3 Mistakes to Avoid in Small Business Accounting

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An accountant can be a valuable asset to a small business. The best accountants do a lot more than process tax returns at the end of the year. They also help business owners strategise and reach their goals. Ideally, an accountant in New Zealand will help a small business owner avoid these three mistakes some new business owners make.

The first major mistake small business owners make when it comes to accounting in Wellington is hiring an accountant that does not understand their business. There are tens of thousands of small businesses in New Zealand, and each one of them needs accounting services. Since few businesses are truly unique, there is usually an accountant out there who has experience in any particular type of company. Finding that professional can make setting up a system that will help the business grow easier and faster.

Small business owners sometimes assume an accountant can only help them when it’s time to file their taxes. In fact, accountants today have many more skills and areas of expertise that can benefit their clients. Some even market their services as business advisors in Wellington in addition to accounting. Failing to take advantage of the accountant’s vast knowledge base is a mistake that can cost a small business a lot of money. If the company is paying an accountant, they aren’t getting all the potential value if they only use them to crunch numbers.

Accountants are very familiar with the various types of small business software available today. Choosing xero accountants in Wellington can also help a business maximize their investment in professional services. Software can help a company stay organised, grow their business, and be ready when it’s time to file taxes. Choosing an accountant who relies on paper accounting or a software package that isn’t user-friendly is a huge mistake.

Every business should have an accountant. Whether the company is new or looking for a new provider for accounting in Wellington, Stephenson Thorner is a great choice. You can visit them at www.stephensonthorner.co.nz for more information on their services. By working with professionals who understands how to grow a business as well as keep the financial records, a business owner will have the time to focus on their own area of expertise.

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5 Reasons Your Small Business Needs an Accountant

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When you run a small business with limited revenue, you may be tempted to do your bookkeeping and accounting yourself or in-house. The availability of a myriad of user-friendly accounting software has meant that doing DIY bookkeeping and accounting is now easier than ever. You may feel that you should be able to handle your small business bookkeeping and accounting by yourself. But one thing you may not realize is that: although doing DIY accounting may seem like a good way to save money, it may actually end up ruining your business.

Accounting Wellington professionals are some of the primary figures in a business, and you can’t do without them as they can help you save money, ensure you’re always on the right side of the law, and more.

Here are the top reasons you must hire accounting Wellington professionals.

1. Helps Save Time

As a small business owner in Wellington, you know time is more than just money. It’s something you need in order to take your business to the next level. Without time, you cannot expand into other markets, you cannot beat competition, and you cannot strategise.

Performing accounting tasks, such as bookkeeping, recording receipts, doing tax returns and setting financial targets tends to absorb a lot of time. It’s actually one aspect of small business management that is going to divert most of your time.

Hiring the services of Xero accountants Wellington experts will help free up time out of your busy schedule so you can focus on more important tasks. These professionals have the knowledge, experience, time and the patience needed to undertake small business accounting and bookkeeping. They’ll allow you to manage your business effectively and accomplish tasks that could directly contribute to the growth of your business.

2. Helps Keep Costs Down

While hiring accountants Wellington professionals will definitely cost you money, it can actually help you save money in the long run. Chartered accountants in Wellington are equipped with strategic knowledge to evaluate the financial well-being of a business and formulate policies that can help reduce costs, save money, and allow resources to be organized and directed as efficiently as possible. To put it simply, they can tell when you’re losing money and the strategies you need to implement to stop it.

3. Helps Reduce Or Eliminate Tax Liability

Tax returns in Wellington, NZ, may seem pretty straightforward, but they are not. You make one mistake and you’re going to find yourself on the wrong side of the law.

Professional accountants Wellington specialists have thorough knowledge of the tax code, including current rules and regulations, and can help you comply with relevant tax laws. They can also assist you with calculating and understanding the taxes you will owe so that you do not come up short when the government comes knocking. More importantly, chartered accountants in Wellington, NZ, can advise you on the most tax efficient way to run your business, as well as tax credits and deductions that you can take in order to reduce or even eliminate tax liability.

4. Ensures You Get Things Right

As your small business grows, bookkeeping and accounting can become complex if you do it on your own. This could see you lose control of the financial aspect of your enterprise, which can be catastrophic. Even if you don’t want to contract an accounting firm full time for your small business due to costs, it is important that you hire Xero accountants Wellington experts – at least on a short-term or retainer basis.

