We will provide you with guidance and support on what you'll need to do to establish and commence running your new business

We can provide advice on the best business structure for your needs and take care of establishment and registrations

Set up your Xero file so it's optimised for you and give you initial training so you start off in the right way

Preparation of a budget tailored to your business and input into Xero so you can track how you're going

Starter pack

We set you up with the right Xero subscription and manage your payments.

Xero monthly subscription

Helping you set business goals & developing and implementing strategies to achieve them

Preparing budgets and input into Xero so you can track how you're going

6 meetings annually to help reach your goals

Financial benchmarking with your competitors

Success pack

We set up your Xero file so it is optimised for you and your business.

Xero setup

We prepare your GST returns ready for you to review and pay. We also remind you of when and how much to pay, and even send an alert if you forget! Requires Xero.

Prepare GST

If you would rather be doing something else, let us do your bookkeeping for you. We love coding and checking and you can relax knowing it's all done right, and on time. Requires Xero.

Bank reconciliation

An hour of training on how to use Xero to it's full potential.

Xero training

We'll set up your Xero file from scratch, then give you the training you need to use it to its full potential.

Xero setup & training

BEANY NEWS  •  1 NOVEMBER 2022  •  4 MIN READ

Accountants may be stereotypically seen as more interested in numbers than in people, but the profession is all about relationships, says Julian Hutabarat CPA.

It starts at understanding who a business owner is and what they want to achieve, he says. Being able to communicate in everyday language – not “accountant speak” – increasingly involves offering a whole business service that helps clients to realise their personal and professional goals.

“Good advice comes from solid compliance, so that business owners have confidence their government obligations are being taken care of and their financial information is accurate,” says Hutabarat. “But the value is in using that information to present opportunities, as well as highlight risks, for moving forward.”

Hutabarat is currently general manager of Beany Australia, the Australian arm of the New Zealand-based online-only accounting firm. The young CPA has been working towards what he sees as a partnership with small business owners – rather than a simple tax compliance service – since his very first role.

As an accountant for the Sydney-based Announcer Group, a multi-disciplinary professional services firm, from 2012 to 2014, he says he gained a holistic view of taking care of a client.

“The firm was a one-stop shop that offered legal, financial, lending, real estate and accounting services and shaped my ideas about business advisory.”

His next role, from 2014 to 2017, was as a senior accountant with small business specialist SPR Accounting, where his values aligned with their ethos that “accounting services should not stop with your tax return and financial accounts”.

Hutabarat then polished his leadership and management skills at personalised professional services firm and SME specialists Myssy + Co, where his role as a client manager and supervisor included overseeing three financial services staff.

His most recent position before Beany, as manager for BPI Accounting Services, focused on assisting the practice to become “a scalable, sustainable and saleable business”.

After BPI was sold, Hutabarat sought a leadership role in a company that shared both his values and “client-focused, relationship-focused and advice-focused” method of accounting.

“My role with Beany is a result of great timing, but also an alignment of values,” he says.

Beany uses technology designed to provide high-quality business and accounting services and advice to small business owners at a fixed monthly cost, so they can focus on goals and growth.

The company has developed software to collect all the necessary information accountants need to undertake engagement, onboarding, compliance, forecasts, budgets and more for SMEs.

Once online onboarding is complete, Beany appoints a personal accountant – who has access to all the requisite information to start work immediately – to the client. Clients then have access to unlimited support and advice.

Hutabarat believes this allows business owners to reach out with concerns without fear of bill shock, allowing accountants to address issues and seize opportunities as they arise.

“Additionally, advice-focused services give them support to make key decisions confidently,” he says.

“Every day at Beany, I am helping small business owners live better lives and contributing to them achieving their definition of success.”

The son of a lawyer, he was discouraged from entering the legal profession by his father who believed stress levels would be too high.

“I decided to do a bachelor of commerce with majors in accounting and finance at the University of New South Wales instead,” he says. “After completing my degree, I had a good understanding that public practice would be a path that would allow me to achieve my professional goals.”

Hutabarat enjoys mountain biking in his spare time, both as a personal challenge and to improve his focus.

