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How accountants can help clients beat the January cash flow crunch

  • January is the toughest month for New Zealand business cash flow, with overheads like GST and provisional tax due while revenue often dips during the summer holiday period.
  • Tax Traders offers flexible, Inland Revenue-compliant payment options for provisional tax, helping accountants support clients with cash flow management and avoid late payment penalties.
  • Compared to IR or bank overdrafts, Tax Traders provides greater flexibility, lower interest costs, and a simpler approval process – making it the smart choice for proactive accountants and their clients.


The 15 January provisional tax deadline is fast approaching, and for many of your clients the Christmas–New Year period can be the toughest time of year in terms of cash flow.

Businesses are often quieter than normal as people enjoy the beach, barbecues, road trips, and the other delights a New Zealand summer has to offer.

Yet there are still overheads that need to be paid – including GST and provisional tax.  It’s little wonder that Xero’s Small Business Insights consistently show the first month of the year as a time when New Zealand businesses are least cash-flow positive.

Turning challenges into opportunities

 

As accountants, you have a unique opportunity to help your clients avoid the stress and uncertainty that can come with this period. The solution? Proactive planning and flexible payment options.

The key is to act early – ahead of the Christmas rush, when both businesses and advisers are juggling competing demands.

That’s where Tax Traders comes in.

How we can help

Unlike paying IR directly, Tax Traders gives you and your clients the flexibility to pay provisional tax in a way that suits their business cash flow.

Your clients have the option to:

 

Acceptance is guaranteed. There are no financial hoops your client must jump through. 

Plus, the interest rates payable as part of each arrangement are much lower than IR charges, and your clients need not worry about late payment penalties.

Comparison between Tax Traders, IR and bank overdraft

 

Here’s how Tax Traders’ payment options stack up and make financial sense for your clients compared to IR or using a bank overdraft.

 

  Tax Traders IR Bank overdraft
IR compliant Yes Yes Not designed for tax
Cash flow flexibility Yes – payment options that work for your client Instalment arrangements available, but subject to approval No
Approval process None N/A Yes
Security needed None N/A Yes
Interest cost Cost-effective IR interest of 9.89% Typically double-digit interest
Late payment penalties No  Yes N/A
Be proactive and prepared ahead of Christmas

 

This summer don’t let provisional tax disrupt your clients’ holidays or their business' cash flow. Stand out as the advisor who delivers peace of mind and practical solutions.

You’ll sleep easy – and your clients will, too.

Beat the Christmas madness. Now is the time to put payment arrangements in place for your clients’ 15 January provisional tax with Tax Traders. Help them avoid surprises, manage cash flow, and enjoy a stress-free summer – while you become the accountant they rave about.

 

*Based on a taxpayer with a 7 April terminal tax date

 

Disclaimer: The information in this article is Tax Traders’ general view, intended to provide enough information to inform you about this topic generally as at the date of the article, rather than comprehensive information for all situations. This article should not be relied upon to make decisions. Tax Traders recommends you seek professional advice as appropriate for your circumstances.