These professionals offer a wide variety of services, and can help you with valuable advice, consultations, and technical support for small business bookkeeping and accounting solutions, ranging from financial forecasting to accounting software like Xero. They can assist you with the best, most efficient and most appropriate accounting services, methods and packages that suit your needs, so that you can grow increasingly productive, efficient and profitable.

5. Facilitates Growth

Hiring the services of an accounting Wellington company will ensure that you have the ability to concentrate on tasks that can actually increase your profit margin and grow your enterprise. It’ll also allow you to find the mentoring and wise counsel that you need to take your business to the next level. Accountants Wellington professionals have extensive knowledge of business management, finance, taxation and risk management, and can act as an outsourced financial advisor to your company.

Through utilizing their knowledge and experience, you’ll be able to gauge your business’s financial health, improve on financial processes, make informed decisions regarding your business direction and growth, identify and take advantage of existing and emerging opportunities, handle acquisition and merger process, ensure that your business thrives and remains competitive… and the list goes on.

Stephenson Thorner Offers Affordable Accounting Services For Small Businesses In Wellington

www.stephensonthorner.co.nz is a leading, trusted bookkeeping and accounting firm based in Wellington, New Zealand. We offer accounting and bookkeeping services to small businesses and individuals throughout Wellington and all of New Zealand.

In addition, we provide advice, consultations, and technical support to small businesses and sole proprietors on many related subjects: annual accounts, Xero subscription, income tax returns, management accounting, tax planning and management, annual budget and cashflow forecast, events, business structure, risk and value driver assessment, meetings, business newsletter, accounting software solutions, automation of business processes, business structure, trust management, and much more.

We operate within a network of established, respected accounting professionals – so whatever accounting and/or bookkeeping service you need in Wellington, NZ, we have a solution for it. Our custom monthly service plans will not only help you minimise accounting costs, but also ensure that you have absolute certainty over your expenses. We can guide you through the best accounting, bookkeeping and software solutions that suit your needs. Contact us today at 04 473 1980 or visit our website www.stephensonthorner.co.nz to learn more about small business bookkeeping or accounting services and how we can help you.

5 Ways to Manage Your Small Business Finances

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Managing finances is one of the most crucial aspects of a small business. How you go about it can make or break a business. As you serve your customers and look for new market opportunities, remember that your bookkeeping is just as important.

Here are 5 top tips on handling small business finances.

1. Get an accountant

This is the single most important piece of advice for small businesses. Too often business owners think they can easily handle everything, including bookkeeping. But it only takes a few small errors for your business to get into trouble. Also, as your business grows you may find yourself with little time to manage taxation and other accounting issues.

You do not have to employ an accountant full-time: An accountant for a small business may only require a few hours per week to ensure that your finances are in order. Perhaps later after your business has expanded will you require an in-house accountant. For now, consider hiring the services of an accounting company.

There are plenty of businesses specialising in accounting in Wellington. Xero accountants in Wellington can help you streamline your finances while you focus on what matters most for your business; your customers.

2. Learn the basics

Simply because you are going to hire an accountant does not mean that you should completely forget about accounting. You need to have accounting knowledge to better manage your business and finances.

No one is asking you to go to school for three or four years to become an accounting expert. There are plenty of books and online resources to expand your accounting knowledge, especially as it applies to small businesses.

In addition to this type of knowledge, you should also know about various legal policies that apply to business accounting and taxation. This will ensure that you do not find yourself in the deep end of things. Learn as much as you can and use the knowledge to keep your finances and business running smoothly.

3. Get a business advisor

Most accountants also double up as business advisors. Their advice focuses on areas of financial management and general cash flow. Business advisors in Wellington can help you improve your sales, do better budgeting and keep better track of your investments and their returns.

You can also get a business advisor separate from an accountant. He or she will guide you in all areas of business including finance management.

4. Stay in the know

Another common mistake many entrepreneurs make is to leave the entire accounting department to the hired accounting professional. The problem with this is that if you are not aware of how your business is doing financially, you will not be equipped to make better decisions in other areas such as marketing.

While most accountants will furnish you with regular reports, be active in finding out exactly how you are doing and what can be done to make things better.

Chartered Accountants, Wellington 

Stephenson Thorner chartered accountants is a company based in Wellington providing accounting and business advisory services to small and medium sized businesses. To see what they have to offer and contact them, visit their website at www.stephensonthorner.co.nz.

3 Accounting Tips For Small Businesses in Wellington

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Did you know that small businesses in New Zealand contribute a whopping $60 billion to the economy every single year? Keeping accurate accounts is one of the fundamentals of any business, regardless of what industry you operate in. Whether you are a recent startup or have been in business for some years, keeping a tight reign on your finances can provide you with various benefits.