“It keeps me in shape, gets me outdoors, gives me perspective…as well as forcing me to want to improve to overcome bigger obstacles,” he says.

“I have two young children I strive to be a role model for. The example that I aim to set for them is one of responsibility, service, caring for others and being an involved member of our community.”

Hutabarat also mentors accounting students and graduates, in addition to volunteering for accounting and committee roles in not-for-profit and community organisations. He is currently the treasurer of a not-for-profit community childcare centre.

“These roles provide me with the opportunity to give back, learn new perspectives and ideas, further develop my communication and leadership skills and help in shaping leaders of tomorrow.”

“Always challenge the status quo, not for the sake of change, but with the desire to improve. Come with your vision in mind and a solution on how you want to achieve it in both your professional and personal capacities.”

Originally published by InTheBlack – 1 November 2022

Beany Resources delivered straight to your inbox.

Taking a people-centric approach (and why it works)

A small business accountant does more than bookkeeping and filing taxes, they can support in every step of the business.

BUSINESS ADVICE  •  28 OCTOBER 2022  •  4 MIN READ

A small business accountant does more than bookkeeping and filing taxes, they can support in every step of the business. Here are 9 reasons why you need an accountant for your small business.

9 reasons you need an accountant for your small business

Besides the obvious of helping you prepare and file your taxes, a small business accountant can support you in many other areas of your business. We’re not just here at the end of the tax year but keen to partner with you throughout the year – and over the long term. 

Is your business growing? Or are you facing challenges with your cashflow? Maybe you’d rather spend time marketing and selling your services than filing your returns and bookkeeping? 

If you haven’t already, there’s never been a better time to get a good accountant on your team.

And here’s why! Let’s look at the top 9 benefits you gain once you engage an experienced small business accountant.

1. It's not everyone's favourite thing - we do tax

We know that for most small business owners tax can be a big headache and even keep you up at night. We’re here to help you prepare and file accurate tax returns – on time – so that you don’t get any nasty surprises.

2. You don’t know what you don’t know – we help you stay compliant 

Tax rules change quite often; it can be hard to keep track. It’s our job to know the rules and requirements. We can pass that information on to you in plain English, so you don’t have to waste time trying to decipher what’s expected of you as a small business owner. We can also alert you if you’re not tracking to budget and give you a heads-up if a tax bill is due soon.

3. Work in your zone of genius – we give you back time

Bookkeeping, liaising with the IRD, filing returns, and calculating what you owe and what’s owed to you takes time and effort. By delegating this work to a small business accountant, you get back your time to work on the things you went into business for.

4. Chase new opportunities – we help you plan

A good small business accountant will not only look back at your past year’s figures, but help you look forward with a solid financial strategy and realistic goal setting. We can give you advice on whether you should be reinvesting more in your business and how to make your business more profitable and resilient.

5. Use technology to your advantage – we automate the mundane

Modern accountants for small business like Beany know how to harness the latest technology to take care of the boring, repetitive stuff. Software like Xero allows you to see your financials in real-time – you can even send an invoice while you’re waiting for your Uber. 

6. Fix cashflow and money woes – we help keep you in business

Cashflow and money woes are one of the biggest reasons why small businesses fail. We can help you understand and interpret your figures so you can be confident on your financial position and make changes before it’s too late. 

For example, it’s important to understand the difference between revenue and profitability, and whether you’re paid on time or need to change your payment terms.

7. Save you money – we help minimise your tax

We can help you reduce your wastage and identify areas where you might be overspending. We can also help minimise your tax bill because we know what you can claim – and often it’s more than what you’re currently claiming.

8. Avoid that last-minute panic – we help speed up tax time

We find that small businesses without accountants can easily spend days come tax time to get all their records together to file their return. They may have a basket of receipts sitting under the desk or data stored across several spreadsheets. The money that you thought you were saving not having an accountant you will probably lose in earnings (and then some). We help you avoid last-minute panic by helping you keep your records straightforward and up-to-date. This makes filing your end-of-year return and GST returns quick and simple.

