fillers and have between three & twelve products in each box. When people receive it they keep finding more the deeper they dig. We make sure it’s a fun experience for people.”

“A lot of our customers in Auckland love the fact we stock premium South Island products. Many of them have visited the Nelson region so it’s also a reminder of places they have enjoyed visiting. We are perfectly positioned in Nelson to be able to source fantastic products that can be delivered to us quickly by our suppliers and for us to ship around the country.”

McCashin’s Single Malt Whisky

Melissa and Charlie think their suppliers are the best in New Zealand and they work with a range of fantastic local suppliers like Hogarth’s Chocolate, Eddyline Brewery, Yum Granola, Dancing Sands Gin and Living Light Candles. (check the suppliers page on their website).

One really important local product for Foxy Boxy is a Royce McGlashen mug with a heart on the side, “they make it exclusively for us and we sell heaps of them” says Charlie. “Royce loves working with people who want something special and it’s always a pleasure to go and see them.”

Some of their most popular gift boxes are the wine and nibbles gift and the gin tasting gift box but they also create a range of special seasonal boxes. Melissa told me “Our Christmas Eve gift boxes are really popular. They are designed to open on Christmas Eve rather than Christmas Day, if you have a family of kids this is the anticipation gift for them.”

Last year people in Dubai bought them as gifts for family in New Zealand and asked us to make sure we have them this year because they are one of the best things they bought.”

The youngest members of the Foxy Boxy team are Melissa and Charlie’s 2 kids, Sophia (12) and Nicky (9). “We love getting the kids involved and teaching them about running a business. Box folding and ribbon cutting make a great holiday job, but their favourite part is definitely taste testing our delicious products”.

To find out more and give the perfect gift as a thank you, get well or celebration check out www.foxyboxy.nz

Published in the Nelson Mail 03-11-2021

Warren Buffett Says You Should Practice the 4 Habits That Separate the Best From the Rest

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Lessons from the Oracle of Omaha that will yield good returns.

BY MARCEL SCHWANTES@MARCELSCHWANTES

Warren Buffett, the chairman and CEO of Berkshire Hathaway, turns 91 in August. Remarkably, at an age where most people’s cognitive functions have entirely regressed, where many are now at the hands of caretakers, Buffett still captures the world’s attention as the fifth richest person on the planet.

The greatest investor of this generation has amassed a following of millions who’ve learned, like Buffett, that long-term success is achieved by making smart decisions — in investing and in life.

Here are four Buffett lessons that will yield good returns when you choose to act on them.

  1. Master the practice of “boundaries”

With all the demands on him every day, Buffett learned a long time ago that the greatest commodity of all is time. He simply mastered the art and practice of setting boundaries for himself. That’s why this Buffett quote remains a powerful life lesson. The mega-mogul said:

The difference between successful people and really successful people is that really successful people say no to almost everything.

Buffett’s advice is a bull’s-eye to our conscience. We have to know what to shoot for to simplify our lives. It means saying no over and over again to the unimportant things flying in our direction every day and remaining focused on saying yes to the few things that truly matter.

  1. Invest in your personal development

What assets should you be investing in the most? In a 2019 interview, Buffett said: “By far the best investment you can make is in yourself.”

As Buffett has repeatedly taught us, it means to never stop acquiring knowledge — the kind of knowledge that betters yourself as a whole person, not just as an investor.

Buffett’s lifelong pursuit of learning, which he shares with his longtime Berkshire Hathaway partner and colleague Charlie Munger, is the secret sauce of his success.

  1. Model the leadership behaviors of the best managers

In Buffett’s 2015 letter to shareholders of Berkshire Hathaway, he summarized how one arrives at leadership greatness in a few words:

Much of what you become in life depends on whom you choose to admire and copy.

The quote was in reference to Tom Murphy, who taught Buffett everything he learned about managing a company. Murphy, who was Buffett’s biggest admirer, gave plenty of lessons on the best management practices that Buffett has adapted for his own companies, including:

  • Give autonomy to workers.
  • Delegate your authority effectively and wisely.
  • Hire for integrity.
  1. Build a positive reputation

Buffett’s reputation is founded on his principled and level-headed approach to his personal and professional life. When it comes to building a good reputation, these are some things worth prioritizing:

  • Establishing trust, transparency, and fairness
  • Offering good value and high-quality products and services
  • Treating people with dignity and respect
  • Communicating clearly and promptly
  • Providing a service to the community

You should treat your business practice as a reflection of yourself, and that means being thoughtful and considerate of how your decisions affect others. If you embrace professional opportunities as a chance to add value to your community, your reputation will reflect your own personal growth.

Inc. helps entrepreneurs change the world. Get the advice you need to start, grow, and lead your business today. Subscribe here for unlimited access.

