How much does it cost to hire an accountant for a small business?

Even in your average small business (1-3 employees, less than $500k turnover) there will be a broad range of options for accounting and finance including getting specialise setup, tax structuring advice, finance systems and processes together with the everyday bookkeeping and accounting functions.

Is an accountant needed for a small business?

An accountant can offer comprehensive startup and ongoing small business advice, while making sure tax compliance is prepared and filed with the relevant authorities on time.

What is the role of an accountant in a small business?

Being a business owner can be a tough job, and it’s good to have a trusted advisor to lean on in times of complexity or uncertainty. An accountant will be able to help you navigate your business through these times, and help keep compliant with relevant tax authorities.

Xero is an integrated accounting platform that can complete all small business invoicing, receipts, bank transactions and reporting for the IRD. Being cloud based means your advisers can have access to your information in real time.

Is Xero Accounting any good?

Xero is a great tool for small businesses as it gives you real time access to the financial data of your business - information we couldn’t imagine being in business without.

As an accountant specialising in startups and tech, I often find myself recommending unconventional yet effective strategies for managing finances. One such strategy that might sound a bit bizarre at first is using a credit card to pay off Inland Revenue debts. However, this method comes with surprising benefits, especially for anyone looking to save on late payment penalties and interest. Let's dive into how your startup can navigate this process smoothly:

Firstly the Costs

Using a credit cards is not free, a convenience fee of 1.42% per transaction is applied by the bank. Also bad management of credit card debt will incur higher interest rates than Use of Money rates applied by Inland Revenue.
Paying on time with a credit card can help you avoid late payment penalties and interest, saving money in the long run. Also some banks offer cash or other travel benefits for using credit cards

If funds exist - pay via bank account

Use the “pay tax” function in Internet Banking or use the details below:

IRD Bank Account: 03-0049-0001100-27
Particulars: IRD Number
Payee Code: Tax Type (INC, GST etc) and Period End in format DDMMYYY
Reference: Leave Blank

Should you just apply for an Arrangement?

For debt you cannot pay in full by the due date or overdue debt, Inland Revenue allows you to apply for a formal debt repayment plan. The benefits of this might be a lower interest rate, but increase in time and cost setting up and negotiating the arrangement may offset any benefits.

Current Process for using Credit Card payments

Consider Costs and Benefits: While using a credit card for payments offers convenience and potential savings, it's essential to weigh any associated fees or higher interest rates against the benefits of avoiding late fees and interest charges.
Check Eligibility: First things first, ensure that your credit card is accepted for Inland Revenue payments. Currently only Mastercard and Visa are accepted.
Gather Details: Collect all the necessary information about your Inland Revenue debt, such as the amount owed, the tax type and period ending. Having these details ready will make the payment process much smoother.
Access the Payment Tool: Head to the Inland Revenue website's payment section (currently here) and select the credit or debit card option. Once there, scroll down and click on "Pay with your credit or debit card – then click on other ways to do this" to generate a new payment request.
Enter Payment Details: Fill in the payment request form accurately, including the amount, client's details, and credit card information.
Complete the Transaction: Review the details and proceed with the transaction.
Monitor Payment: After completing the transaction, keep a close eye on it to ensure it's properly applied to your client's Inland Revenue debt. You can check the payment status on the MyIR website or contact Inland Revenue by phone.

By using the payment tool provided by Inland Revenue and following these steps, you can manage tax payments efficiently, potentially saving money and avoiding unnecessary penalties. Our goal as is to help you leverage digital tools to optimise your financial processes and keep your business on track.