Do I need an Accountant?

Tuesday, 4 November 2014, 1:25 pm
Press Release: NZBizBuySell

Do I need an Accountant?

You might think that a start-up or small business isn’t big enough to warrant using an accountant and it's just another cost you can do without. But unless you’re an expert in business structures, tax and finance, then using an Accountant or better still, a Chartered Accountant, to get expert financial advice is money well invested.

So do I need an accountant? Richard O’Brien, Director of online Business for Sale website nzbizbuysell.co.nz says too often small businesses fail to seek the right advice due to time and budget constraints, but this is important to ensure you are on the right path. “If you are starting or buying a business or franchise, your accountant will take the form of another business advisor. They will review the financials; help with recasting figures and doing forecasts, and give advice on your business plan and the tax issues when registering or buying your new business”.

Most accountants will also offer book-keeping services but if they don’t, or if you wish to handle this yourself, you can get help with setting up manual or computerised book-keeping systems. Today there are several online packages like; Xero, MYOB and Quickbooks to mention just a few. Most accountants will be able to assist you in getting these set up and working for your business.

When buying or starting a business you need the expert advice and guidance to ensure you get it right. Your Accountant can potentially help with valuing a business, calculating the EBPIDT (the total cash surplus or sellers discretionary cash) and help with due diligence if you are purchasing an existing business. They can also offer advice on your best business ownership structure, provide guidance on the best way to handle your day to day cash and accounting, advise on tax and IRD requirements and ensure your cash-flow forecasts and budgets work for you and any other interested parties

Business tax is a large expense for most businesses. When calculating company tax there are a lot of factors to consider; depreciation, losses carried forward, deductible expenses etc. Your Accountant will consider all these factors and how best to manage and minimise the tax you pay.

A good Accountant will provide your business with essential support. They will understand the rules and regulations and how they apply to you, and help you manage your financial risk, minimize your costs and steer your business to success. For a list of SME Accounting Specialists and more on buying a business check out www.nzbizbuysell.co.nz

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