Why Does a Business Need Accounting and Bookkeeping Services?
While the business world is primarily focused on innovation, technology, production, and improvement, finance is one of those constant and vital functions that bring stability and security to a business. An accounting and bookkeeping service provides necessary information, processing, and reporting to keep the baseline function of your business run smoothly. Without a qualified and experienced accounting service, a business can face many budget problems and the upward and onward momentum of success can come to a screeching halt. Therefore, having these services will provide a financial stability to a business and help them grow nationally and internationally. Besides, one can focus completely on moving the business forward without worrying about maintaining the weekly or monthly expenses.
New Zealand Institute of Chartered Accountants (NZICA)
Formerly known as the Institute of Chartered Accountants of New Zealand, NZICA was founded in the year 1978. The institute represents 33000 members of Chartered accountants in NZ and overseas and offer full range of accountancy services both privately and to the public. Their mission is to provide highest quality of services to its members abiding by the rules of the international standards of accounting.
Goods and Services Tax (GST) in New Zealand
GST is applied at the rate of 15% to the price of most goods and services in New Zealand, including imported goods and services. If a business carries out a taxable activity and has an annual turnover of $60,000 and above, they have to register for GST in NZ. Once a business is registered for GST they have to:
- Charge 15% GST on all sales except exempt and zero-rated supplies
- Issue tax invoice within 28 days
- Keep tax issue and invoice when they purchase goods and service for the business
- File regular GST returns
- Keep the record intact
Pay-As-You-Earn (PAYE) Tax
PAYE system covers all salary and wage earners. The employer deducts the tax obligations of the employee from each paycheck delivered to employee as a form of advance payment on taxes due to the Inland Revenue Department. The system is designed to make it easier for earners to pay their tax obligation without needing to set money aside for the tax season. There are various accounting software tools in NZ like XERO and MYOB which are primarily used for filing PAYE tax by accounting firms in NZ. Not just PAYE, a company can also register for RWT and FBT when they hire employees.
Our Accounting and Bookkeeping Services in New Zealand
Business Setup Worldwide provides the following accounting and bookkeeping services for small business, in accordance with the NZ tax law:
- Preparing annual financial report
- Cash book management
- Profit and loss reporting
- Income tax planning and preparation
- Audit reports, cash-flow forecasting, bank reconciliation
- Payroll and personnel administration
Benefits of Availing Accounting and Bookkeeping Services
Accounting and bookkeeping services provide a wealth of benefits to the business that will enable them to achieve their goals and avoid financial pitfalls. A professional will provide both large and small business accounting services which will fulfill the primary needs of the firm. The benefits of availing these services are:
1. Time and Money Saved
Having accounting and bookkeeping services allows you to completely focus on other important aspects of business. Another added advantage is that utilizing the skills of an accounting service means that you no longer have to hire, train, and pay an accounting department within a company. Hiring a professional finance or tax accountant will save the cost of the firm.
2. Accurate Maintenance of Records
It is a wise decision to hire accounting services if one does not have in-depth knowledge of managing finance of a company. The dangers of poor or inaccurate financial record keeping cannot be overstated. A strong and experienced bookkeeping and accounting service will help you build an effective and efficient record keeping system that suits your company.
3. Avoiding Tax Snags
A dedicated accountant can help ensure that your taxes are always in order and minimize your risk of paying huge fines and penalties. So that when IRS comes knocking at your door you will feel confident and not terrified.
4. Planning for the Future
Lastly, one of the biggest advantages of hiring a professional accounting and bookkeeping service in NZ is getting advice on how to plan for the future. You can make an informed decision by determining the best time to buy inventory, and budget for big-ticket investments so that you can stay competitive and viable.
Who We Are
Business Setup Worldwide offers the entire range of bookkeeping and accounting service as per the regulatory requirements. Our registered accountants are well aware of the functionality of the financial services industry and adhere to the International Standards of Accounting and Finance. Our financial advisor in New Zealand monitors every step that can be helpful in growth of your business.
Business Setup Worldwide is a business consultancy catalyst that helps clients worldwide in establishing their business across national boundaries. Our business experts are professional experts who take care of the accounting part of your business. They build a strong framework that helps you in understanding the foreign accounting processes and carry out your accounting activities lucidly. Apart from this, they also help in sorting out the legal proceedings mandatory to incorporate a business.