New technologies are transforming the role of the accountant. While compliance remains critical, clients want more value from the relationship. Businesses of all sizes are looking to their accountants for insights to improve cash flow and increase profit.
Auckland-based Franchise Accountants, the only accounting firm in New Zealand that specialises exclusively in franchising, is thriving in this environment.
“The accounting landscape in New Zealand has changed over the past few years,” says Franchise Accountants director Philip Morrison CA. “Clients now want more from their accounting dollar; they’re looking for an edge. As a result, about 30% of our business is now business advisory-based.”
“The accounting landscape in New Zealand has changed. Clients now want more from their accounting dollar.”
Using tax pooling to grow your business
Morrison says digital leaders such as Tax Traders and Xero help his team do their jobs better. “We are an early adopter of new technologies as this gives us a competitive advantage,” he says.
An example is the practice’s use of tax pooling for its clients. Instead of paying directly to Inland Revenue (IRD), the taxpayer pays into a tax pool when cash is available through the year. If they have underpaid at the end of the tax year they can buy tax to settle their liabilities, avoiding IRD late payment penalties and use-of-money interest. If they have overpaid, they can earn premium interest by selling their excess.
“Tax pooling is an absolutely necessary component in running a successful accounting practice,” explains Morrison. “Cash flow can cause sleepless nights for clients, because cash isn’t always available when a tax payment is due.
“Working with Tax Traders gives us access to the widest range of payment solutions in the market, so we look like the good guys in front of our clients. Clients love us for it,” he says.
He believes being able to offer tax pooling is helping to expand his firm, because it helps his clients develop their business. “High-growth businesses suck cash. Tax Traders helps them spin out their cash flow as well as they can,” he says.
“We moved from one of the other tax pools,” Morrison adds. “Tax Traders really stood out with better solutions, better value and service. Their software is easier to use.”
(Tax Traders is an IRD-approved intermediary and all funds are securely held by the Public Trust.)
Leveraging the latest technology
Franchise Accountants has won five Westpac New Zealand Franchise Awards for Best Service Provider of the Year, and they’re focused on staying ahead of the curve as the market evolves.
“Tax Traders give us an edge. They are the top tax pooling adviser and their technology is constantly improving,” says Morrison, “so we have an advantage over those [practices] who don’t use Tax Traders.”
Morrison’s associate, Hayden Cargo CA, is just as enthusiastic. “Tax Traders’ Residual Income Tax (RIT) Calculator is the best tool for accountants I’ve seen in the market,” he says.
Previously, Cargo had to manually calculate what amount had to be paid at each tax point. “Now all I need to do is enter the information into Tax Traders’ website and it determines exactly what I need to pay by when, and shows the benefit to the client. Too easy.”
Find out more
If you have any questions, call Tax Traders on 0800 TAX TRADERS (829 872) in New Zealand or email [email protected]