Add these important dates to remember for December to your calendar
2nd December:
Chatham Islands anniversary day
20th December:
PAYE
25th December:
Christmas Day
26th December:
Boxing Day
Note: If a due date falls on the weekend the date is moved to the Monday following. Also be aware that both payment and returns must be received by the IRD on or before the due date.
If you have any questions about your accounts, please contact Brenda.
Working smart pays off when running a business. But how about your health – are you as smart at looking after yourself? The business does not run itself, not without your hard work and guidance.
Consider the effects on your business if you have to take extended time off, because you ignored or missed some warning health symptoms?
Certainly there’s no glass ball to gaze in for knowing our future life events but there’s never any harm in reviewing the preventative health checks we could do:
Mammography – Every woman should learn to do self-examinations in their early 20’s and onwards. Unusual discharges, change of breast shape, lumps either soft or firm, surface skin changes – get it checked. From the age of 45, women can be enrolled on the National Register for free mammograms every 2 years. This should be sorted by your GP.
Cervical Smears – Women who are sexually active should be having pelvic exams and cervical smears every two years, at least. This is one of the easiest cancers to pick up and treat when caught early. Here’s more information on them: Cervical Smears. Ovarian Cancer, is more difficult to detect. This is because the cancer cells grow deep in the ovaries, and the symptoms are often masked with other illnesses. It’s worth making yourself aware of what to look for. Click on this link: Ovarian Cancer.
Testicular Exams – Testicular cancer is actually more common for young men in their 20’s! Experts say every 3-4 months, check your balls. If you feel anything unusual do get it checked with your GP at the earliest. When caught early, it is fully treatable.
Prostate Health – Recommendations is that you should begin having regular checks of your prostate health once you reach your 40’s. particularly if you have male relatives in the family who have, or had prostate cancer. Prostate Cancer is the most common cancer for men in New Zealand and the risks increase with age. Click here for more information: Prostate Cancer.
Bowel Cancer: The second highest rate of death from cancer, is from bowel cancer (also referred to as colon, or rectal cancer). Globally, New Zealand has one of the highest rates of this form of cancer. Leading symptoms are usually a change in your bowel discharges, or blood in your motions. A genetic history of bowel or colon cancer in your family does increase your risks, so inform your doctor. For more information click here: Bowel / Colon Cancer.
Skin Cancer: Our climate with glorious summers combined with our love of doing activities outdoors raises the risk of skin cancer, or melanoma. And as with Bowel cancer, we have the higher rates in the world for this cancer, too. Not good, at all. So heed that ‘Slip, Slop, Slap’ message and cover up. Use quality sunscreens, and reapply them. One application in the morning, is NOT going to last all day. Remember to watch the children’s skin too, read more here: Sun Smart
Mental Health – Are business issues creating high stress, anxiety or feel you are not coping. Trouble sleeping? Review your lifestyle balance and check you allow time to unwind? Going solo in business often means you cannot share the management load and so you are wearing several hats at once. Consider joining a business networking group or local professional business organisations in your area. There will be members who empathise on the stress of running a business and can offer support and advice. If you cannot manage growing demands on your time from your work, consider outsourcing some responsibilities. Have a read of our blog: Balance in your life.
If your mental health continues to deteriorate do contact your GP, and please reach out for support soonest. This link provides a listing of useful organisations who may be able to help: Helplines
Heart Disease & Strokes – are right up on the top of the charts for leading causes of death in New Zealand. High blood pressure is a risk factor for serious conditions such as stroke and heart disease. As a significant risk factor, it is also probably the easiest thing you can change to improve your health. Blood pressure can be regulated through a low cholesterol diet and exercise and is definitely worth looking into. Getting regular blood pressure monitoring by your GP or nurse should always be a key part of an annual checkup.
Life can throw curve-balls regardless. But getting checked regularly may save your life especially if health issues are picked up earlier as we can appreciate treatment is likely to be more successful in early stages, or as soon as we become aware of a problem. Don’t be an ostrich, take time to check your own health, so you can continue to run that business successfully.
A word here. If it is the financial bookwork that is causing stress, contact us at Do The Sums Bookkeeping and More. We can review with you some available options on processing services to match your budget. We are happy to review its health with you, and hopefully come up with a diagnosis to help your business back to humming along happily …
027 379 0992 or message Rebecca@dothesums.co.nz
GST Returns – FBT Returns – Payroll – Monthly Reports – Annual Returns – Tax Agents – & More….