9. You’re already wearing so many hats – we help reduce the overwhelm

Let’s face it, as a small business owner you’ve already got so many tasks to keep you busy. You’re meant to be the one coming up with the ideas, making them happen and promoting them. 

Delegating your tax returns, GST filing, bookkeeping and more can take a big load off your plate. You can look forward to getting your evenings and weekends back. 

Your next best step: get in touch with Beany today

Beany loves looking after accounting for small businesses across New Zealand in a range of industries. No matter the age or stage of your business, we take a forward-looking approach, to help you feel empowered with the right financial information at the right time. We believe that your accountant should be on your side, supporting you to make decisions that are right for you and your business.

We have a dedicated team of remote accountants to take care of your business no matter where you are, so you can focus on growing your business. We remove the “fluff”, break down barriers, and get things done. 

You can choose from a range of packages for a fixed monthly cost and pick n mix extra services like GST returns and bank reconciliation. Get in touch today.

Business advice

How can small businesses stay safe and stay in business for longer? First up, get insured.

BUSINESS ADVICE  •  20 OCTOBER 2022  •  7 MIN READ

How can small businesses stay safe and stay in business for longer? First up, get insured. Read more on 10 types of insurance for small businesses.

10 types of insurance for small businesses in New Zealand

In August 2022, there were about 546,000 small businesses in NZ, representing 97% of the firms in the country. We’re guessing that you’re reading this blog because you’re one of them. 

97% of the businesses are small businesses is a staggering statistic, and it begs the question: How can they all stay safe and stay in business for longer? 

And, closer to home, what actions can you take as a small business owner to reduce your risks, be less vulnerable when mistakes happen, and do the right thing for you, your staff, clients, suppliers, and the public? 

The type of insurance small businesses need depends on several factors which include: the industry or trade you’re in, what kind of assets and liabilities you have, whether you employ people or not, the size of your business, and your attitude towards risk. 

Small business insurance asks: what if? What if we make a mistake, what if someone gets hurt, what if our property gets damaged? What can we do when things go wrong? And how can we be confident our assets, cashflow and reputation are protected?

Before we continue: this blog includes information that is general in nature only and you should always seek specific advice from a professional for your situation. 

So, let’s look at the top 10 insurances for small businesses and why you should consider them.

First up – here are the compulsory types of small business insurance. Next, we’ll move to optional insurance cover. 

In NZ, everyone is covered under ACC whether they are at work, at home, or anywhere for accidents and mental injuries suffered because of an accident. But as a business owner, it is always good when you cover your employees for extra workplace health insurance for situations not covered by ACC. You can add that as an extra benefit for your employees to attract good people to work for you. 

Read more: How does ACC work if you’re self-employed?

2) Third-party personal injury/compulsory third-party insurance (CTP).

It is highly recommended to have a third-party personal injury insurance, if your company owns a vehicle or several vehicles. This policy will cover compensation costs in the event people are injured or killed when your company vehicle is involved in an accident.

3) Public liability insurance – compulsory for some types of businesses.

As a small business owner, we’re sure you do all you can to protect the safety of your customers, suppliers, and the public. But mistakes and accidents do happen. 

Some contracts with landlords, suppliers and customers stipulate that public liability insurance is compulsory. These are the most common reasons why you would need it.

You own premises where your clients frequently visit.

You go to other people’s premises for your work.

You run off-site activities or events that the public attend.

You run your business from home and people come to your home for business-related reasons. 

If your products or services cause harm to people or to property, you could be liable to pay for compensation and your legal fees to defend yourself. Claims like this can destroy a small business because costs can run into hundreds of thousands of dollars. Examples of when you can claim include the following. 

A client or member of the general public has visited your place of work and they have tripped over a wire or slipped on a wet floor.

You damage somebody’s property by dropping it or spilling a drink on it.

the option to extend to product liability and negligence claims.

Let’s move on to small business insurance cover that’s not compulsory but still important to consider. 

If you’re in the business of providing a professional service or advice, you should seriously think about professional indemnity insurance. 

Let’s face it that definition is broad – you could be a chiropractor or consultant; health professional or lawyer; graphic designer or accountant. 

