Business optimism is improving among New Zealand companies, with many predicting good times ahead throughout 2014. The New Zealand Institute of Economic Research (NZIER) launched its Quarterly Survey of Business Opinion, showing optimism is at its highest for two decades. As a result, better profits, higher investment and more jobs are expected to surface throughout 2014, creating the need for accounting software for small business. Results of the survey relate to December 2013 and show 52 per cent of businesses were hopeful about what the future has in store, up from just 33 per cent in September. Domestic trading activity increased to the highest level seen since March 2005, with 15 per cent of companies reporting increased activity, a rise of 3 per cent from September levels. Bosses also revealed intentions to hire more staff at the start of this year, which should bring yet more good news to the wider economy. NZIER revealed that the recovery is taking place across all parts of the country - until recent months, it was mostly centred round Canterbury, but this is no longer the case. As a result, the group believes growth will be more sustainable and stable than it has been in the past, which will open up more long-term opportunities for New Zealand businesses. Companies operating within the financial services sector were asked whether they expect a rise in interest rates over the next few months. The majority (71 per cent) believed they would, up from just 30 per cent in June 2013. Many firms also said they would be looking to increase prices over the next few quarters, which is largely due to rising capacity pressures and improvements in economic growth, NZIER revealed. Although capacity constraints are most evident in Canterbury, they are soon expected to emerge in other regions as well.