Response and resilience

If your business has been impacted by the recent weather events, it is important you understand what support and resources are available to you and what potential risks and challenges you may encounter while getting back to business. Here we provide high level tips and information on managing your finances, insurance fundamentals for business, understanding your employment law obligations and tax assistance.

Managing your finances

  • Cash flow is the lifeblood of any business and ensuring you have sufficient cash to continue to operate after a crisis will be critical to any recovery

  • Take a scenario-based approach to forecasting cash flow. Include some potential "worst case" scenarios and consider how you'll respond to these scenarios

  • Consider all resources available to you to preserve and maximise cash, including cost reduction, sale of non-core assets and support from key stakeholders (e.g. lenders, suppliers, IRD, landlords etc)

  • If you can’t meet your debts as they fall due, don’t ignore it. Have a conversation with professional advisors to identify options - the earlier you act, the more options you will have available

  • Document your decision making around trading. Don't take illegitimate risks that are likely to create losses for your creditors - always consider your responsibilities if you are a director

Contact us

John Fisk
PwC New Zealand | Partner
+64 21 492 052
Email | LinkedIn

Stephen White
PwC New Zealand | Partner
+64 27 801 4019
Email | LinkedIn

Insurance fundamentals for business

  • Understand your business interruption policy in detail and know what you are entitled to

  • Lodge your claim early, request a progress claim (access critical cash) and then take the time to complete your claim thoroughly

  • Seek professional support from an advisor - they can help prepare your claim and act as your advocate with the insurance underwriter and their loss adjusters - your broker should also be a helpful advocate

  • You may be able to claim under your business interruption insurance policy even if you have not had any direct material/physical damage 

Business interruption insurance - What you need to know

Contact us

Peter Cody
PwC New Zealand | Partner
+64 27 511 6574
Email | LinkedIn

Employment law issues

  • Avoid making knee-jerk decisions in response to employment relations issues caused by business interruption

  • Obtaining employee agreement is always the most effective way of mitigating downstream legal liability

  • Good faith consultation and engagement with employees should guide any action taken that might affect employees

  • Don’t ignore health and safety issues, including the impact on mental wellbeing

Contact us

Chris Baldock
PwC New Zealand | Partner
+64 21 474 321
Email | LinkedIn

Tax issues

  • If your business has been significantly impacted by the recent weather events, understand what measures from Inland Revenue are available to you

  • Work through any additional expenses incurred through repair and recovery and understand what is tax deductible, eligible for tax depreciation or you can claim tax losses for

  • Check if you have overpaid provisional tax and request a refund to support cash flow

  • Consider tax pooling as a cheaper way of financing any tax that needs to be paid

Contact us

Michael Hinton
PwC New Zealand | Partner
+64 27 528 6848
Email | LinkedIn

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