Understanding the need for the Two-Step Verification or Two Factor AuthenticationThe last few years it has become obvious that having a single password for some applications is not secure enough, especially with increased hacker attacks and phishing scams. Unsuspecting users are being misled into sharing accounts with password codes to fake organisations. In other situations, it’s sometimes tricky to screen passwords entered from prying eyes. And truthfully, some users have become a little too relaxed over keeping passwords private and secure. Changing passwords often was always an option, but higher security was needed.
This brings us to newer security procedures. The two-step verification or authentication. A process where you need to present two pieces of “ID” to verify your identity, or authority to use an application, instead of a singular key or password. Two steps? Think of the process of getting money out of ATM machine. You enter your bank card, and then you enter your pin number in. You cannot access your funds with the card alone or just pin numbers. You need both to access your bank account funds. Can you see that two-step process?
Two-step verifications or Two-factor Authentication processes are becoming more common. Online banking organisations, Microsoft, Apple, Google and other leading brands now require or will offer two-factor authorisation processes. It’s worth making use of these more detailed login processes. Believe us – those who’ve been hacked or found fraudulent interference with their accounts find it a painful and trying experience, especially when funds have been taken, and/or their business integrity affected. Not to mention valuable time lost with resolving things back to order.
If you use either Xero or MYOB, this is an option offered. We strongly suggest you set them up for your business if you have not already done so. We can never be too relaxed about security – especially with protecting business data and financial records, and we have a duty to secure any data held about our clients, too.
How does it work? With Xero and MYOB – Users are required to download an ‘Authenticator’ application into their mobile phone, from Google Play. (This is quite a straightforward process explained with accompanying instructions in the links we’ve listed for Xero/MYOB below.)
Whenever the User logs into their accounting application with their usual password, it activates the ‘Authenticator’ application on their mobile phone. A unique passkey number (or barcode) flashes on the mobile screen. The User then enters the passcode (or holds the barcode to the computer screen), and full access is usually granted. The procedures are slightly different for Xero and MYOB, but the concept is the same. Doing a two-step ‘ID’ process is needed to access the application. The Authenticator passcodes (or barcode) changes each time you access the software applications, and have a time expiry – in other words, the codes must be used within a short time to be effective. We assure you this set up is quite straightforward, and codes come through instantly each time you need to access your account. Authenticator codes do not need mobile coverage – the number is generated from within the application – triggered by your login process.
If your phone is not handy or you do not have your mobile – alternate 2 step options are offered by Xero and MYOB. They involve either a listing of back up codes which you need to store carefully or pre-arranged answers to security questions. You can review Xero and MYOB’s alternative processes on links below.
Should you lose your phone or have it stolen, you have these alternate options to access your accounts. (We’ll assume you do use pin code security on your mobiles and do utilise lockdown applications for any lost/stolen mobile devices). More instructions are outlined on both Xero and MYOB websites.
If you have staff accessing your Xero/MYOB accounts – they need to set up this authentication process, too. Passkey codes will then show on their own phones, to match their logins. You or persons who hold the ‘User Settings’ control can always check and review security access at any time.
Here are the links:
With Xero? Setting up two factor with Xero Video demo: More information plus video
With MYOB? Setting+up+two-factor+authentication More Information: About MYOB two-step authentication
We should point out this won’t be a total foolproof process. But it helps raise the barriers to increasing fraudulent attempts by hackers to access accounts. They’re getting smarter, and phishing scams are becoming common. Don’t open or click on links or videos you haven’t requested via email or messages – delete them. If you do have a connection or link with that organisation – call your own contact person there, and check.
Do continue to review other security measures within your business to protect access to your computer or software applications – refer to a previous blog here: Security.
If you have queries or concerns about using two-step authentication processes for your Xero or MYOB subscription – do contact me. If you’d like to consider a Xero or MYOB subscription or have other queries on bookkeeping or business financial work you need help with, call me for a friendly chat to see what we can offer.
Call 027 379 0992 or message me on rebecca@dothesums.co.nz.
Annual Returns – GST Processing – FBT – Payroll Processing – Bookkeeping Online – Tax Agents
Amy was late to bed last night again. She was trying to catch up on her month end financial paperwork for her 
business. Midday Saturday now, and she’s already feeling tired. She has a coffee and movie date this afternoon whilst her two girls attend a school friend’s birthday event at Rainbow’s End. Amy’s business is steadily growing. Two local stores now stock her Eco-friendly Skincare products and web online orders are increasing too. She has plans to add lip care balms to her natural skincare range, and later some natural beauty brushes.
