Do I need an Accountant?
You might think that a start-up or small business isn’t big enough to warrant using an accountant and is just another cost you can do without. But unless you’re an expert in business structures, tax and finance then using an Accountant or better still, a Chartered Account is money well invested in getting expert financial advice.
Why use an Accountant
So do I need an accountant? If you are starting or buying a business, or franchise, say in Auckland, then find yourself a suitable Accountant in Auckland, someone you can relate to and who has the right skills to meet your needs. Read more on selecting a Chartered Accountant. Your accountant will take the form of another business advisor. They will be able to review the financials; help with recasting figures and doing forecasts, and give advice on your business plan and the tax issues when registering your new business.
Most accountants will also offer book-keeping services but if they don’t or if you wish to handle this yourself, you can get help with setting up manual or computerised book-keeping systems. Today there are several online packages like; Xero, MYOB and Quickbooks to mention just a few. Most accountants will be able to assist you in getting these set up and working for your business.
Accountants can offer you up-to-date information on compliance and tax issues and help you with how best to structure your business and getting set-up. They can also assist with company formations, registering for GST and PAYE, doing your personal income taxation, GST, FBT, PAYE returns and all other IRD related issues.
They can also help you with budgeting, cashflow forecasting, credit control, taxation and general financial advice.
Using an Accountant when buying a business
If you are purchasing an existing business or starting one from scratch then you need the right advice and guidance to ensure you get it right. Your Accountant can potentially help with valuing a business, calculating the EBPIDT (the total cash surplus or sellers discretionary cash) and help with due diligence if you are purchasing an existing business. They can also offer advice on your best business ownership structure, provide guidance on the best way to handle your day to day cash and accounting, advise on tax and IRD requirements and ensure your cash-flow forecasts and budgets work for you and any other interested parties.
Using an Accountant to help grow your business
Whether you are starting up, buying or growing a business, you will more than likely need business finance at some stage. Your Accountant can advise you on the options, and best way to arrange additional finance without putting your business at risk.
They can also advise you on what controls you should have in place to ensure growth of your business is not placed at risk. Many businesses will at some stage face financial concerns; be it adequate working capital, good stock control, invoicing and so on – an experienced accountant will be invaluable at such times.
Business tax is a large expense for most businesses. When calculating company tax there are a lot of factors to consider; depreciation, losses carried forward, deductible expenses etc. Your Accountant will consider all these factors and how best to manage and minimise the tax you pay.
What is a Chartered Accountant?
Getting the right advice can mean the difference between success and failure, and anyone can call himself or herself an accountant.
Chartered Accountants are accounting professionals that are members of the "Chartered Accountants Australia and New Zealand" (formally NZICA). They are required to stay current on the very latest business issues and are committed to ongoing professional education. They are bound by a code of professional ethics and standards and must have trained for seven years to receive this qualification. Hiring (or engaging) a Chartered Accountant is a smart investment and your assurance of quality and expertise.
A good Accountant will provide your business with essential support. They will understand the rules and regulations and how they apply to you, and help you manage your financial risk, minimize your costs and steer your business to success. Your Accountant will be a valuable long-term partner in your business.
Check out our Chartered Accountants Directory for:
Accountants Auckland | Accountants Wellington | Accountants Christchurch
More information on buying a business.
By Richard O'Brien - nzbizbuysell
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