myob business monitor, nz july 2009 (detailed chart deck)

Source: MYOB Business Monitor, NZ, July 2009 | Base: Total Sample (n= 1,439)

© 2009, MYOB NZ Limited, all rights reserved. Copyright strictly enforced

MYOB Business MonitorNew Zealand: July 2009

Detailed Chart DeckStatus: Embargoed 4am, 13 July 2009

About MYOB New Zealand

• MYOB develops and delivers award winning business solutions, service & support to over 150,000 NZ businesses & 2,200 accounting practices

• MYOB business solutions outsell any competitive solutions in NZ by a factor of 9 to 1

• MYOB solutions pay over 25% of New Zealand’s workforce

• More than 90% of tax returns are now e-filed using an MYOB product



• More than 90% of tax returns are now e-filed using an MYOB product each year (1.3m+)

• MYOB has a dedicated NZ 25 person development team supported by an additional 200+ R&D specialists in Australia and Malaysia

• MYOB invests more than NZD$30 million in R&D in NZ and Australia every year.

MYOB Business Monitor Method: Online Survey

Web Interviewing based methodology using Colmar Brunton’s on-line panel

Respondents for this study are:• Owners or key decision-makers of businesses• Broad cross section of NZ Businesses, from sole traders to mid-sized enterprises (up to 200

employees)• Businesses with estimated 2008 turnover of at least $40,000• All industry sectors were covered (except for Government)• Nationwide coverage



Total of 1439 respondents in the sample• Statistically representative data, weighted by business size, industry and location to reflect

Statistics NZ population figures.

Fieldwork datesMain sample: May - June, 2009

Expectation for Future Work

• All Business: 69% report the same or greater work pipeline in the next 3 months

• Consistent in all industries, sectors & regions• SMEs with 10+ FTE: 71% same or greater in next 3 months

8% 18% 45% 17% 7% 5%



Q25: “Please indicate how much work you have got on in the next 3 months compared to what you would usually expect.”

0% 20% 40% 60% 80% 100%

A lot less work A little less work About the same amount of work

A little more work A lot more work Don't know

Supporting Business

• Business tax deductions more favoured by employers• Personal tax reduction more favoured by sole traders• GST reduction favoured by Retail, Agriculture / Manufacturing & Hospitality & CHC

business28%

23%

22%

4%

Personal Tax Reductions

Additional Business Tax Deductions

GST Rate Reduction

Government Infrastructure Investment



Q20. “In your opinion, which ONE of the following would make the single biggest difference to supporting your business in the next 12 months?”

2%

2%

0%

4%

14%

0% 20% 40% 60% 80% 100%

Increased Research and Development Funding

Business Start Up Tax Breaks Or Funding (not available

for established businesses)

9-Day Working Fortnight

Something Else

None of them would make any difference

Economic Outlook

• Just over half of businesses surveyed expect recovery to be more than 12 months away.

Within the next 3

months, 3%3 - 6 months, 8%

6 - 12 months, 26%

18 - 24 months, 18%

In more than 2 years,

7%

Don’t' Know, 6%



Q1. “When do you believe New Zealand’s economy will start to improve from its present position?”

6 - 12 months, 26%

12 - 18 months, 32%

Change in Business Revenue

• While 35% of businesses report revenue is down, 60% report revenues are the same or up on 2008 levels.

Revenue up, 22%

Revenue down, 35%

Don't know, 4%



Revenue about the

same, 38%

Q4a. “At the present time, is your business revenue (or gross turnover or sales) up or down on a year ago, or about the same?”

Change in Business Revenue

• 86% of businesses with revenue growth have seen gains over 10%, almost a third have increased over 30%

Revenue up, 22%

Revenue down, 35%

Don't know, 4%

15%

7%

13%

3%3%1%1%

23%

6%

4%

8%

4%

7%

REVENUE DOWN REVENUE UP100% or More

60-69%

30-39%

50-59%

40-49%

20-29%

30-39%40-49%

50-59%60-69%100% or More70-79%

80-89%



Revenue about the

same, 38%

Q4a. “At the present time, is your business revenue (or gross turnover or sales) up or down on a year ago, or about the same? “

Q4b. “Please indicate how much your business revenue (or gross turnover or sales) is up or down on a year ago?“

5%

24%

27%

14%

34%

20-29%

10-19%

0-9%0-9%

10-19%

Change in Future Business Revenue

• 76% of businesses expect future revenues to be the same or greater (34%) in the coming year

Revenue up, 34%Revenue down, 16%

Don't know, 8%



Q5. “And how do you expect your business revenue (or gross turnover or sales) in 12 months time to compare with your business revenue at the present time?”

