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.

Staying Ahead of Inland Revenue Current Areas of Focus

Recent updates from Inland Revenue highlight the increasing focus on enforcement, audits, and the use of data to ensure compliance across industries. For startups and small businesses, particularly those in creative sectors, understanding these shifts is crucial to avoiding unexpected penalties or audits.

Key Compliance Insights for FY 24/25

Inland Revenue’s latest approach to compliance can be summarised in three principles:

Make it Easy to Get Right: Tools like online property tax decision aids help businesses navigate their obligations.
Make it Hard to Get Wrong: Increased use of data, such as cryptocurrency trade information, targets areas prone to misreporting.
Make it Costly for Avoidance: Enforcement actions and penalties are on the rise for deliberate non-compliance.

Here are the key areas of focus for Inland Revenue:

Property and Hidden Economies: More audits are targeting property developers and small businesses that underreport income.
Trusts and Personal Income: Those diverting income through trusts or failing to declare distributions are under scrutiny.
High-Risk Debt and Offshore Income: From unpaid taxes to undeclared overseas earnings, Inland Revenue is stepping up collections and compliance campaigns.
Cryptocurrency: Voluntary disclosures are encouraged, but non-compliance could trigger audits and penalties.

What This Means for Your Business

For startups and creatives, these changes underscore the importance of keeping your financial records accurate and up to date. Leveraging tools like myIR and working closely with a knowledgeable accountant can ensure compliance while freeing you to focus on your craft.

At Accountech, we specialise in simplifying compliance for creative businesses. Whether it’s navigating the bright-line test for property, managing GST returns, or understanding your obligations around new technologies like cryptocurrency, we’re here to help.

Ready to Ensure Your Compliance?

Get in touch with us to make compliance straightforward, so you can avoid penalties and focus on growing your business. We’re here to provide expert guidance tailored to your needs.

Disclaimer: This blog post is for informational purposes only and should not be construed as professional advice. It is recommended to seek the advice of a qualified accountant or tax professional regarding your specific circumstances.