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 the Small Business Cashflow Scheme (SBCS) in New Zealand

In response to the challenges posed by COVID-19, the New Zealand government introduced the Small Business Cashflow Scheme (SBCS) to provide support to small and medium businesses facing revenue losses. This scheme offers financial assistance in the form of low and interest-free loans, providing a lifeline for businesses struggling to navigate the economic impacts of the pandemic.

What is the SBCS? The SBCS is designed to provide financial support to businesses experiencing revenue losses due to COVID-19. It offers low and interest-free loans for up to 5 years, with no repayments required for the first 2 years. This scheme aims to ease the financial burden on businesses and help them weather the economic challenges brought on by the pandemic.

Managing Your Loan: Businesses are required to notify Inland Revenue of any changes in circumstances, such as business closure, insolvency, or changes in business nature. Providing false information or failing to meet repayment obligations can have serious consequences, including immediate repayment of the loan with interest.

Loan Default: We’re starting to see Inland Revenue send out Default Letters to clients who have gotten behind on repayments of the SBC loans. Therefore it’s important to keep up with monthly repayment amounts as specified by Inland Revenue, otherwise they will ask for the loan to be repaid in full. Once a default has been registered you are able to apply for an arrangement, however these are granted at significantly higher interest rates.

Payment Methods: Repayments towards the SBCS loan can be made using various methods, including direct debit. It's essential to use the correct tax type (SBC) when making payments.

The Small Business Cashflow Scheme offers vital support to businesses facing financial hardship due to COVID-19. Understanding the terms and conditions of the scheme, including repayment obligations and interest rates, is crucial for businesses to make informed decisions and effectively manage their finances during these challenging times. Business owners must be careful to repay monthly amounts in line with Inland Revenue expectations, or should expect a Default Letter and need to repay the loan in full.

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.