Salvito’s Pizza Bar

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When John Esposito opened a pizza bar named after his two sons (Salvi and Vito) he was determined to bring authentic Italian flavours that reflect his family’s heritage and he has done exactly that with spectacular success. The pizzas at Salvito’s are wonderful.

The Esposito name will be familiar to many Nelsonians, the family is part of the ‘Little Italy’ group of immigrants who established market gardens on The Wood four generations ago and who made the successful transition to living life in New Zealand with shear hard work. It’s fair to say the strong work ethic has rubbed off on the latest generation of Esposito’s, even if they no longer grow tomatoes in The Wood.

I have known John for more years than I care to remember and have watched the various businesses he established and owned flourish, businesses that have brought a touch of Italy to Nelson. He was one of the original investors who set up Mediterranean Foods in the region some 20 year ago, starting with a store on Halifax St before expanding into supplying Mediterranean food products to cafes and restaurants across the top of the South Island.

After selling the retail shop (now Prego and Comida) he and his business partner focused on growing the wholesale and distribution side before he eventually sold his shares to focus on his involvement in the tourism industry in Christchurch. We all know that when Covid hit last year, tourism was significantly affected across the whole country and as John says “we had to do something else to make a living – and fast.”

However this isn’t his first stint making pizzas, he was instrumental in establishing a wood fired pizza oven at the Italian Club in lower Trafalgar St and cooked up traditional food for their Friday night pizza nights where he worked as a volunteer for a loyal following of locals for some 12 years.

With his background in Mediterranean foods, his Italian heritage and pizza making experience it’s no wonder he and his sons have got the perfect recipe for tasty food at Salvito’s.

And it’s the food that people keep going back for. As testament to what people think of the pizza’s at Salvito’s just look at the five-star reviews they have on Google, Trip Advisor and Facebook – a perfect five-star record across all three platforms. “We don’t take these wonderful reviews for granted and do everything we can to maintain this standard” says John.

I wanted to know why the food is so good, “it starts with the very best ingredients we can source and then we take time to use traditional methods to make the pizzas.

“For example, we use Italian Caputto 00 flour from Naples and it takes a two-day slow rise to get the dough ready for baking. It has a 60% water hydration, and proves for 24 hours before we shape it into balls, and prove again for another 24 hours before its ready. It’s been a steep learning curve because water content, yeast, humidity, and oven temperature all play a part and we want to make it perfect, every time.

“We are committed to our food being authentic, introducing recipes and flavours we grew up with and are based on traditions that came from Italy 100 years ago. The flavours we have today might not be so common in modern Italy for example, but more based on our family heritage from those early immigrants.”

Lisa Molnar, (John’s cousin who helped a lot in the establishment) says it’s the simple things that last the test of time, for example “the pork sausage we make is made the same way our great grandfather would have made it and begins with a whole shoulder of pork that is hand cut on the premises, then ground, and mixed with spices. Some of the ingredients you can get on the banks of the Maitai River like our grandparents did, we aren’t allowed to do that now because of food regulations but the essence of using traditional ingredients is paramount.

“The flavour is the same as it was when being cooked when we were kids, we had tomato gardens and tomatoes were always being cooked and bottled. Like then, we add extra virgin olive oil to give our tomato real sauce depth, then garlic, basil and traditional seasoning.”

John says “the focus is on sourcing the very best ingredients including, oils, tomatoes, and specialty products. Lisa helped us experiment with various combinations to match the flavours of toppings for each different pizza, then add specially chosen cheeses to match.

“Our importer brought a mountain of ingredients to Nelson specifically to trial and we spent four days playing with old familiar flavours. Things like Truffle paste, Nduja paste, Gorgonzola and Taleggio cheeses, Friarelli, and Mortadella; it was amazing.

“We even grate our own parmesan cheese; we buy Italian Parmesan wedges that have been cut from a wheel and grate it ourselves rather than buying a standard pre-grated product that you might find in the supermarket. These touches make a real difference to flavour.”

And working with his two sons Salvi and Vito on this project has been the silver lining for John. “it’s like the fun and adventures we had when the kids were young have just continued on, morphing into a new and exciting era that we are enjoying together. But it can stretch them too and that’s a good thing. My job is to expose them to new challenges and pressure within the business, raising the bar gradually so they can more readily take on things that life throws at them. It’s a wonderful family experience for all of us.”

For me, the pizzas at Salvito’s Pizza Bar are the best in town, totally authentic flavours of Italy but made right here in Nelson.

