The Situation: Rapid Growth & Retail Complexity
Duncan Ray is the Financial Controller at Mitre 10 MEGA Dunedin, overseeing the financial operations for this major retail operation, plus stores in Mosgiel and Wanaka. With around 250 staff at the Dunedin store alone, Mitre 10 MEGA Dunedin is a significant employer and a vital part of the local community. Duncan has been with the business for nearly 30 years, navigating the complexities of rapid growth and seasonal cashflow pressures.
The Challenge: Seasonal Cashflow vs Tax Obligations
Managing tax for a rapidly growing retail business came with several challenges for Duncan and his team:
- Rapid growth: As sales expanded quickly, tax obligations grew proportionally, creating pressure on working capital.
- Lumpy income streams: With extensive development projects alongside retail operations, income could be irregular. Settlements might be years apart, making it tricky to pay the right amount of provisional tax.
- Cash is king: In retail and property development, cashflow management is everything. Balancing tax payments with operational needs and growth investments required careful planning.
- Complexity: With multiple business arms and various payment methods, managing tax compliance across the group was becoming increasingly complex.
The Solution: Flexible Provisional Tax Payments
Duncan discovered TMNZ at an accountants’ conference in Queenstown several years ago. While initially cautious about paying tax to an organisation other than IRD, Duncan did his due diligence, speaking with other large companies who assured him TMNZ was legitimate and trustworthy.
The Results: Taking Control of Tax Dates
TMNZ provided Mitre 10 Dunedin with:
- Payment flexibility: The ability to pay tax when it best suited their business cashflow, not just on IRD’s timeline.
- Expert guidance: Access to tax specialists who understand the complexities of the industry.
- Easy refunds: When they occasionally overpaid tax, getting money back was incredibly simple, just a quick call and funds were back in their account within days.
- Peace of mind: Proactive reminders about tax deadlines and payment options, taking the stress out of tax compliance.
- Personal support: A dedicated team that knows their business and can be reached quickly by phone, email, or chat.
Key Takeaway: Managing Complex Cashflow
For business with complex cashflow patterns, or those experiencing rapid growth, or managing multiple income streams, tax flexibility isn’t just nice to have, it’s essential. By partnering with TMNZ, Mitre 10 MEGA Dunedin has gained the cashflow flexibility and expert support needed to navigate complex tax obligations with confidence, allowing them to focus on what they do best: serving their community and building for the future.
For more on how TMNZ’s solutions can help your business, go here.