As a mum to two energetic 7-year- old twin girls, it isn’t very easy finding more hours in the week. Amy is on the school’s Parent-Teacher Committee and often accompanies the girls on their school outings as a parent helper too. She isn’t keen to stop being involved in those activities.
Amy feels drained. She doesn’t mind the book-work but the long hours in the evenings are getting too much. Evenings with a chilled wine and a Netflix movie are becoming a faint memory. She’s yet to find time to experiment with a recipe for natural lip balms. A close friend suggests Amy contract a bookkeeper to do her books. But Amy really wasn’t sure if she could budget for one.
The next day Amy contacts this friendly bookkeeper, Rebecca, who is happy to review options with bookkeeping support work, to suit Amy’s budget. She suggests Amy subscribe to Xero, to process her accounts. Xero will help save time, with its handy automated features for repetitive invoices. Plus with bank feeds set up, its easy bank reconciling process is a winner.
With training, Amy can continue doing the invoices and bank reconciliations herself. Her bookkeeper can log in as Xero is an online cloud application, check Amy’s accounting transactions and follow up on any issues. When Amy reaches the GST threshold for registration shortly, they are able to help with checking and filing her returns. Xero offers great online training videos on using its automated features plus Rebecca will be around to help Amy on any accounts queries.
Now knowing her books and business tax obligations are taken care of, Amy can focus more on the production side of her business. She will have time to experiment with creating lip balms and grow her skincare range. Her bookkeeper gave her useful advice on systems to improve cash-flow into her business, too as well as some other tax issues.
This story of Amy is fictional but she represents a blend of our lovely clients, who are busy growing their businesses. Business owners who wanted to take opportunities to increase revenue but struggled to find more hours of the day. So they opted to work smarter and outsourced their bookkeeping needs to us. Unsure of how much it will cost? Or maybe you’d like to hear more about Xero and how it may help you save time in your business. We offer special rates through our Xero Partner business to our clients. Contact us today and let’s talk….
How is your business managing the financial bookwork? Are all your ducks lined up in a row?
Do you send invoices straight out as soon as jobs are completed? Chances are, once you send out invoices – payments to you could be in the bank within the hour, or tomorrow. In these days of internet, online banking and credit cards mean payments are made pretty much within days. The days of snail mail payments, waiting for funds to clear, and evasive ‘the cheques in the post’ are pretty much gone. More businesses are paying online now.
So let’s make it easy for debtors to pay you. Ensure your business name, phone, email contact and payment information (including credit card payments being accepted) are displayed on the invoice. Don’t forget to show the Terms of Payment, e.g. ‘Seven Days from Date of Invoice’ – you really want to encourage early payment.
If you charge GST (or not) this must be clear on the invoice, and don’t forget the GST number. Address the person or proper business name correctly on the invoice in full. If you are having issues with invoices being paid or cash-flow issues – this Accounts Receivable blog may help you sort it out.
You must keep records of incoming bills, and the payments of your bills and expenses. Keep receipts and dockets. Inland Revenue may request evidence of those bills, and bill payments – just the bank statements alone aren’t going to cut the mustard. Have a read of our invoicing blogs on what you need to keep for your business records.
Xero has a nifty feature where you can upload photo or online files to attach with each relevant transaction. Super handy if you’re fighting the paper war, especially as IRD requires you to keep your business records for at least seven years. If you have Xero, do make use of this feature – or if you don’t, but would like to know more – contact us, we’d be happy to explain this feature.
A reminder if your business is earning near or at $60,000 turnover, then you must get registered. Registration can be done online with Inland Revenue, or contact Do The Sums Bookkeeping and More for help. Once registered, you will need to be record and report on transactions over set periods of time to Inland Revenue, so bookwork maintenance becomes more cruical. A good habit of reconciling your business transactions on a regular basis, will help give you more time and notice of any due GST payments. (You really want to avoid late GST penalties being added to your bills).
If you are in ‘trade’, you must file an Annual Return with Inland Revenue, regardless of how much money you made or lost. Remember the issue isn’t “if you made money, you pay tax”. Think more, “if you did any trade, or received un-taxed income” then you will need to file a tax return for the business. If your business made a tax loss this year, you may be able to apply this loss against income in future years and reduce payable tax.
So … any un-filed tax returns for your business? Do get them in. Submitting your returns now, before Inland Revenue contacts you, may help reduce outstanding penalities. If you are worried about doing tax returns – our team are happy to sort your returns, including any outstanding returns for previous years.
