What does an accountant do? Roles and business advice

Published Tuesday 21 April 2026

Table of contents

• What does an accountant do? Core responsibilities
• Types of accountants
• Bookkeeper vs accountant: What's the difference?
• What an accountant can do for your business
• FAQs on accountants

Key takeaways

• Recognize that accountants do far more than manage numbers — they help you plan strategy, fix cash flow, manage debt, and support business growth, making them a valuable partner at every stage of your business.
• Understand the difference between a bookkeeper and an accountant so you hire the right support: use a bookkeeper for day-to-day transaction recording, and an accountant for tax compliance, financial statements, and strategic advice.
• Hire an accountant early — ideally at startup — to set up your finances correctly, create credible projections for lenders, and avoid costly mistakes that are harder to fix later.
• Look for an accountant with recognised qualifications such as CA (Chartered Accountant) or CPA (Certified Public Accountant) and membership with a professional body to make sure you're getting reliable, qualified advice.

What does an accountant do? Core responsibilities

An accountant is a financial professional who prepares, examines, and maintains your business's financial records. They ensure your records are accurate, help you pay the right tax, and keep you compliant with financial regulations.

But their role goes far beyond numbers. A great accountant identifies opportunities, manages risks, and provides solutions that help your business grow.

Key duties often include:

• preparing financial statements so you can see how your business is performing
• ensuring you comply with tax laws and other financial regulations, saving you from the median 32 hours of time spent in-house on annual tax compliance, according to IRD research on SME compliance
• offering strategic advice to improve profitability and growth
• helping you manage cash flow so you can pay bills and staff on time
• evaluating financial risks to protect your business

Types of accountants

Different types of accountants specialise in different areas to support specific business needs. As a small business owner, you might work with one or more of these professionals.

Some accountants complete the Chartered Accountant (CA) Program and three years of mentored experience to become a Chartered Accountant after meeting degree or entry requirements to qualify as Chartered Accountants with the skills to solve complex problems.

Here are the main types you'll encounter:

• Public accountants: Accountants in public practice can help with a wide range of tasks, including tax preparation, bookkeeping, financial statement preparation, and general business advice, depending on their qualifications and licensing.
• Management accountants: Working inside a business, they focus on internal financial reporting and strategy. They help you make informed decisions by analysing performance and budgets.
• Financial advisors: While not always accountants, they often have an accounting background. They help with broader financial planning, including investments, insurance, and retirement planning.

Bookkeeper vs accountant: What's the difference?

Understanding the difference between bookkeepers and accountants helps you decide which professional support your business needs.

Bookkeepers handle day-to-day financial tasks:

• recording transactions and maintaining ledgers
• reconciling bank statements
• processing invoices and payments
• managing accounts payable and receivable

Accountants provide higher-level financial services:

• preparing and analysing financial statements
• tax planning and compliance
• strategic business advice
• financial forecasting and budgeting

Knowing when to hire each type of professional depends on your business needs.

When you need one or both

Many small businesses start with a bookkeeper and add an accountant as they grow. Here's a general guide:

• Bookkeeper only: Your finances are straightforward and you mainly need transaction recording
• Accountant only: You handle basic bookkeeping yourself but need tax and strategic support
• Both: Your transaction volume is high and you need both routine processing and strategic guidance

The two roles complement each other. A bookkeeper keeps your records current, while an accountant uses those records to provide insights and ensure compliance.

What an accountant can do for your business

Modern accountants provide strategic business support that goes far beyond traditional bookkeeping. They act as partners who help you run a more profitable, efficient business.

Here's how they add value:

• Save money: Identify cost-cutting opportunities and tax efficiencies
• Boost revenue: Analyse performance data to find growth opportunities
• Automate admin: Set up systems that handle routine tasks automatically, joining the more than half of businesses, according to IRD SME research, that now manage accounts or process wages online
• Make decisions: Provide clear financial insights for confident planning

The following sections break down 14 specific ways an accountant can support your business.

1. Launch a startup

Startup support from an accountant helps turn your business idea into something funders want to back. They create the financial foundation that investors and lenders expect to see before committing money.