This insurance protects you, as a professional, against damages and legal costs associated with defending yourself against claims raised by your customers. 

Your clients may seek compensation after they’ve experienced financial loss and allege that happened because:

you overlooked or omitted a critical piece of information

you misstated a fact or provided misleading advice

they misinterpreted your advice or service.

Without insurance, going through the process of repairing the damage caused by an act, omission or breach, is costly, stressful and could severely damage your reputation and finances. 

Professional indemnity protects your assets, reputation, and your financial situation. It does this by covering investigation costs, legal costs, and damages awarded to your client (to the value of your policy cover). 

Although it’s not compulsory across the board, many professions require you to hold a professional indemnity policy so you can deliver your services.

If you have physical assets, it’s wise to cover them. You can take out insurance to protect your stock, building, contents, tools, and general property from financial loss due to loss, malicious damage, fire and theft, and natural events like earthquakes, lightning, storms and floods. 

If your business regularly uses a vehicle or you have a small fleet – whether it’s a car, ute, or delivery vehicle – you should think about commercial motor insurance. Cover typically includes driver repatriation, signwriting, and cover for replacing keys and locks.

Protecting your assets often isn’t enough. 

You also need to know that your cash flow and income are taken care of should the worst happen. Business interruption insurance covers the costs of rent or mortgage payments, and your fixed utility charges (electric, gas and water bills) due to the damage and disruption caused by events like a fire, storm, theft or even a burst water pipe.

None of us wants to dwell on this fact: sometimes people we thought we could trust behave unethically or illegally. If you’re not properly covered for this risk, you could be vulnerable to losing your business and your personal assets.

Management liability insurance protects your company and the people running your company should a senior manager or company director behaves – or face an allegation of behaving – unethically or illegally which results in an individual or business loss.  

Management liability also protects your business from dishonest acts carried out by your employees – for example, theft of stock or fraud. 

Does your business have a website? Do you store sensitive information?

Chances are you’ve answered yes to at least one of those questions. The good news is cyber liability insurance protects you in the event of a cyber attack and covers the cost of keeping your data secure.

Hackers may deface your website which is not only upsetting but disruptive and financially damaging too. They may also get into your database and access sensitive data. A cyber liability claim will take care of the expenses incurred from the disruption to your business caused by a cyber attack.

You never know if your business will be subject to a random audit by the IRD. If you get contacted by IRD commissioner,  it can be time-consuming, stressful, and expensive to manage and pay for completing the audit yourself.  

Instead, tax audit insurance gives you peace of mind by covering the costs incurred during an audit such as the professional fees from accountants, lawyers and bookkeepers.

Next steps – talk to a professional for personalised advice on your small business situation.

Now that you’ve familiarised yourself with the main types of insurance cover, it’s time to take the next step. You can choose to buy insurance policies directly from the insurer or talk with an insurance broker.

An insurance broker is particularly helpful if your business needs are complex and you have to manage multiple high-risk scenarios. They can give you specific advice based on your situation and the type and level of cover you need.

A lot of insurance companies provide bundles or packages, which can be cheaper than buying individual policies. Some bundle policies are based on the industry you’re in.

Don’t feel pressured to take insurance or become over-insured. But you do need to weigh up the cost of insurance premiums against the cost of repairing the damage when things go wrong. Even one claim could ruin a small business that doesn’t have adequate insurance cover. 

You can find a broker through the Licensed Insurer list. it is safer and better to choose a licensed and qualified broker to give you proper advice. 

We’ve got your accounting covered – get in touch with Beany today.

Beany works with hundreds of small businesses across NZ who care about protecting what matters the most and growing their business. We take a forward-looking approach, to help you feel empowered with the right financial information at the right time. 

We believe that your accountant should be on your side, supporting you to make decisions that are right for you and your business.

We have a dedicated team of remote accountants to take care of your business no matter where you are, so you can focus on growing your business. We remove the “fluff”, break down barriers, and get things done. Looking out for you is what we’re all about. Get started for free today.

Starting a small business is exciting, however, it’s not easy. Seeking professional advice can help you start your small business smoothly while you focus on driving revenue. 

