Financial Performance

  • Business income
  • Business costs
  • Cash business profit/loss
  • Business depreciation
  • Taxable profit/loss

Business income will include monies received into my bank account for;

  • Government Sourced
    • MOH Section 88
    • Voluntary Bonding Scheme (hard to staff)
  • NZCOM Sourced
    • Educator
    • Midwifery Standards Reviewer
    • Mentors and Graduates (MFYP/Rural)
    • Missed Birth Fee (MFYP/MSR)
  • NZCOM/MMPO Locum Support and Cover
    • Emergency for Urban and Rural
    • Leave support for Rural
    • Rural Establishment Grant
    • Rural Placement Grant

Business Costs will include monies paid from my bank account for;

  • Accident Compensation Levies
  • Accountancy Fees
  • Advertising & Marketing Costs
  • Bank Charges
  • Communication Costs
  • Clinic Costs
  • Conference Expenses
  • Disbursements to Midwives
  • Entertainment Deductible 100%
  • Entertainment Non-Deductible 50%
  • General Expenses
  • Home Office Claim
  • Insurances - Business
  • Interest Expenses
  • Legal Fees
  • Midwifery Care Supplies
  • Minor Business Assets
  • Motor Vehicle Expenses
  • NZCOM Membership (including insurance cover)
  • Operating Lease Payments
  • Professional Licences & Registrations
  • Professional Development & Education
  • Quality Assurance (including MSR)
  • Service Fees
  • Subscription Fees
  • Travel, Meals & Accommodation
  • Depreciation
  • Loss on Sale of Fixed Assets
  • Depreciation Recovered

What is my break even point?

My break even point refers to the amount of Business Income (Section 88) I need to receive during the year to cover total business costs that must be paid irrespective of my caseload.

What is a Budget or Projection?

A budget or projection is an estimate of income and cost for a future set period, usually a year. Small business budgets/projections are empowering and a vital skill to master.

A well-planned small business budget will help:

  • Identify my break even point
  • Highlight Economies of Scale
  • Show how much I can spend
  • Identify how much money I can have
  • To become financially literate

What is My Financial Position?

  • Assets (What you own?)
  • Liabilities (What you Owe?)
  • Equity (What is left for You?)

Your financial position details on any given day what you own (assets) less what you owe (liabilities or debt) to get what is left for you (equity).

What is My Cashflow?

  • Cash Inflows (filling up the glass with business income receipts)
  • Cash Outflows (emptying the glass paying business costs)
  • Cash Balance/Position (what's left in the glass is your profit)

Some rules for managing your cash flow;

  • Make Section 88 claims often
  • Keep track of your costs, mind your money and live within your means
  • Use all available free credit
  • Build a cash reserve to manage large cashflow payments (tax) and cushion you from unexpected events

“Money looks better in the bank than on your feet”