If you're launching a new business, an accountant can help with:

• Business validation: Test your idea's profitability before you invest
• Cost planning: Identify all startup and operating expenses upfront
• Revenue forecasting: Create credible financial projections for lenders and investors
• Funding strategy: Some accountants may help introduce you to lenders or other advisers, depending on their services and networks
• Pitch preparation: Help prepare the financial sections of presentations used in funding discussions

2. Help with business strategy

Support for business strategy means your accountant helps you set goals, track performance, and decide how to grow. They cut through complexity to identify what matters most.

Strategic planning services include:

• Goal setting: Define clear personal, professional and financial targets
• Key performance indicator (KPI) development: Create measurable indicators that track business health
• Dashboard setup: Get real-time access to your key performance metrics
• Performance monitoring: Regular reviews to spot issues before they become problems
• Strategy adjustment: Modify plans based on actual results and market changes

3. Fix your cash flow

Managing cash flow ensures you have enough money available to pay bills when they're due. Without it, even profitable businesses can fail due to timing mismatches between income and expenses.

An accountant can help with:

• Forecasting: Predict when money comes in and goes out
• Reserve planning: Build cash buffers for unexpected expenses
• Payment timing: Schedule expenses to match your revenue cycles
• Collection strategies: Speed up customer payments to improve cash position
• Spending controls: Prioritise expenses to maintain healthy bank balances

4. Listen and support you

Running a business is tough, and it can be lonely. A good accountant understands this and can help you stay focused when things feel overwhelming.

They'll break down big problems into manageable parts, help you refocus on your goals, and provide reassurance when you need it. Some business owners value the perspective and support a trusted accountant can provide.

5. Manage your debt

Support to manage debt helps you assess borrowing based on cost, repayment terms, purpose, cash-flow impact, and risk.

Your accountant can help you:

• compare borrowing options and assess likely cost and repayment implications
• decide when refinancing may be worth exploring, and refer you to an appropriate adviser if needed
• determine whether spare cash should pay down loans or be reinvested

They'll develop a specific strategy based on your business numbers and debt structure, not blanket advice.

6. Deal with unpaid invoices

Unpaid invoices are a fact of business. See the business.govt.nz debt recovery guide for help. Chasing debtors is a distraction you don't need. With the median hourly value of a business owner's time estimated at nearly $89, according to IRD compliance cost research, you can't afford to ignore the problem.

An accountant may help you set up processes, reporting, or software to manage receivables more efficiently.

7. Write and pitch loan applications

Support when applying for loans goes beyond pulling together numbers. A good accountant helps you craft a compelling story that gives lenders a clear picture of your business.

Lenders need solid financials and credible forecasts. See the business.govt.nz guide on getting finance for more details. They also want to understand your business vision. Your accountant can:

• prepare clear financial statements that show your business performance
• create realistic projections based on your business model
• explain your numbers in a way lenders understand
• highlight the financial strengths that make you a good borrowing risk
• help you anticipate and answer lenders' questions

FAQs on accountants

Here are answers to common questions about accountants and their services.

What qualifications should an accountant have?

Look for accountants with recognised professional qualifications such as CA (Chartered Accountant) or CPA (Certified Public Accountant). They should be registered with a professional body and hold current practising certificates where required.

How much does an accountant cost?

Accountant fees vary based on the services you need, your business size, and your location. Some charge hourly rates, while others offer fixed monthly packages. Expect to pay more for specialised advice than for routine compliance work.

When should I hire an accountant?

Hire an accountant when your business finances become too complex to manage alone, when you need tax planning advice, or when you want strategic guidance for growth. Many businesses engage an accountant from startup to ensure they set up correctly.

Can I do my own accounting?

You can handle basic bookkeeping yourself using accounting software, but you'll likely need professional help with tax returns, financial statements, and strategic planning. The time you save and mistakes you avoid often make an accountant worthwhile.

What's the difference between an accountant and a bookkeeper?

Bookkeepers record daily transactions and maintain financial records. Accountants analyse those records, prepare financial statements, handle tax compliance, and provide strategic business advice. Many businesses use both.