Self-employed contractors and freelancers generally know how much they pay for their accountant or accounting software. But most don’t consider the hidden costs of their financial admin.
We break it down here.
Accounting at what cost?
How much does an accountant cost in New Zealand? At Hnry, we generally hear that people pay between $600 and $1200 per year for their accountant. But some people give us truly astounding figures: one customer who signed up recently said they were paying $8,000 per year for their accountant!
But what does your accountant actually do? The truth is: not much.
Things like your ACC payments, your actual tax payments to IRD, not to mention the admin of invoicing, getting paid on time for your work, and gathering up your expense receipts at the end of the financial year – these things are all your responsibility. Your accountant won’t do this for you, no matter how much you pay them.
So there’s still a lot that falls on your shoulders, which you’ll need to deal with yourself – often with very little confidence that you’re doing the right thing.
How much does your ‘system’ cost you?
If you don’t have an accountant (or even if you do!), chances are you have a system in place to deal with your accounts: some form of accounting software plus spreadsheets; maybe just the software; or maybe you have none of these and you manage it all yourself. Whatever your system, have you ever stopped to think about how much time (and money) it’s actually costing you?
If you make $100 an hour in your contracting job, and then spend a couple of hours each month on your accounting software or DIY system of spreadsheets, you’re spending $2400 per year of your time working on something that you’re no expert in. That’s a lot of money and a lot of hours (in this case, three days’ worth), that you could be putting to better use.
And how confident are you in your current system?
How much peace of mind do you get for your time and money? When you spend thousands a year on an accountant and accounting software, are you confident that everything is being taken care of?
At Hnry, we know that peace of mind and confidence are really important to self-employed Kiwis. For them, it means having someone take care of the tax filings and the communications with IRD and ACC, plus how you actually get paid for your work and how you can plan for your financial future.
How much does that time cost you? What could you be doing with that time back? And could you be saving money with a newer, more automated and comprehensive system?
Hello Hnry
There’s a better solution - Hnry.
Hnry is the all-in-one answer to your tax admin, handling everything you need and then some. Hnry replaces your accountant, your accounting software, and your DIY spreadsheets – all for just 1% of the self-employed income you put through your Hnry Bank Account. And this cost is capped at $1,500 a year, so you’ll never pay those astronomical sums to have all of your admin taken care of.
From comprehensive tax calculations, payments and filings, to having your expenses reviewed and tax relief applied in real time by our team of tax experts – to invoicing software that follows up on late payments, and a multitude of client payment options – Hnry has you covered.
It’s time to get that peace of mind. It’s time to leave the tax to the experts.
Want to find out just how much time and money your tax admin costs you each year?
The calculator takes into account the approximate time you spend managing your admin and making payments, as well as the amount you may currently be spending on services, and provides the average annual cost of your Financial Admin.
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