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.

Understanding New Zealand's Brightline Test: What You Need to Know

Are you considering selling a residential property in New Zealand? If so, it's crucial to understand the Brightline Test, a tax rule that may apply to your property transaction. This rule requires you to pay income tax on any gains from the sale of a residential property within a certain timeframe, unless specific exemptions apply.

What is the Brightline Rule?

The Brightline Rule specifies the timeframe within which you may be liable for income tax on gains from the sale of a residential property. The applicable timeframe depends on when you purchased the property:

If you bought a residential property between 1 October 2015 and 28 March 2018, inclusive, the two-year Brightline Rule applies.
If you bought a residential property between 29 March 2018 and 26 March 2021, inclusive, the five-year Brightline Rule applies.
If you bought a residential property on or after 27 March 2021, at time of writing, the ten-year Brightline Rule applies.

When Does the Brightline Period Start and End?

For standard sales of land, the start of the two- or five- or ten-year timeframe is from the date of registration of transfer of title, usually the settlement date. The end date for the Brightline timeframe is the date you enter into an agreement to dispose of the property, which is usually the date of the agreement for sale and purchase.

Exceptions and Main Home Exemption

The Brightline Rule only applies to residential properties. However, if the property is mainly used for business or as farmland, it is not considered residential.

There is an exception to the Brightline Rule if the property being sold is your main home. In such cases, the Brightline Rule does not apply. However, you can only use this exception twice over any two-year or five-year period, depending on when you purchased the property.

Important Considerations and Advice

It's essential to consult with your accountant before entering into an agreement for the sale of your property, especially if you think the Brightline Rule might apply. Additionally, if you hold residential properties in trust, specific conditions apply to the main home exception under the Brightline Rule.

Our Expert Advice

At Accountech, we specialize in providing outstanding service and simplifying complex matters for our clients. Our team can offer you expert advice on Brightline timeframes and confirm the start date of the Brightline timeframe for your property.

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.