Cash is King

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Cash is King – and protecting it is how your business survives and thrives.

Profit vs Cash Flow – Why You Need to Know the Difference.
Running a business isn’t just about making sales – it’s about keeping money moving in the right direction.
Profit = what’s left after you subtract all expenses from your revenue.
Cash flow = the money actually moving in and out of your business to cover bills, wages, tax, gear, repayments… the lot.
Here’s the reality, a business can be profitable yet still run out of cash, and it can have strong cash flow while still not making a profit.
That’s why keeping an eye on both is non-negotiable if you want to grow (and sleep better at night!).

 

6 Monarch must-knows for cash flow success

 

1.      Know your cash position. Keep your cash flow statement updated – spot shortfalls early.
2.      Build a buffer. Aim for at least 2 months of operating expenses tucked away.
3.      Be realistic with revenue. If sales won’t hit breakeven – act now.
4.      Get clear payment terms, check credit upfront, and follow up quickly.
5 .      Remember: every dollar spent chips away at cash reserves – plan your spend.
6.      Budget like a boss – and stick to it.

If cash flow’s been keeping you up at night, let’s chat .

We’re here to help you get on top of it and keep your business humming.

 

Book a Chat!

Business Meals: What You Can (and Definitely Can’t) Claim

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What you can and can't claim

The deliciously confusing world of IRD and deductions, served with a side of sass.

If you’re self-employed or running a business, chances are you’ve asked yourself the age-old question: “Can I claim this lunch as a business expense?”

Short answer: Maybe.
Longer answer: It depends… and IRD loves a good twist.

Let’s break it down, What’s On the Menu?

100% Deductible Meals

Yes, some meals are fully deductible – but only if they meet specific criteria. Think:

  • Staff meals while travelling for work (overnight trips)
  • Food at training or conferences (4+ hours long)
  • Light snacks during board meetings (hello, biscuits!)
  • Public promotional events with free food (not invite-only)
  • Overtime meal allowances for staff
  • Meals consumed overseas for genuine work purposes

The key? It’s got to be business-related, not a perk, party, or personal pick-me-up.

50% Deductible Meals

Here’s where things get spicy.

  • Client lunches or dinners (even when you talk shop)
  • Team functions and office parties
  • Food gifted in hampers or staff gifts
  • Meals with a hint of social benefit (staff drinks, anyone?)
  • Meals during work travel with entertainment mixed in

You can claim half – but only half. IRD calls it “entertainment.” We call it “the fun stuff.”

Non-Deductible Meals

Yep, there’s a blacklist.

  • Your own lunch or coffee between jobs
  • Family dinners (even if you chat about your business idea with Uncle Dave)
  • Sole Traders, want to claim meals? That’s a no from us.

Basically, if it feels like something you’d buy for yourself anyway — IRD probably thinks so too.

Common Mistakes That’ll Land You in Tax Drama

  • Claiming every client lunch as 100% deductible
  • Shouting the team a Friday feed and forgetting it’s entertainment
  • Not separating food vs. non-food in gift baskets
  • No receipts, no names, no idea = no deduction

In short, over-claiming or sloppy records will land you in hot water.

Record It or Regret It

To claim any meal expenses (especially those juicy 100% ones), you need to keep:

  • The receipt or invoice
  • Who was there
  • Why it happened
  • Where it took place

Think of it like Instagramming your food – but for the IRD, not the ‘gram.

Final Word from the Monarch Table

Just because you pay for food through your business, doesn’t mean IRD will give it the thumbs up. Some meals will go down smooth at 100%. Others? Barely nibble at 50%. And some are off the menu completely. Knowing the difference saves you money, protects you from audits, and keeps your financials as fresh as your coffee.

Confused about what you can and can’t claim?

We’ve got your back (and your snacks). – Give us an email or better yet, pick up the phone and have a chat!

Bon appétit – and deductible meals only, please.

Book a Chat!