Revenue about the

same, 42%

Tracking of Cashflow

• Concerning - 44% of business report no or inadequate cashflowmanagement

33%

25%

13%

I refer to my bank

statement

I use my computerised

accounting system

I don't track cash flow as

well as I should



Q6. “How do you track cashflow in your business?”

13%

8%

2%

7%

0% 20% 40% 60% 80% 100%

My accountant monitors it

for me

I rely on my monthly profit

& loss statement

My contract bookkeeper

monitors it for me

Other

Change in Business Profitability

• 60% of businesses have maintained or improved their profitability compared with last year.

9% 27% 33% 20% 7% 4%



Q7. “At the present time, has your business profitability deteriorated or improved compared with a year ago, or has it remained about the same?”

0% 20% 40% 60% 80% 100%

Deteriorated a lot Deteriorated a little bit Profitability has remained the same

Improved a little bit Improved a lot Don't know

Change in Future Business Profitability

• Only 16% of businesses expect profits to fall in the coming year, 78% expect profitability to remain the same or improve

2% 14% 37% 31% 10% 5%



Q8. “And do you expect your business profitability to have deteriorated or improved in 12 months time, or to remain about the same?”

0% 20% 40% 60% 80% 100%

Deteriorated a lot Deteriorated a little bit Profitability has remained the same

Improved a little bit Improved a lot Don't know

Payment Terms

• Almost half of all businesses offer 30 day credit terms

17%

15%

12%

49%

0 days - No credit provided

7 days

14/15 days

30 days/1 month



Q9. “What are your normal payment terms?“

49%

1%

1%

1%

4%

0% 20% 40% 60% 80% 100%

30 days/1 month

45 days

60 days

More than 60 days

Dont know

Length of Time for Payment

• 72% of payments are made within 30 days

16%

10%

16%

30%

0 Days - No credit provided

1 to 6 days

7 to 14 days

15 to 30 days



Q10. “On average, how long is it currently taking your customers or clients to pay you for your goods or services supplied for the work you have done?”

30%

18%

5%

2%

3%

0% 20% 40% 60% 80% 100%

15 to 30 days

31 to 45 days

46 to 60 days

More than 60 days

Don't Know

Change in Payment Terms

• Less than a quarter of businesses reported an increase in the time it is taking to get paid by customers.

3% 20% 68% 2%1% 6%



Q11. “Compared with 6 months ago, is it taking more time to get paid by your customers or clients, less time to get paid, or is it taking about the same amount of time?”

0% 20% 40% 60% 80% 100%

Taking a lot more time Taking a little more time Taking about the same time

Taking a little less time Taking a lot less time Don't know

Application for Finance

• The vast majority of NZ businesses are not seeking finance.

Yes, 19%



Q22. “Have you applied for finance from a bank or other source in the last 6 months?”

No, 81%

Type of Finance Institution Applied To

• High Street Banks receive the bulk of financing requests

15%

1%

Local high street bank

International investment

bank



Q23. “And what sort of financial institution did you apply to for funding?”

3%

0%

1%

0% 20% 40% 60% 80% 100%

Non-bank finance company

Capital raising financial

instrument

Other

Finance Application Status

• 74% of finance applications are approved without modification

14%

2%

Application approved

without modification

Application approved with

modification



Q24. “Which of the following statements best describes what happened to your application for finance?”

1%

1%

1%

0% 20% 40% 60% 80% 100%

Application approved for a

lesser amount

Application was denied

Application is still under

consideration

Expectation for Future Work

• 69% of businesses surveyed report the work they have planned in the next quarter is the same or more than usual

8% 18% 45% 17% 7% 5%



Q25. “Please indicate how much work you have got on in the next 3 months compared to what you would usually expect.”

0% 20% 40% 60% 80% 100%

A lot less work A little less work About the same amount of work

A little more work A lot more work Don't know

Business Issues

• Only 14 % of businesses have reduced staffing levels. 23% of businesses have increased their activity in new markets

14%

14%

6%

16%

83%

73%

73%

74%

3%

13%

21%

10%

Staff Numbers

Sales or Promotions

Variety of Products and

Services Offtered

Research and Development

Spending



Q26. “With regards to your company/business, how do you think each of the following have changed in the last 6 months?”

