The financial experts: What CPAs and CAs bring to the table

In business, having the right financial expertise can make the difference between surviving and thriving. Whether you’re dealing with international investments, managing cash flow challenges, or planning for growth, a qualified accountant’s technical knowledge and strategic insight can be invaluable. And that’s where Chartered Accountants (CAs) and Certified Public Accountants (CPAs) stand apart.

What makes a CPA/CA special?

If you’re not entirely sure what a CPA or CA is, let me start by summarising that for you. CPAs and CAs are professionals who have gone beyond their bachelor’s degrees. They are specialised accountants with tax, financial, and management accounting expertise.

The CPA and CA programmes are accredited postgraduate qualifications requiring practical experience. These programs set rigorous entry standards and involve a series of demanding assessments based on real-world scenarios. I remember when I undertook my qualification, completing a market and income-based valuation using real-world data to evaluate the purchase price of a business. I had to analyse options to raise capital for the purchase and provided recommendations based on different scenarios considering real inflation and interest rates. Without this experience, accountants would not be well prepared to offer advice on situations requiring this level of analysis.

The programme is designed to prepare accountants for complex financial and tax issues. Even after completing the program, CPAs and CAs continue to participate in annual training, webinars, and learning activities to stay up-to-date with laws and regulations. Thanks to these qualifications and ongoing training, we are well-equipped to handle complex financial and tax situations. We work as partners in your business or investments, constantly monitoring trends, options, changes in legislation, the business environment, and regulations for you.

Turning tax troubles into business growth

Cashflow is often a common problem we see businesses struggling with. Just recently, I acquired a client who was struggling to find the right solutions for their cashflow problems and required the expertise of a CPA/CA firm. I analysed the cash flow and concluded that their main burden was their tax payments. By working out different scenarios and future tax liabilities, I provided a solution that allowed the client to pay their late taxes, avoiding penalties and with a lower interest rate than what the IRD was charging them. I also discussed a financing option with lower interest compared to standard borrowing costs for their future taxes. The client agreed with our solutions, and as a result, they were not only able to avoid future cash flow problems but also freed up cash for other business expenses.

This is one of the benefits of investing in a CPA or CA—we’re not just focused on creating solutions for your current issues; we think about the future to help give you peace of mind that your financial and tax affairs are handled with the right care.

Minimising tax liability by 90%

Beyond preparing financial statements and tax returns, hiring a CPA or CA can offer several advantages. For example, I had a client who had a pension withdrawn from a country that does not have a double tax agreement with New Zealand. Without consulting an accountant with the right expertise, they likely would have faced a huge tax liability on top of the tax they had already paid in the source country of the pension. However, the client wanted a more technical view of their situation, and I was lucky enough to become their accountant. By conducting thorough research and evaluating different alternatives, regulations, and tax decisions, I was able to come up with a solution that ended up saving them about 90% of the tax liability that they would have otherwise had to pay if they had not hired a CA.

CPAs and CAs are well-versed in New Zealand taxation, including the impact of overseas income. They evaluate different business structures, income distribution, deductible expenses, and their effects on various taxes. Their technical skills enable them to navigate laws and regulations to find solutions for complex and unique situations, helping you with tax planning to minimise tax liabilities while ensuring compliance with the law.

Other benefits of hiring a CPA/CA

CPAs and CAs also help improve your business’s performance. Using qualitative and quantitative data, we can provide insights into your business and help you make informed decisions about how to execute your business strategy. Whether it’s business planning, budgeting, forecasting, cash flow management, resource utilisation, or valuations, the training CPAs and Cas undertake makes them fully qualified to help. All of which can help you understand your business better, improve performance, create short and long-term plans, and achieve overall business goals

Finally, CPAs and CAs are highly knowledgeable about financial reports and standards. These standards ensure that financial reports are consistent, transparent, and comparable across different industries and companies, aiding in informed decision-making, business investments, and meeting regulatory requirements. I have had clients for whom I referred back to my CA studies to classify leases, for example, which have a complex classification and recently changed standards that can significantly impact your financial performance and position. Which, in turn, can affect your ability to borrow money. It’s complex scenarios like this where seeking expertise is essential.

We’re here to help

At Gilligan Sheppard, we have a whole team of qualified CA/CPAs who are here to help. From overseas investment income to capital raising, we are well-versed in coming up with solutions for a wide variety of scenarios. What makes us special is that we take the time to sit down with you to understand your unique situation and to come up with tailored solutions for whatever challenges you may be facing. If you’re interested in working with us or want to know more about our services, you can contact us here.