Change NZ Accounting Law
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We, for and on behalf of Business Crisis Support NZ LTD and the undersigned respectfully ask that Accounting Law changes be made to ensure that Accountants/Chartered Accountants and Book Keepers take their role more seriously - whether their clients are private, large companies, or small business owners.
Sole Traders in particular need protection from financial exploitation, etc as do Special Needs clients. We do not think Clients should pay exorbitant fees for what mainly boils down to excessive use of data entry skills - where ten fingers get your books done faster than two.
On a daily basis we see too many businesses going into liquidation, receivership, etc. (Please refer to the NZ Herald's Public Notices section).
Behind many unsuccessful and successful businesses, is an Accountant /Chartered Accountant and/or Book Keeper.
Behind the loss of a business are stories of being powerless to do anything. Emotional pain leads to depression, anxiety, PTSD, mental illness, drug andd alcohol abuse, increase in car accidents, selfharm/ suicide attempts. (These are the psychological prices of losing a business). And in desperate circumstances - ending ones life completely (the psychological price of entrepreneurship).
We are talking about Corporate Bullying of a different kind that has been missed by many or conveniently overlooked.
Reporting on a business's financial position often rather than once a year is important. There are huge variances in reporting, customer service, level of commitment to the job, etc. Types of services vary as well. An Accountant/Chartered Accountant/Book Keeper should explain their role properly and fully at the first point of contact - there should be no surprises further down the track.
Charge out rates (like customer service, services offered, and reporting) etc, are all over the place eg $45 per hour (reasonable) to $100 plus per hour (unreasonable) - just for having your bank reconciliation, profit and loss statements done.
Accounting software or cloud based accounting platforms make completing the job more efficient and supposedly more cost effective for the client. But there's monthly fees and larger fees to set everything up.
There are in fact more variances in other areas including professional conduct, bias towards special needs clients, etc.
There are professional accounting bodies like CAANZ (Chartered Accountants Australia New Zealand), and ATAINZ (Accountants Tax Agents Institute of New Zealand), but we have no concerns with them. We know they try their best. It is Accounting Law, and the introduction of a new Book Keeping Law that needs to go further to address disparities and variances that have been apparent for a long time.
An Accountant/Chartered Accountant and Book Keeper has a responsible job. They are overseeing other people's money - that being the Client's financial livelihood, a company's finances. Some Accountants/Chartered Accountants offer business support or mentoring in industries where they have no experience.
The astute Accountants/Chartered Accountants/Book Keepers need to be separated from the ones who aren't.
More importantly, the individual and business community deserve to be treated fairly and with dignity by their Accountant/Chartered Accountant and Book Keeper. Change NZ Accounting Law offers a solution.
In addition to this, changes to Insolvency Law need to be made to strike a humane balance between debtor and creditor needs. Many Book Keepers, Accountants, Chartered Accountants are misrepresenting the suitability of their services for a particular purpose. Both Industries need to be better regulated. Yes, Chartered Accountants have the NZ Institute of Chartered Accoutants Act 1996 (and its amendments), but it’s not enough.
A Book Keepers Act needs to be created because no such Act has ever existed. Thanks.
Please support Christchurch Business Advocate Lisa Cowe's petition: Shut down www.insolvencywatch.co.nz
If you or someone else you know can relate to any points raised, please draw their attention to this petition and share on your Facebook and/or Twitter page.
We especially want to hear from business owners who have been through bankruptcy, liquidation processes, etc. If anyone needs support, wishes to discuss this petition with us at Business Crisis Support NZ Ltd, please contact Fiona at 02108520271 or email: firstname.lastname@example.org.
We have received the following feedback:
"Accountants. What could they do differently? A lot. Helping Clients create 'Cashflow Positive' businesses would be a good start. Educate Clients about their tax obligations. Actually give business advice that suits the Client's business and goals. Learn more about the real impact of insolvency so they can advise Clients - correctly.
Halve their fees and share knowledge with Clients . Encourage Clients to grow their businesses to support their communities." Ford
(1) If an Accountant/Chartered Accountant/Book Keeper asks you to sign anything before they take you on as a Client we suggest you understand what you are getting yourself into – before signing. Ask questions.
(2) Re: End of Year Financials. Do not sign a 'compilation report' until you have studied your 'End of Year Financials' carefully. Again, run this 'compilation report' by someone who understands at the least, the links between the balance sheet figures and those on the Profit and Loss account. Be sure you understand what a balance sheet is and what it represents.
We suggest you attend bankruptcy cases at your local High Court to gain further insights and to broaden your knowledge about our petition themes.
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