Understanding Business Accounting

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Many people today crave the independence that comes with starting their own business. Going into business for yourself is a pursuit of passion and often begins with an idea, relentless determination and a scrupulous work ethic. New Zealand is ranked as the easiest place in the world to start a business and is ranked third, second only to Singapore and Hong Kong, for ease of doing business. Ninety seven per cent of enterprises in New Zealand are small businesses.

In Wellington, the capital city of New Zealand and second most populous urban area, there are over fifty one thousand businesses: a whopping ten percent of all New Zealand businesses. However, even with such prime conditions, most budding business owners struggle with the endless number-crunching that comes with operating a business.

Cash flow is the lifeblood of a business and it is crucial to be fastidious in your bookkeeping to protect your investment. It is not, as some as some may think, enough to know how much your business made in a year. Let’s take a look at the often misunderstood world of Business Accounting.

To understanding the Basics of Business Accounting, you must consider three things:

  • A business owner requires accounting and finance information to make future forecasts, to increase efficiency in running the business, to attract customers and finally as an assessment of progress to determine business strategy
  • You should start out by understanding the terminology and the purpose of the three main financial statements – the balance sheet, income statement and statement of cash flows – so that none of it is any longer overwhelming or mind boggling.
  • Having acquired a grasp of how critical bookkeeping is, choosing a chartered accountant who is an expert in business accounting is paramount.

If you are a business owner in Wellington the question then becomes how to choose a qualified and experienced local chartered accountant.

Find a quality Wellington accountant using the following guidelines:

  • Qualifications – you want to choose someone with the relevant professional qualifications working for a recognised firm adept at Business Accounting with industry knowledge and experience.
  • Compatibility – you should find a chartered accountant who is a good fit for your business: an accounting firm specialising in the farming industry may not be the most compatible choice for an import/export business.
  • Trust – finding a dependable chartered accountant who is accurate, authentic and with principled business values is crucial.
  • Fees – work within your budget and find an accounting firm that can meet your requirements.
  • Location – central to choosing an accountant is their proximity to your business; you want to be able to reach your accountant in case of urgent queries, to arrange physical meetings, and to have them be able to visit your business premises when needed. These things foster good communication and build the relationship between you and your chartered accountant.

Stephenson Thorner chartered accountants aim to provide all of the above qualities, making them an excellent accounting choice for businesses related to the creative industries. Experience a more holistic approach to your finances through the experienced accountants at Stephenson Thorner. Visit http://www.stephensonthorner.co.nz/ for more information.

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