What a Christchurch accountant typically handles
Small business work usually falls into three layers. Bookkeeping is the ongoing record keeping: coding transactions, reconciling the bank, invoicing and chasing payment. Compliance is the work with fixed deadlines: GST returns, PAYE, annual financial statements and income tax returns. Advisory is everything else, from cash flow forecasting and pricing through to structuring a business or planning for a purchase or sale.
Some practices do all three, some concentrate on compliance and work alongside a separate bookkeeper, and some specialise by sector. Be direct about which layers you want covered, because that is the main thing that changes the fee.
- Bookkeeping and bank reconciliation
- GST returns and PAYE
- Annual financial statements and income tax
- Provisional tax planning
- Payroll
- Business structure, cash flow and advisory work
Sole trader, contractor or company
A sole trader or contractor often needs less than they expect: tidy records, GST if they are registered, and an annual return. A company brings more obligations, including financial statements and filing with the Companies Office, so the work is usually larger.
GST is the point many people first need advice. Inland Revenue requires registration once turnover reaches the $60,000 threshold in a twelve-month period, looking backwards or forwards, and businesses below that can register voluntarily. An accountant can tell you whether registering early helps or hinders you, which depends on your customers and your costs.
Questions to ask before you engage someone
- What exactly is included, and what is charged separately?
- Is this a fixed monthly fee or billed by the hour?
- Who will actually do the work, and who do I contact with a question?
- What are your turnaround times at the busy points of the year?
- Which accounting software do you work in, and will I be able to keep my own access?
- Do you work with businesses like mine?
- Are you a member of a professional body, and which one?
Software and professional membership
Most New Zealand practices work in cloud accounting software and will have one or two they prefer. If you already use something, ask whether they support it before switching: moving platforms mid-year is avoidable work. Make sure you retain ownership of and access to your own file.
The term accountant is not restricted in New Zealand in the way plumber or electrician is, so professional membership is worth asking about. Chartered Accountants Australia and New Zealand is the main body here, and members use the CA designation. Membership is not a guarantee of fit for your business, but it does tell you someone is subject to a professional body's standards. This directory does not verify memberships or qualifications for any listing.