NEW BUSINESS  •  15 OCTOBER 2022  •  10 MIN READ

Starting a small business is exciting, however, it’s not easy. Seeking professional advice can help you start your small business smoothly while you focus on driving revenue. Read more on what questions you should ask your accountant when starting out.

9 things to ask your accountant when starting a small business

According to Stats NZ, there was a 0.5% increase in the number of businesses in February 2021 compared to the previous year. Starting your own small business is exciting; you don’t have to work the 9-5, can be your own boss and can create your own schedule. However, it’s not easy. You have to think about how to operate your business, sales and marketing plans, bookkeeping and filing tax returns, and so much more.

Seeking professional advice can help you set up and kick start your small business smoothly. And you can focus on the aspects of your business that are a good use of your time - driving revenue!

In this blog, we’ll discuss 9 things you should ask your accountant when starting a small business. From “How should I structure my small business?” and “ How should I finance my small business?” to “ What happens if I want to exit my small business?”; having these discussions will help both you and your accountant understand how to set yourself up for success and achieve your goals.

1. Should I hire an accountant before starting a small business?

Many business owners hesitate to hire an accountant before starting a business or in the startup phase because of the cost. However, accountants do more than filing taxes and keeping books. An experienced accountant acts as a business advisor for small businesses. From setting up financial goals, establishing a financial system, maintaining compliance, and providing guidance based on your business's financial performance, they can assist you with navigating the financial aspects of your business. They can also ensure that you are claiming all the deductions you can and in particular any eligible pre-setup costs.

One of the most important decisions to make when starting a small business is to choose a business structure that suits you. 

Should your business be set up as a sole trader, partnership, company, or trust? What are the advantages and disadvantages of these structures? How does the business structure impact my tax obligations? How much time and costs are involved in setting up the business structure that suits you? How much control do you want to have in your business?  What about asset protection and fundraising? What if you want to exit your business in the future? 

You should carefully consider these factors when choosing a business structure. No matter how you decide to proceed, an accountant can assist you in weighing your options and mitigating risks.

Read more:Should you class your business as a sole trader or a company?

3. How should I finance my small business?

Some common ways to finance your small business are using your own savings (referred to as bootstrapping), borrowing money against your equity or taking on debt from a bank, borrowing from family or friends, taking advantage of government grants, and crowdfunding. 

The best way to finance your small business depends on your circumstances. But an accountant can assist you in weighing the pros and cons of your options. For example, if you are able to do so, bootstrapping is likely the most straightforward way to start a business and ensure that you retain full ownership. However, you should keep your overhead costs at a minimum especially when you’re just starting out. Although you'll give up some of your shares if you decide to go the equity financing route, you'll receive a capital investment that can be used for marketing, R&D, payroll, product development, and more.

It’s recommended by Beany accountants that you should keep your business bank account separate from your personal one. In fact, you really need 2 - one separate business account for your normal business trading transactions and the other for your tax savings.

If you’re GST registered, putting aside 15% of your gross sales will ensure that you always have sufficient funds to pay your GST. On top of that, you should also put aside funds to cover your income tax - the amount depends on how much you earn, but some rough figures would be:

15% of your profit if you earn/make a profit of $50,000

22% of your profit if you earn/make a profit of $75,000

30% of your profit if you earn/make a profit of $100,000, or 28% if you are trading through a company

You can discuss your situation with your accountant to decide on an appropriate figure for your business. This will then ensure you have enough money to pay the IRD at tax time. 

Read more: The basics business owners should know about GST

As a small business owner, you should keep detailed records for all transactions. These include:

Statements for your  bank and/or credit card accounts

Copies of all your invoices for purchases or expenses

There are also a number of legal documents that you need to keep, such as employment contracts; a lawyer (e.g. LegalVision) can advise you on this.

Nowadays, the IRD will accept electronic copies of most documents, so these can be saved electronically using Xero Files, HubDoc, Dext (previously Receipt Bank) or Google Drive. In most cases, you’re required to keep these records for 7 years from the date you lodge the relevant tax return. 

