Member
Sole Trader Accountant Recommendation
Can anyone recommend a good Accountant for sole traders in the Wellington region, preferably near Johnsonville?
Another question: I'm importing products from the US but usually each order costs less than $400(NZD) and, because of that, the products go directly to me without passing through Customs. Is it possible to deduct this value when declaring my taxes?
Senior Member
If you are importing goods commercially for which customs charges are under $50 then these are classified as "write-offs" and no charges are payable. I'm not sure on what the rules are with respect to being registered as an importer (if you aren't then it is probably a good idea to get in touch with a customs office to find out if you need to be registered even if you have nothing payable - www.customs.govt.nz).Originally Posted by emaino
When preparing your taxes you can deduct the cost of the goods - but you need evidence for that cost (i.e. an invoice from the supplier).
You also need to be registered for GST if your turnover (i.e. total sale price) is more than $60,000 for the past 12 months or expected to be more than $60,000 in the next 12 months. If you are GST registered then you will be able to reclaim any GST that you have to pay on imports (but not duties) if you end up paying them due to placing bigger orders with your suppliers - you will, however, also have to charge GST on your product!
Member
Good info James, lets hope I can remember it when I need it.
he he he
Member
In regards to an accountant, Glenn McTaggert is very good, gm@tacs.net.nz 049398266.
I used to use him when I lived in the capital.
Tim
Member
Did you use him when acting as a Sole Trader?
Do I need to pay an Accountant each month or only when I need to declare anything? Or, better yet, only when I have any questions?
Senior Member
You don't have to pay an accountant for anything as you could do it all yourself. However it normally makes sense to get an accountant to advise you on what your legal obligations are and how to go about sorting them out. This will be a one-off fee.
After that you can get them to pull together your accounts, file your tax return and GST returns etc or just do it yourself. A number of people will use an accountant the first time and then follow what they did after that. You can also save money by pulling everything together yourself and getting the accountant to review it!
Most accountants will charge based on a hourly rate to do what you want them to do. If they don't do anything then you don't get charged.
Member
Yes used him as a sole trader and hes very good, as James advises above, your costing and relationship with your account will depend on your needs. If you want him to do all your books, then you can arrange monthly account, if its just for work now and then you pay per hour.
Tim
Member
Thanks for the answers. I'll contact the accountant mentioned so I can get more information.
This is really different from my country where you need to have a full-time accountant...
Member
Another question: if the invoice for the products is in US dollars, which rate should I use to convert this if I want to deduct this value? Should I use the same value listed on my credit card statement (it's converted to NZ dollars).
Senior Member
That would be fine as that is what it has cost you (you can also take the foreign currency transaction fees on your credit card statement as a tax deduction too).
It is best, however, to try and split out your personal transactions from your business ones - so set up a new bank account and credit card for business expenses and income only for example. This makes things much easier if the IRD decide to investigate you or ask you questions as that way you only have to look through the business account and can show that there are no personal transactions in there other than transferring the profit to your personal account for you to spend!
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