When is the best time to hire an accountant?
- April 21, 2021
- Posted by: admin
- Category: Finance & accounting
In complete honesty, we could say that hiring an accountant can at all times be beneficial for you or your business. In fact, any time is a good time, as an accountant’s comprehensive knowledge and expertise in tax and wealth management may assist you throughout your journey, regardless of the stage you are at.
No matter when you finally decide to hire one, sooner than later, you will thank the handy assistance of an expert when you start noticing things run smoother and don’t have to be as complicated—simple peace of mind.
However, indeed, we can agree there are certain milestones that we could point out as more critical to call for an accountant’s help. For instance:
When starting a new business
It is vital to set things straight, right from the beginning, since having a clean start will save you many headaches later on. In these cases, an accountant will help you decide which business structure will work best for your company or project. Whether you are a sole trader, a partnership, or a company, it’s best to understand each’s pros and cons, and from there on, establish the bases of the new venture.
Another central aspect at this point will be to get the proper registrations at Inland Revenue Department (IRD), like Goods and Services Tax (GST), should this apply to your business; or at the Companies Office Register. Something which your accountant can certainly help you with.
Last but not least, your accountant can provide you with an accounting system like MYOB or Xero, which are very friendly and intuitive for any user, and start recording and reconciling all your business transactions. At Thistle Fern, we don’t only provide you with the system and assist you with the implementation, but we also give you great training to become best friends with it.
You’ve hired staff
If you have recently hired staff or are about to, Payroll is a task you will definitely have to include in your business and tax calculations. Having a sound Payroll system and proper employment law knowledge will be indispensable for your business to ensure you comply with good hiring practices and pay your employees correctly, as well as their taxes to IRD.
KiwiSaver contributions, Superannuation, tax rates are all terms you will have to get familiar with, and hiring an accountant at this point will also be very convenient.
Before the tax-return time comes
Coming to the final tax number you’ll have to pay at the end of the period could be a little – if not a lot – overwhelming for the majority of business owners, and this is perhaps one of the moments you’ll feel you need an accountant the most. You don’t want to pay extra taxes, but neither underpay it and then have IRD over your shoulder. Nothing like the assurance of your accountant to know you are paying nothing less, but nothing more, than the right thing.
Especially if your business is GST registered, monthly or bi-monthly returns filing can be exhausting, but it doesn’t have to be like that when you hire an accountant.
At Thistle Fern, we give you valuable insight and highlight your business areas that could improve and benefit from an expert’s advice.
P.s The end of the tax year is March 31st!
Perhaps you were already happily managing your current business, but now you have decided you wanted to expand your business and go for a new venture, buy a new property, or even explore a challenging new area of interest. In these cases, a trained eye’s thorough analysis could help you determine whether the new project is looking solid or if there are numbers you should adjust before committing to it and be able to make a confident decision based on facts. Better to know the whole picture before embarking yourself blindly on a new journey and have surprises on the way!
When you are struggling with your taxes now that your income has increased
Let’s say your circumstances have changed for the better, but new tax considerations have also come into play. Stress-free accounting and tax returns are possible with the help of an accountant. He or she will help you determine all the costs that can be legally deducted from your profit, apply the correct tax rate for your new income, or make the necessary adjustments to your new yearly declaration.
As you can see, an accountant can be of great use and benefit at every step of the way. Thus, today is the best time to hire one! At Thistle Fern, we are here to help you thrive, so get in touch now with our team to know the multiple ways we can assist you in enhancing your accounts.