You must have a separate account if your business is a company. Even Sole Traders should have separate bank accounts. Why? It makes bookkeeping processes clearer, transactions easier to reconcile and your bookkeeper or accountant will love you for it. The bank balance is easier to review, when only business transactions are run through that account. Think of the future – if you are going to sell the business, it will be an advantage to have clear, clean business bank statements to support your income claims.
Running a business can be a juggle at times, and it’s so easy to overlook keeping the bookwork tidy and in order. But really it’s important to ensure your business keeps records of transactions and keeps the ducks lined up. Get into good bookwork habits – keep the accounts reconciled often, file or capture your business bills and do your invoices often. The advantage of keeping all those ducks in line … is you’ll have a clearer view of how your business is doing month to month, too.
There are regulations on bookwork requirements, more so if you are a Company. Company Act regulations and NZ Tax Regulations can be hard to work through. Should you feel unsure of what is needed for correct bookwork or bookkeeping procedures necessary in running a business, give us a call and let us help you. We’d really love to help you grow your business, and help you manage your bookwork so if you are struggling or need some direction – give us a call.
Send me an email today or call me, Rebecca, on 027 379 0992 and we can talk about your requirements.
Company Trading Policies: When businesses trade – a sale (or service) contract process is occurring. Sometimes the trading processes do not run smoothly and conflicts or misunderstandings arise. Other than resorting to expensive legal actions, this leaves a grey area for traders to deal with issues. Hence some framework is needed … which brings us to the Terms of Trade.
A number of NZ Acts, Laws and Regulations have some influence over contracts and business trading practices but do not cover all the issues of trading processes. This means businesses have scope to retain rights to set some trading policies to protect their own company’s interests. This includes how issues or disputes will be dealt with. These are called Terms of Trade, or some businesses may refer them as Conditions of Sale. (We say ‘some’ as there are certain legislations businesses cannot contract out of.)
In a nutshell, ‘Terms of Trade’ is a business’s published contract statement that outlines the rights of their business, and what the obligations of the other party (purchaser) will be. It will outline expectations of the trading process. Purchasers then have the opportunity to view the company’s trading policies and can either accept or reject at the start of trade.
One usually finds a listing of reference points. They outline any specific actions or rules on that topic or issue during the trade process. Examples of reference headings are:
The above is just a brief summary of the common points usually covered in Terms of Trade. Terms will differ from business to business, depending on the type of business and whom they trade with. Some businesses will have long detailed trade terms, others will be a few paragraphs.
A Binding Contract: It is important the Terms of Trade are viewable by the buyer at the time of contract or purchase. Once terms are accepted they are legally binding on both seller and buyer. If the buyer had no opportunity to access or view the trading terms, then the terms will not apply to the contract. Terms of the contract may be altered after start, but only if both parties agree.
Making the Trade Terms visible: Potential purchaser must be able to read them. Display them on Service Contracts, Account Application forms, Quotes/invoices or on walls in retail premises. Business websites need to display them, or a clear link to access them. Have some purchaser action with either a signature or a click action online, to show they accepted the Terms of Trade.
Debtor and Asset Control: Businesses will state their policy on cash and credit transactions, refunds, and other payment arrangements offered. They can highlight any late payment penalties or debt recovery costs will be passed on to debtors. It is important to mention, this action is not enforceable if this advice is not stated in the Terms of Trade, or at time of contract being signed. Trade terms often mention until goods or services are paid in full, the Ownership of the goods shall not pass to the buyer.
Certain procedures must be followed when businesses wish to do credit checks for account applications. There are very specific rules to follow on requesting authority to do credit checks because of the Privacy Act. Your business legal advisor should be able to help here.
Disclaimer: this blog is written only for the purposes of outlining what Terms of Trade are used for and the reasons businesses have them. Setting Terms of Trade involves complex contract law. Existing Trade Acts can impact on trade terms written, and it all depends on your type of business. Contact a business lawyer or professional financial advisor if you are considering a Terms of Trade policy written for your business.
Surely with time and money invested into your business, is it not worthwhile making the effort to protect business income and assets? Having a term of Trade notice is one useful tool to help this process. Being able to pass debt collection costs to non-payee. (Why should your business bear the expenses chasing them because they won’t pay?) Use a retention of title clause that states your business retains ownership over the goods until payment is made in full. Notify any applicable financial limitations or clauses in case of possible events that may affect completion of contracts. For example, third parties (shipping, courier deliveries) or weather events. A well set out Terms of Trade can help minimise potential business costs and future liability claims for your business.
