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
Source: MYOB Business Monitor, NZ, July 2009 | Base: Total Sample (n= 1,439)
© 2009, MYOB NZ Limited, all rights reserved. Copyright strictly enforced
• 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
Source: MYOB Business Monitor, NZ, July 2009 | Base: Total Sample (n= 1,439)
© 2009, MYOB NZ Limited, all rights reserved. Copyright strictly enforced
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%
Source: MYOB Business Monitor, NZ, July 2009 | Base: Total Sample (n= 1,439)
© 2009, MYOB NZ Limited, all rights reserved. Copyright strictly enforced
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
Source: MYOB Business Monitor, NZ, July 2009 | Base: Total Sample (n= 1,439)
© 2009, MYOB NZ Limited, all rights reserved. Copyright strictly enforced
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%
Source: MYOB Business Monitor, NZ, July 2009 | Base: Total Sample (n= 1,439)
© 2009, MYOB NZ Limited, all rights reserved. Copyright strictly enforced
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%
Source: MYOB Business Monitor, NZ, July 2009 | Base: Total Sample (n= 1,439)
© 2009, MYOB NZ Limited, all rights reserved. Copyright strictly enforced
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%
Source: MYOB Business Monitor, NZ, July 2009 | Base: Total Sample (n= 1,439)
© 2009, MYOB NZ Limited, all rights reserved. Copyright strictly enforced
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%
Source: MYOB Business Monitor, NZ, July 2009 | Base: Total Sample (n= 1,439)
© 2009, MYOB NZ Limited, all rights reserved. Copyright strictly enforced
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
Source: MYOB Business Monitor, NZ, July 2009 | Base: Total Sample (n= 1,439)
© 2009, MYOB NZ Limited, all rights reserved. Copyright strictly enforced
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%
Source: MYOB Business Monitor, NZ, July 2009 | Base: Total Sample (n= 1,439)
© 2009, MYOB NZ Limited, all rights reserved. Copyright strictly enforced
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%
Source: MYOB Business Monitor, NZ, July 2009 | Base: Total Sample (n= 1,439)
© 2009, MYOB NZ Limited, all rights reserved. Copyright strictly enforced
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
Source: MYOB Business Monitor, NZ, July 2009 | Base: Total Sample (n= 1,439)
© 2009, MYOB NZ Limited, all rights reserved. Copyright strictly enforced
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
Source: MYOB Business Monitor, NZ, July 2009 | Base: Total Sample (n= 1,439)
© 2009, MYOB NZ Limited, all rights reserved. Copyright strictly enforced
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%
Source: MYOB Business Monitor, NZ, July 2009 | Base: Total Sample (n= 1,439)
© 2009, MYOB NZ Limited, all rights reserved. Copyright strictly enforced
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%
Source: MYOB Business Monitor, NZ, July 2009 | Base: Total Sample (n= 1,439)
© 2009, MYOB NZ Limited, all rights reserved. Copyright strictly enforced
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
Source: MYOB Business Monitor, NZ, July 2009 | Base: Total Sample (n= 1,439)
© 2009, MYOB NZ Limited, all rights reserved. Copyright strictly enforced
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
Source: MYOB Business Monitor, NZ, July 2009 | Base: Total Sample (n= 1,439)
© 2009, MYOB NZ Limited, all rights reserved. Copyright strictly enforced
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%
Source: MYOB Business Monitor, NZ, July 2009 | Base: Total Sample (n= 1,439)
© 2009, MYOB NZ Limited, all rights reserved. Copyright strictly enforced
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
Source: MYOB Business Monitor, NZ, July 2009 | Base: Total Sample (n= 1,439)
© 2009, MYOB NZ Limited, all rights reserved. Copyright strictly enforced
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
Source: MYOB Business Monitor, NZ, July 2009 | Base: Total Sample (n= 1,439)
© 2009, MYOB NZ Limited, all rights reserved. Copyright strictly enforced
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
Source: MYOB Business Monitor, NZ, July 2009 | Base: Total Sample (n= 1,439)
© 2009, MYOB NZ Limited, all rights reserved. Copyright strictly enforced
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.”
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
Extreme pressure Quite a lot of pressure Some pressure
Hardly any pressure No pressure Dont know/Not relevant to me
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
Source: MYOB Business Monitor, NZ, July 2009 | Base: Total Sample (n= 1,439)
© 2009, MYOB NZ Limited, all rights reserved. Copyright strictly enforced
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.”
1% 10%
4%
32%
17%
20%
17%
19%
22%
18%
40%
0% 20% 40% 60% 80% 100%
Marketing & customer
relationships
Staff skills & training
Extreme pressure Quite a lot of pressure Some pressure
Hardly any pressure No pressure Dont know/Not relevant to me
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
Source: MYOB Business Monitor, NZ, July 2009 | Base: Total Sample (n= 1,439)
© 2009, MYOB NZ Limited, all rights reserved. Copyright strictly enforced
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
Source: MYOB Business Monitor, NZ, July 2009 | Base: Total Sample (n= 1,439)
© 2009, MYOB NZ Limited, all rights reserved. Copyright strictly enforced
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
Source: MYOB Business Monitor, NZ, July 2009 | Base: Total Sample (n= 1,439)
© 2009, MYOB NZ Limited, all rights reserved. Copyright strictly enforced
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
Increased Research and Development Funding
Source: MYOB Business Monitor, NZ, July 2009 | Base: Total Sample (n= 1,439)
© 2009, MYOB NZ Limited, all rights reserved. Copyright strictly enforced
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
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
For further information please contact:
Julian SmithGeneral Manager
MYOB New [email protected]
Tel: +64 9 925 3514Mob: +64 21 773344