Published in the Nelson Mail 05.05.2021

Xero and Multi-factor Authentication

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Xero is making Multi-factor authentication (MFA) mandatory for New Zealand customers in 2021

As more people around the world embrace digital technologies, the number of cyber-attacks continues to increase. One of the most common types of cybercrime is phishing, designed to access your online accounts and steal your personal and business information. Xero are custodians of your data and take that responsibility very seriously. To continue to keep your Xero account secure, Xero are making Multi-Factor Authentication (MFA) mandatory for all Xero customers globally in the year ahead.

What is MFA?

MFA is a log in verification process that goes beyond typing in your username and password. It gives you access to your account using something you know (your username and password) and something you have (your mobile device or computer). Think of it like putting an additional bolt on the door. It’s a small but important thing that significantly reduces the risk of unauthorised access to your account, because it’s much harder to steal something you know and something you have. In fact, research shows that MFA can prevent up to 80% of data breaches. The beauty of using your phone as an authentication method is that it’s always with you, which means you can still access your Xero account anywhere, at any time.

How do I use MFA?

To give you fast, easy, and secure access to your Xero account using MFA, Xero have created their own authenticator app called Xero Verify. Xero Verify is now available free of charge in the Apple and Google app stores. It only takes a few minutes to set up and sends a push notification to your phone when you log in, so you can just tap and go.

Where can I find more information?

For more information about the Xero Verify app you check out the details here:

https://apps.apple.com/app/id1510862201

https://play.google.com/store/apps/details?id=com.xero.authenticator&hl=en_NZ&gl=US

For more information about MFA click here:

https://central.xero.com/s/article/Multi-factor-authentication-explained

Personal Tax Rate increase

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From the 1st April the top tax rate is set to increase from 33% to 39%.

If you have a company that pays dividends you should do this before the end of March so it can still be taxed at 33%

Talk to us urgently for tax advice around this and other matters relating to your personal tax situation if you are likely to be impacted by the increased tax rate.

Planning to pay the correct tax is important for many reasons, but especially for your business’ cashflow, no one likes the surprise of a tax bill at short notice. We do our very best to ensure clients stay on top of their upcoming tax payment obligations but talk to us if you have any queries.

Minimum Wage Increases on 1st April

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As previously announced by the government the adult minimum wage will increase, from $18.90 to $20.00 per hour on 1 April 2021.

The starting-out and training minimum wage rates will also increase on 1 April 2021, from $15.12 to $16.00 per hour.

As an employer, you need to ensure your payroll systems and processes are updated.

COVID-19 Short-Term Absence Payment now available

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Following the latest Covid-19 outbreak in Auckland, and the Government’s rapid response, today we received the following information from IRD about this wage subsidy.

On 8 February 2020 the Government announced a new COVID-19 Short-Term Absence Payment (STAP) to support employers and self-employed workers.

The STAP is available from 9 February 2020, through Work and Income, to employers for employees, and self-employed workers, who:
• need to miss work to stay at home while waiting on a COVID-19 test result, and
• cannot work from home.

The STAP is a one-off payment of $350.

GST is not payable on the STAP.

For self-employed workers the STAP is considered income, so must be included on their Individual income tax return – IR3.

For employers, any amount passed on to the employee is “excluded income”, so is not included as income or claimable as a deduction on their income tax return. The employee pays tax on the amount they receive. Any excess amount not passed on to an employee is taxable and must be included on the employer’s income tax return.

The STAP is paid on top of an employee’s normal salary or wage for the pay period it is received in, with PAYE and their other normal deductions (such as student loans and KiwiSaver) being made from the total payment.

For more information visit:
Beehive.govt.nz – New COVID-19 Payment Supports Businesses
Work and Income – COVID-19 Short-Term Absence Payment
IRD.govt.nz – COVID-19 financial support for businesses

A great source of business news

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If you’re looking for information about about law changes, setting up a business, places to get help and so much more then you should check out www.business.govt.nz/news

This is a government run site that highlights all the information business owners need.

We recommend subscribing to the regular e-newsletter.

Residential Tenancies Amendments Act 2020

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If you own a residential rental property you should be aware of the significant changes enacted last year, but here is a summary of the major changes and dates.

NOTE: – These are different to the Healthy Homes requirements that are covered under different legislation

Landlords and tenants need to understand the recent changes to tenancy law and how this will affect them.

All landlords, including boarding house landlords, must comply with various legal obligations as governed by the Residential Tenancies Act (the Act). Starting from August 2020, parts of the Act are being changed by the Residential Tenancies Amendment Bill.

The changes are taking effect at three key dates:

Phase 1: 12 August 2020

Phase 2: 11 February 2021

Phase 3: By 11 August 2021

Phase 1: Law changes take effect 12 August 2020

Transitional and emergency housing exempt from the Act

From 12 August 2020, transitional and emergency housing will be exempt from the Residential Tenancies Act where the housing is:

  • funded (wholly or partly) by a government department, or
  • provided under the Special Needs Grants

This exemption is applicable for all people (new and existing clients) in transitional and emergency housing that meets the criteria above.