Here is a useful document to read about trader responsibilities, click here: Fair Trading Act. Another Act we believe worth making yourself familiar with is: Consumer Guarantees Act.
Do The Sums Bookkeeping and More is a friendly bookkeeping business working to make number crunching easy for your business. We work with a wide variety of small-medium businesses across New Zealand. If you are needing some assistance with your accounts or tax returns, or other financial services for your business – contact us today.
GST TAX RETURNS – INVOICING – INCOME TAX RETURNS – PAYROLL – CASHFLOW MANAGEMENT
Recently we read some comments from some business owners saying they felt stupid asking certain questions, that seemed too simple. At Do The Sums Bookkeeping and More, we believe asking questions however simple they may seem, is NOT a stupid thing to do at all!
You should not be shy about asking any questions. A Questioning mind is a great business tool you can have, as you can’t progress in your business, without learning. Then processing the answers to your questions. Even if they might lead to other questions …
Life is about learning, and business owners should feel free to ask questions about business systems. Or taxes. Or how to process accounts correctly. It may be about simple calculation process – or a deeper question of working out how much capital you have in your business? Or it could be about your sales; why am I not making as much profit this year as I was last year? Is there a better way to price goods to this market? Do I need to register for GST? How can I set up better security measures in my business?
Just a wee notice. Do please be aware of whom you are receiving your answers from, especially in online forums or social media posts, especially if it directly concerns your business finances or legal administration processes e.g making tax deductions. It’s sensible to check and confirm the sources of whom you are getting answers from, or it could end up being a costly mistake if the answers are not quite correct. Your business structure may be quite different to theirs. Tax laws can be complex and there are different tax rules for different entities. It may be wise to contact professional advisors or the relevant government department directly.
However, that’s not to say you can not ask questions on social media posts or amongst your friends, as with lively online conversations, you can end up with some great business information too! All we suggest is to be careful using some information that may or may not be suited to your business.
Some of our clients are new to the world of running a business, and some are well experienced in the world of finances – but all still need help from time to time, and all can ask questions. We are happy to work on educating, training or helping them along with the way in understanding their business financials. Often we do go around asking questions from other sources, to build up our expertise and information about finances. We network amongst other business contacts and professionals, whom we are happy to refer you to if we are unable to help you with your question or problem.
Feeling tense? Are the ‘unpaid invoice’ balances in your business books slowly growing each month?
Your business has provided the product or a service and the payee will not settle their account within an agreed time-frame. This creates stress in several ways:
Stress from …. impact on your mindset over the issue of having to deal with slow or non-payers
Stress from …. the wasted time in chasing and attempting to retrieve YOUR money
Stress from…. impact on the lowered bank balance without due funds…
Stress from …. from an inability to settle due bills, if the business has insufficient cash reserves.
Review your business payment options. Can you bill for some products or services prior to delivery? Ask for a deposit? Other options can be to request part payment upfront before accepting the order and doing progress payments. If the project or service has a high value, progress payments are a good option.
Send invoices out as soon as job/goods are supplied. Don’t wait for the end of the month to do your invoices. Clients may have the ability to settle the account immediately on receipt of your invoice – so get it out. (Ensure your invoices are correctly addressed to the company’s legal trading name and include address too – this is important especially if debts need to be passed to a collection service.)
Seven Day Payment terms: In these days of online/credit card payments, there is a growing trend of many businesses moving to ‘seven-day payment’ terms and ditching the end of month payments. Advise your clients, and print the terms on your invoices. For large contracts or ongoing supply contracts, businesses may request monthly payment terms but do be clear on agreed payment terms, including any default charges. Ideally you should have an agreement with clients on credit with high cost purchases.
Payment Options: Make it easy. Many businesses do online banking today. Have the bank account clearly printed on invoices you send – this helps encourage early payment. If your business accepts credit cards – state this on invoice too.
Xero offers a super feature on emailed invoices to clients to encourage quick payment. Clients can click on your invoice and select payment options – making online payments by credit cards or direct debit cards.
Action Stations – still no payment …. Let’s fire up the reminders now!
Still not paid by the due date? A day or two past the due date and no payment are showing – send a reminder email to your debtor.
No response? Email again, accompany it with a friendly letter of notice of account being overdue – and any likely interest charges from ‘x’ date being applicable.
