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.

What are Company Minutes?

Company Minutes keep official account of what decisions are made by the Company. These are often recorded and kept for statutory purposes. Very simply, the Annual Minutes (including Shareholders and Directors Resolutions) collectively declare that a Company is meeting all its legal obligations.

The Basics

Directors vs Shareholders: Directors run a company while shareholders own the company. Often these roles are filled by the same person (a director will often also be a shareholder), separate resolutions must be prepared and signed under these different "hats".

Annual General Meeting (“AGM”): Under the Companies Act 1993, if a company is not considered to be a “Large Entity” (i.e 60m+ assets, $30m+ revenue or 10+ shareholders) it may pass a resolution rather than hold an AGM.

The Specifics

Directors' Certificate: The Directors must certify that payments made to them for fees, salaries, wages etc are fair to the Company taking into account the market rates for companies of a similar size, and is commensurate with the experience, time, effort and skills provided by the Directors. The Directors also need to certify that any advances made to/from Shareholders/Directors are fair to the company and are charged interest at the appropriate rates.

Directors’ Resolution: this will approve and adopt the annual financial statements, authorise remuneration to shareholders/directors and approve any advances made to/from shareholders/directors.

Shareholders’ Resolution: Shareholders will only need to approve the annual financial statements and approve any major transactions during the year. Historically shareholders have also decided on whether to appoint an auditor, but this is no longer a requirement.

What is a Company Minute Book?

Shareholders' Resolutions, Directors' Resolutions and Directors’ Certificates Minutes, together with the financial statements are added to the company minute book. Directors who fail to keep adequate records can be liable for penalties under the Companies Act, so it's important to have this stored at the company registered office.