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.

At Accountech, we understand that managing vehicle mileage claims can be a hassle. In this post, we'll explore the options available for keeping a logbook and how to use it for your mileage claims.

Options for Logbooks in New Zealand

When it comes to maintaining a logbook for your vehicle, you have three main options:

Drivers Note App: A convenient digital solution that allows you to log your journeys on the go.
A Book Book: The traditional method where you manually record your mileage in a physical logbook.
Spreadsheet: A versatile option where you can keep track of your mileage using a digital spreadsheet.

The IRD Mileage Claim Process

To claim mileage for your vehicle, the Inland Revenue Department (IRD) requires you to keep a logbook. Here's a step-by-step guide to help you:

Keep a Logbook for 90 Days: During this period, you must record the following:
- The start date and the vehicle's odometer reading on that day.
- The date, distance, and reason for each business journey.
- The end date of the 90-day period and the vehicle's odometer reading on that day.
- Any other required information.
Calculate the Proportion of Business Use: At the end of the 90 days, add up the distance travelled for business purposes and calculate the proportion this represents of the total distance travelled by the vehicle.
Allocate Vehicle Costs: Apply this proportion to all your vehicle costs, including petrol, Warrant of Fitness, maintenance and repairs, insurance, and parking.

Once you have this calculation, it can be used for up to three years, provided that the proportion of business use doesn't change by more than 20%. After three years, you'll need to keep a logbook for another 90 days to update your calculations.

Simplifying Your Accounting Needs

At Accountech, our goal is to help you navigate complex accounting requirements with ease. Whether you choose to use a digital app, a paper logbook, or a spreadsheet, keeping accurate records of your vehicle mileage is essential for ensuring your business claims are compliant with IRD guidelines.