If you provide fringe benefits to employees or shareholders, you would normally have to lodge every three months an FBT Return and pay IRD tax at 49% of the declared value of the fringe benefits.
There is another option. Rather than file FBT returns and pay IRD, your accountant could prepare a Journal Entry at the end of the year that records the value of the fringe benefits, charging a drawings or loan account and crediting an income account. This is much easier, saves administration and parting with cash.
In a nutshell, accounting reports tell if you have made a profit. If you receive monthly Profit and Loss Reports, you will know sooner rather than later if your profit is increasing or decreasing. If you are losing money, you will be able to take action to more quickly remedy the situation, such as increasing prices and decreasing expenses, to fix the situation long before a year has passed.
More regular reporting gives you more control of your business.
A good bookkeeper could record your transactions and organize your accounting quickly, especially if they have good accounting software.
However, you would still need to have a basic understanding of accounting reports so that the information supplied by the bookkeeper becomes meaningful and useful for business decision making.
The bookkeeper may not have a sufficient understanding of accounting to ensure the accounting system gives you reports to assist in your decision-