For more detailed guidelines on record keeping, visit IRD’s website.

If your business’ turnover exceeds $60,000 per year, or you expect it to exceed this threshold in the next 12 months, then you will need to register for GST. You can also choose to be GST registered voluntarily, even though you earn under $60,000; you may wish to do this for one of the following reasons:

If you only sell to businesses that are themselves GST registered, it will make no difference to them if you charge GST as they can reclaim it. You can therefore effectively increase your sales by 15% without affecting your customers, and be able to claim back the GST on your own purchases

GST can be claimed back on the business assets you purchased to set the business up

If you want or need to register for GST, simply follow these steps on IRD’ s website or you can let your Beany accountant handle this. 

Tax obligations may be different according to your business’s structure, size, and nature of your small business. For example, a company pays tax at a flat rate of either 28% of its profit, whereas individuals have progressive tax rates, starting at 10.5% for the first 14,000 of income, and increasing to the top rate of 39% for individuals with incomes exceeding $180k.

Minimising your tax by claiming deductions for all of your expenses is crucial, and your Beany accountant can help you do just this. If you are unsure whether or not an expense is deductible, include it in your year end documents and let your accountant check for you - it’s always better to send something in that isn’t deductible than not to send something that is! A good accountant could help you minimise your tax liability by understanding your tax obligations and taking advantage of any opportunities that are available to you.

Read more: 7 top tips business owners should know to reduce your tax bills

8. How do I know if my small business is going well?

Although you don’t need to know the nitty gritty of accounting jargon, it’s useful to have a basic understanding when it comes to interpreting your financial statements. Three most important financial statements are balance sheet, profit and loss statement (income statement), and cash flow statement.

Balance sheet: provides a snapshot of the financial position of your business at a given point in time

Profit and loss statement: shows your business’s financial performance in a given period of time 

Cash flow statement: records incoming and outgoing cash of your business in a given period of time

Cloud accounting software such as Xero can provide some of the information you need. You can delve into the profit and loss statement, and look at the key figures including sales (revenue), cost of sales, gross profit, non-cash expenses, operating expenses, and net profit. 

The cost of sales can increase if you hire an employee, for example. Your profit and loss statement should reflect an increase in sales or a reduction in your own workload. It is worthwhile to study your financial statements on a regular basis to get a better understanding of how your business runs. 

Read more: Interpreting your profit and loss account

9. What happens if I want to exit my small business?

When starting a business, many people focus on initial setup and target markets, but it's wise to have a solid exit strategy, whether you're in it for the long haul or open to potential opportunities. You should discuss with your accountant, they may have some recommendations on what you should look out for.  These include appropriate structuring advice, how the owners are remunerated, and the way certain items are shown in the financial statements.

At Beany, we have a starter pack designed to help kick start your business. For $85 + gst per month, you can get:

New business checklist and support: We will provide you with guidance and support on what you will need to do to establish and commence running your new business, including forming the company for you if you haven't already.

Help setting up your business: we can provide advice on the best business structure for your needs and take care of establishment and registrations, making sure you're good to go.

Xero setup and training: we can set up your Xero file so it is optimised for you and give you initial training so you can start off in the right way.

Budgets prepared and input into Xero: preparation of a budget tailored to your business and input into your Xero file so you can track how you are going.

Contact us today and we’ll prepare you for growth. 

We’re an online accounting firm that is always right here for you, your accounting pain relief. The most advanced technology lets us work way more closely with you than a normal accountant world. ​

We have a dedicated team of certified accountants and a support team to take care of your business no matter where you are, so you can focus on growing your business. We take out the ‘fluff’, break down the barriers and get things done. Looking out for you is what we are all about. Get started for free today.

New business

Understanding the cost of starting a business in New Zealand is vitally important, it helps you to plan ahead and avoid future cash flow problems.

NEW BUSINESS  •  9 OCTOBER 2022  •  7 MIN READ

Understanding the cost of starting a business in New Zealand is vitally important, it helps you to plan ahead and avoid future cash flow problems. We’ve covered 9 common costs of starting a business in New Zealand in this blog. Read more.

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