Your Terms of Trade. You do have them, right? Because should you plan to charge late penalty costs on unpaid debts after a set time, or pass on debt recovery costs, these need to be clearly written in your terms of trade. (See our blog about trade terms ⇒ Terms of Trade)
Still No Funds? At this point, you need to review your options. Emailed invoice copies? (Remember to also send copies by registered post to their legal address, too).
Use the phone: Call to the business owner or company director, and ask them if there is a ‘problem’ and request immediate payment of the account. No need to be aggressive, just be firm and friendly and fix on a set timeframe for payment.
Another option is to offer the client opportunity to repay the debt in instalments over time. (Or the client may ask.) This can be a good option where the client usually has a good track record, and likely to keep using your services in the future. Once a resolution is agreed on, send an email confirming the reviewed payment date(s). This creates a track record, should you still need to pursue debt collection later.
Option One: Write off the debt in full, as IRD allow it as a deductible business expense, plus reclaim any GST paid if your business processes GST on an Invoice basis.
Option Two: Contract a Debt Collection Agency. They will require information about the client’s, address and processes you’ve undertaken. So it is useful to hold a record of the actions taken to retrieve payment.
Option Three: Your business may opt to pursue the debt through legal means. Your lawyer should be able to advise on this process, and it can be expensive.
Should the debtor dispute the debt is owed to your business or even the amount payable, and they must advise this in writing to your business, you cannot pursue actions in recovering the outstanding account. You will need to instead review legal actions such as going through the Disputes Tribunal process, or via the District Court. Check on New Zealand laws such as the Fair Trading Act or Consumer Guarantees Act, as consumers may have rights your business cannot overrule.
We hope the information above was helpful. If you are struggling with bookkeeping duties, please do contact us at Do The Sums Book Keeping and More. We may be able to help you manage your bookkeeping routines better, including managing your Accounts Receivable balances. Or we can review options of taking over these duties for your business. Either way – contact us today.
Message me today: brenda@dothesums.co.nz and we work with you to help you with cash flow issues.
Take that weight off your shoulders and get that cashflow coming in …
Making mistakes is human and everyone does it. Yet making mistakes with your GST can end you up in hot water with both the IRD and your accountant or bookkeeper. Thankfully it is easy to stay out of trouble by being aware of what is expected of you and your business when it comes to GST. After all, prevention is far better than cure …
There are five mistakes small businesses often make when it comes to their GST. They are:
ARE ‘NUMBERS’ MAKING YOUR BRAIN TIRED?
Outsource your accounts and financial book work! And then get those great nights of sleep!
Work on ‘growing your business’ being energised and sharp. Here’s why keeping a good sleep routine will help you manage your business better:
When you sleep, your brain neurons have time to consolidate and process your acquired knowledge and experiences of the day into retained memories. This helps you recall and apply learnt knowledge easily the next day. If you are tired or sleep deprived, the recall process actually ‘stalls’ and slows down. This means your brain struggles in retaining information. You take longer to complete tasks, and err more often too.
Overnight, both brain and muscle cells self-repair and re-energise themselves. Tissues in the body are renewed faster overnight. As for mental health, lack of sleep can lead you to being more emotional, moody and more irritable. Clients aren’t likely to hang around with grumpy tired business people, so best avoid becoming one. (Outsource what you don’t like doing and enjoy working on the areas of your business you like doing = a happier you, too!)
Cognitive functions refer to our brain’s processing ability to think, reason, absorb and make decisions with our learnt knowledge and experiences. During sleep, waste management systems in the brain become very active, flushing out toxic wastes, and neuron pathways refresh themselves. When sleep deprived, our cognitive functions become ‘foggy’ and our ‘coping’ skills drop. Resolving situations, managing stress and making clear decisions – all become more difficult.
Scientists have found lack of sleep, when the brain has little chance to release essential hormones and chemicals, reduces our body’s natural immunity abilities. Our cell defenses slow down and we become more vulnerable to catching colds or infections. Really, you want to avoid getting sick, it’s never a pleasant experience, and who will manage your business?
Long term, poor sleep routines have been shown to contribute to increasing health problems, in diabetes, obesity, higher risk to strokes, and even heart diseases. Surely, better to maintain your health today so you can be around to enjoy fully those future financial gains you’re planning to enjoy someday from your business?
Being sleep deprived is a real danger, especially when you are operating machinery or motor vehicles. Being drowsy makes you liable to errors, with low concentration, and your speed and ability to make corrective actions reduced. Is it worth the risk of a serious injury or even accidental death directly or indirectly due to little or poor sleep?
