Client Resources



1.  Small Business Cashflow scheme (SBCS)

The SBCS is for small businesses that have been impacted by COVID-19. The loans are intended to help businesses recover from the impacts of COVID-19.

If you would like to apply for the loan, please be aware of the changes that will be made by the end of March:

  • Base loan amount increased - The SBCS base loan will be increased to $20,000 (from $10,000). This means the amount that can be borrowed will be $20,000, plus $1,800 per FTE (up to 50 FTEs). The loan repayment period remains 5 years (60 months).
  • Interest-free period - The first 2 years of the loan will be interest-free, provided the loan is not in default. Interest will apply at a rate of 3% per year and will start accruing at the beginning of year 3.
  • New loans - New SBCS borrowers, and those that have already paid back their loan in full before 31 December 2023, can borrow up to the new maximum amount as a lump sum or in up to 4 installments before the end of the scheme. If you opt for the 4-installment option, each drawdown does not start a new interest-free period, it starts from the first installment.

To apply for the Small Business Cashflow loan, you need to meet the eligibility criteria which can be found at

2. Remittance of penalties and interest
Inland Revenue’s ability to remove (remit) penalties or interest, if your business is late paying tax because you’re adversely affected by COVID-19, has been extended. 

If you’re not able to pay your tax on time because of COVID-19, you can pay it off over time with an installment arrangement. This arrangement can be completed via MyIRD. 

3. Short term Absence Payment -
Available to employers, to payer workers who follow public health guidance and stay home while waiting for a covid-19 test result. Also to eligible self-employed. 
Workers must be unable to work from home and need to miss work while waiting for their test results.

$359 one of payment.

4. Leave Support Scheme -

Available to employers, including self-employed people, to help pay their employees who have been advised to self-isolate because of COVID-19 and can’t work at home during that period.

Paid Weekly
$600 a week for full-time workers who are working 20 hours or more a week
$359 a week for part-time.

For further details please refer to the following IRD Issued Information guidance Business Support Under the Covid Protection Framework 

Click on link to download. 43_Business_support_under_the_COVID_Protection_Framework.pdf



Please email our for business and sole trader support regarding challenges due to Covid-19. You may be facing or about to face financial hardship when looking forward due to the impact of  Covid-19 or from structural industry changes due to new Government Legislation or Ministry policy. 

We offer expert support on a tailored basis and have a set of small business financial consulting and planning services that build business owner and management capability and can be viewed by clicking here. 

XERO have an excellent set of free and helpful resources on their continuity hub for XERO users to assist businesses effected by Covid-19.  

Click Here The Access The Xero Hub Information. 



The completion of the following year-end checklist(s) will ensure we have the correct information to prepare your financial accounts and tax returns efficiently for Tax-Year ended 31 MARCH 2022.

i) We now have 3 checklists tailored to Trust and/or Rental Property Investment and/or Business.  Please print all checklists and answer the questions relevant to your specific financial affairs.

ii) Place your completed checklist(s) on the front / 1st page,  before hard copies of supporting documents. 

Following this process will enable our administration team to easily check & assist you should there be missing/incomplete information. Note you can add comments for your accountant or our admin team on the last page of any checklist. 

For any questions regarding the checklists,  please do not hesitate to contact Shelley Law via email or call our office number 09 294 6262. Please note you also have an option to scan and upload a completed digital version of the checklist(s) to Xero (Shelley can advise how to scan and upload via Xero File Manager).

To download click on the links below.

Trust Checklist 

Rental Property Investor Checklist 

Business Owner Checklist 

IRD Tax Calendar 2022/23 for payment due dates 

 All the key dates for when payments are due for all tax types business, trusts and personal. To download click on link below. 





1. Quick Guide - We have created a simple quick tips guide for reconciling Xero bank and credit card accounts. To download the guide click here.

2. Document Management - All MDA XERO Business subscribers have unique email addresses which can be used to;

A. Forward a supplier invoice email, that has an invoice PDF attached and XERO will automatically record the information as an invoice to be paid in your XERO organisation account. Xero will create a draft bill with a side by side view of your PDF bill and thus will be ready for bank reconciliation matching when you pay the invoice.
Clever, so just an approval check is required, as opposed to manually keying in invoice details.

B. Forward an email to your organisation XERO Inbox, with a document attachment for cloud storage and access in XERO. Useful for such things as working papers and scanned PDF documents  (from any device with access to cloud email) so that they are stored, can be sorted into folders and cloud accessible in XERO. 