Here are some tips on how to make your small business grow in 2016, just by making some slight changes to your accounts in Wellington.

1. Develop a proper bookkeeping system

It’s important to track finances as you go rather than waiting until the end of the year to organise your accounts. This is a lot easier than it sounds, especially with the latest software. Today, there are bookkeeping apps and programmes that will help you keep a closer eye on your accounts – saving you a lot of time and hassle. One of the best ways to keep a proper bookkeeping system is to use an accountant in Wellington, who will advise you on the best way to monitor receipts, collect payments and send out invoices to your clients.

Cloud accountants in Wellington will use new technology – like storing data in the cloud – so that you can access your accounts wherever you are in the world, even if you are away from the office. Developing a proper bookkeeping system should be your top priority for 2016.

2. Pay close attention to the latest market trends

Accounting can be time-consuming and confusing – especially when there are changes in legislation and market conditions that could influence how you do business. For 2016, make sure you pay close attention to the latest market trends and industry developments that pertain to tax, finances and small businesses so that you can operate using more accurate finances throughout the year.
If you struggle to find the time to do this or lack the resources, enlisting the services of business advisors in Wellington will put you on the right track. A professional will be able to provide you with advice on how to make sound investments and provide you with an exit strategy if you are thinking about winding your business down.

3. Change your payroll system

If your payroll system is out of date, it could be having an effect on your small business. Luckily, there’s help out there. Hiring accountants in Wellington will provide you with the advice you need on how to pay your customers and clients in a more efficient manner, and you will be able to streamline any business or administrative tasks that are slowing you down. You might want to change the way you send out invoices for example, which could save you time and money when it comes to administration.

Contact us

Looking for a chartered accountant you can trust in Wellington? Head over to www.stephensonthorner.co.nz, the online home of Stephenson Thorner Chartered Accoutants, Wellington. They have a number of plans that will suit your business needs and their services include account management, tax returns, budget forecasts and tax management.

The Top 3 Accounting Tips for Small Business Owners in Wellington

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There are more than 46,000 businesses in New Zealand today, and if you own a company of your own, you’ll know how important it is to keep on top of your finances and manage your accounts. As a small business owner you may have thousands of other things to be getting on with, so sometimes your accounts end up taking a back seat. It doesn’t have to be this way: Using an accountant in Wellington can free up your time and resources so you can concentrate on other areas of your business while your important paperwork still gets done.

Here are some of the best finance & accounting tips for small business owners in Wellington.

1. Use software

If you’re used to doing your accounts by hand, have you considered computer software? You’ll still be able to monitor your income and outgoings but keep an accurate, electronic file that you can refer to in the future. Using computer software can have a number of benefits when compared with paper accounts, and it can be easier to update your documents and make edits. Even better, enlisting the services of accountants in Wellington will help you manage your money even more effectively.

Professional chartered accountants can spot trends and patterns in your data, file important documents and help you manage your finances better. You can even use software to handle your payroll – speeding up the time it takes to pay your staff. If you want a quicker, more effective way to handle your finances, computer accounting software could be right for your small business.

2. Don’t leave everything to the last minute

It’s important that you plan ahead and do your finances as soon as you can. This makes it easier at the end of the year when you want to manage your money and find out about your income and outgoings. A little organisation always goes a long way so always file your invoices and receipts in a safe place, in chronological or alphabetical order. All other important documents should be kept in the same place so you can refer to them quickly if you need to find important information fast.

If you have difficulty when it comes to organising your accounts, enlist the services of an accountant in Wellington who will be able to help you. They can also help you plan a budget by reviewing your cash flow and making forecasts for the new financial year based on previous payments.

3. Send invoices out early

The earlier you send out your invoices, the better. Business accounting services by your Wellington accountant can help you do this properly. Your accountant will also suggest ways that you can make your invoices clearer for your clients so they know who to send payment to. Organising your invoices in this way can mean you are more likely to get your money sooner and not have to chase up payments as frequently.

Contact us

If you’re looking for an accounting practice in Wellington that you can trust, contact Stephenson Thorner today at www.stephensonthorner.co.nz. The business advisors and chartered accountants at Stephenson Thorner can help you take control of your accounts and grow your business finances. Visit their website to find out more about their small business finance solutions.