Providers of transitional and emergency housing will still be able to opt into parts of the RTA if they wish, by agreeing in writing with the client which parts will apply.

Rent can only be increased every 12 months

From 12 August 2020, rent increases are limited to once every 12 months. This is a change from once every 180 days (six months). Any rent increase notices given to tenants from 12 August 2020 must comply with the new 12-month rule. If a notice was given before 12 August 2020, it is still within the 180-day rule.

Phase 2: Law changes take effect 11 February 2021

Changes to multiple parts of tenancy law

From 11 February 2021, multiple changes to tenancy legislation will take effect. More details will be available closer to the time. The changes will cover:

Security of rental tenure

Landlords will not be able to end a periodic tenancy without cause by providing 90 days’ notice. New termination grounds will be available to landlords under a periodic tenancy and the required notice periods will change.

Changes for fixed-term tenancies

All fixed-term tenancy agreements will convert to periodic tenancies at the end of the fixed term unless the parties agree otherwise, the tenant gives a 28-day notice, or the landlord gives notice in accordance with the termination grounds for periodic tenancies.

Making minor changes

Tenants can ask to make changes to the property

and landlords must not decline if the change is minor. Landlords must respond to a tenant’s request to make a change within 21 days.

Prohibitions on rental bidding

Rental properties cannot be advertised without a rental price listed, and landlords cannot invite or encourage tenants to bid on the rental (pay more than the advertised rent amount).

Fibre broadband

Tenants can request to install fibre broadband, and landlords must agree if it can be installed at no cost to them, unless specific exemptions apply.

Privacy and access to justice

A suppression order can remove names and identifying details from published Tenancy Tribunal decisions if a party who has applied for a suppression order is wholly or substantially successful, or if this is in the interests of the parties and the public interest.

Assignment of tenancies

All requests to assign a tenancy must be considered. Landlords cannot decline unreasonably. If a residential tenancy agreement prohibits assignment, it is of no effect.

Landlord records

Not providing a tenancy agreement in writing will be an unlawful act and landlords will need to retain and provide new types of information.

Enforcement measures being strengthened The Regulator (the Ministry of Business, Innovation and Employment) will have new measures to take action against parties who are not meeting their obligations.

Changes to Tenancy Tribunal jurisdiction

The Tenancy Tribunal can hear cases and make awards up to $100,000. This is a change from $50,000.

Phase 3: Law changes take effect by 11 August 2021

Tenancies can be terminated if family violence or landlord assault has occurred

The below provisions must come into effect by 11 August 2021, but may come in earlier if the Government agrees (using an Order in Council):

Family violence: tenants experiencing family violence will be able to terminate a tenancy without financial penalty.

Physical assault: a landlord will be able to issue a 14-day notice to terminate the tenancy if the tenant has assaulted the landlord, the owner, a member of their family, or the landlord’s agent, and the Police have laid a charge against the tenant in respect of the assault.

More information

Reform of the Residential Tenancies Act 1986 (Ministry of Housing and Urban Development) Residential Tenancies Amendment Act 2020 (New Zealand Legislation website)

Tenancy.govt.nz (MBIE/Tenancy Services have developed a factsheet that summarises the changes) Source: tenancy.govt.nz/law-changes

Xero Starter Plan update

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Did you know Xero have recently made some big changes to their starter plan*?

No business is too small for this Xero Starter plan, whether you work alone or employ a whole team you can spend less time working in spreadsheets and more time working on projects.

What’s changed?

  • Unlimited bank reconciliations

Xero has removed the limit on bank reconciliations so you can keep a close eye on money coming in and going out

  • Send 20 invoices a month

Xero have increased the invoice limit to 20. That is roughly one invoice for each business day in a month

Xero’s Starter Plan has all the tools needed to keep track of your accounts no matter how small your business, including:

Online invoicing and quotes made easy

  • Send up to 20 personalised, professional invoices and quotes each month. Plus, set up automated invoice reminders and spend less time chasing payments.

Paying bills is painless

  • Enter five bills each month, see when upcoming payments are due, schedule payments and batch pay multiple suppliers in one go.

Simple bank reconciliation

  • Keep track of cash flow effortlessly with bank reconciliation in Xero. Save time on admin and get daily updates on your business.

Capture bills and receipts with Hubdoc

  • Automate manual bookkeeping tasks like entering bills and receipts. Hubdoc extracts key information from each bill or receipt so it’s ready to copy into Xero.

If you are thinking about making the move to Xero, give us a call or email and we will be happy to assist ?

Contact Ellie Harris for software support and training, she can tell you about all the options you have.

*Note that all other starter plan inclusions and limits remain the same.