A tip/trick is to add your unique email addresses as a contact (in Google contacts for example or to your contacts your email account uses) with simple descriptor names such as XERO Invoice to Pay and XERO Inbox so you don't need to look up the email address again (XERO email address is quite long as has unique organisation id info). 

We love the above features as a great step toward being as ‘paperless as possible’. This is a strategic goal of Martin Davidson as part of our digitalisation vision. 

You can find more info about forwarding emails and finding your XERO organisation email address by clicking here. Note you will need the standard or invoice only user role to view bills.

 3. Useful Xero DIY training links 

These DIY online handy resources will also help you get the most out of Xero.   You can search for anything you are having trouble with using the question mark button at the top right hand side of your Xero screen to assess helpful articles.

4. Business Snapshot gives you a view of your financial wellbeing 

5. Short Term Cashflow lets you see what your bank balance will look like in 7 or 30 days time.


Planning To Sell Your Business One Day? Do you have an exit strategy?


You will leave your business someday, hopefully before you die, so how do you make sure it’s on the best possible terms?

This ongoing whitepaper will be updated on a quarterly basis and act as 'food for thought' as you start to develop your own exit strategy.  We have developed this content with several leading business brokers and of course from our own experience from the school of ‘hard knocks’. The good news is, as an MDA client, with robust tax accounts and solid Xero based accounting systems, you are already well placed to build toward a favorable and optimal business exit.

In the near future many Baby Boomers will be looking to enjoy the tax-free sale fruits of many years of hard work. However, unless some critical steps are actioned readying the business for sale, it is likely your business may rot on the vine unsold. In the current Broker Market only 1/3 of businesses listed sales complete, 2/3 remain unsold , many eventually being wound up.

Before we discuss specifics, lets simply define exit strategy. An exit strategy is a plan for wrapping up your involvement in your business. For most people, that means readying the business for a change of owner. Executing a well-thought-out exit strategy will increase your sale price, while ensuring the business continues to thrive after you’ve left. 

The focus is very much on you as a vendor, and very importantly derisking the buyer. Small businesses are inherently risky, so if a vendor can mitigate as much risk as possible in the sales preparation process, all parties share in the rewards.  So the aim is to leave your business in the best possible shape for a new owner. That means it should be operating at peak profitability, the books should be ‘spick and span’, your IT systems are working as intended and key processes are documented so your target profile buyer can come in and run the place. Oh, and the business won’t need you anymore – no matter how important you once were.  You may need to learn to delegate to staff in the business sale readiness process, the higher the business value will be.

It can takes years to do all this, however with the right advice can be short tracked. That’s why it’s never too soon to start on your exit strategy.

# Topic One - Preparing Your Business For Sale – Tax Accounts and the  Role of an Information Memorandum

One of the key reasons business sales never complete is due to financial accounts or lack thereof.  Even if you agree a sale price, many businesses fall over in the due diligence phase with the buyers advisers looking for any and all ‘financial anomalies.  Smart buyers will ask to see at least two years’ worth of clean and dependable financial records. If there’s something you can do to improve profitability, do it as soon as possible. You want that upswing to show in your accounts as a sustainable trend rather than as a recent spike.

Tax Accounts can and should be used as a start point for business valuation. Filed accounts and returns, assessed by the IRD are a solid start point.

Typically during the sales process tax accounts are adjusted using an Information Memorandum (“IM”) will disclose certain key pieces of financial information. It will often tell you the total sales for the last couple of years, the gross profit, earning and the cash surplus. The key goal of an IM is to add back personal things that may not apply to the new owner.

For example, any interest expense is usually added back as the new owner may not have any bank debt. It makes no sense if a business for sale that has high debt shows low profitability due to high-interest costs, when a new owner may not need to borrow to run it.

Other things that are commonly added back can include salaries to working owners, personal vehicles, accounting fees that relate to other group entities, and some asset depreciation. Taking interest costs out of the profit and loss statement is almost always a correct adjustment to make.

The IM document is meant to be reflective of what someone can achieve if they buy the business – not to inflate things.

As we mentioned above small businesses are risky by nature and you may be surprised at the low earnings multiples being achieved in the NZ Market. Beware of brokers that tell you otherwise, unprofessional broker rogues are not different to real estate agents inflating ‘market values for houses to get the ‘exclusive’ listing and subsequently justifying it was the markets fault.