The Top 3 Accounting Tips for Small Business Owners

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In the excitement of making sales and growing a business, it is easy to forget one of the most crucial parts of any business: up to date and accurate accounting. No business owner can afford to be lax about this aspect of their business – even small accounting mistakes can have devastating effects. In the end, small business accounting done wrong has the potential to bring down a business.

Here are three simple but highly useful tips to keep your business accounting running smoothly.

1. Decide between doing it yourself and getting an accountant

Starting out, most business owners assume that they can handle accounting on their own. In some cases, such as business consisting of five or fewer people, this is possible. Accounting software can also eliminate the need for a bookkeeper.

Sometimes however, an accountant with experience can save you a lot of financial trouble. During the first formative years of your company, you may not be that financially savvy or have a lot of time to train. Hiring an accountant means you can focus on your business core, ensuring that it stands a good chance of surviving and growing.

Consider what your goals, needs and current situation are before deciding between an accountant and doing it yourself. For instance, your current budget may only be enough to pay for accounting software or a part time accountant and not the salary of a full time employee.

2. Be strict with payments

Your receivables column may be filling up with cash, but unless that money is in your bank account, it will not do you much good. Clients who delay paying you can severely affect cash flow, a very serious problem for business.

Make sure that you have set down clear terms on when payments should be made. Refuse to provide further services until all balances are settled. For clients who have a habit of delays, consider enacting penalties for late payments.

Put in place measures to help you track all invoices to ensure that you act on any outstanding balances in time.

3. Keep personal and business accounts separate

Your business credit card may have come in handy when you needed to buy that new appliance for your home, but you are risking the health of your business. Things can quickly get complicated when you do not take care to keep personal and business expenses separate. It will also save you a lot of accounting work as you try to make sense of what is happening.

Even if you have an accountant who can easily handle crossover expenses, it is still not worth the risk to mix things up. Have a bank account for your business and another for your personal needs.

A holistic business approach

Accounting is just one part of business that you need to get right for your business to grow. There are also customers, sales and employees to think about. Stephenson Thorner chartered accountants in Wellington provide a holistic solution to business growth. They provide accounting services in Wellington, business advice for start-ups and older businesses and a range of other business solutions.

To enjoy the best accounting practice in Wellington and get the best advice on how to grow your business, contact Stephenson Thorner accountants. Visit their website at www.stephensonthorner.co.nz to get in touch with them.

Why Outsourcing Your Accounting is a Good Idea for Your Wellington Business

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Accounting is one of those areas where its very notion can give a business owner a headache. The subject can be intimidating and even difficult for most people. If you own a business and you feel like the accounting aspect of it is stressful, you could easily get the work outsourced. Outsourcing your accounting could be a good idea for your Wellington business depending on how you choose your service provider.

If you are looking for professional accounting in Wellington, there is no better place to begin your search than at Stephenson Thorner Ltd. The team comprises chartered accountants and business advisers who are knowledgeable in creative accounting solutions. The team is committed towards ensuring that you meet your business goals by first understanding the business you are running and then helping you grow it.

The good news about choosing Stephenson Thorner as your accounting partner is that they tailor their services to suit your business needs. If you prefer working on your accounting matters alongside the experts, then they will help you to understand the nitty-gritty that comes with it. If you do not know a single thing about accounting, they will complete all the work and to your satisfaction.

The other advantage of choosing Stephenson Thorner is that they not only provide general accounting, they also offer taxation services in compliance with the laws of New Zealand. If you need help filing your tax returns or even calculating them, you will get all the assistance you need.

For new clients who would like to take advantage of the accounting services offered at Stephenson Thorner, there are different subscription packages from which you can choose. They have the Essentials Service Plan that comes with annual accounting services, income tax returns and management services, as well as a tax planning meeting once a year. The plan also guarantees you a quarterly business newsletter and you can make unlimited queries.

The Growth Service Plan entitles you to all the services under the Essentials Plan. Additionally, you will enjoy board of accountability meetings on a quarterly basis, spotlight management reports and an yearly budget and cash flow forecast. The third subscription is the Strategy Service Plan which comprises all the benefits in the two previous subscriptions. Additionally, you will get free entry to their Launching Pad and any other events they organise. In order to subscribe for any of the three service plans, you can do that directly on their website or contact them for any clarification.

Managing your Wellington business could be as easy as finding the right Wellington accountant to help you maintain helthy financial reports and give you sound business advice. For more information on how Stephenson Thorner can help you transform your business into a profitable one, visit  www.stephensonthorner.co.nz and take advantage of their services.