16%

19%

16%

12%

74%

69%

61%

80%

10%

13%

23%

7%

0% 20% 40% 60% 80% 100%

Spending

Marketing and Advertising

Spending

Activity in New Markets

Staff Training

Decreased Stayed the same Increased

Business Pressures

• Cashflow and Fuel Prices cause most businesses pressure (60%+)

5%

4%

4%

18%

21%

15%

17%

36%

35%

32%

34%

19%

19%

19%

18%

14%

11%

14%

13%

8%

9%

15%

13%

6%Cashflow

Fuel prices

Competitive activity

Price margins & profitability



Q15. “Whatever level of confidence you have about your business prospects now and in the next 12 months, please rate each of the following on how much pressure they will put on your business in the next 12 months.”

3%

3%

10%

11%

24%

29%

15%

19%

21%

20%

27%

19%

0% 20% 40% 60% 80% 100%

Business

Finance/Funding/Overdraft

Interest rates

Extreme pressure Quite a lot of pressure Some pressure

Hardly any pressure No pressure Dont know/Not relevant to me

Business Pressures

• Half of all businesses report experiencing pressure through increasing business costs

3%

2%

11%

13%

12%

30%

19%

31%

21%

11%

15%

19%

19%

16%

17%

34%

23%

3%Timing of customer

payments

Exchange rates

Business sales/projects: by

value




2%

2%

12%

13%

36%

32%

18%

15%

16%

15%

16%

22%

0% 20% 40% 60% 80% 100%

Other (than staff) business

costs

Business sales/projects: by

volume



Business Pressures

• Marketing & customer relationships remain an important focus

1%

1%

14%

4%

6%

29%

23%

17%

18%

25%

13%

16%

26%

18%

21%

21%

45%

2%Industry/category

performance

Current business systems

(eg IT,accounting,website)

Number & cost of staff




1% 10%

4%

32%

17%

20%

17%

19%

22%

18%

40%

0% 20% 40% 60% 80% 100%

Marketing & customer

relationships

Staff skills & training



Information/Advice on Tax and Compliance Issues

• Accountants are the KEY source of advise on tax matters

80%

34%

11%

8%

7%

Accountant

IRD (Inland Revenue Department)

Online (compliance/tax information) sources

Business Associates

Bank



Q17. “Who do you ask for information or advice on tax and compliance issues?”

2%

2%

1%

1%

2%

4%

0% 20% 40% 60% 80% 100%

New Zealand Trade and Enterprise

Other Government department

Software Provider

Chamber of Commerce

Other

I don't ask for info on tax & compliance issues

Information/Advice on Improving Business Performance

• Accountants & Business Associates provide most general business advice

34%

27%

11%

7%

5%

Accountant

Business Associates

Online (business information)

Bank

New Zealand Trade and Enterprise



Q18. “And who do you ask for information about improving business performance?”

2%

2%

1%

1%

5%

40%

0% 20% 40% 60% 80% 100%

IRD (Inland Revenue Department)

Chamber of Commerce

Other Government department

Software Provider

Other

I do not ask for this kind of advice

Most Help to Work Smarter in the Next 12 Months

• A focus on smarter financial management and better procurement is top of mind for a third of all businesses.

33%

33%

25%

Improved bookkeeping and

accounting systems

Improved supplier

relationships and pricing

Improved website and e-

commerce facilities



Q19. “Based on the way you do business today, which of any the following would most help you work smarter in your business in the next 12 months?”

22%

21%

20%

12%

0% 20% 40% 60% 80% 100%

Improved banking and

business finance facilities

Improved business

information facilities

Improved staff skills &

performance

Something else

Supporting Business

• Tax breaks/reductions remain perennially popular with more than 20% of businesses

28%

23%

22%

4%

2%

Personal Tax Reductions

Additional Business Tax Deductions

GST Rate Reduction

Government Infrastructure Investment




Q20. “In your opinion, which ONE of the following would make the single biggest difference to supporting your business in the next 12 months?”

2%

2%

0%

4%

14%

0% 20% 40% 60% 80% 100%


Business Start Up Tax Breaks Or Funding (not available

for established businesses)

9-Day Working Fortnight

Something Else

None of them would make any difference



MYOB Business MonitorNew Zealand: July 2009

For further information please contact:

Julian SmithGeneral Manager

MYOB New [email protected]

Tel: +64 9 925 3514Mob: +64 21 773344

myob business monitor, nz july 2009 (detailed chart deck)

Documents

myob nz limited

myob business monitor

future business revenue

myob solutions

myob new zealand myob

business size

malaysia myob

myob product