Over a third of businesses are reporting more work or sales for the next three months, according to the August MYOB Business Monitor. The Monitor is a nationwide survey of over 1000 local business owners across a range of small and medium businesses. It is conducted by Colmar Brunton and has recorded a resurgence in local business revenue since the global financial crisis, with 31 percent of businesses reporting revenue increases and 26 percent reporting a fall in revenue over the last year.
According to software company MYOB, the figures are a reversal of the April Monitor, when only 26 percent of companies reported a revenue increase compared to 35 percent of businesses posting a revenue decrease.
MYOB general manager Julian Smith says although many businesses have been disappointed with the pace of the recovery, the financial performance data it collects show encouraging signs.
“Based on what businesses are telling us about the last 12 months of activity, and the amount of work they have in their sales pipeline, it’s unlikely we’ll see a return to recession.”
According to the Monitor, 43 percent of all business owners expect their revenue to increase over the next 12 months, while only 10 percent expect a reduction in revenue.
Wellington businesses reported a good quarter with 34 percent showing revenue increases, and 25 percent reporting decreases, compared to 37 percent showing revenue decreases in the April Monitor. Businesses in Auckland reported a 28 percent increase and 26 percent decrease while Christchurch posted a 32 percent increase and 28 percent decrease.
Almost half of the medium sized businesses (20 to 199 staff) surveyed in the MYOB Monitor say they have more work or sales coming up, with 43 percent of small businesses (5 to 19 staff) reporting more work in the next three months. Seventy one percent of medium sized business owners now expect revenue increases in the next 12 months.
However, Smith also says price margins and profitability are a key concern for those surveyed.
"This is particularly significant with the GST increase coming up on 1 October.”
“While we know nearly every business is aware of the GST change, most business owners are only now coming to terms with the scope of the tax changes, and how they affect their business.
To cope with this, we’re encouraging businesses to plan early for the tax changes, take a good look at their systems and get help from their accountant if they need it.”