We speak to Battery Technology New Zealand to find out how TMNZ provides it with the flexibility to align provisional tax payments to its cashflow cycles.
Seasonal cashflow can make income tax payments difficult for businesses, but it doesn’t have to with TMNZ.
Just ask Battery Technology New Zealand owner John Dale.
The battery specialist’s income is very seasonal. In summer time, boat and motorhome owners ensure business is booming. When the winter chill first greets us, those in the automotive industry come calling as batteries tend to fail due to the cooler weather.
“We’ve got those two seasons where there is higher cashflow, and deeper into winter it goes quiet because the marine world is pretty dead and the automotive industry has gotten over its initial cold climate problem,” explains John.
The nature of his business means much of the stuff that is imported has to be paid in advance. Clients do not settle their bill until some time after they have received the stock.
“In any business, you have to say that cashflow is king.
“We may not get paid for three months … so you’re sort of struggling across a bridge of cashflow that’s out but not in. It’s either going back into stock or tied up in advanced purchases.”
What John loves about TMNZ is it arms him with the flexibility to align his provisional tax payments to times of the year where it suits Battery Technology New Zealand’s cashflow.
“I suppose you can look at tax from a business perspective as being non-productive. It doesn’t have a return and therefore it’s money out of the business,” he says.
“The time I’d really like to be paying tax is during my high cashflow periods. To be able to park this payment in a place where it’s not going to be difficult to pay, it makes my business flow along a lot easier.”
Battery Technology New Zealand is owned and operated by John, who prides himself on being up to speed with electrochemistry and different types of batteries available. Diagnostics of battery failure is a big part of his work.
The Gulf Harbour-based business services clients across a range of industries: marine, automotive, education and medical. John also specifies and sends a “fair bit of stuff” into Antarctica for NASA, NIWA and various universities with deep freeze projects where minus 40 degrees Celsius are to be endured.
“It’s wide and varied and takes on a big range of applications. Because batteries have become very application-specific, you get a battery that is very good at one job and bad at everything else whereas once upon a time … a battery was a battery and it didn’t matter which way you used it.”
Battery Technology New Zealand sells 13 brands of batteries and around 2000 different models.