Prepare Your Business' Financial Functions

Sole Trader:
If you’re in New Zealand, just use Hnry. They handle all aspects of tax and compliance for sole traders, making it incredibly easy. They charge only 1% +GST of your income earned. It’s a comprehensive service that lets you focus on your work without worrying about tax. They’re amazing!

Company:
For a construction company to run smoothly, you absolutely need an accountant, a bookkeeper, and some cash reserves. Can you manage without them? Honestly, it’s difficult.

Why Do You Need an Accountant?‍

An accountant is essential for setting up your financial systems, managing your tax obligations, and completing your end-of-year financials. These systems ensure that your business stays compliant and up-to-date with tax regulations. A good accountant also provides valuable financial advice to guide the future of your business.

If I Have an Accountant, Why Do I Need a Bookkeeper?‍

Many businesses don’t survive their first year. A bookkeeper plays a vital role in your day-to-day operations by managing GST returns, tracking expenses, and identifying inefficiencies through financial reports. A great bookkeeper also teaches you the fundamentals of business operations, which is critical during the early stages when many businesses struggle to stay afloat.

How Much Cash Do I Need?‍

It’s ideal to have enough cash reserves to cover at least three months of personal expenses and fund your next job. While there are exceptions, having this financial cushion helps mitigate risks, ensures stability during tough times, and gives you peace of mind.

Once you’ve secured an accountant, a bookkeeper, and some cash reserves, you’re ready to move on to the next step.