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.

When are Legal Fees deductible for Tax?

According to the Income Tax Act in New Zealand, legal fees can be deductible if they are incurred for the purpose of deriving income or are directly related to a taxpayer's business activities.

Here are some key points regarding the deductibility of legal fees in New Zealand:

Business-related legal fees: If legal fees are incurred as part of operating a business or carrying out business activities, they are generally deductible. This includes fees for legal advice, drafting contracts, and defending or pursuing legal action related to business matters.
Investment-related legal fees: Legal fees related to the acquisition or disposal of investments may be deductible. This can include fees for legal advice or documentation related to buying or selling property, shares, or other investments.
Personal legal fees: Legal fees incurred for personal matters, such as divorce, personal disputes, or wills, are generally not deductible. These fees are considered to be of a private nature and are not directly related to the generation of income.

There is an exemption where taxpayers can claim a deduction when total legal expenses for the year are equal to or less than $10,000.

It's important to note that the deductibility of legal fees can vary based on individual circumstances and the specific nature of the expenses. It's advisable to consult with a tax professional or accountant who can provide guidance tailored to your situation.