Based on our discussion with a leading business brokerage the below presents a broad guideline regarding how to assess indicative business value.  

  • Managed companies with maintainable earnings > $500k-$1.0m are achieve values at 3-6 times Earnings Before Interest Tax Depreciation (EBITDA) e.g. $500k EBITDA value range is $1.5m - $3.0m.
  • A business with full-time working owner with less than $300k is typically 1-3 times EBITDA.
  • Business > $1m < $5m earnings are sector valued with adjustments for risk. Multiples vary widely from 5 to 10 times earnings e.g. Farming V Hospitality V Technology V Construction.

It is important to note the above are indicative guidelines and several other factors will be considered such as market conditions, business lifecycle i.e. growth, stable or declining, regulatory and legal environment and changes, customer mix, contracts, and residual business risk and mitigating strategies.

# Topic Two - How to sell a business

 Business brokers we work alongside recommend you consider the following sage advice when thinking about or selling your business.

1. Profiling Your Likely Buyers

 There will be different priorities depending on who you're selling to. If it's family, take pains to make everything transparent and fair. You don’t want the transaction to cause tension or conflict between children. If you’re selling to staff, be prepared for staggered payments. They’ll probably start with a deposit and pay you the rest from business income. If you sell to the highest bidder, then get all your records in order as otherwise they won’t have any idea how you operate, or what sort of money you make.

 Some buyers, such as family or staff, won’t have the cash to buy you out straight away. You might have to keep an interest in the business and stay involved to protect your investment. If that’s the case, you’ll need to negotiate consulting fees. If you want a clean break, you’ll probably be better off selling on the open market.

 2. Articulate Your Value Proposition – Why Do Customers Buy Off You?

 Be very clear on your value proposition on how you add value to your life and why customers choose you time and time again.  Buyers need to be excited by your business, so come up with an elevator pitch that captures the essentials. Craft a story that explains why you got started, how you’ve grown, and what you’ve achieved. Paint a positive picture of the future, too, but keep it real. Incorporate stats and facts to support what you’re saying. We recommend you complete a Strengths Weaknesses Opportunities & Threats (SWOT).

 Remember potential buyers want the lowest risk and highest upside and will pay more if this story is told. They will also see things you don’t regarding opportunity. They may have better contacts than you for example or be able to invest more in updating technology.  Don’t be a know it all……. because you don’t know what you don’t know……by defintion. 

3.And it’s Time to Start to Sunset Your Ego Before Your Meet Potential Buyers

 Be humble in the sales process. No matter how emotionally involved you are with the business and the pride you have raising ‘your baby’ forget it and stand back. No one’s going to buy your business if it can’t survive without you. If you have staff, give them the training and authority they need to succeed. Scale back your involvement. Be less available to customers and clients. Delegate big decisions. Go into work less often.

 No one’s going to buy your business if it can’t survive without you. If you have staff, give them the training and authority they need to succeed. Scale back your involvement. Be less available to customers and clients. Delegate big decisions. Go into work less often.

Make sure ALL your digital assets reflect what you are telling your potential buyers and your digital story is consistent across all channels. All interested parties will review publicly available information.

If you have any questions or would like more information on readying your business for sale please contact Martin Thomas or Elyse Muirson who is currently developing a set of ‘side by side’ accounts package which will generate indicative business valuations.

In the next client newsletter (and subsequently made available in this section of the website) we will cover # Topic Three – Fine Tuning Your Business Machine. 


You can create a simple calendar view for your business and personal circumstances by using the IRDs tax due date calculator by clicking here.   If you need support creating your personal calendar please contact your personal Accountant on 09 294 6262.

To download the IRDs 2020/21 important dates full calendar or what you need to know claiming entertainment expenses go to the IRD download section below. 


Other useful online services links to complete many of your necessary business-related financial submissions and find helpful resources are below.

companies offICE

For Name Searches and Flied Information

Ministry of Economic Development
NZ SME Factsheet MBIE
Reserve Bank

Source for daily exchange rates and critical economic information 

Accident compensation corporation

Self-employed, a contractor or a non-PAYE shareholder-employee

Options for CoverPlusEXTRA  and Lowering Your  Annual ACC Levies 

Please discuss options with your financial advisor as there are further options for cover with Income Protection Insurance.

ACC Annual Report